Alfred I. duPont Testamentary Trust
| Company type | Charitable trust |
|---|---|
| Industry | Philanthropy, Healthcare funding |
| Founded | 1935 |
| Founder | Alfred I. du Pont |
| Headquarters | Jacksonville , United States |
Area served | United States (primarily Delaware and Florida) |
Key people | Hugh M. Durden (Chairman) |
| Products | Charitable funding for Nemours Foundation and related healthcare facilities |
| Website | www |
The Alfred I. duPont Testamentary Trust is a charitable organization founded in 1935 by philanthropist Alfred I. du Pont to benefit its exclusive beneficiary, the Nemours Foundation. As of 2023, the trust oversees assets totaling roughly $8.2 billion.
History
Established through the provisions of Alfred I. du Pont's will after his passing in 1935, the trust initially comprised seven Florida National Bank branches, significant land assets in Northwest Florida, equity in the E. I du Pont de Nemours Company, and prestigious properties including the Nemours Mansion and Gardens and Epping Forest (Jacksonville) estates. These holdings were valued near $40 million at that time (equivalent to approximately $1.72 billion in 2014). Under the stewardship of du Pont’s brother-in-law, Edward Ball, the trust founded the St. Joe Paper Company and inaugurated a paper mill in 1938. By 1939, its valuation had increased to $72.5 million.
Pursuant to du Pont’s testamentary instructions to support disabled children, the trust financed the establishment of the Alfred I. duPont Hospital for Children in Wilmington, Delaware in 1940.
After the death of Alfred’s widow, Jessie Ball du Pont, in 1970, Edward Ball arranged for the sale of Epping Forest to his business partner Raymond K. Mason. Prior to Mason’s company entering bankruptcy and subsequent dissolution in the late 1980s, he sold Epping Forest in 1984 to Herb Peyton and Gate Petroleum; Peyton remains a trustee of the duPont trust.
Before Ball’s death, a 1980 agreement with Delaware and Florida mandated that the Nemours Foundation receive annually either 3 percent of the trust’s net market value or its net income from assets—whichever amount was higher. Additionally, at least half of Nemours’ funding must be dedicated to operations within Delaware, with a $25 million reserve fund designated for that state.
Nemours Foundation
The Nemours Foundation operates multiple healthcare facilities including the Alfred I. duPont Hospital for Children located in Wilmington, Nemours Children's Hospital in Orlando, as well as outpatient clinics throughout Delaware, Florida, Pennsylvania, and New Jersey. The foundation also maintains stewardship of the Nemours Mansion and Gardens.
Leadership
Following Alfred du Pont’s death in 1935, control of the trust passed to Edward Ball until 1981. He was succeeded by W.L. Thornton—former CEO of St. Joe Company and Florida East Coast Industries—who chaired the trust for 23 years. In 2005, Hugh Durden, a retired executive from Wachovia Bank who had served as corporate trustee since 1997, assumed the role of chairman.
Trustees
| Current | ||
|---|---|---|
| Trustee | Start Year | Role |
| Hugh M. Durden | 1997 | Chairman |
| Winfred L. Thornton | 1967 | Former Chair |
| Herbert H. Peyton | 1995 | Vice Chair |
| John F. Porter, III | 1995 | |
| W. T. Thompson, III | 1995 | |
| John S. Lord | 2000 | |
| Former | |
|---|---|
| Trustee | Tenure |
| Jessie Ball duPont | 1939 – 1970 |
| Edward Ball | 1939 – 1981 |
| Reginald S. Huidekoper | 1939 – 1943 |
| Elbert Dent | 1943 – 1965 |
| William B. Mills | 1965 – 1986 |
| Thomas S. Coldewey | 1965 – 1994 |
| Former | |
|---|---|
| Trustee | Tenure |
| Alfred duPont Dent | 1965 – 1997 |
| A. L. Hargraves | 1965 – 1966 |
| Jacob C. Belin | 1967 – 2000 |
Significant changes in investments
As of January 1996, the Trust's valuation stood at $1.9 billion. Originally, the duPont Trust fully owned the St. Joe Company and retained 70% of its publicly traded shares following the initial public offering. Between February 1995 and December 1997, St. Joe’s share price climbed from $53⅝ to $115½, which increased the trust’s worth from $1.1 billion to $2.4 billion. Nevertheless, because of a will requirement mandating an annual payout of 3% of the trust's value combined with St. Joe’s modest dividend yield of 20 cents per share, the trust was compelled to liquidate shares to reinvest in securities offering higher yields to satisfy distribution obligations. This led to a reduction in ownership from 70% down to approximately 23%, with plans for additional sales intended to decrease the holding further to about 8%.
On October 9, 2000, St. Joe divested its controlling 54% interest in Florida East Coast Industries by distributing FECI Class B shares directly to its shareholders; through this distribution, the duPont Trust obtained a substantial block of FECI stock.
Headquarters
For an extended period, the trust operated out of a shared facility with the Nemours Foundation located on Jacksonville's Southside.
The trust planned to inaugurate its new five-story headquarters along the St. Johns riverfront in Jacksonville, Florida on October 1, 2008. Construction commenced on July 17, 2007, under general contractor Elkins Constructors, with architectural design by Graham Gund aimed at achieving LEED certification for sustainable building practices through the United States Green Building Council. This $20 million project prioritizes environmental stewardship.
The building features a stone façade and expansive windows, earning descriptions such as "luxurious." Chairman Hugh Durden emphasized that the intention was to create a "100-year building" characterized by "timeless design that is both practical and lasting," ensuring a financially prudent investment over time.
Parking is located on the ground floor, preserving green space above it. Rainwater is collected via three underground cisterns, each holding 10,000 gallons, which supply irrigation needs and eliminate the necessity for a large retention basin. A four-level atrium topped with a pyramid-shaped skylight enhances natural illumination and warmth throughout the interior. Opaque glass partitions allow light to penetrate adjoining areas; occupancy sensors automatically deactivate lighting in unused spaces. The site encourages sustainable transportation options through proximity to a bus stop, bicycle storage facilities, and locker rooms for cyclists. Energy-efficient heating and cooling systems help minimize peak electricity demand.
Legal disputes
In June 2012, Delaware initiated legal action against the trust, accusing trustees of neglecting duPont’s original intentions and contending that Delaware was not receiving its rightful annual distribution. Delaware Attorney General Beau Biden contested counting the $72 million renovation expenses for Wilmington’s Nemours Mansion and Gardens as part of Delaware’s allocated foundation distributions.
The trust had intended to divide its $4 billion portfolio into two entities: a taxable annuitants’ trust designated for individuals named in duPont’s will and a tax-exempt charitable trust containing most assets. This approach was designed to circumvent annual foreign tax liabilities amounting to several million dollars. The ongoing lawsuit brought by Delaware has potentially delayed implementation of this restructuring until resolution is achieved.