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 updated in June of 2020 by the Wex Definitions Team]
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