Social Purpose Corporation
A social purpose corporation (SPC) is a type of for-profit corporation recognized in several US states. An SPC is a hybrid between a traditional for-profit company and a nonprofit. SPCs pursue both social and financial goals. UNISHKA, for example, operates its business in a manner intended to minimize the adverse effects of corruption on national, sub-national, and world communities. UNISHKA is not eligible for federal 501(c)(3) status.
Non-Profit Organization
- Can pursue their designated missions
- Cannot distribute profits to members, officers, and others
- May be eligible for 501(c)(3) tax-exempt status
Social Purpose Corporation
- Can pursue their designated social purpose
- Can distribute profits to shareholders
- Required to post an annual report about their efforts to achieve social purposes. (See report filed with UN Global Compact).
Social Purpose Corporation vs. Benefit Corporation vs. B Corporation
A social purpose corporation is not the same as a benefit corporation, which is the formalized legal entity in some US states. These two designations (an SPC and a benefit corp.) are different still from a B Corporation, which is a third-party certified company but not a legal entity (like a SPC or benefit corporation).
