makingendsmeet an evaluation of the benefit corporation as a model for

arts nonprofits

for-profit nonprofit

benefitcorporation a legal model that offers the freedom and protection to consider society, the environment, and profit in decision-making

relevancetononprofits 1   threats to tax-exempt benefits

when the distinctive privileges of nonprofits—such as tax exemption and incentives for charitable donation—are threatened or removed, the public benefits provided by the nonprofit sector may also disappear

2   overdependence on charitable donations

researchmethodology is the benefit corporation a relevant and viable alternative to the nonprofit model?

interviews •  lawyers •  advocates •  founders •  nonprofit practitioners

case studies •  benefit corporations •  joint hybrid

literature review •  model legislation •  nonprofit commercialization

matter inc.

nonfinancial interests

independent, third-party evaluation

general public benefit

theadvantages •  protects against shareholder primacy

•  socially responsible investment

•  media exposure

•  community & network

thetradeoffs •  higher costs

•  loss of tax-exempt benefits

•  loss of traditional funding

•  liquidate assets

gifts & grants (51%)

earned income (45%)

investment (3%)

myrecommendations

•  clarify hybrid models

•  evaluation of financial impacts

•  engagement by nonprofits

the benefit corporation is not a viable alternative for arts nonprofits

productdescription

does the business rely heavily on charitable

donations?

yes no

thankyou

mariko chang|marikolc@gmail.com