The Moderation Corporation A Hybrid Corporation

The Moderation Corporation, A Hybrid Corporation By Anthony J. Fejfar, B.A., J.D., Esq., Coif © Copyright 2009 by Anthony J. Fejfar Traditionally, there have been two types of corporations, For Profit, and, NotFor-Profit. I have developed the idea of a new Hybrid Corporation, called the Moderation Corporation, which integrates elements of both a For Profit and Not-ForProfit. The Purpose of a Moderation Corporation is to produce a moderate profit with moderate means. However, the moderation corporation has no power to declare a dividend. The Moderation corporation is both a an Employment Services Corporation as well as a General Purposes Corporation. The stock of the Moderation Corporation is held in a Voting Trust for the benefit of the Directors, Officers, Employees, and Volunteers of the Corporation. The Voting Trust only has the power to elect the Board of Directors of the Moderation Corporation. The Moderation Corporation also has the five eleumercenary purposes found in the Internal Revenue Code, namely: Educational, Religious, Literary, Artistic, and Charitable. I argue that the Moderation Corporation should be given Not-For-Profit Tax treatment, with donations to the Moderation Corporation given a tax deduction. The Conflict of Interest rules found in the Internal Revenue Code should not apply. For example, a person who donates money to the Moderation Corporation should be able to derive a substantial benefit from the Corporation such as a Academic Research Fellowship Grant, or in case of changed circumstances, a Charitable Gift. The

Moderation Corporation should also be able pay its Employees salaries which are reasonable, but higher than the current market would suggest.