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Doesn't Mozilla have an identical structure (which is the inverse of what you said, the nonprofit owns the for-profit--it wouldn't make any sense for a for-prof
by morpheuskafka 3y ago
Doesn't Mozilla have an identical structure (which is the inverse of what you said, the nonprofit owns the for-profit--it wouldn't make any sense for a for-profit to own a non-profit due to the no private inurement requirement)?
- jacooper 3y agoAFAIK that's how OpenAI does it, the non-profit controls the for-profit.
- dragonwriter 3y agoI think Mozilla Corp is 100% owned by the nonprofit, which is a little different. It allows activity which a nonprofit couldn't directly do, and which has a different tax treatment, but its not returning profits to someone else like OpenAI Global LLC and, as I understand it, its immediate parent holding company both do. But they are similar in that both involve a nonprofit controlling subordinate for-profit entities.
- deleted 3y ago[deleted]
- jowea 3y ago> it wouldn't make any sense for a for-profit to own a non-profit due to the no private inurement requirement)? The most obvious example is the corporate foundation, but if we believe the first result from a search you're right in they are controlled but not owned by the for-profit: > A for-profit cannot own a nonprofit because a nonprofit has no owners. However, a for-profit can set up a structure in which it effectively has control over the nonprofit, subject to applicable laws, including those regarding private inurement, private benefit, and corporate self-dealing > https://nonprofitlawblog.com/can-a-nonprofit-own-a-for-profit-can-a-for-profit-own-a-nonprofit/ https://nonprofitlawblog.com/can-a-nonprofit-own-a-for-profi...