Expanding the nonprofit purpose

12th Annual Governance of Nonprofit Organizations
State Bar of Texas, August 21-22, 2014, Austin,Texas

I.  Introduction

Accepted definitions and understandings of the concept of “charitable” or “charitable purpose”, as currently applied to tax-exempt nonprofit organizations, may no longer accommodate an evolving nonprofit sector economy where the public benefit or social purpose aspirations of people and innovative organizations seek societal good and social change in new ways. In 2013 the Texas Legislature passed Senate Bill 849 that permits for-profit corporations to fold certain social purposes into their management responsibilities. This reflects trends and legislation in other states that point to new forms of for-profit social purpose or social benefit entities that could shift accepted meanings of charitable purpose. [Read more…]