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socrateaser
socrateaser, Lawyer
Category: Legal
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Experience:  Retired (mostly)
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what would be the benefit in California of NOT going for nonprofit

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what would be the benefit in California of NOT going for nonprofit cooperative status?
our case is a group wanting to transform a local bookstore that has become a local community arts haven into a space for partnering local artists and collectors to help maintain (pay the rent and insurance) to be able to promote/share and sell their crafts and services on consignment. but the cooperative would not make or seek to profit, only to sustain the capacity for the larger community arts purpose.
A consumer cooperative operates for the benefit of the membership where the members are also the patrons of the cooperative. If you are selling to the public then a nonprofit public benefit corporation is probably a better choice. Ultimately, what really matters is obtaining IRS 501(c)(3) qualification. The state incorporation formalities are an artifact of a system that predates the federal tax-exempt organization laws, and the public benefit corporation is the most flexible of the state nonprofit forms, because there is no restriction on the public purposes available.

Hope this helps.

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Customer: replied 4 years ago.
Thank you!