Placed On This Isthmus of A Middle State – Flexible Purpose Corporation Bill Faces Nonprofit Opposition


Previously, I’ve discussed the effort to create a new species of corporation – the flexible purpose corporation. To this end, Senator Mark DeSaulnier has introduced SB 201. The Senate Judiciary Committee heard and passed the bill yesterday afternoon. However, some interesting opposition has surfaced.

Charities Fear Diversion

At the Committee’s hearing, witnesses from the California Association of Nonprofits, the Blood Centers of California, the California Society of Association Executives each argued that the formation of flexible purpose corporations could siphon off much-needed resources from effective existing nonprofits by redirecting donor dollars from charitable contributions to flexible purpose corporation investments.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins | Attorney Advertising

Written by:


Allen Matkins on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.