The current state of the economy has left many charities and businesses, all with great intentions, struggling for financial support. These organizations need to re-evaluate their business models to successfully adapt in this economic climate.
This teleconference provided advisors and business owners with a broad overview of a new hybrid for-profit/nonprofit business model: the low-profit limited liability company or L3C. Presenters Cass Brewer and Jeff Woodward discussed the unique attributes of these entities, especially examples of where an L3C may be appropriate.
At its most elemental level, the L3C is a cross between a nonprofit and for-profit. It is a new form of business enterprise that is specifically designed to further a charitable or educational mission and, in the right circumstances, it can qualify as a program related investment for private foundations.
Regardless of whether it is appropriate for a program related investment, there may be other potential uses for L3Cs,including use as a subsidiary of an exempt organization or as a or joint venture vehicle.
This teleconference discussed the unique legal and tax characteristics of L3Cs and will discuss their potential uses (or abuses). Please join us to learn more about this evolving new area of the law.
To order a CD of this presentation, visit the Lorman web site.