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This is not correct, for-profit companies can do whatever their shareholders want them to do, including advocating on social or other issues. 501(c) organizati
by snowwrestler 4y ago
This is not correct, for-profit companies can do whatever their shareholders want them to do, including advocating on social or other issues.
501(c) organizations face more restrictions, especially financially.
- yieldcrv 4y agothey can but they need to focus on revenue. regarding the 500-section tax code, there is a way to do anything. 501c4 and above fix most of the issues that c3's have. there is a way to navigate.
- snowwrestler 4y agoAll the 501c’s face reporting requirements and financing restrictions by dint of being nonprofits. For example, they cannot raise capital by selling shares. For-profit companies only need to focus on revenue if their shareholders want that. It’s perfectly legal to create a for-profit entity and invest capital for the sole purpose of spending it down, never realizing any revenue. Chan-Zuckerberg is probably the most famous example of that. For-profit companies can also have a mix of goals, for example making revenue and profits, but spending profits on a social mission, like Patagonia.