Oh hey there, friends! You may have read our first blog, “Who is KinoSol?”, and wondered about Specific Benefit Corporations. But what in the world is that? Well, you’ve come to the right place. Keep reading to see Specific Benefit Corporations simplified.
To start, let’s flashback to Business 101. There are multiple different business entities out there: Sole Proprietorship, LLC, Corporation, and Nonprofits… oh, and obviously Specific Benefit Corporations. In order to understand how Specific Benefit Corporations fit into the mix, we will compare corporations and nonprofits.
According to Investopedia, corporations exist as a legal entity to make money for their shareholders. Corporations can be anything from your favorite local restaurant to mega box-store retailers. On the other hand, nonprofits operate on the belief that no individual will benefit from the profits of the company. Instead, the profits benefit specific philanthropic and social impact initiatives.
A Specific Benefit Corporation falls smack in the middle of these two business entities. While they do make a profit for their shareholders, they are legally bound to report their social impact. The company’s promise for a better world is written into its founding documents.
KinoSol’s founding documents state our main mission is to reduce food waste. One-third of the food produced globally is lost or wasted, and KinoSol’s mission is to change that number. Through our solar dehydrators and study abroad trips, we hope to make an impact large enough to change both lives and statistics.
So there you have it, Specific Benefit Corporations simplified. Thanks for tuning in to another blog post! If you have questions about KinoSol or how you can get involved, contact us! And check back next week for our newest post!
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