Here's a thought-provoking abstract regarding ideas being floated by lawmakers that are designed to give significant tax benefits to socially active for-profit organizations.
There is even a mention of creating a whole new tax exemption status, a hybrid nonprofit/for-profit company form known as the Low-Profit Limited Liability Company.
If instituted,changes like this will drastically alter the Nonprofit Sector. By giving other companies tax exemptions you are, in effect, eliminating the biggest competitive advantage that nonprofits currently have. It's also plausible to think that nonprofits would then be competing with larger companies with more dollars, resources, incentive, and perhaps even talent.
Is the sky falling? I don't know. If the mission is the important thing, then creating an environment where the solution can be acheived as quickly as possible is a good thing.
Call it Darwin's natural selection or Adam Smith's invisible hand. Either way it is capitalism and it's hard to argue against.
The fragmented nonprofit sector will roll up and donors' dollars will go to the group, nonprofit or for-profit, that can best achieve the mission.
It doesn't sound that awful, really.
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Posted by: Nursing pajamas | June 29, 2010 at 10:40 PM
Good and Bad. Some businesses have nonprofit status and I can't see why! As long as this new battle is with good intentions!
Posted by: Effective Fundraising | July 01, 2010 at 10:52 PM