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‘B corporation’ plan helps philanthropic firms

May 18, 2008 /

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Bear Paw Development Corporation is a private non-profit organization created for the purpose of administering programs to help improve regional economic conditions in Hill, Blaine, Liberty, Chouteau and Phillips Counties and the Fort Belknap and Rocky Boy's Indian Reservations.

Mike Hannigan and Sean Marx started their Oakland office supply company, Give Something Back, with an unusual mission – donating all profits to charity. As they grew to sales of more than $26 million, Hannigan and Marx often wished for additional capital to help fuel that growth. But they held back from seeking outside investors for fear of undermining their philanthropic mission.

"Even if investors came in saying, ‘I am totally into giving away the profits,’ two years later they might change their mind," Hannigan said.

Now Hannigan and Marx believe they’ve found a solution to their dilemma – writing their values into their company’s legal structure as something called a "B corporation."

Ilana DeBare, Chronicle Staff Writer

Full story: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/18/BULH10JFU3.DTL