What are the differences between B Corps and nonprofits?

What are the differences between B Corps and nonprofits?

B Corps are for-profit companies that meet high social and environmental performance standards, while nonprofits are organizations that operate for a charitable purpose and do not distribute profits to owners.

Can B Corps make a profit?

Yes, B Corps can make a profit. They are for-profit entities, but they must balance profit with social and environmental goals.

How do B Corps get certified?

B Corps get certified through B Lab, which assesses a company's social and environmental performance using a comprehensive assessment.

Are there tax benefits for nonprofits?

Yes, nonprofits can receive tax-exempt status, allowing them to avoid federal income tax and potentially receive donations that are tax-deductible for donors.

Which one is better for social impact?

It depends on the goals. B Corps can drive social impact through business practices, while nonprofits focus solely on charitable missions.