Purpose Trust Partners aims to make Wisconsin #1 in Purpose Trusts for Business Ownership
VIROQUA, Wis., Oct. 8, 2024 /PRNewswire/ -- Purpose Trust Partners are proud to announce the launch of the 'Purpose Trusts for Wisconsin's Future' project. This innovative initiative aims to introduce and establish legislation to enable Perpetual Purpose Trusts (PPTs) as an option for business ownership in Wisconsin. This project will bring the national Purpose Trust movement to the state, keep more business ownership in Wisconsin, and put the Dairy State at the forefront of states with PPT-specific statutes.
Perpetual Purpose Trusts are growing in popularity as an ownership structure that empowers companies to permanently pursue purposes other than maximizing shareholder profit. Many businesses are founded for purposes beyond maximizing profit, such as providing stable livelihoods to employees, reducing our impact on the environment, or advancing the prosperity of a local community. But these good intentions are as short-lived as the good-will of the owner, who could retire, sell the business, or have a change of heart. Perpetual Purpose Trusts solve this issue by providing business owners a vehicle to protect their vision and the legacy of their business in perpetuity. Through a PPT, the corporate fiduciary duty of maximizing shareholder profit is permanently replaced or supplemented by the purpose of the trust, which owns the company's voting shares. Through the trust, stakeholders share the benefit of the business' success in perpetuity.
"Perpetual Purpose Trust ownership is a great option to consider for succession to assure that the mission and culture of a business remain paramount." says George Siemon, Trust Committee Member of the Sustainable Food & Agriculture PPT and founder of Organic Valley. "The goal is to remove the negative incentives around power and money so that all stakeholders can steer the business as a positive force for good."
Today, Wisconsin businesses that want to use a PPT must establish the trust outside of Wisconsin, in a state like Oregon or Delaware that provides for PPTs. This is costly to businesses who must pay out-of-state trustee and administration services, and a lost opportunity for Wisconsin, which could retain these investments and jobs. More generally, businesses are proud to operate in and call Wisconsin home, and should have the option to use Wisconsin-based PPTs.
Melissa Scholz, Principal of Scholz Nonprofit Law LLC, adds, "Perpetual Purpose Trusts will be a great option for Wisconsin's nearly 50,000 retirement age business owners, many of whom are looking for ways to carry on their legacy. Through a purpose trust, a business owner can ensure that the business they worked so hard to build will be carried on for the benefit of the people, communities, and causes they care about.
The project has garnered support from various stakeholders and business leaders who recognize the potential impact of PPT legislation in Wisconsin, including:
- Natalie Reitman-White, owner of Purpose Owner LLC, a leading PPT consulting firm supporting businesses with ownership transitions
- Susan Gary, Professor Emerita, University of Oregon School of Law, helped write the Oregon Stewardship Trust statute and has written numerous articles explaining PPTs
- Stacey Smith, Senior Vice President, Project Equity
- Melissa Scholz, Principal, Scholz Nonprofit Law LLC
- George Siemon, Trust Committee Member of the Sustainable Food & Agriculture PPT and founder of Organic Valley
We invite all interested parties to join us if any of the following apply to you:
- You own a business and are curious if PPT is the right fit for you
- You are interested in joining a community conversation to learn more
- You, or your organization, are interested in supporting this work financially
For more information visit www.purposetrustpartners.com or email [email protected].
About Purpose Trust Partners
Purpose Trust Partners was founded to steward the conditions for people to create and scale purpose driven organizations that tackle the complex problems of our time, putting equity and climate challenges at the center of that purpose. Purpose Trust Partners views Perpetual Purpose Trusts (PPTs) as a structural necessity to leverage businesses as a force for good.
SOURCE Purpose Trust Partners
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