OK you just learned that most not-for-profit corporations don’t have shareholders. Well, that was kinda not true. Almost all of them actually *do* have a sort of shareholder, but they just call them “members”. There’s even a type of not-for-profit corporation where members technically own a piece of the corporation, just like a shareholder of a for-profit corporation. It’s different enough that it’s useful to think of it as a separate sector, so we’ll talk about it more in a few days. Anyway, basically all not-for-profit corporations have members of some kind. Members get voting rights and other types of authority, just like shareholders. What members don’t get, though, is dividends, at least not directly, or any other financial benefit. Well, except in that other sector I mentioned a few seconds ago. Just be patient.
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24. Member (definition)
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OK you just learned that most not-for-profit corporations don’t have shareholders. Well, that was kinda not true. Almost all of them actually *do* have a sort of shareholder, but they just call them “members”. There’s even a type of not-for-profit corporation where members technically own a piece of the corporation, just like a shareholder of a for-profit corporation. It’s different enough that it’s useful to think of it as a separate sector, so we’ll talk about it more in a few days. Anyway, basically all not-for-profit corporations have members of some kind. Members get voting rights and other types of authority, just like shareholders. What members don’t get, though, is dividends, at least not directly, or any other financial benefit. Well, except in that other sector I mentioned a few seconds ago. Just be patient.