Abridged excerpt from book “51 Questions on Social Entrepreneurship“.
Tax benefits for social enterprises
There are no tax benefits for social enterprises in the US at the state or federal level.
Though there is nothing in the works now, it isn’t to say incentives couldn’t be added if companies adopting these guidelines prove that by creating valuable impact, they are desirable or provide a benefit to the society and economy. A tax break or benefit would be a huge incentive for companies to consider these legal structures, but on the balance, it could attract companies that are more interested in the tax break than in actually creating the impact.
This is an abridged excerpt from the book, “51 Questions on Social Entrepreneurship” by Neetal Parekh. You can learn more and buy the entire book—which is told as a story of three aspiring social entrepreneurs and which dives into key aspects of social entrepreneurship including defining the space, legal structures, securing funding, and measuring impact at 51questions.com