On February 23, Emily and I will be providing a briefing on California's new benefit corporation and flexible benefit corporation for CompassPoint Nonprofit Services. You can attend for free by registering here.
Date and Time: Thursday, February 23, 11 am – noon
Location: CompassPoint, 731 Market Street, Suite 200, San Francisco, CA 94103
Last October, California became the sixth state to allow for the creation of a Benefit Corporation (AB 361) and the first state to allow for the creation of a Flexible Purpose Corporation (SB 201). These new hybrid corporate forms have generated excitement as they expand on the traditional for-profit or nonprofit options previously available to entrepreneurs who desire to pursue both profit and social goals. It has also raised concern, however, from the nonprofit sector in particular as nonprofits may be recruiting the same human capital, pursuing similar social goals, targeting the same funding sources, and competing for the public’s attention and goodwill. Here, we will discuss the Benefit Corporation and Flexible Purpose Corporation structures, and their potential opportunities and risks for nonprofits.