January marks the 100th birthday of actor, entrepreneur, and philanthropist Paul Newman. In addition to his catalogue of critically acclaimed films and his successful food business, Newman and the Newman’s Own have donated over half a billion dollars to good causes since he and his longtime friend A.E. Hotchner started Newman’s Own in 1982, ushering in a new model for business and philanthropy.
When Newman passed in 2008, he gifted his for-profit company to the Newman’s Own Foundation, marking the first time that governance of an enterprise had been reversed in this way. In fact, the transfer wasn’t strictly legal at the time, but it became so ten years later when Congress passed the Philanthropic Enterprise Act of 2018, which allowed private foundations to own 100 percent of a for-profit business under certain conditions and it exempted those foundations from excise taxes on those excess business holdings.
Newman’s Own operates on a 100% for Purpose model where the nonprofit owns the food company and 100 percent of the profits and royalties from the sale of Newman’s Own products to the foundation in service of its mission to nourish and transform the lives of children who face adversity. Grantee partners support joyful experiences for children with serious illnesses, nutrition education, school food programs, and Indigenous food justice programs.
Some of the groups that the foundation has supported include: the Food Research & Action Center, a Washington, DC-based organization improving nutrition, health, and well-being of people struggling against poverty-related hunger; FoodCorps, a Portland, Oregon-based organization creating a future in which every child, in every school, experiences the joy and power of food; and Wellness in the Schools, a New York-based organization that teaches children healthy habits to learn, live and thrive.
Newman’s Own Foundation also supports SeriousFun Children’s Network, a network of summer camps for children with serious illnesses, the first of which was founded by Newman in 1988.
“When I was a counselor at the first SeriousFun camp more than 30 years ago, Paul Newman visited the camp almost every week to simply be with the kids. He always showed the same kind of generosity of spirit, humility, and appreciation for puckish fun that the children showed,” said Blake Maher, CEO of SeriousFun Children’s Network in an email message to this writer. “When Paul set out to create the camp, he instinctively understood what science now proves, that positive childhood experiences can mitigate the negative impacts of traumatic childhood events, such as serious illness. Visionary that he was, Paul got that, stepped forward, and changed the lives of millions of kids.”
Additionally, Indigenous people in the United States experience significantly higher rates of chronic disease and diet-impacted conditions, such as diabetes, chronic kidney disease, heart disease, and obesity. Native populations are also twice as likely to face hunger than other non-native populations.
Some of the nonprofits that the Newman’s Own Foundation are supporting to combat these issues include: Dream of Wild Health, a Minneapolis-based organization that works to restore health and well-being in the Native community by recovering knowledge of – and access to – healthy Indigenous foods, medicines, and lifeways; Zuni Youth Enrichment Project, a Zuni, New Mexico-based organization promoting resilience among Zuni youth, and connecting them with Zuni traditions; and Feed Seven Generations, a Enumclaw, Washington-based organization revitalizing the health and wellness of tribal communities by amplifying the voice of Native people, reconnecting them to ancestral community health practices, and elevating land management strategies.
As part of Newman’s legacy, the 100% for Purpose model is being embraced by other companies and organizations. For example, Patagonia recently announced that its only shareholder is the Earth, and it established a perpetual purpose trust taking ownership of 100 percent of Patagonia’s stock. Patagonia issues dividends to the trust, which are then distributed to environmental initiatives. Humanitix has launched a ticketing platform that’s 100% for Good, and Michael Bloomberg has said that he will donate his stake in Bloomberg LP to Bloomberg Philanthropies at his passing or sooner. At the same time, other actors such as Hugh Jackman (Laughing Man Coffee) and Kevin Bacon (SixDegrees) have credited Newman with inspiring their own business and philanthropic work.
“Paul Newman’s legacy in creating the Newman’s Own ‘Give It All Away’ model was radical 40-plus years ago, and it continues to be incredibly unique today,” said Alex Amouyel, president and CEO of Newman’s Own Foundation in an email message to this writer. “He and Newman’s Own have inspired a whole movement around 100% for Purpose organizations and we hope others will start or convert their own 100% for Purpose organizations following their footsteps.”
Or as Paul Newman himself once said, “I would like it if people would think beyond Newman, there’s a spirit that takes action, a heart, and a talent that doesn’t come from my blue eyes.”
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