QUESTION
Is there a legally represented way to form a social enterprise in DC, MD, or VA?
Asked on Apr 27th, 2012 on Business Law - Virginia
More details to this question:
Specifically I am thinking of a for-profit company that has a social motivation and wants to have similar goals to a non-profit but with the benefits of for-profit companies. One key item would be the ability to be for-profit but still receive donations that would be tax-deductible to the donator.
1 ANSWER
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As a general matter, tax-deductible contributions can be made only to organizations that are organized exclusively for charitable purposes. That means that no portion of the earnings of the organization may accrue to any member or stockholder. This is covered by Section 501 of the Internal Revenue Code.
Answered on Apr 27th, 2012 at 10:16 PM