inurement
Inurement is an older term for “benefit.” See inure . The specific difference between the inure and inurement is that inure refers to the action granted, specifically to vest . On the other hand, inurement is the actual aspect itself, or in other words, the benefit.
See also the Inurement Prohibition and Non-Profit Organizations .
The inurement prohibition prohibits a tax-exempt organization (a non-profit ) from using their income or assets to excessively benefit an individual that has a close relationship with the tax-exempt organization or can exercise significant influence over the organization.
Additionally, non-profit organizations are subject to the nondistribution constraint, which means that essentially, they cannot distribute profits to individuals who are in control of the organization itself. The nondistribution constraint is a major difference between non-profit organizations and for-profit organizations .
[Last reviewed in June of 2020 by the Wex Definitions Team ]
Wex