Business Question

[SunDancer]

Can anyone explain to me what a public benefit corporation is? Who owns it then and how is it structure?

[JonInMiddleGA]

I believe the specifics are going to depend upon what state the entity incorporates in.

A quick web search of the phrase "What is a public benefit corporation" turned up several listings which varied from one state to the next.

As an example, here's what Vermont says ..."'Public benefit corporation' means a domestic corporation which is required to be a public benefit corporation pursuant to section 17.05 or is formed as a public benefit corporation pursuant to chapter 2." 11B V.S.A. § 1.40(28).

A public benefit corporation is the kind of nonprofit most people think of. It is a charity. The public benefit nonprofit corporation exists to provide a particular public benefit such as a public library, an adult day center, or an arts council. Typically, it is a public benefit nonprofit corporation that will obtain 501(c)(3) tax exempt status from the IRS. In furtherance of its charitable mission, if a public benefit corporation dissolves, then all of its property must go to a another public benefit nonprofit corporation.

while Maine says "Generally, if your corporation?s mission is to serve the public or community at large, it is probably a public benefit corporation. Public benefit corporations can usually be characterized as charities."

Common examples: volunteer fire departments, grantmaking foundations, homeless shelters

The Maine info also cites the difference between public benefit and mutual benefit non-profits as being whether the beneficiary is the public at large or a much narrower subset, such as a homeowners association, a snowmobile club, etc.

Hope that's at least some help.

[SunDancer]

Well, this is a hospital in New York State.

[SunDancer]

I'm trying to understand how this hospital would earn it's funding in support of the hospital. They have insurance, and the fund raising arm raises $30 million deicdated towards research since it's inception. But it takes more than insurance money.

[JonInMiddleGA]

I don't know if this is the hospital you're talking about (it'd be kinda wild if I hit the right one at random) but you might get some insight from this recent press release concerning the conversion of Erie County Medical Center to a public benefit corporation.

http://www.state.ny.us/governor/press/year03/july25_03.htm

From reading that, I get the impression that it basically remains in the "hospital business", with normal payables & receivables and such, it's just a different company for tax purposes.

As for research specifically, that's often money that's donated by various benefactors.

[SunDancer]

Originally posted by JonInMiddleGA
I don't know if this is the hospital you're talking about (it'd be kinda wild if I hit the right one at random) but you might get some insight from this recent press release concerning the conversion of Erie County Medical Center to a public benefit corporation.

http://www.state.ny.us/governor/press/year03/july25_03.htm

From reading that, I get the impression that it basically remains in the "hospital business", with normal payables & receivables and such, it's just a different company for tax purposes.

As for research specifically, that's often money that's donated by various benefactors.

Close with ECMC, it's actually Roswell Park. Anyone anlso familar with business plans, in writing them, or evenbeing the guys to look at them.