Maryland’s Benefit Corporation

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...

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...

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...