On March 20, 2012, I attended "Doing Well & Doing Good: Hybrid Models for Social Impact," an event co-sponsored by the Foundation Center – San Francisco, UpStart Bay Area,the Hub Bay Area, the Social Enterprise Alliance San Francisco Bay Area Chapter, and the Stanford Social Innovation Review. Here is the...
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.
What it means to be a “B”: B Corp v. Benefit Corporation
In recent years, as the terms “B Corp” and “benefit corporation” have been used more frequently, they have also mistakenly been used interchangeably. The confusion is in many ways understandable as B Corp and benefit corporation sound similar, help similar types of mission-motivated ventures, and are largely associated with...
Benefit Corporations – Part I
Benefit Corporation Characteristics While there may be some variation among jurisdictions adopting benefit corporation legislation, they generally require the following: A purpose of creating general public benefit – A material positive impact on society and the environment, taken as a whole, assessed against a third-party standard, from the business...
Briefing: California’s New Benefit and Flexible Benefit Corporations
On February 23, Emily and I will be providing a briefing on California's new benefit corporation and flexible benefit corporation for CompassPoint Nonprofit Services. You can attend for free by registering here. Date and Time: Thursday, February 23, 11 am – noonLocation: CompassPoint, 731 Market Street, Suite 200,...
Earned Income 101 for Nonprofits – Webinar
Earlier today, Emily and I presented Earned Income 101 for Nonprofits for Nonprofit Webinars. You'll find our PowerPoint presentation on the site. I've reproduced the introduction here: Many nonprofits use earned income as a source of revenue generation. For example, it was estimated in 2008 that nearly 70% of the $1.4...
2011 Net Impact Conference
Emily and I are here in beautiful Portland to attend and present at the 2011 Net Impact Conference. Net Impact is a public charity whose mission is to mobilize a new generation to use their careers to drive transformational change in their workplaces and the world. With 2,600 attendees, the Net...
New Forms for Social Enterprises – Santa Barbara County Bar Association
I had the great pleasure of giving a presentation on new forms for social enterprises to the Tax Section of the Santa Barbara County Bar Association last week. The lively discussion focused on the L3C and California's new benefit corporation and flexible purpose corporation. The PowerPoint is available here.
California Benefit Corporation and Flexible Purpose Corporation
California Governor Jerry Brown announced today that he signed into law AB 361 (Benefit corporations) and SB 201 (Flexible purpose corporations). These laws will provide social entrepreneurs with two additional forms of legal entities to consider when creating their social enterprises and represents a tremendous step forward for businesses...
SOCAP 11: Money + Meaning = ?
The 2011 Social Capital Markets Conference (SOCAP) kicked off last night in San Francisco. While I unfortunately can't attend the event due to scheduling conflicts, I'll be closely following the news and information coming out of SOCAP. For those not attending, you can watch the main stage panels on...
Nonprofit Radio: Earned Income & Unrelated Business Income Tax
This month on Tony Martignetti Nonprofit Radio, Emily and I discussed with Tony the topics of earned income and the unrelated business income tax. You can listen to a recorded version here or check it out (in a few days) on ITunes. Frequently Asked Questions Note: To provide a more easily understandable overview,...