After a three-year wait, Rivian announced the first round of grants totaling $10 million from the Rivian Foundation. This initiative follows the company’s earlier commitment to allocate 1% of its equity to ensure that the “natural world” is treated as a “stakeholder in our success.” The foundation aims to support various environmental causes, reflecting Rivian’s dedication to sustainability and community engagement as part of its mission.
By establishing the Rivian Foundation, the company emphasizes its responsibility not just as an electric vehicle manufacturer but also as a contributor to environmental and social good. The funds will be directed toward projects that align with these goals, potentially benefiting a range of organizations focused on conservation, climate change mitigation, and community resilience.
Rivian Foundation Launches Website to Showcase $10 Million in Grants to 41 Recipients
On Monday, the Rivian Foundation unveiled a new website detailing its first round of grants, which will provide funding of just over $10 million to 41 organizations. While most of the grantees are based in the United States, a few recipients extend their reach beyond the EV startup’s home country, highlighting Rivian’s commitment to global environmental and community initiatives.
This launch marks a significant step in fulfilling one of Rivian’s closely held promises made during its high-profile IPO. At that time, the company pledged to allocate 1% of its equity to the foundation to support various causes to protect the natural world and promote sustainability. However, the announcement comes at a challenging time for Rivian, as its stock price has significantly decreased since its post-IPO highs. The theoretical value of the 1% equity contribution to the foundation has dropped from $643 million to a mere $98 million.
The website provides transparency about the foundation’s grant-making process and the specific organizations receiving funding. By lifting the veil on its philanthropic efforts, Rivian aims to demonstrate its dedication to corporate social responsibility, even as it navigates the complexities of a fluctuating stock market. The foundation’s grants are expected to support various initiatives, from environmental conservation projects to community resilience efforts, reinforcing Rivian’s role as a responsible player in the electric vehicle industry.
As Rivian continues to evolve, stakeholders and the public alike will be keen to observe how these grants will make an impact and contribute to the company’s broader mission of sustainability and environmental stewardship.
Until recently, the direction of the Rivian Foundation and its related entity, Forever by Rivian, was somewhat ambiguous. However, the recent release of grantee information sheds light on the foundation’s key focus areas, indicating a commitment to land preservation, agricultural sustainability, and support for indigenous and urban communities.
One of the most notable contributions is a $2 million grant awarded to The Nature Conservancy in August. This funding is set to play a crucial role in collaborative efforts to maintain vital California landscapes. Rivian states that the grant will help ensure these areas continue to support wildlife, protect cultural resources, and inspire future generations.
In addition to terrestrial conservation efforts, Rivian has committed $1 million to the Ocean Resilience Climate Alliance (ORCA). This grant is part of a larger $250 million collective commitment announced in late 2023. ORCA aims to enhance ocean resilience in the face of climate change, underscoring Rivian’s dedication to comprehensive environmental initiatives.
Beyond the significant donations, the Rivian Foundation has allocated funds to 39 other projects, with most grants ranging between $100,000 and $400,000. These contributions reflect a diverse strategy to support various initiatives that align with their overarching mission of fostering sustainable communities and preserving natural resources.
The Vision Behind Forever by Rivian
In October 2021, just one month before Rivian’s highly anticipated IPO, the electric vehicle company revealed an ambitious plan called “Forever by Rivian.” Founder and CEO RJ Scaringe, a passionate advocate for sustainability and renewable energy, outlined the company’s vision to drive significant environmental and social impact. A vegan and vocal climate change proponent, Scaringe committed to a bold gesture: placing over 8 million shares, equating to 1% of Rivian’s total equity—worth a staggering $643 million at the time—into Forever by Rivian. Additionally, the company contributed $20 million in cash to bolster the initiative.
Shifting Gears: From 501(c)(4) to 501(c)(3)
Initially, Forever by Rivian was structured as a 501(c)(4) social welfare organization, a legal designation allowing political advocacy. However, Rivian soon recognized that this might not be the best approach for achieving their long-term goals. According to Rivian spokesperson Peebles Squire, the company decided that operating under a 501(c)(3) charitable foundation would be “the most impactful and most transparent approach” to distributing funds.
As a result, the Rivian Foundation was established. This shift allowed the company to channel its resources directly into charitable activities, focusing on projects aligning with its environmental preservation, renewable energy, and community development mission.
Continuing the Commitment to Sustainability
The establishment of the Rivian Foundation marked a pivotal moment in the company’s journey toward making a tangible, positive difference. Through this foundation, Rivian has focused its efforts on supporting land conservation, indigenous and urban communities, and renewable energy initiatives. The transition from Forever by Rivian to the Rivian Foundation underscores the company’s dedication to sustainable practices and willingness to adapt to make the most significant possible impact.
Financial Moves and Strategic Giving
Tax filings from 2023 reveal a major financial shift within Rivian’s philanthropic efforts. Forever by Rivian moved nearly $25 million into the Rivian Foundation, incorporating the 501(c)(4) cash assets into the foundation’s resources. This transition aligned with Rivian’s decision to prioritize charitable activities through a more transparent and impactful 501(c)(3) structure.
However, despite this infusion of funds, the Rivian Foundation distributed only $123,250 in grants during 2023. This amount falls below the 5% distribution requirement that U.S. tax law mandates for private foundations based on their total assets. According to Rivian spokesperson Peebles Squire, the foundation can legally make up the shortfall the following year. Squire further emphasized that the foundation has “far surpassed the minimum requirements for both 2023 and 2024,” citing significant giving that is now reflected on the foundation’s newly launched website.
In 2023, nearly half of the $123,250 distributed by the Rivian Foundation was allocated toward “Natural Climate Solutions” (NCS). While NCS isn’t a specific organization, it’s a concept widely promoted by groups such as The Nature Conservancy and the World Economic Forum. This funding helped co-finance research in partnership with the Doris Duke Foundation, focusing on natural methods for addressing climate change, such as reforestation, sustainable agriculture, and ecosystem preservation.
The foundation also spent $91,500 on consulting services provided by Building Impact Partners, a New York-based firm specializing in philanthropy advisement. These fees likely reflect efforts to strategize and refine the foundation’s approach to distributing funds and achieving its long-term environmental and community-oriented goals.
Though the Rivian Foundation fell short of distributing the required 5% of its assets in 2023, it has taken steps to ensure compliance with tax regulations by surpassing minimum requirements in subsequent years. With nearly $25 million in assets and a more explicit focus on high-impact areas like land conservation and climate solutions, Rivian’s charitable arm is set to ramp up its giving and align its financial actions with its broader sustainability and community support mission.
Winding Down Forever by Rivian: Transition to a New Philanthropic Era
The End of Forever by Rivian 501(c)(4)
Rivian is now in the final stages of dissolving Forever by Rivian, the 501(c)(4) social welfare organization that was initially established with ambitious goals in 2021. According to Rivian spokesperson Peebles Squire, this wind-down process is well underway. In fact, Forever by Rivian had its tax-exempt status automatically revoked in May 2023 due to failure to file annual tax returns, as reported by the IRS. This revocation marks a natural step in the transition, with the entity set to transfer its equity holdings to the Rivian Foundation as part of this shift.
A New Focus: The Rivian Foundation
The decision to move from a 501(c)(4) structure to the more transparent and impact-focused 501(c)(3) Rivian Foundation has been central to Rivian’s evolving philanthropic strategy. Squire explained that the original commitment made in 2021—at the time of Rivian’s IPO—marked the beginning of a concerted effort to build the foundation as a force for sustainable and strategic philanthropy. Over the past few years, the company has worked diligently to establish a robust foundation that adheres to best practices in governance, management, and strategy.
“Since the original commitment to ‘Forever’ was made at the time of Rivian’s IPO in 2021, we have been working hard to establish the Rivian Foundation,” Squire said. He added that this has included close collaboration with experts and philanthropic peers, as well as the consulting firm Building Impact Partners, which played a crucial role in refining the foundation’s approach to grantmaking and overall strategy.
Building Transparency and Strategic Impact
As part of these efforts, Rivian has launched a foundation website designed to offer transparency regarding its philanthropic work. Squire emphasized that this site now reflects the significant behind-the-scenes work that has been taking place to ensure the foundation operates in line with Rivian’s broader mission of sustainability and community impact. The work spans various critical areas, including climate resilience, land conservation, and support for indigenous and urban communities.
Rivian aims to ensure that its philanthropic contributions create meaningful, lasting impact by investing time in developing a well-governed and strategically sound foundation. The company’s leadership believes this shift from Forever by Rivian to the Rivian Foundation will provide the clarity and structure needed to make a difference in the areas that matter most.
The winding down of Forever by Rivian and the transition to the Rivian Foundation represent a significant pivot in Rivian’s approach to corporate philanthropy. With a focus on transparency, strategic giving, and sustainability, the Rivian Foundation is positioned to drive long-term environmental and social change. As the foundation continues to evolve, it reflects Rivian’s commitment to not only building innovative electric vehicles but also fostering a better future for the planet and its people.
