Over the past several weeks, I’ve been researching possible structures for social enterprises, and writing about how to pick the right one for your organization. The post grew and grew, so I’ve decided to turn it into a short ebook, which I’ll be releasing here soon!
In the meantime, here’s a quick preview:
For years, the delineation between non-profits and for-profits has been dissolving. Social enterprises are testimony to this societal transformation—they demonstrate how profit and mission need not be mutually exclusive.
But each social entrepreneur is faced with a critical decision point along their journey: to be (or not to be) legally designated as a non-profit, a for-profit, or potentially a hybrid of the two.
How do you decide?
An organization’s legal structure refers to its governance, legal form, and ownership. It influences how an organization can make money, the kinds of activities it can undertake, and how the government will tax the organization. The wrong structure can put the organization at financial and legal risk, so it should be considered and chosen carefully to fit the organization’s needs.
The chart above provides some basic guidance on the advantages and challenges of for-profit and non-profit structures. More information on each, as well as guidance on a third option—a hybrid between the two—are included in the ebook that will be coming soon!