Starting a B Corporation (vs. Starting a Nonprofit)
Vložit
- čas přidán 23. 10. 2021
- Should you start a B Corporation or a nonprofit? B Corporations explained!
#Nonprofit #BCorps #SocialEnterprise
Sometimes, starting a nonprofit is not the best fit for your social impact mission. In this video, I share some basic details about one alternative: B Corporations!
I started a nonprofit and now run that organization full time. Through my work, I’ve met many people who are doing good in the world through nonprofit organizations, social enterprises, B Corporations, for-profit businesses and more. In this video I talk about what B Corporations are and how starting a B Corporation might be one alternative to starting a nonprofit.
// WHAT TO WATCH NEXT
Starting a Nonprofit vs For-Profit Business (Pros and Cons)
• Starting a Nonprofit v...
7 Mistakes I Made Starting a Non Profit
• 7 Mistakes I Made Star...
How Successful Nonprofits Fundraise when Starting and Growing
• How Successful Nonprof...
// MORE ABOUT ME
Hi! I’m Amber, a nonprofit founder, Executive Director, and public speaker on social impact, changemaking, nonprofits, leadership, and more.
Join my newsletter to receive updates and resources for changemakers and nonprofit leaders: tinyurl.com/nonprofitsandchan...
FOUNDER TO FULL-TIME ACADEMY: Want some training and guidance on starting a nonprofit (and potentially even working for that nonprofit full-time someday?)? Check out my online training courses at my Nonprofit Founder to Full-Time Academy! foundertofulltime.com/
Want me to come speak at your business, college, school, or event? Check out my site: ambermsmith.com/
On Facebook? Talk to me and other change makers about social change, nonprofits, social enterprise, leadership and more in my Facebook group, Change the World or Bust: / changetheworldorbust
I'm also on Twitter: / ambermelsmith
What do you think of the B Corporation concept / model?
I think it offers a lot of helpful positive ways to help others.
@SNL Yes, there is a fee to certify (I think Richard mentions that in the video).
They definitely give more freedom and flexibility than NPOs.
I’m currently researching more options to see what resonates with my core values and vision. Thank you so much.
You're so welcome!
Great video Amber! New subscriber to your channel. Learning all about starting a non-profit organization. My wife currently works for a B corporation and now I understand much more clearly what they are all about. Thanks for the helpful and practical content.
Welcome to the changemaker community!! I'm so glad you found the video helpful. Thanks for watching!
More one very good video here. Are you helping a lot. Thanks. 😀
Thank you!! Very glad to hear it!
Tuning innnn
Hello hello!
Great topic. It’s but a lot of lawyers and accountants don’t even know there is such a thing as a B corporation. After I started my company, I considered a B corporation designation. And, I elected to stick with a standard C corporation because it is really all about what you actually do and not your designation. One day I may revisit it but knowing myself, I doubt it.
B Corps and social enterprise has really taken off over the past 20 or so years but yes, so many still don't know about them!
I see your point about standardizing your designation although I have come to realize I am a humanitarian, social and an enviromentally oriented person and also recognize I too must create an income in order to go up against the the billionaires in ecommerce so I will follow the assessor of the assessment and be prepared for the certain year long report and documentation involved while scaling my business to meet the ongoing needs of non-profits.
Thanks so much for all of this information. Just too clarify, is a B Corporation designation only available to already existing for-profit businesses or can one obtain this status from the start or initial formation of the company?
I’m still doing some research on my organizations needs and qualifications for being a B corporation, but what I have learned from you, and a very few others, I feel my fit is in the nonprofit sector of business. I do think this is a good way to be beneficial to the community and I may still consider this as being a way to help support a bee corpse, target, nonprofit assistance.
There are so many possible models out there to do good!
Great info
Glad it was helpful!
Well. This is something great.
Hi! Thank you! :)
thanks for the video, not for profit will do for me. A B corp might actually work for someone running developmental sporting programms in the community.
Thanks for weighing in!
non profit is the way to go.
Say more! What makes you lean that way?
my main drive is to make a change in the world, with a non profit you can make all the profits you want the only requirement is that all the money you get you have to use it to invest in your cause/mission or the cause of another non profit so if you die all the money in the non profit cannot be taken away by your greedy son/daughter it will continue to serve the cause or be donated to another nonprof, also the main benefit of non profit is your taxation status you lose those benefit if you are a bcorp, i see bcorp as a "certification" thats says im a company "complying" with certain metrics, its like the certified organics sticker to make more people buy your stuff because you follow certain guidelines, with the bcorp if you want to use your company money to take a trip to dubai to do Luxury Desert Safaris noone will tell you nothing with a non profit you legally cant do it.
@@rickymartin06 That can be true. There are some limitations on how you can raise money as nonprofits that you wouldn't have with a B Corporation that some consider to be beneficial too.
I have a B corportation and love it.
Nice!
Yaay!!
:D
@@AmberMelanieSmith What does D mean?
@@danielcitizenman5510 Hehe, it is a sideways smiley face. It has eyes too.
Have you considered doing a video on worker cooperative non profits?
Not yet, but I'll look into it!
@@AmberMelanieSmith I'm currently working with a nonprofit in Denver that's transitioning from one ED to three co-directors, and I also have a close relationship with the team at the Rocky Mountain Employee Ownership Center (worker co-ops are their jam).
Let me know if you'd like an introduction or more info or anything.
PS: My MA thesis was on worker cooperatives + I did fieldwork at the Evergreen Cooperatives in Cleveland, so I'd be happy to chat if you pursue this topic!
@@MissionDrivenImpact Cool!
Hello and thanks for all your fantastic videos. What advice do you offer for a nonprofit organization with a 501c3 status with the irs.(original established in 2003 reinstated 2020) wanting to apply for Grant funding for our nonprofit organization. Please assist me if you can
Hey Marie! I have some videos all about grants that may help! (Here is the playlist: czcams.com/play/PL-JB-jNZz_qC6FghAgFsiV0NMbqA0a7qz.html ) But I would say start with your business plan / case for support! You've got to have one developed so you can apply for grants easily and effectively.
I like the B Corp concept, but I have questions: Do I need a Board Of Directors? What are the tax implications? Can I get government grants?
A B Corp is still a business. There are government contracts / grants for businesses, too, but likely with different parameters.
As a sole proprietor for my for profit business, how did I attract donations?
Can donations claim my business on their taxes? I do have a LLC.
Hey there! For-profit businesses cannot accept tax deductible donations, as it is not a tax exempt entity. Nothing is stopping you from asking your customers for donations, but you may not have the same "halo effect" nonprofits have to attract support.
I'm currently in college, getting my business/accounting BBA, with intentions eventually of buying rental properties for the purpose of using them to fund an animal rescue (ideally on the actual property). So, I'm trying to figure out if a B-corp or a nonprofit would be the best model. I have no interest in taking any donations to fund the project, and I would rather not be beholden to anyone who is going to demand profits or dividends, since all of the profits will be going to feed/shelter/neuter animals or expand the project.
Any advice?
With a nonprofit, you'd be relying on donations, sponsorships, grants, and some earned income strategies to fund the work and you'd have a Board of Directors whose votes shape the organization's efforts. As a for-profit, as long as you don't have partners or investors there wouldn't be an issue with the dividends; plenty of people form small businesses that may have staff but not stakeholders.
I just thought of something Amber. If I were to be a founder of one said B-Corporation and striving for a certification, my new found standards would need to meet in the middle by using the non-profit "adage" (if you will) religion being the social topic, my concept is to allow only 45% shareholder, to me, the founder, as opposed to 45% for the conglomerate shareholders with the middle 10% going to the church, all as shareholders. Kinda like giving it to God. This way we as the complete shareholders have equal responsibilty to create performance requirements and in end establish the unwavering standards like bequethed upon a church.
What do you think of tis Amber?
That's interesting, and I think if you were able to logistically make it work it could be a cool narrative to include in descriptions about your company.
Non-profits still make a profit, they have to to stay alive. Why can't an LLC for example or a "for profit" company still have an element of social impact or a "do good" cause, or can they? I think the real reasons for these different corps are for tax purposes and not to validate your ability to "do good". So what if I am "for profit" but still have a social cause? I didn't know about B corps, thank you! Are B corps easier to start than a non-profit? What about ownership and company control, is that different as well? Many thanks!
Correct, nonprofits still generate revenue / profits BUT they cannot pay them out to stakeholders, all profits must feed back into serving the organization's mission. And certainly, LLCs or any business could also have a social impact element to them - nothing is stopping them! I am not sure if I'd say B Corps are 'easier' to start than a Nonprofit - both are hard. :) But they each have pros and cons, and different structures around governance, control, and leadership.
I am curious to understand if people find B corporations easier to become sustainable than non-profits?
There are many factors that would influence the success of either one, but some may feel the built-in revenue model and ability to get private investors in the beginning would give B Corps an edge.
It kind of makes me feel like a company is trying to use Environmental conscientiousness as a selling point to generate more money for themselves. How do they cheaply maintain good reputations without coming across as two faced about the profits portion?
I can understand your concern. Though, if a company is genuinely doing good things (which they are required to do in order to maintain B Corporation status) then that I think is a big improvement on a business model in which NO social responsibility might be expected / enforced.
With the B corporation are you able to give a tax deduction for donations?
B Corporations are businesses (not nonprofits), so no.
Are B Corporations possible in the UAE (where I am based) or are they limited to only some countries? Can you please find out (if possible).. Many thanks again Amber !
Hey there! B Corporations can and do exist around the world! Here's info about them: www.bcorporation.net/
Can a school also be a B corp? IF you know otherwise I will find out. Thanks again, Amber.
I hope that it is not for only universities. I need to know if Schools can be B corps.
3:03
What are the benefits of a B Corp?
Be sure to watch this video all the way through, we talk about the benefits a few minutes in!
Being a Communist scumbag that's helping to Centralize the power of Corporations and spread Authoritarianism around the planet ;)