Paul Newman founded the for-profit company Newman’s Own, which produces and sells food and other household products. When Newman died in 2008, he left his entire interest of the company to his private foundation. The law at the time stipulated that the foundation was required to divest itself of the business interest by November 2018. However, Congress finally passed what is being referred to as the Newman’s Own exception, which the company had been lobbying for for more than a decade. The exception allows private foundations to own for-profit companies if 100% of the profits are going to charity, the company is independently owned and operated, and other requirements.
See Karen Demasters, Paul Newman Still Giving to Charity, Even in Death, Financial Advisors, May 30, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
