I called this new form a “participation nonprofit,” meant for causes that need substantial contributions. Such an organization, which might run a school or a hospital, would offer to sell shares instead of requesting donations. The share sales would really be donations, but would be framed differently and come with rights that would change the whole giving experience. Shareholders could vote their shares at stockholder meetings, as they would in a traditional corporation. The organization would pay some kind of dividend, too, though this would go into a restricted account, to be used only for a charitable purpose of the owner’s choosing. And shareholders could bequeath the stock to heirs, and could even sell it, though the proceeds would also go into the restricted account. For this plan to work well, people would need to receive a tax deduction for their share purchases, which are really irrevocable contributions to charity. Structured this way, charitable giving would become personally meaningful in the way that investing is. Givers would feel a real sense of participation and partial control over their activities.
Posted on: Sun, 06 Jul 2014 11:11:50 +0000
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