Blueprint-resources-l3c - Revision history

Bill Densmore: /* "The L3C – Facilitating Socially Beneficial Investing" */

2008-11-30T21:16:32Z

"The L3C – Facilitating Socially Beneficial Investing"

← Older revision		Revision as of 21:16, 30 November 2008
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	="The L3C – Facilitating Socially Beneficial Investing"=		="The L3C – Facilitating Socially Beneficial Investing"=
			[[Image:Tom-moody.jpg\|225px\|thumb\|right\|Tom Moody]]
	''By [http://www.drm.com/attorney/bio/thomasMoody Tom Moody] / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''		''By [http://www.drm.com/attorney/bio/thomasMoody Tom Moody] / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''

	~~Image:Tom-moody.jpg~~
	~~[[Image:Tom-moody.jpg\|180px\|thumb\|right\|Tom Moody]]~~

	==OVERVIEW==		==OVERVIEW==

Bill Densmore: /* "The L3C – Facilitating Socially Beneficial Investing" */

2008-11-30T21:16:02Z

"The L3C – Facilitating Socially Beneficial Investing"

← Older revision		Revision as of 21:16, 30 November 2008
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	''By [http://www.drm.com/attorney/bio/thomasMoody Tom Moody] / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''		''By [http://www.drm.com/attorney/bio/thomasMoody Tom Moody] / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''

			Image:Tom-moody.jpg
			[[Image:Tom-moody.jpg\|180px\|thumb\|right\|Tom Moody]]

	==OVERVIEW==		==OVERVIEW==

216.106.40.102: /* "The L3C – Facilitating Socially Beneficial Investing" */

2008-11-30T21:12:31Z

"The L3C – Facilitating Socially Beneficial Investing"

← Older revision		Revision as of 21:12, 30 November 2008
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	="The L3C – Facilitating Socially Beneficial Investing"=		="The L3C – Facilitating Socially Beneficial Investing"=

	''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''		''By [http://www.drm.com/attorney/bio/thomasMoody Tom Moody] / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''

	==OVERVIEW==		==OVERVIEW==

216.106.40.102: /* Could the IVP be organized as a low-profit, limited-liability company? */

2008-11-30T20:51:49Z

Could the IVP be organized as a low-profit, limited-liability company?

← Older revision		Revision as of 20:51, 30 November 2008
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	=''Could the IVP be organized as a low-profit, limited-liability company?''=		=''Could the IVP be organized as a low-profit, limited-liability company?''=

	'''A initial challenge faced by the Information Valet Project is to construct a ~~former~~ of ownership for the shared-user network which will be stable, fundable and yet not subject to the challenges of either charitable or Wall Street ownership. One option to consider could be incorporation using a new Vermont statute as a "low-profit, limited-liability company." Potential advantages:		'''A initial challenge faced by the Information Valet Project is to construct a form of ownership for the shared-user network which will be stable, fundable and yet not subject to the challenges of either charitable or Wall Street ownership. One option to consider could be incorporation using a new Vermont statute as a "low-profit, limited-liability company." Potential advantages:
	*<b>Profits are subservient to a requirement to achieve a social mission, and investors are explicitly aware of this.		*<b>Profits are subservient to a requirement to achieve a social mission, and investors are explicitly aware of this.
	*The social mission makes it possible for foundations to loan or invest in the L3C as a "program-related investment."		*The social mission makes it possible for foundations to loan or invest in the L3C as a "program-related investment."

216.106.40.102: /* Could the IVP be organized as a low-profit, limited-liability company? */

2008-11-30T20:51:21Z

Could the IVP be organized as a low-profit, limited-liability company?

← Older revision		Revision as of 20:51, 30 November 2008
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	<hr>		<hr>
	<br>		<br>
	=Could the IVP be organized as a low-profit, limited-liability company?=		=''Could the IVP be organized as a low-profit, limited-liability company?''=

	'''A initial challenge faced by the Information Valet Project is to construct a former of ownership for the shared-user network which will be stable, fundable and yet not subject to the challenges of either charitable or Wall Street ownership. One option to consider could be incorporation using a new Vermont statute as a "low-profit, limited-liability company." Potential advantages:		'''A initial challenge faced by the Information Valet Project is to construct a former of ownership for the shared-user network which will be stable, fundable and yet not subject to the challenges of either charitable or Wall Street ownership. One option to consider could be incorporation using a new Vermont statute as a "low-profit, limited-liability company." Potential advantages:

216.106.40.102: /* "The L3C – Facilitating Socially Beneficial Investing" */

2008-11-30T20:50:45Z

"The L3C – Facilitating Socially Beneficial Investing"

← Older revision		Revision as of 20:50, 30 November 2008
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	="The L3C – Facilitating Socially Beneficial Investing"=		="The L3C – Facilitating Socially Beneficial Investing"=

	''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com<br>''		''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com / 802-846-8316 <br>''

	==OVERVIEW==		==OVERVIEW==

Bill Densmore at 20:37, 30 November 2008

2008-11-30T20:37:52Z

← Older revision		Revision as of 20:37, 30 November 2008
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	<hr>		<hr>

	=="The L3C – Facilitating Socially Beneficial Investing"==		="The L3C – Facilitating Socially Beneficial Investing"=

	''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com<br>''		''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com<br>''

	===OVERVIEW===		==OVERVIEW==
	In April 2008, Vermont became the first state in the U.S. to enact a law enabling the formation of Low-Profit Limited Liability Companies. Also known by the abbreviation “L3C,” this new kind of business entity is designed to give socially oriented businesses greater access to capital.		In April 2008, Vermont became the first state in the U.S. to enact a law enabling the formation of Low-Profit Limited Liability Companies. Also known by the abbreviation “L3C,” this new kind of business entity is designed to give socially oriented businesses greater access to capital.

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	Vermont's L3C act has national importance because an L3C organized under Vermont law can do business nationally, even internationally, under ordinary foreign entity qualification statutes. An L3C is essentially a for-profit, limited-liability company (LLC) that is organized primarily to pursue a social or charitable purpose. In a sense, it is a hybrid of a for-profit and non-profit organization, and has characteristics of each . . . it can have equity owners that have a right of distribution of profits and appreciation of the value of the business entity.		Vermont's L3C act has national importance because an L3C organized under Vermont law can do business nationally, even internationally, under ordinary foreign entity qualification statutes. An L3C is essentially a for-profit, limited-liability company (LLC) that is organized primarily to pursue a social or charitable purpose. In a sense, it is a hybrid of a for-profit and non-profit organization, and has characteristics of each . . . it can have equity owners that have a right of distribution of profits and appreciation of the value of the business entity.

	<hr>More background below and in Moody's Sept. 2008 [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf article (PDF DOWNLOAD)] in [http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/wall.html?return=http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/index.html Trusts & Estates Magazine].<hr>		<hr>'''More background appears below and in Moody's Sept. 2008 [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf article (PDF DOWNLOAD)] in [http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/wall.html?return=http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/index.html Trusts & Estates Magazine].'''<hr>

	===BACKGROUND===		==BACKGROUND==

	An L3C is a for-profit limited liability company that is organized primarily to pursue some social or charitable purpose. It is taxed like any other for-profit entity, but it has an important advantage over other for-profit entities: It can accept program-related investments from private foundations. Accordingly, the principal purpose of the L3C is to combine foundation capital and private investor capital in enterprises that are significantly focused on charitable or educational mission, but which have equity owners who will receive a return on the investment should the enterprise become profitable.		An L3C is a for-profit limited liability company that is organized primarily to pursue some social or charitable purpose. It is taxed like any other for-profit entity, but it has an important advantage over other for-profit entities: It can accept program-related investments from private foundations. Accordingly, the principal purpose of the L3C is to combine foundation capital and private investor capital in enterprises that are significantly focused on charitable or educational mission, but which have equity owners who will receive a return on the investment should the enterprise become profitable.

Bill Densmore: /* OVERVIEW */

2008-11-30T20:36:25Z

OVERVIEW

← Older revision		Revision as of 20:36, 30 November 2008
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	Vermont's L3C act has national importance because an L3C organized under Vermont law can do business nationally, even internationally, under ordinary foreign entity qualification statutes. An L3C is essentially a for-profit, limited-liability company (LLC) that is organized primarily to pursue a social or charitable purpose. In a sense, it is a hybrid of a for-profit and non-profit organization, and has characteristics of each . . . it can have equity owners that have a right of distribution of profits and appreciation of the value of the business entity.		Vermont's L3C act has national importance because an L3C organized under Vermont law can do business nationally, even internationally, under ordinary foreign entity qualification statutes. An L3C is essentially a for-profit, limited-liability company (LLC) that is organized primarily to pursue a social or charitable purpose. In a sense, it is a hybrid of a for-profit and non-profit organization, and has characteristics of each . . . it can have equity owners that have a right of distribution of profits and appreciation of the value of the business entity.

	<hr>More background below and in a Sept. 2008 [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf article] in [http://~~www~~.trustsandestates.com ~~Trusts & Estates Magazine] [~~http://~~newshare~~.com/~~pdf~~/~~trusts-and-estates-sept-2008~~.~~pdf (DOWNLOAD PDF)~~.] <hr>		<hr>More background below and in Moody's Sept. 2008 [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf article (PDF DOWNLOAD)] in [http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/wall.html?return=http://subscribers.trustsandestates.com/mag/estate_say_hello_0401/index.html Trusts & Estates Magazine].<hr>

	===BACKGROUND===		===BACKGROUND===

Bill Densmore: /* Could the IVP be organized as a low-profit, limited-liability company? */

2008-11-30T20:33:12Z

Could the IVP be organized as a low-profit, limited-liability company?

← Older revision		Revision as of 20:33, 30 November 2008
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	The advent of the L3C holds the promise that we will see more investment capital flowing to charitable organizations that are able to offer a “double bottom line” – a social benefit and a financial return. Private foundations and donor-advised funds will be most interested in investing in companies that are well managed, effectively advance their social mission, and have thoughtful financial plans for leveraging foundation capital. The companies that are able to create this kind of leverage will be giving private foundations the kind of long-term return they want to see – the possibility of some financial return, but, more importantly, long-term social benefits that will result from the organization’s expanded operations and greater financial self-sufficiency.		The advent of the L3C holds the promise that we will see more investment capital flowing to charitable organizations that are able to offer a “double bottom line” – a social benefit and a financial return. Private foundations and donor-advised funds will be most interested in investing in companies that are well managed, effectively advance their social mission, and have thoughtful financial plans for leveraging foundation capital. The companies that are able to create this kind of leverage will be giving private foundations the kind of long-term return they want to see – the possibility of some financial return, but, more importantly, long-term social benefits that will result from the organization’s expanded operations and greater financial self-sufficiency.

			Vermont's L3C act has national importance because an L3C organized under Vermont law can do business nationally, even internationally, under ordinary foreign entity qualification statutes. An L3C is essentially a for-profit, limited-liability company (LLC) that is organized primarily to pursue a social or charitable purpose. In a sense, it is a hybrid of a for-profit and non-profit organization, and has characteristics of each . . . it can have equity owners that have a right of distribution of profits and appreciation of the value of the business entity.

			<hr>More background below and in a Sept. 2008 [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf article] in [http://www.trustsandestates.com Trusts & Estates Magazine] [http://newshare.com/pdf/trusts-and-estates-sept-2008.pdf (DOWNLOAD PDF).] <hr>

	===BACKGROUND===		===BACKGROUND===

Bill Densmore: /* "The L3C – Facilitating Socially Beneficial Investing" */

2008-11-30T20:25:13Z

"The L3C – Facilitating Socially Beneficial Investing"

← Older revision		Revision as of 20:25, 30 November 2008
Line 28:		Line 28:
	''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com<br>''		''By Tom Moody / Attorney / Downs Rachlin Martin PLLC / Burlington, Vermont / tmoody@drm.com<br>''

			===OVERVIEW===
	In April 2008, Vermont became the first state in the U.S. to enact a law enabling the formation of Low-Profit Limited Liability Companies. Also known by the abbreviation “L3C,” this new kind of business entity is designed to give socially oriented businesses greater access to capital.		In April 2008, Vermont became the first state in the U.S. to enact a law enabling the formation of Low-Profit Limited Liability Companies. Also known by the abbreviation “L3C,” this new kind of business entity is designed to give socially oriented businesses greater access to capital.

			The advent of the L3C holds the promise that we will see more investment capital flowing to charitable organizations that are able to offer a “double bottom line” – a social benefit and a financial return. Private foundations and donor-advised funds will be most interested in investing in companies that are well managed, effectively advance their social mission, and have thoughtful financial plans for leveraging foundation capital. The companies that are able to create this kind of leverage will be giving private foundations the kind of long-term return they want to see – the possibility of some financial return, but, more importantly, long-term social benefits that will result from the organization’s expanded operations and greater financial self-sufficiency.

			===BACKGROUND===

	An L3C is a for-profit limited liability company that is organized primarily to pursue some social or charitable purpose. It is taxed like any other for-profit entity, but it has an important advantage over other for-profit entities: It can accept program-related investments from private foundations. Accordingly, the principal purpose of the L3C is to combine foundation capital and private investor capital in enterprises that are significantly focused on charitable or educational mission, but which have equity owners who will receive a return on the investment should the enterprise become profitable.		An L3C is a for-profit limited liability company that is organized primarily to pursue some social or charitable purpose. It is taxed like any other for-profit entity, but it has an important advantage over other for-profit entities: It can accept program-related investments from private foundations. Accordingly, the principal purpose of the L3C is to combine foundation capital and private investor capital in enterprises that are significantly focused on charitable or educational mission, but which have equity owners who will receive a return on the investment should the enterprise become profitable.