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public benefit corporation list

“There’s no way we can use charitable assets to undo the things businesses have done,” says Ochs. In January, 2012, Patagonia became the first company in California to file as a PBC. The list below is B Lab's best effort to create an accurate accounting of benefit corps and is inclusive of all data collated by B Lab from state agency reports. ©2020 Incorporating Services, Ltd.|Privacy Policy & Terms, [jetpack_subscription_form title="" subscribe_text="" subscribe_button="Sign Me Up"], Additional Products & Services Order Form, Apostille, Authentication & Legalization. All of that time we could have spent developing software we spent instead finding and writing grants.”. “That’s been the M.O. For a more complete list, see a list of New York State public-benefit corporations Almost nine in 10 millennials said they would work for less pay if it meant their company’s values aligned with their own, according to a 2018 LinkedIn report. Social by Selling are corporations that sell services or products that benefit specific underserved communities. “You can totally change the model. Finnegans donates 100 percent of its profits, as well as financial and food donations, to food bank partners, to supply food shelves with fresh produce and feed families across the Upper Midwest. Minnesota examples: Finnegans Brew Co., Sunrise Banks Social by Selling are corporations that sell services or products that benefit specific underserved communities. Human Rights Campaign 3. Minnesota examples: Finnegans Brew Co., Sunrise Banks. Finnegans has donated over $1 million to alleviating hunger since its founding in 2000, while Binary Bridge has served more than 60,000 people at dozens of remote medical outposts across the globe. The EFC is a public benefit corporation created in 1970 to promote environmental quality by providing low-cost financing and technical assistance to municipalities, businesses, and state agencies for environmental projects in New York State. Designed to expand the duties of directors, benefit corporations are identical to traditional corporations in every way except one: they have publicly committed to a broadly defined “social purpose” beyond just making money. Public Benefit Corporations or “PBCs” are a type of for-profit corporate entity currently authorized by 35 states and the District of Columbia, similar to a C-corp, S-corp, or LLC. 501c: Many nonprofits, such as public benefit nonprofit corporations, can apply to be categorized as a 501c3 nonprofit with the IRS. (In 2018, Minnesota was named the most charitable state by WalletHub.). For other requirements, see the Public Benefit Corporation Act of Colorado … His own nonprofit provides loans for social entrepreneurs, including Binary Bridge. “I was like, ‘You’re completely missing my point.’”. Social by Sourcing are companies making an impact by sourcing responsibly—employing members of marginalized communities or even paying a responsible living (higher than market rate) wage to their employees. Other states may call these "benefit corporations." King Arthur is 100 percent owned by its employees, who share in profits and receive 40 hours of paid volunteer time each year. Jacquie Berglund, Finnegans’ CEO and co-founder, was one of the first locally to evangelize this business model. We’ve been going on 18 years and there have been some very lean times, and now people seem happy to support us because they know what we’ve done.”, Lori Most echoes Berglund’s beliefs that a good business will lead to larger social impact. A “public benefit” is a positive effect (or a reduction of a negative effect) on one or more categories of persons, entities, communities or interests (other than shareholders in their capacities as shareholders), including effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific or technological nature. In other words: to not just make rich white men richer. In Colorado, a Public Benefit Corporation is organized as a for-profit corporation or domestic cooperative. “What it means is that directors and officers of a corporation are required by the statute to consider both purposes,” he says. Many entrepreneurs treat the decision to become a PBC and a Certified B Corp as one and the same. Public Benefit Corporations: A corporation organized primarily or exclusively for charitable purposes and which plans to obtain state tax exempt status under California Revenue and Taxation Code section 23701d and/or federal tax exempt status under Internal Revenue Code section 501(c)(3) is a nonprofit Public Benefit corporation. Public benefit corporations generally fall under the 501c3 status because of the charitable purpose behind the nonprofit. BackpackEMR’s peer-to-peer technology enables users to update medical records without an internet connection—making it essential in some of the world’s poorest places. When the Minnesota Public Benefit Corporation Act was passed in 2014, it was called an overlay of the traditional corporation model. Their stated public benefit is to “produce a positive effect for society and students by offering diverse education programs both online and from campuses around the globe.”. 3. Patagonia is an example of a corporation that sought the PBC structure. A benefit corporation is responsible for creating an annual benefit report, which Subtitle 6C(8)(A) requires must include: A description of the way the benefit corporation pursued a general public benefit during the year and the extent to which the general public benefit was created; In a benefit corporation, the obligations of the directors are described the same but – and this is the key distinction – in the benefit corporation, there are multiple purposes including (at least) a general public purposes (and possibly, one or more specific public purposes). There is a distinction between a Public Benefit Corporation (PBC) and a B Corp. World Wildlife Fund 9. Marc Andreessen, Netscape founder and venture capitalist, infamously compared the dual-motivation business structure to a houseboat: “It’s not a great house and not a great boat.”, Jeff Ochs puts it a little differently. In our new charter (shown below) we spell out our mission, our values, and the commitments we have made to pursue them. Some famous benefit corporations are: Kickstarter; Method; Plum Organics; Patagonia Boy Scouts and Girl Scouts 6. by Cydney Posner. However, in the case of a PBC (and, more recently, the Public Benefit LLC), an entity can file as a PBC and explicitly state in their operating agreement some other corporate goal, outside of simply maximizing profit. “We’re doing what TurboTax did for taxes and Airbnb did for hospitality, but we’re doing it for Section 8 housing,” explains Liz Tupper, director of product strategy. It uses recycled paper and renewable energy and gives food scraps to a local farmer. Susan G. Komen Breast Cancer Foundation On a smaller, more local level, home owners associations and little leagues can also be non-profit organizations. “The answer is, maybe so,” says Ochs. Prepare an annual benefit report identifying: The actions and methods used to provide a general or specific public benefit. One app called HousingLink is designed to help people locate and apply for affordable housing in their city. Board members agreed with the investors: “If we bring this to U.S. markets, we could be making a lot more money,” Most recalls. Helbling’s theory has to do with growing awareness. Benefit corporations presently operating in America come from various industries, including the following: Service; Retail; Tech; Manufacturing; Food and beverage manufacturing; Benefit corporations are available in many sizes, from worldwide brands to small businesses. It highlights the special provisions that apply to this type of corporation, including how public benefit is defined, duties of directors, notice and reporting requirements, and the conversion process. King Arthur sponsors school education programs and donates substantial sums to programs that combat hunger. For workers who want to do good and pay their bills, a benefit corporation job is an increasingly attractive career move. “I believe people are altruistic and care about each other, but they’ve compartmentalized their altruism,” he says. ... (The company also became a Benefit Corporation last year). While most people are familiar with Corporations and LLCs, and some are familiar with the alphabet soup of other entity types (LLP, LLLC, LLLP, PLLC), the newest kid on the block is the Public Benefit Corporation (or PBC). You need to pivot.”, She wasn’t even slightly tempted. It’s believing that making a profit will directly benefit their social mission in the long run, while inspiring employees and activating consumers along the way. Public benefit corporations (PBCs) were created to bridge this gap. Minnesota examples: Peace Coffee, Fair Anita, Profit and social impact both come first for these Minnesota public benefit corporations—which aren’t nonprofits, but aren’t typical for-profits, either, These Minnesota Businesses Bring Together Profit and Public Good, Mall of America/Bloomington Visitors Guide, Official Visitors Guide to the Twin Cities, Minnesota was named the most charitable state by WalletHub, The magic of Santa’s Wonderland continues in-person at Cabela’s Shops featuring FREE photos with Santa, Emanuela Duca Pop-Up Jewelry Trunk Show at Max’s, Christmas on Copper Street: Home for the Holidays – Streaming Event. Ability to put money second to what matters. If throwing the money you have left at the end of the month at a charity feels like putting a Band-Aid on a gaping wound, why not add “working to solve your community’s systemic problems” to your job description? A purpose-oriented work environment makes employees 54 percent more likely to stay at a company for 5-plus years, and they’re 30 percent more likely to be high achieving employees, according to research by Imperative (a certified B Corp in Seattle). Fast Facts about Public Benefit Corporation: This post is for informational purposes only. “There’s authenticity with what we do,” says Berglund, “I think people see that. Humane Society of the United States 5. Minnesota examples: Software for Good, Binary Bridge, the Data Bank. Should not be construed as legal or financial advice. A public benefit corporation is a legal incorporation available only in certain states that allows organizations to identify a purpose beyond maximizing shareholder value. Consider this mission when making decisions (note, this doesn’t mean they need to. This new entity is catching on fast in different states, and serves to fill a unique niche in the suite of entities. They make a product or service … We live in an innovative place, and you can always change how you do business.”. Another investor told Most she could make a fortune by implementing the peer-to-peer feature in media and filmmaking. Skeptics of this model point to the potential for diminished shareholder returns. The B Corp is a certification conferred by a third  party “B Labs” for a corporation that adheres to higher standards of serving the public good. A Public Benefit Corporation makes it permissible for corporate directors and officers, acting within their fiduciary duties, to act morally, ethically and responsibly in regard to society, the environment, the natural world and the world at large. When a company becomes a Benefit Corporation, it can choose to make further commitments. B Lab just announced the 2014 B Corp Best for the World List with the 92 top-rated certified B corporations. Form a Public Benefit Corporation Now. “I think consumers and employees are pretty savvy,” says Duniway. Adopt a third-party standard. They make a product or service that is designed specifically for a particular need. “Nobody should be saying that benefit corporations are good and traditional corporations are bad.”. Social by Sharing are businesses that give money or resources away. One of the best examples of social impact through financial success is Finnegans Brew Co., the longtime beer maker that opened its downtown Minneapolis megabrewery in 2018. Start your research on a company’s website. This was one of our top reasons. What is a Delaware Public Benefit Corporation? We will deliver a benefit statement annually that will measure the results of our efforts to promote these public benefits. Best Friends Animal Society 11. Likewise. “Why someone adopts a public benefit forum is because it’s what gets them up in the morning and it’s not always because of profits,” says Jeff Ochs, CEO at Venn Foundation in St. Paul. She had liked the work, but wasn’t intrinsically motivated to generate high returns for shareholders. A public benefit corporation is a corporation created to generate social and public good, and to operate in a responsible and sustainable manner.. Keep on top of jurisdictional closings due to COVID-19. PBS 10. As previously discussed on this blog, a few companies have gone public as “Certified B Corporations,” but now we apparently have the first company to file for its IPO as an actual Delaware “public benefit corporation” (PBC). These companies prioritize donating money and volunteerism. However, there are there are thirty-four different categories. She has worked with benefit corporations in the past and penned an op-ed about the legal structure for Star Tribune. Ben. This gives the Directors cover to make decisions that serve some “public benefit” as defined in the operating agreement, rather than only looking at profit maximization. “That’s where public opinion, consumer education, and boycotting come in. The entity’s name can include the words "public benefit corporation" or the abbreviations "Pub. Sierra Club 4. These Shareholders entrust the Directors to act in their interests; in the past the courts have defined shareholder interest as profit maximizing – Director decisions should be purely financial decisions. For an annual fee (based upon yearly sales), public benefit corporations can complete nonprofit B Lab’s detailed assessment of “social and environmental performance, public transparency, and legal accountability” to become certified B Corporations, or “B Corps.” There are currently 16 Minnesota companies, including Peace Coffee and Sunrise Banks, listed as B Lab’s certified B Corps (learn more at bcorporation.net). Please consult with your attorney for legal advice or accountant for tax and financial advice. Nationally, “benevolent businesses” like Patagonia, Seventh Generation, and Kickstarter are taking extra steps to hold themselves to high standards. That’s fine, they just have to say it,” explains Sarah Duniway, principal at local corporate law firm Gray Plant Mooty. The corporatio… “Your corporate mission is whatever you say it is. As a public benefit corporation, Binary Bridge is accustomed to transparently and intentionally balancing the traditional profit-turning corporate mission with a desire to make a difference. We didn’t get in the … Museum of Modern Art 2. Patagonia long wanted support issues around social and environmental causes, but had difficulty balancing this mission with retaining a Corporate status. Myth 1: Public Benefit Corporations and Certified B Corps are the same. Within five years of this adoption, 31 other states passed legislation created PBC (each state with its own unique variation). Software for Good also designed the app for Minneapolis’ Pride Month. When employees believe in their company’s cause, they can do great things, says Helbling. A PBC is a for-profit institution that provides some sort of benefit to the environment or public. He said, “Oh, you’re never going to make money this way. “They’re all applying for grants from the same places, and it’s just not always the best approach.”, It’s an especially convincing argument coming from Most. In the past four years, more than 80 public benefit corporations have formed or adopted public benefit status in Minnesota—including Finnegans Brew Co. and Can Can Wonderland—underscoring a growing entrepreneurial interest in social impact. Maryland was the first state to adopt the PBC Legislation in October, 2010. Social by Sharing are businesses that give money or resources away. Include a statement in the articles of incorporation or organization that says the corporation or LLC is a benefit company subject to ORS 60.750 - ORS 60.770 . Most entities (Corporations, LLC’s, etc) are managed by Directors (or managers) who are elected by the Shareholders (or ownership). “Nonprofits are really difficult,” says Most. Casey Helbling, the CEO and founder of Software for Good, jokes that they want their business to “disrupt” the normal flow of money. Two investment firms had contacted her about BackpackEMR, an electronic medical record system that she built specifically for medical outposts in rural communities in Peru and Kenya. The B Corp. differs for the SP Corp., in that the definition of a “general public benefit,” is defined as a “material, positive effect on society and the environment, taken as a whole, as assessed using a third-party standard by which is attributable to the business and operations of a benefit corporation.” § 607.602(5), Florida Statutes. for ages, and the younger generations are really seeing that you can have both a good job and a meaningful role in the community.”, In practice, Software for Good’s social impact is in web-based apps. On February 1, 2017, Laurate Education, Inc was the first Public Benefit Corporation to be public traded. Some examples of successful non-profit corporations are: 1. ), but it is not required to do so. Additionally, the benefit corporation may contain within its articles a specific purpose (such as to further the arts, improve public health, etc. The public benefit corporation must be intended to produce a public benefit and to operate in a responsible and sustainable manner. Many states do not currently track the names or number of benefit corporations. A public benefit corporation created by a government, also known as a statutory corporation or government owned corporations, generally provide free or subsidized services or benefits for the public. One investor asked if she had considered offering this tech to aid American hospitals, in cases of power outages or system failures. She explains how much of her time during those initial years was spent chasing money: “We had had to go look for funding. Corp.", "P.B.C." Could a company tout a flimsy social purpose to produce advantageous marketing? “A lot of people say it’s good enough to make my money here and then I’ll donate there, but that idea is beginning to fade.”, One need only read today’s headlines to find examples of for-profit businesses detrimentally impacting culture, the environment, and employees. American Civil Liberties Union 12. And both believe they do more for their core missions as for-profit companies than as nonprofits. If the Directors make decisions that are not in the financial interest of the ownership, the Directors may expose themselves to legal action by the ownership. A benefit corporation differs from a typical for-profit corporation by allowing the entity to consider how it can provide a greater good for the public, otherwise known as a public benefit. “They’ll see through a mission that isn’t really a mission. 3 Public Benefit Corporation Models for Giving Back. Ted Talks 8. Minnesota is one of 35 states to adopt a benefit corporation statute, and it makes sense in a state where philanthropy and culture have historically gone hand in hand. For the latest news and events about the community of Certified B Corporations “We need to find a different solution.”. A nonprofit public benefit corporation refers to a charitable organization that is advantageous to the general public, meaning that anybody can benefit from its actions. Whether you’re just starting out or have a complex project, we’re here to help you navigate the process with ease. At this point, it’s not the government’s job.”. A B Corp is not necessarily a PBC, and a PBC is not necessarily a B Corp. But the King Arthur Flour Company is different from its major competitors, and not just because of its baking qualities. A benefit corporation is a Virginia stock corporation whose articles of incorporation provide that it is a benefit corporation and that has, as one of its purposes, the purpose of creating a general public benefit on society and/or the environment. Public Benefit Corporations (DE) This Practice Note provides an overview of public benefit corporations organized in Delaware. And the model is working. (A benefit corporation filing makes it more difficult for shareholders to sue.) These companies prioritize donating money and volunteerism. Smithsonian Institute 7. While most people are familiar with Corporations and LLCs, and some are familiar with the alphabet soup of other entity types (LLP, LLLC, LLLP, PLLC), the newest kid on the block is the Public Benefit Corporation (or PBC). Additionally, many of the state’s public benefit corporations file annual mission and progress reports with the Office of the Minnesota Secretary of State that are available for online review (sos.state.mn.us, search “public benefit”). So, how does one determine if a benefit corporation is truly doing good work? The PBC generally refers to a company organized under a states existing Public Benefit Corporation statutes. The consumer will have to hold companies accountable. or "PBC", and; Share certificates issued for a PBC must clearly indicate that the entity is a PBC. Yes, benefit corporations could be another tool for greenwashing [deceptive PR], but that’s not the case for most of these businesses.”. For example, Twin Cities-based Sunrise Banks posts annual impact reports online. Be the first to know about legal updates that may impact your service work, as well as jurisdictional and Incserv office closings. Governmental Public Benefit Corporations. It could be really general. This new entity is catching on fast in different states, and serves to fill a unique niche in the suite of entities. “When Samsung happened, I knew I didn’t want to change who we were or what we did,” she says. Binary Bridge was formed initially as a 501(c)3 back in 2015 but reformed as an LLC in 2016, then as a benefit corporation in 2018. Stay up to date on industry news affecting your business. Beneath all the talk of values and benefitting society, benefit corporations are hinged upon the belief that making money and making an impact are aligned, not contradictory. Tupper recalls how she once worked for a company that was purchased by Samsung. “We’re making it easier to navigate complex systems so [people] can better plan for their future.”, So, why are benefit corporations gaining momentum now? Search below to locate the known benefit corporations in any of the preceeding states. 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