Non Profit Corporation FAQs Back to All FAQs

How is a flexible purpose corporation different from a non profit corporation?

The flexible purpose corporate designation requires that corporations include some special purpose, which they consider to be beneficial to society, in their Articles of Incorporation and on their share certificates. That special purpose becomes their paramount priority, in most cases superseding the normal requirement that corporations maximize profits. In this, both structures are fairly similar; they both set out on a mission and help protect the business from being sued if that mission results in smaller profits.

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