There has always been a problem with the Newman's Own line of grocery products. It has nothing to do with their quality or taste. Instead, it is how they were initially set up.
Paul Newman started the brand as a for profit corporation to sell his recipes. He donated all the profits to charitable causes. After he died, the company was passed to a not-for-profit foundation. That is where the problem arose.
Not-for-profits are not allowed to control for profit corporations, since that could be used as a way around corporate tax laws. The law required the not-for-profit to sell the for-profit corporation off by November of 2018. However, Congress has passed a new exception to the rule that will allow Newman's Own to continue operating as it currently does, as Private Wealth discusses in "Paul Newman Still Giving to Charity, Even in Death."
The exception is narrow. To qualify, 100% of the profits of the “for profit” corporation must be donated to charity. The corporation also must be independently controlled and managed from the not-for-profit. There are also a few other minor requirements. This is an exception that was especially crafted for Newman's Own, so most other not-for-profits will likely not qualify.
However, it is possible that other people might be motivated to create similar businesses, in order to continue giving to charity long after they pass away.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Private Wealth (May 30, 2018) "Paul Newman Still Giving to Charity, Even in Death."