BizTerm Definition
Public Benefit Corporation
Short Definition
Not a religious Corporation
Full Definition

 

A non-profit corporation is set up for public and charitable purposes, and yet is not considered a ?religious corporation? under the formation state?s law. Most public benefit corporations also seek recognition as exempt under section 501(c)(iii) of the Internal Revenue Code. Additionally, Public Benefit Corporations that dissolve distribute all of its assets to either other public benefit corporations, or to state, or federal agencies which are recognized as exempt by the IRS.

 

Public Benefit California Corporation

A corporation organized primarily for charitable purposes and which plans to obtain state tax exempt status under

Section 23701d of the Revenue and Taxation Code and/or federal tax exempt status under Section 501(c)(3) of the

Internal Revenue Code or organized to act as a civic league or a social welfare organization and which plans to

obtain state tax exempt status under Section 23701f of the Revenue and Taxation Code and/or federal tax exempt

status under Section 501(c)(4) of the Internal Revenue Code is a nonprofit PUBLIC BENEFIT corporation.

 

With a Public Benefit California Corporation, you must also define it as being either a "Public", "Charitable" or "Public & Charitable".

 

Public Purpose

The public purpose classification under state law is typically for groups that want to form civic league or social welfare public benefit corporations

 

Charitable Purpose

This is a corporation with a benevolent purpose, but may target a specific market.  For example, a school or educational facility would organize as a California public benefit corporation formed under state law for "charitable" purposes.  Note, its 501(c)(3) purposes would be "educational.".  If the school was only for a specific membership or group, then it would more likely be a mutual benefit corporation.

 

Public & Charitable Purpose

This is a charitable organization that also focused on the public good. 

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