Following in Paul Newman and Yvon Chouinard’s footsteps: There are more ways for leaders to give it away in ‘the Great Boomer Fire Sale’ than ever

The most radical act in capitalism today isn’t launching a unicorn startup or orchestrating a multi-billion-dollar IPO – it’s giving your company away in service of good.

While some business leaders are focused on how to make their fortunes in AI or crypto, others are choosing to walk away with nothing except what matters most: a philanthropic annuity to cement their legacy. As the President and CEO of one of the most famous brands that gives 100% of its profits away, I am hearing from more and more CEOs and business owners who want to follow in Paul Newman or Yvon Chouinard’s footsteps. These leaders spent decades building profitable enterprises and are now working to transfer ownership of their companies, not to the highest bidder, but to foundations, nonprofits, purpose-driven trusts, or to their employees.

An estimated 2.9 million private U.S. businesses are owned by those over 55. Over the next 20 years, the Great Wealth Transfer and “The Great Boomer Fire Sale” is a unique opportunity to reimagine business exits as an act of generosity. 

Why give away your business? A generosity exit allows you to maximize your giving through an engine that will keep generating profits every year, creating a philanthropic annuity, while preserving the company, its employees, and the culture built over decades. Besides, conventional exit options may not be a great fit for your values if you’ve spent decades investing in your employees and your community. Selling to private equity or another business could mean layoffs and a decimated culture. Not all owners have family heirs who want or can take over. Going public is only available to the biggest businesses and subjects your life’s work to quarterly earnings pressures and the short-term thinking that comes along with it. Purpose and legacy can be more important than a big check at the end of your life, especially if you already made good money throughout your life’s work. 

As the baby boomer generation looks to the legacy they want to leave behind, Millennials and Gen Z look ahead to the legacies they want to build, with some founding successful companies where giving 100% of their profits away is baked in from the beginning. Entrepreneurs like John and Hank Green of The Good Store, and Adam McCurdie and Joshua Ross of Humanitix, are challenging the critics of the ‘business for good’ model by showing that you can grow a successful business while simultaneously giving away all profits.

The good news for those interested in giving away their business? There are now more governance models available than ever before. 

Choosing the Right Structure for Your Exit

Through the passage of the Philanthropic Enterprise Act in 2018, foundations can now own 100% for-profit companies in the US. Newman’s Own Foundation is an example of this. As a result, one hundred percent of profits and royalties from sales of Newman’s Own products go to the Foundation in service of its mission: to nourish and transform the lives of children who face adversity. 

Patagonia uses a perpetual purpose trust, a type of steward-owned ownership which is more common in Europe. Since 2022, the trust holds 100% of the company’s voting stock to ensure its environmental mission and values are preserved indefinitely, while profits are funnelled to a 501c(4), Holdfast Collective to give away to climate causes. These models create what economists call “lock-in effects” allowing owners to keep mission front and center, even when they’re gone.

Over 6,500 U.S. companies are now fully or part-owned by their workers, using Employee Stock Ownership Plans (ESOPs), including Bob’s Red Mill and King Arthur Baking Company. These models support business continuity and create thousands of employee-owners who are invested in the company’s long-term success. While in many cases, these exits are financed through loans, there’s nothing stopping an owner from giving the business to their workers.

You can also look at hybrid models. For example, Organic Grown Company uses a perpetual purpose trust to ensure profits are split between equity investors, employees, growers, and nonprofits.

And while a business owner may decide to establish their own foundation, why reinvent the wheel? There are plenty of existing foundations and non-profits who could be worthy recipients if you want to give your company away. Back in 2011, Amar Bose gave the majority of the stock of the sound system company Bose corporation to his alma mater, the Massachusetts Institute of Technology in the form of non-voting shares.

What’s Next? 

This holiday season is upon us, and whether you own a business or not, it’s a good time to reflect on what matters most: What are your values? How much money is enough for yourself and your family? What does legacy mean to you?

For CEOs and owners considering a generosity exit, the first step is to assemble the right team: attorneys experienced in foundation-ownership, purpose trusts, or ESOPs, financial advisors who understand tax implications of these unique paths, independent directors or trustees who share your vision. Organizations like 100% for Purpose, Purpose Trust Ownership Network, and Purpose Foundation can provide resources and case studies.

Start mapping out your plan, and be patient as a transition could take years, not months. Yvon Chouinard spent two years structuring Patagonia’s transition. While Paul Newman decided from the beginning to give all of the food company’s profits away back when it began in 1982, the first few years were just him writing checks at the end of the year. A foundation was initially established in 1998, and became Newman’s Own Foundation before Paul’s death, at which point the food company was gifted to the Foundation. The complexity isn’t just legal—it’s emotional, relational, and cultural, but ideally, the transition can happen while you’re still actively involved, can steward the shift, and can see the rewards of your hard labor pay dividends for good. 

In this day and age of robots and artificial intelligence, it’s good to remember Paul Newman’s wise words: “Corporations are not inhuman money machines. They must accept that they exist inside a community. They have a moral responsibility to be involved. They can’t just sit there without acknowledging that there’s stuff going on around them.”

Building a profitable company is hard but what’s truly meaningful is to let them go in service of good. In doing so, we allow our work to live on in ways that matter far beyond the balance sheet.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

This story was originally featured on Fortune.com