Category Archives: Social Enterprise

Here Comes the Arizona Benefit Corporation

Going into effect January 1, 2015, the Arizona benefit corporation statute will enable entrepreneurs to form a corporation unlike anything Arizona has seen before. Benefit corporations enable social entrepreneurs to create a corporate structure requiring the corporation to create a general public benefit. As with anything new, its details are untested and some confusion surrounds it. Below we dig into the statute and detail what you will and will not be able to do in 2015.Continue Reading

California Passes Legislation Creating New Structures for Social Enterprise

Increasingly, social entrepreneurs struggle to choose a legal form for their ventures. The traditional legal forms are not suited to blended social and profit-making purposes. Mangers of a for-profit socially responsible business can find themselves liable to shareholders for failure to maximize profit at all coasts. Conversely, managers of tax-exempt nonprofits conducting social entrepreneurial activities can find themselves liable to the IRS when they try to reward investors and incentivize results.Continue Reading

B Corps is Not a New Legal Form by Keren G. Raz

Critically, a Certified B Corporation (hereinafter referred to as B Corps or a B Corporation) is a label given by B Lab to businesses that pass a socially responsible certification process. B Corps is not a legal form and has no legal significance. A benefit corporation, on the other hand, is a new legal form, that became law in Maryland on October 1, 2010. Legislation similar to that in Maryland will become law in Vermont in July and was recently passed by the New Jersey legislature.Continue Reading

Social Enterprise in Action

The Marc Center is a thriving, creative and innovative nonprofit that is thinking strategically about how to achieve its mission through both nonprofit and for-profit ventures that provide vocational opportunities for its clients. The Marc Center is providing vocational opportunities in the areas of food service, packaging services, mailing, filing, and other low tech vocations. During my visit, I had a delicious lunch at a Banner Health facility where a Marc Center of Mesa subsidiary is in charge of food service and even provides catering. Across the country, ventures like these are commonly referred to as double bottom line “social enterprises” because they are making money and fulfilling a social mission at the same time. Continue Reading