At the Total Impact Summit, ImpactPHL presented a call to action to participations – commit to making a change within their respective organizations. In response, harp-weaver decided to apply to alter its organizational structure from an LLC to a Benefit LLC. Thanks to the hard work by harp-weaver intern Kylie Sokoloff, harp-weaver is in the midst of B Lab’s Verification Process to make that change.
What is a Benefit Corporation and Benefit LLC?
Benefit Corporations (B Corps) are for-profit companies that meet the highest standards of social and environmental performance, transparency, and accountability. A Benefit LLC functions in the same way as a B Corp, while maintaining the structure of an LLC. Currently, only a few states (Pennsylvania being one of those) offer the opportunity to become a Benefit LLC.
Why do companies work to obtain Benefit Corporation or Benefit LLC status?
Companies may choose to incorporate or transition to a Benefit Corporation or Benefit LLC for a variety of reasons. For one, obtaining official status helps a company stand out and stick to its mission. B Corps and Benefit LLCs are dedicated to a higher level and standard of social and environmental performance. Achieving the B Corp or Benefit LLC status demonstrates a level of intentionality as an organization commits to its mission. In addition, becoming a B Corp/Benefit LLC attracts potential customers who are committed to spending their resources and selecting companies to partner with who align with similar values. Finally, by obtaining B Corp/Benefit LLC status, and organization can attract potential investors or buyers who invest in opportunities that are value-aligned. Due diligence on investing opportunities is much easier on a B Corp/Benefit LLC because the company meets the B Corp standards.
Why did harp-weaver decide to apply for Benefit LLC status?
As harp-weaver’s intern Kylie shares, B Corps differ from traditional corporations regarding their purpose, accountability, and transparency regarding their societal and environmental impact. This project and its mission “perfectly embody harp-weaver’s values.” harp-weaver exists to help guide funders on their philanthropy and administer their grantmaking and operations. Staff are dedicated to making a difference, and the desire to transition the company to become a Benefit LLC fits perfectly in line with harp-weaver’s mission and efforts.