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Instead of selling, business owner donates company to trust for charity
PBS • • business
Key Points:
- Eddie Smith, 83, owner of Grady-White Boats, has pledged nearly all future company profits to charity by placing the business in a perpetual purpose trust rather than selling it, despite offers exceeding $400 million.
- Smith was motivated by a desire to preserve the company’s culture and legacy for employees, dealers, and the community after the loss of his son, who he had hoped would succeed him.
- The trust structure ensures that all voting shares are held by the trust, with over 90% of profits going to a nonprofit supporting causes such as education, healthcare, and conservation in Eastern North Carolina.
- Employees reacted positively and emotionally to the announcement, relieved that the company would not be sold and that profits would continue to be shared with them.
- Smith hopes his decision raises awareness among other business owners about purpose trusts and inspires greater philanthropy among wealthy individuals to address social needs.
