Special Legal Status
Voluntary enterprises enjoy a special legal status. This may be their most taken-for-granted characteristic. Except for informal organizations and small short-term enterprises, most voluntary enterprises are constituted as nonprofit corporations. Since they provide a public service and money is only a means to them and not an end, the government grants them a status that sets them apart from enterprises that seek profits. They enjoy advantages such as freedom from taxation. Contributions to many of them are tax-deductible. In many cases, such organizations are not subject to as many regulatory restrictions as profit-seeking firms. So they are relieved of some of the burdens under which commerce and industry must labor. A businessman will quickly agree that this is an advantage that the not-for-profit executive might not fully appreciate.
KeywordsNonprofit Organization Voluntary Sector Private Foundation Internal Revenue Voluntary Enterprise
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