Does Canada need ” Benefit Corporations”?

Posted by 7 Jul, 2014

Have you heard about these new corporations in the USA?  The New York Times referenced them in this article over the weekend http://nyti.ms/1j6CmhV.  The article was promoting the idea if a donor feels a sense of belonging, they will give more.  In these days of social entreprise, impact investing and sustainable business models,  the  “benefit corporation”  is gaining momentum across several US states.  Basically, a benefit corporation is a for-profit entity whose social purpose is central to their existence.  It requires some additional fiduciary duties of the board of directors as well as an obligation to report on the social and environmental impacts of their work using a third party standard.  Establishing such corporations in Canada  just might be a useful mechanism to ensure charities are indeed addressing social issues and delivering on their mandates particularly as it relates to these new forms of giving. What do you think? Need some help with your giving? Contact us at info@philanthropic.ca.

Categories : Terry Smith

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