August 27, 2011
Nonprofit Converts to "B Corporation" Status to Take Investment Funds
Forbes reports that nonprofit CouchSurfing.org has become a "B" or "Benefit" Corporation in order to receive $7.6 million in funding from Benchmark Capital and the Omidyar Network. The now former nonprofit connects global travelers with locals throughout the world and has a user base of three million people in 81,000 cities. The B Corporation is an invention of the nonprofit B Lab, which certifies for-profit corporations as B corporations if they meet social, environmental performance, and legal accountability standards and "build business constituency for good business" according to the Certified B Corporation website. B Lab is also working to enact B Corporation legislation in at least three states (California, Michigan, and New York).
Hat Tip: Tactical Philanthropy
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i don't see how couchsurfing.org could have held exempt status anyway, even as a (c)(6).
Posted by: r. willis | Aug 30, 2011 12:47:12 PM
What happened to the assets of the nonprofit? Were they sold and proceeds put to another legally charitable purpose?
Posted by: Rob Katz | Aug 30, 2011 6:32:03 PM
Does anyone know of a good book or law review article that provides background information on "B Corporations?"
Posted by: Ben | Jan 31, 2012 8:06:37 AM