Charitable nonprofits organizations (“charities”) are subject to state prudent investment laws as we have previously written about here. The most important of these laws is the Uniform Prudent Management of Institutional Funds Act (UPMIFA) applicable in 49 states (all except Pennsylvania) and DC. UPMIFA and Management and Investment Factors...
SOCIAL ENTERPRISE
Social enterprises are businesses whose primary purpose is the common good. They use the methods and disciplines of business and the power of the marketplace to advance their social, environmental and human justice agendas. … In its early days, the social enterprise movement was identified mainly with nonprofits that used business models and earned income strategies to pursue their mission. Today, it also encompasses for-profits whose driving purpose is social. Mission is primary and fundamental; organizational form is a strategic question of what will best advance the social mission. – Social Enterprise Alliance
Entrepreneurs with social goals must consider many factors in determining the appropriate structure – whether it involves a nonprofit organization, a for-profit entity (including the so-called hybrid entities—B corporations, benefit corporations, flexible purpose corporations, and L3Cs), or both. Understanding the different forms and utilizing the appropriate ones may be critical in the implementation of the social/business plan.
ABA 2023 BLS Meeting: Creative Philanthropy
The American Bar Association 2023 Business Law Section Spring Meeting featured a session on Creative Philanthropy: Impact (ESG) Investing, Donor Advised Funds, Program Related Investments and More moderated by JJ Harwayne Leitner and presented by Jinna Kwak (Adler & Colvin) and Matt Topham (Gates Foundation). Here are some highlights...
If I Were a Billionaire Philanthropist …
Multiple Vehicles for Individual Philanthropy Anyone can dream … but I’m not convinced this is necessarily a dream scenario. Aspiring to be a billionaire appears to come with difficult concessions, serious risks, and major changes to relationships and activities. But at first blush, it sounds cool to be able...
DAO: What is it? What does it mean for nonprofits?
In the past week, ConstitutionDAO raised over $45 million to bid for a first edition copy of the United States Constitution. Ultimately, they did not win the auction held by Sotheby’s on Thursday, but they put the power and influence of DAOs on the map with heavy national news...
Nonprofit Joint Ventures: Basics
A charitable nonprofit may engage in a joint venture (JV) with a for-profit entity subject to some important limitations. It’s critical for nonprofit leaders to understand these limitations in contemplating and negotiating a JV to avoid jeopardizing its tax-exempt status, unlawfully diverting charitable assets, and conferring a prohibited private...
Lawyers as Social Innovators: Guest Lecture 2019
Earlier this week, I had the privilege of guest lecturing to Scott Curran‘s Lawyers as Social Innovators class at Chicago-Kent College of Law at the Illinois Institute of Technology. The following is an excerpt of my notes for the class: Nonprofit Scandals Heard any juicy stories this summer? MIT Media Lab...
Social Enterprise Law Seminar
The Sustainable Economies Law Center‘s Social Enterprise Law Seminar will be held at UC Berkeley School of Law on October 11. You can register and view the agenda here. Learn how to tackle legal issues facing nonprofits, worker cooperatives, and other social enterprises, and meet other practitioners in this...
2019 Skoll World Forum – Day Four
I’m in Oxford, England for the 2019 Skoll World Forum on Social Entrepreneurship, taking place from April 9 through April 12. This year’s theme, Accelerating Possibility, is focused on exploring how humanity can accelerate a future that is fair, inclusive, and sustainable. You can find links to my recaps of Day...
2019 Skoll World Forum – Day Three
I’m in Oxford, England for the 2019 Skoll World Forum on Social Entrepreneurship, taking place from April 9 through April 12. This year’s theme, Accelerating Possibility, is focused on exploring how humanity can accelerate a future that is fair, inclusive, and sustainable. You can find links to my recaps of Day...
2019 Skoll World Forum – Day Two
I’m in Oxford, England for the 2019 Skoll World Forum on Social Entrepreneurship, taking place from April 9 through April 12. This year’s theme, Accelerating Possibility, is focused on exploring how humanity can accelerate a future that is fair, inclusive, and sustainable. You can find links to my recaps of Day...