What Defines a Corporation? A Clarity Guide on Corporate Structures and Leadership

This week, I received the honor of being nominated among the “Most Inspiring Corporate Leaders.” I am deeply grateful for this recognition, especially as I find myself alongside leaders from banks, insurance companies, national innovation hubs, and other prominent institutions.

Throughout my career, a recurring question has been: “Are you a corporate leader or are you a nonprofit founder?”

When my nomination was announced, Ms. Temwani Jeffrey Luhanga, founder of Marketing Machines (Malawi), proceeded to ask:

Since when are NGO’s corporate entities or businesses?

She asked this question, with reference to myself, and Rachel Sibande (PhD) (founder of Mhub — Malawi’s first innovation hub) being on the list.

Such queries stem often from a limited understanding of what constitutes a corporation, and I found this an excellent opportunity for doing what I love the most (and really why I created this blog): educating.

Open AI: a $300B Non-Profit Organization

During my MBA studies at the Broad College of Business (Michigan State University), one of the most enlightening experiences has been analyzing OpenAI‘s business model. OpenAI began as a nonprofit, and it is at the moment undergoing a restructuring to transition from a nonprofit organization to a for-profit entity, specifically a Public Benefit Corporation (PBC) — a capped-profit structure to balance its mission with the need for substantial funding. This case study highlighted the complexities and nuances of corporate structures — complexities I’ve experienced firsthand.

Over the past 13 years, I’ve led multiple ventures — from founding a for-profit creative agency and a nonprofit foundation, to working within global intergovernmental systems. I’ve hired staff, managed budgets, negotiated with governments, served global clients, and built business ecosystems across Africa and beyond. And in each of these contexts, I operated as a corporate leader — just within different structural models.

Having founded both a for-profit company and a nonprofit organization, worked within intergovernmental organizations (IGOs), and now pivoting to become a Business Development Manager in the private sector, I aim to shed light on the diverse forms of corporate entities and the leadership roles within them.

What Is a Corporation?

A corporation is a legal entity that exists independently of its owners. It can enter contracts, own assets, and is responsible for its liabilities. Corporations can be structured for profit or not-for-profit purposes. The key distinction lies in their objectives and how they distribute profits.

For-Profit Corporations: Aim to generate profits for shareholders. Examples include C Corporations, S Corporations, and Limited Liability Companies (LLCs).
Nonprofit Corporations: Aim to serve public or mutual benefits without the intent of distributing profits to members. They often qualify for tax-exempt status under section 501(c)(3) of the Internal Revenue Code.
Intergovernmental Organizations (IGOs): Entities created by treaty involving two or more nations to work on issues of common interest. Examples include the United Nations and the World Bank.

In Malawi, I formally incorporated Bien Corporation Africa, a creative and branding agency designed to professionalize the digital content landscape. We brought together talent from across the region and helped local tourism and development brands tell their stories more effectively. Though we operated as a business, many assumed we were a nonprofit simply because of the purpose-driven nature of our work. In fact, we were a registered for-profit company — and proud of it.

Types of Corporate Entities

1. For-Profit Corporations

These entities are designed to operate for the benefit of their shareholders. They include:

C Corporations: Standard corporations taxed separately from their owners.
S Corporations: Allow profits, and some losses, to be passed directly to owners’ personal income without being subject to corporate tax rates.
Limited Liability Companies (LLCs): Offer the liability protection of a corporation with the tax efficiencies and operational flexibility of a partnership.

My first formal venture — launched in my early 20s — was structured as a for-profit consultancy serving clients across Southern Africa. I navigated tax filing, contract negotiations, payroll systems, and brand IP protection long before pursuing an MBA. These are corporate practices. The entity structure may not have been publicly traded, but it was very much a business.

2. Nonprofit Corporations

Nonprofits operate to fulfill a mission that benefits the public. They reinvest any surplus revenues to further their objectives rather than distributing profits to shareholders. Examples include:

Charitable Organizations: Focused on philanthropic goals.
Foundations: Provide funding and support for other nonprofit organizations.
Educational Institutions: Schools, colleges, and universities.

I founded Ntha Foundation with the mission of building systems that equip African youth for success in the digital economy. Though we operate as a nonprofit, we are legally incorporated as Company Limited by Guarantee — with a board of directors, audited accounts, a full-time staff, and government partnerships. Our model includes fee-for-service programs, B2G consulting, and donor-funded initiatives. It’s nonprofit in structure, but undeniably corporate in operation.

3. Intergovernmental Organizations (IGOs)

IGOs are established by treaties between governments to work on issues of mutual interest. They have their own legal personalities and can enter into agreements, own property, and be subject to international law.

My time working with the United Nations Development Programme (UNDP) gave me insight into how IGOs blend bureaucracy with structured project management. The frameworks are corporate — with procurement systems, KPIs, budgets, HR protocols, and performance reviews — all housed within a multilateral governance model. That experience shaped how I later led regional programs through my own ventures.

4. Hybrid Models

Some organizations blend elements of both for-profit and nonprofit structures:

Benefit Corporations (B Corps): For-profit entities that include positive impact on society, workers, the community, and the environment in addition to profit as their legally defined goals.
Capped-Profit Models: As seen with OpenAI, these structures limit the returns to investors to ensure that the organization’s mission remains the primary focus.

At one point, I explored turning Bien into a hybrid social enterprise — combining revenue-generating services with community-impact initiatives through a sister nonprofit. It’s a structure I still consider, especially when building scalable platforms with both economic and educational outcomes in mind (such as gamified learning tools).

What Makes a Corporate Leader?

Corporate leadership transcends the type of entity. Whether in a for-profit, nonprofit, or IGO, effective leaders:

Strategize: Set visions and long-term goals.
Manage Resources: Oversee financial, human, and physical resources efficiently.
Ensure Compliance: Adhere to legal and ethical standards.
Drive Impact: Measure success not just by financial returns but also by societal impact.

As someone who has pitched to investors, reported to donors, presented to ministers, and led teams across time zones — I’ve worn every hat: CEO, grant writer, digital strategist, M&E lead, founder, and friend. Corporate leadership is not about whether your entity files as 501(c)(3) or S-Corp. It’s about whether you are accountable, strategic, and capable of delivering on vision.

Why This Matters

Understanding the diversity of corporate structures is crucial in today’s interconnected world. It allows for:

Informed Discussions: Recognizing the legitimacy and contributions of various organizational forms.
Collaborative Opportunities: Encouraging partnerships across sectors.
Respect for Leadership: Valuing the roles and achievements of leaders regardless of their organization’s structure.

Too often, women — especially Black women — are expected to explain or justify the validity of our leadership if it doesn’t fit traditional molds. But when we’re running teams, managing P&Ls, building systems, and influencing policy — that is corporate leadership. The form may vary, but the function is indisputable.

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The term “corporate” encompasses a broad spectrum of organizations beyond traditional for-profit companies. Recognizing this diversity enriches our appreciation of different leadership paths and the varied ways organizations contribute to society.

As someone who has navigated multiple corporate landscapes, I hope this overview provides clarity and fosters a more inclusive understanding of what it means to be a corporate leader.

Whether I’m presenting an award, scaling a venture, or sitting at the strategy table — I do so with full awareness of the weight, scope, and structure of the work. Because leadership, in any form, is still business. And I’ve been building.

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I am deeply delighted to have been nominated alongside some of Malawi’s incredible women leading banks, insurance companies, and national innovation hubs. It is deeply humbling, to be in such powerful company, and I am thrilled ever, to serve.

with utmost gratitude,

Ntha