Flexible-Purpose Corporation

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Definition

A Flexible-Purpose Corporation is a type of socially conscious enterprise that allows for extreme flexibility in their structure and processes. These corporations specify a “special purpose”, either with a social cause or charitable activity, in addition to their pursuit of seeking profit. While most business corporations focus mostly on maximizing shareholder value, the goal of Flexible-Purpose Corps is to have a structured legal organization where profit is pursued alongside social aims. Unlike an L3C, company profit is still an expressed purpose of a Flexible-Purpose, with neither profit nor social issue outweighing the other.

These corporations issue annual reports to the public that explain their purpose and objectives; they are detailed with their expenses, their measuring metrics, and whether or not they met their objectives or not.

Currently, California is the only state to have passed Flexible-Purpose legislation.