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My perspective was from Finland. Non-profit status there is tied to what the organization does rather than to the specific form of the organization. As a rule o
by jltsiren 2y ago
My perspective was from Finland. Non-profit status there is tied to what the organization does rather than to the specific form of the organization. As a rule of thumb, if the organization competes against for-profit organizations, it's probably a for-profit organization for tax purposes. That covers most coops, including credit unions. There are of course specific rules for different types of organizations, but they don't change the big picture.
- PaulDavisThe1st 2y agoThe US has a second form - the "benefit corporation" - that is based on what the organization does. It is possible to be a for-profit or not-for-profit benefit corporation, though sort of by definition almost all US not-for-profit organizations are inherently "benefit corporation" since otherwise they would likely lose their not-for-profit status. But this reminds me ... I think that this conversation has not paid enough attention to the difference between the legal sense of a non-profit (in the USA, a 501c3 is the main classification, though there are others) and the colloquial sense (such as a credit union). In the USA, you cannot be a 501c3 and also a credit union, for example. or a consumer owned cooperative. Nevertheless, people will sometimes refer to such organizations as "not for profit". I think there's less difference between the USA and Finland than we've been suggesting.