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Introduction to Nonprofits
6/6/2024 pdw
There are three reasons for studying nonprofits in a business associations class.
First, they are business associations and major ones at that. In data from recent years, the nonprofit sector accounted for 5% of U.S. GDP, employed 11.4 million paid workers and generated 8.7 billion volunteer hours (with an estimated value of $179.2 billion). Indiana Nonprofits Project, The Nonprofit Sector in the US, https://nonprofit.indiana.edu/our-focus/nonprofit-sector.html.
Second, the corporate form is one of the most common entity types used to create corporations. In Delaware nonprofit corporations are governed under the Delaware General Corporate Law. Other states have separate codes to deal with the unique challenges of nonprofit corporations, such as a lack of dividends.
Third, at some point in your legal career you are likely to work with nonprofits and maybe even serve on a nonprofit board. Even if you stick strictly to business, many corporations have a private foundation or lobbying arm staffed with the corporation's employees. Understanding the basics will let you spot issues and hire experts when needed.
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