Help doing social business

The following is not sports-specific but may be of interest to those contemplating the organizational structure of their existing or planned socially responsible venture. This trend would work in the favor of those looking to build a self-sustaining entity.

From Philanthropy Today,

August 13, 2009

Illinois Enacts ‘L3C’ Law to Help Social Entrepreneurs

The Chicago Tribune reports on a new Illinois law aimed at improving social entrepreneurs’ prospects for finding money by creating a new category of a nonprofit and business hybrid.

The measure, signed last week by Gov. Pat Quinn and set to take effect at the start of 2010, creates a new designation for low-profit, limited-liability companies, or L3C’s — for-profit ventures with a social mission. Such firms would be able to seek capital, with a possibility of returns for investors, rather than depending on grants and donations.

Read a Chronicle article about Vermont, which was the first state to enact an L3C law.

(Free registration is required to view the Tribune article, and a paid subscription or temporary pass is required to view the Chronicle article.)