This article posted on our partner site Mondaq.com discusses some of the legal questions that corporations wishing to financially support a registered charity using company time or money (i.e., engaging in corporate social responsibility activities) should ask themselves before doing so through gift or sponsorship. One of the considerations noted by the author is whether the Articles of Incorporation, or other originating document, authorizes charitable giving in conjunction with the corporation’s basic purpose – to conduct business with a view to profit.

Business incorporators who read this article from any jurisdiction, will need to consider the fiduciary rules and case law governing directors in their guidance of the specific business activities that the corporation is permitted to undertake, and this article will also guide company directors on the issues to spot when thinking about social/charitable actions.

This “blog bite” comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!

 

–  –  –

This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk. Clausehound.com is a legal tool geared towards entrepreneurs, early-stage businesses and small businesses alike to help draft legal documents to make businesses more productive. Clausehound offers a $10 per month DIY Legal Library which hosts tens of thousands of legal clauses, contracts, articles, lawyer commentaries and instructional videos. Find Clausehound.com where you see this logo.

What you don't know can hurt you! Subscribe to stay informed.

Sign up now and receive an email when we publish new content.

We will never give away, trade or sell your email address. You can unsubscribe at any time.