Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
15. Capital Structure Illustration #1 Foundation incurs high financial risk, earns low (1%) financial return, but high social return Social Return Financial Return Foundation
18. Blended rate of return: 4% - - which L 3 C can generate, but not without the catalyst of the foundation’s PRI.
19. Capital Structure Illustration #2 Development agency makes a grant, seeking high social return but earning no financial return. Social Return Financial Return Government
20. Capital Structure Illustration #2 Foundation earns low (2%) financial return, but high social return. Social Return Financial Return Foundation
22. Blended rate of return: Again, 4% - - which the L 3 C can generate, but not without the catalyst of the foundation's PRI.
23.
24.
25. 1. Reliance on applicable constituency statutes Texas Business Organization Code § 21.401 Sec. 21.401. MANAGEMENT BY BOARD OF DIRECTORS. (a) … (b) In discharging the duties of director under this code or otherwise and in considering the best interests of the corporation, a director may consider the long-term and short-term interests of the corporation and the shareholders of the corporation , including the possibility that those interests may be best served by the continued independence of the corporation. (Source: Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.)
26.
27.
28.
29.
30.
31. L 3 C Legislation 2008 Vermont 2009 Michigan Utah Wyoming 2010 Illinois Louisiana North Carolina 2011 Maine 2012 Rhode Island
44. For further information: The Law Offices of M ARC J . L ANE A PROFESSIONAL CORPORATION 180 North LaSalle Street Chicago, IL 60601-2701 (312) 372-1040 (800) 372-1040 Fax (312) 346-1040 www.MarcJLane.com