Why a California B (Benefit) Corporation?

A B-Corp, also known as a Benefit Corporation, is a for-profit corporation which is dedicated to be a benefit to society, not just to customers, employees and owners. This designation allows its executives and board to put its beneficial mission ahead of the goal of maximizing profit. You can find us listed on the BenefitCorp.org website.

PeopleCount's societal benefit is to enable people to effectively govern themselves, as stated in our mission.

A handful of states have created this corporation status. For more information on California's, see this CA.gov document and the applicable law (search for "benefit").

In 2013, when PeopleCount has a track record of societal benefit, we'll seek B-Corp certification, such as from BCorporation.net. See also their pages about What's a B-Corp and The B-Corp Declaration.

You can also read these articles about Benefit Corporations in The Economist, The L.A. Times and Forbes.

PeopleCount incorporated as a Benefit Corporation for several reasons.

  • Greater company control. A non-profit is controlled by the board, which usually includes large donors. The board can re-interpret the mission and steer away from the vision. Being a B-Corporation helps ensure PeopleCount stays in the control of its founder and fulfills both its mission and its vision.
  • Greater ability to resist partisan influence. By retaining control, the board can better ensure that PeopleCount stays true to its mission and isn't taken over by partisan interests.
  • Greater access to capital, should we need it to fulfill the vision. After a few months of networking and seeking start-up partners, it became clear that potential donors are consumed with the election. In contrast, investors and their capital are abundant here in Silicon Valley.
  • More familiar regulations. The board has more familiarity with how corporations are structured and regulated, Incorporating as a for-profit entity was faster and easier.