Entity and Identity
University of Georgia Law School
November 2, 2010
Emory Law Journal, Vol 60, pp. 1257-1322, 2011
UGA Legal Studies Research Paper No. 10-17
The function, indeed the very existence, of nonprofit corporations is under-theorized. Recent literature suggests that only preferential tax treatment adequately explains the persistence of the nonprofit form. This answer is incomplete. Drawing on psychology’s social identity theory, this Article posits that the nonprofit form can create a special "warm-glow" identity that cannot be replicated by the for-profit form. For example, a local nonprofit food cooperative is selling more than the free-range eggs or organic strawberries that Whole Foods and other for-profits market so effectively. The co-op offers community participation and an investment in local farms, a distinctive ethos that is incompatible with the profit motive. Ascribing a special meaning to the nonprofit form allows us to view afresh a variety of issues regarding the appropriate legal treatment of nonprofits.
Number of Pages in PDF File: 72
Keywords: nonprofit, social identity theory, tax, corporations, business organization, business association, low-profit limited liability company, L3C
JEL Classification: K34, L30Accepted Paper Series
Date posted: November 4, 2010 ; Last revised: November 10, 2011
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.250 seconds