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FAQ about CS B corporation
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== “But they tried to continue to be a non-profit organization, but the US government didn’t approve it!” == In fact what the US government denied was the tax exemption, CS could continue to be a non-profit organization, though it would need to pay taxes. But more important, there are also many doubts if Casey really wanted to obtain this status, since doing it would mean passing the point of no return, that is, if this status was obtained, CS couldn't be sold anymore. Casey also said that CS was something that was too revolutionary, and use this an excuse of the refusal by the US government, but at the same time [[Servas]], another hospitality service obtained this status (and its complete application is public by law, and can consulted by anyone). And too many mistakes were made throughout the application and review period, which makes us suspicious. But, in order to be sure of this matter, we would need: * to see the refusal letter from the IRS (the U.S. government agency responsible for approving or denying the non-profit status at the federal level) which states the motives of the refusal. But we know for example that one cannot be at the same time president and CEO of the organization (as was Casey) to obtain the 501c3 status. * to know why every year the tax returns were filed late, which isn’t helpful in obtaining a favorable decision from the IRS. * why the proportion of spending on what could be considered programs in line with the claimed charitable cause was so low. We can see that there are some indications that he didn’t try too hard to obtain this status, what makes us think if that was really his goal, and not only to have more time to make CS grow and sell it for a higher price.
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