What Is a Public Benefit?
Many countries use the term “public benefit” to describe an activity that benefits the public at large or some significant subset of the general public. The term appears in nonprofit legislation and guidance in dozens of countries. In the U.S., public benefit purposes do not necessarily correspond to charitable purposes. Outside of the U.S., however, it is often equated with the U.S. concept of “charitable” or serving a “charitable class.” Below is an overview of the various ways the term is used both within and outside the U.S. Comparing Public Benefit in the U.S. and Outside the U.S. In many countries, a public benefit is understood to mean an activity that benefits a large subset of the public, as opposed to the private interests of investors, companies, or a small group not otherwise in need. While a number of countries specifically define what constitutes a public benefit in legislation and statutory guidance, other countries use the term withou...