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by KPGv2
4 hours ago
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Where is this possible? In the US, it is impossible. Non-profit's do not have owners, so they cannot be sold or changed to for-profit ones, so there are only two ways for a non-profit to "turn into" a for-profit: * sell non-profit's assets to a for-profit company (so it's not turning into a for-profit company, and ownership of the non-profit can never be sold since it's not owned by anyone that can approve the sale, there are no shares, etc.) This is only legal if sold at fair market value. So the for-profit can't just take the IP, equipment, land, etc. It has to buy it at what anyone else would buy it at. It also has to be approved of by the state's government. Then the proceeds of the sale have to be transferred to another non-profit. * form a for-profit subsidiary, which is still controlled by the non-profit. And the for-profit is owned by the non-profit, so the profits flow upward to the non-profit to be used to support the non-profit's agenda. Either way, the non-profit cannot become a for-profit, and it takes corporate governance shenanigans (like the bullshit happening with OpenAI) to even approximate this. Essentially, it requires corruption and a non-profit board that is unaccountable to its stakeholders. |
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