Charitable for-profit entity

A charitable for-profit entity is an organization with a charitable mission but legally organized as a for-profit corporation. Both benefit corporations and Low-profit limited liability companies (L3C) fall under this category. As well as generating a profit, a charitable for-profit entity concentrates on setting a social objective. The business must achieve its social purpose, as well as make a profit, to be successful. There are movements to refine strategies, retuning community-oriented activities based on ROI of Little Investment or Small Capital, Low Risk, yet, higher return (impacts and outcomes; both in social and economic factors) and rebranding nonprofit entities from wholly-dependable funding beneficiary from Governments or public i.e. business organization or individual. previously, we often heard of Nonprofits and community-based organizations, now, For-profits community-based Social Enterprises The case of organizing charitable work under for-profit rules rather than as a traditional charity such as a foundation gained prominence when Google announced its Google.org branch in 2006.[1] Since then, the subject has been under both academic and public debate with U.S. law professor Eric Posner arguing in favor of expanding Charity law to include for-profit charities,[2] while Brian Galle considered the legislative popularity of social enterprises a "race to the bottom among states competing to siphon away federal tax dollars for local businesses."[3]

  1. ^ Hafner, Katie (September 14, 2006). "Philanthropy Google's Way: Not the Usual". New York Times. Retrieved 10 January 2013.
  2. ^ Eric A. Posner; Anup Malani (2007). "The Case for For-Profit Charities". Virginia Law Review: 2017–2067. SSRN 928976.
  3. ^ Brian Galle (2013). "Social Enterprise: Who Needs It". Boston College Law Review (54): 2025 ff.