Defined by state
statutes, it is usually a non-profit corporation which by default does not
qualify to be either a religious or public benefit corporation. It is a
corporation which is formed solely for the benefit of its members. A common
example of mutual benefit corporations are clubs. Mutual benefit corporations
are not a charity and therefore are not eligible to obtain 501(c)(iii) status.
A corporation for other
than religious, charitable, civic league or social welfare purposes and planning
to obtain tax
exempt status under
provisions other than
501(c)(4) or not planning to be tax exempt at
all is a nonprofit
MUTUAL BENEFIT corporation.