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This is the reason why a for-profit organization is not exempted any tax. Subsequently, at times running a not-for-profit corporation can be more difficult. Although both for and not-for-profit need a good decision making body however the aspect of serving the public puts an extra responsibility on the members of the board. [9]
This differs from a traditional (non-profit) charity because they do not have to pay taxes as no profit is generated for themselves. If a charitable for-profit entity was to go out of business, its assets can be liquidated and the proceedings will be distributed to the shareholders of the business. However, if a charity was to go out of ...
A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates. The term "organizational structure" refers to how the people in an organization are grouped and to whom they report.
If the initial organization becomes a for-profit, generally, a conversion is needed where the for-profit pays the fair market value of the assets to another charitable organization. Even if the nonprofit OpenAI continues to exist in some way, some experts argue it would have to be paid fair market value for any assets that get transferred to ...
The board might not have found itself straddling the tensions between its nonprofit structure and the company’s for-profit arm if not for a pivotal falling out in 2018 involving Altman and Musk.
As a matter of law, in the 36 states that recognize this form of business, a benefit corporation is intended "to merge the traditional for-profit business corporation model with a non-profit model by allowing social entrepreneurs to consider interests beyond those of maximizing shareholder wealth." [2]
With the company in the process of raising new funds at a valuation somewhere north of $100 billion, the non-profit structure is proving increasingly awkward. For investors, a change means a more ...
Last month, Musk asked a federal court to stop OpenAI from moving to a for-profit business structure. In the last year, Musk has twice sued OpenAI in an effort to stop the startup from adopting a ...