Kickstarter Inc has ceased to exist after the popular crowdfunding platform refiled its business as a Public Benefit Corporation (PBC), and this change has major implications for both the future of the company and its relationships with both campaign creators and Kickstarter backers.

“Until recently, the idea of a for-profit company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law, and certainly no mandate,” Kickstarter founders Yancey Strickler, Perry Chen and Charles Adler wrote on the site’s official blog. “Companies that believe there are more important goals than maximizing shareholder value have been at odds with the expectation that for-profit companies must exist ultimately for profit above all.

“Benefit Corporations are different. Benefit Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders. Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals.”

The Kickstarter founders note that their company will be joining “a growing list of forward-thinking organizations” that are also Benefit Corporations, including Patagonia Inc, an environmentally friendly outdoor apparel company, and This American Life, a popular weekly radio series produced by Ira Glass.

“While only about .01% of all American businesses have done this, we believe that can and will change in the coming years,” the Kickstarter founders said. “More and more voices are rejecting business as usual, and the pursuit of profit above all.”

Kickstarter has made its company charter available to browse on its website, complete with its stated values and a bit of the legalese behind them. This includes promises to provide better tools and resources for campaign creators, as well as to maintain the health of the Kickstarter echo system, to not sell user data to third parties, and more.

The company has also promised to donate 5 percent of its after-tax profits to support arts and music education, as well as to “organizations fighting to end systemic inequality.” Half of these donations will go to arts and music programs for children and young adults, and the other half will go to “organizations fighting to end prejudices against and increase opportunities for people of color, women, and LGBTQ individuals.”

Image courtesy of Kickstarter