On April 13, 2010, Maryland became the first state to recognize a new corporate form called a “benefit corporation” (not to be confused with a “Certified B Corporation”) when Governor Martin O’Malley signed into law, Senate Bill 690, which allows corporations to pursue socially responsible purposes in addition to...
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.
Social Enterprise Alliance Summit – 2010
I had the great pleasure of attending the first day of the SEA Summit in San Francisco this year. Here are my tweets from the Summit: Realize it's not just about your SE, it's about the movement – Jim Fruchterman SEs in the UK: 62,000 SEs, 1% of GDP,...
Legal Entities for Innovation – ReVV 2010
I am participating on a panel this afternoon at the ReVisioning Value 2010 Conference in Portland, Oregon, discussing legal entities for innovation. Among the alternative ways you may structure a social venture: within an existing nonprofit. as an affiliate/subsidiary (nonprofit or for-profit) of an existing nonprofit. as an independent nonprofit. as a...
L3C and Charitable Trust
Here is a question I posed to some colleagues recently regarding the low-profit limited liability company (L3C) and charitable trust laws: Is it clear whether or not an L3C that receives a PRI is holding property for charitable purposes subject to charitable trust restrictions and Attorney General jurisdiction? While...
ReVisioning Value Conference 2010 – Portland, OR – April 26-27
I'm looking forward to participating as a panelist and part of the ReVisioning Value Conference on April 26 and 27 in Portland, Oregon. Here's a description of the event from the presenting sponsor: With the ReVisioning Value Conference and Post-Conference Workshops, Springboard Innovation intends to bring the sectors together,...
B Corporation > Nonprofit: Tactical Philanthropy Advisors
One of most well-known and respected bloggers on philanthropy, Sean Stannard-Stockton, launched a new venture on August 31: Tactical Philanthropy Advisors. Sean intends to operate as a B Corporation, but his site shows that he considered the nonprofit form. Here's his explanation of why TPA ultimately chose a for-profit structure: We...
Private Letter Rulings and the L3C
2009 is an interesting year for the low-profit limited liability (L3C) concept because it presents the first test of an L3C’s ability to operate under current federal law and IRS regulations. One concern raised is the process by which private foundations will make program-related investments (PRIs) to this new...
L3C – Developments & Resources
The L3C (low-profit limited liability company), which was first enacted by Vermont (April 30, 2008), has acquired much attention and momentum in the last year. In the first months of 2009 alone, Michigan (Jan. 15, 2009), Wyoming (Feb. 4, 2009), and the Crow Indian Nation in Montana (Jan. 13, 2009)...
Social Enterprises – Resource List
Web Sites Social Enterprise Alliance Harvard Business School Social Enterprise Initiative REDF The npEnterprise Forum Social Venture Network Stanford Social Innovation Review Skoll Foundation Ashoka Reports Social Enterprise Typology, Kim Atler (2007) The Limits of Social Enterprise: A Field Study & Case Analysis, Seedco Policy Center (June 2007) Social...
NCPGC Program on Social Enterprises – March 12, 2009
Exempt organizations attorney Sheila Warren and I will be presenting a program on social enterprises at the Northern California Planned Giving Council (NCPGC) luncheon program on Thursday, March 12, 2009. I hope to see some of our readers there! Online registration is available at the NCPGC site. Program Description: With...