Mutual Benefit Nonprofit Organizations Research Paper

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Public Benefit Nonprofits VS Mutual Benefit Nonprofits The law indicates that public benefit nonprofit organizations are focus on the general public benefit while mutual benefit nonprofits considering their members’ interests. Usually, public benefit nonprofits are established with the purpose of social or education or recreation or charity. In contrast, mutual benefit nonprofits are aimed to providing services or promoting activities for its members. Moreover, public benefit nonprofits are recognized as charitable organizations with IRS 501(C)(3) status. But, most mutual benefit nonprofits are required to deal tax issues like for-profit organizations, except mutual benefit nonprofits include in 501 (C)(6) (Wikipedia). In other words, public benefit nonprofits want to benefit the greater society, and mutual benefit nonprofits emphasize their own group benefit. I will choose to start a public benefit organization if my purpose of establishing this organization is related to social or education or recreation or charity. At the same time, this organization should conduct the services and activities to benefit the greater society not limit to a small community or group. According to IRS, “religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety,…show more content…
Mutual benefit organizations include labor organization, business leagues, social clubs, fraternal societies and etc. (http://www.irs.gov/Charities-&-Non-Profits/Types-of-Tax-Exempt-Organizations). In this case, I will need to protect and promote my members’ benefits since the members provide the major (or the most) part of revenue for this organization. In contrast, if I start a public benefit nonprofit, I have to benefit the greater society in order to be a qualified organization under IRS 501
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