As an entrepreneur, you've certainly heeded the call of passion for your work. Maybe you even subscribe to Marsha Sinetar's sage chestnut, "Do what you love, and the money will follow." But until a few years ago, there was a distinct difference between starting a business with an eye toward the bottom line and taking the same plunge for social good. Then along came the L3C.
Often called "the for-profit with a nonprofit soul" by Robert Lang, one of the architects of the business structure, an L3C is a hybrid model that allows owners to do well by doing good. The bonus? L3Cs can get funding from sources that have traditionally been hard to tap--such as foundations.
What It Is
The L3C, just like the LLC, is a for-profit business structure. Rick Zwetsch, principal partner with interSector Partners--the first L3C in Colorado--notes that the reason you may not have heard of L3Cs is because legislation for them has only been signed into law in Vermont, Michigan, Wyoming, Utah and Illinois, as well as the Crow Indian Nation and the Oglala Sioux Tribe.
L3Cs: The Hybrid Way to Do Well by Doing Good
BY Lydia Dishman ► Mon Jan 25, 2010
As nonprofits brace for the aftershock of state and federal funding cuts (not to mention a shortfall in private donations) there are those who are quietly taking another path out of the rubble. They are the pioneers of a new type of organization, known as an L3C.
It's a hybrid aimed at providing social benefits while keeping an eye on the bottom line. Over 100 have been formed in the six states with laws that allow for their structure. Unlike nonprofits, L3Cs pay taxes, and contributions made to them are not tax deductible.
April 28-30, 2010 | San Francisco, CA
A new sector is emerging with the primary purpose of addressing social, environmental and economic challenges of our time. The growth of social enterprise has the potential to be a defining innovation of this century.
Don’t miss this international forum advocating for increased social impact through social enterprise. Join over 600 social entrepreneurs in San Francisco to learn, grow, be inspired, make new connections from around the globe and become part of this expanding movement.
interSector Partners' Caryn Capriccioso and Rick Zwetsch will be presenting: What's Hot & Why You Should Care: An Ignite-style Overview of Hot Trends Impacting Your Social Enterprise on Thursday, April 29th from 11:30 am—12:30 pm
The world is changing quickly and it can be nearly impossible to keep up – especially with the considerable demands of running a social enterprise! This session is designed to help social entrepreneurs and innovators quickly analyze whether new trends are worth considering in more detail and, if so, how to fully assess whether they are right for their enterprise.
Join us for this fast-paced, fun, wild-ride of a session. Previous attendees had this to say:
"Loved the great information in a short amount of time. Loved the presenters!"
"New, exciting, something different from others. Short and concise panel. Bravo!"
"The best session so far! Exciting, inspiring, new info. Engaged everyone in the room. Sparked new ideas and concepts, provided great take-home materials that will be put to good use. Thank you!"
"Very engaging!"
Social Venture Capital/Social Enterprise Conference, Miami-2010 will be your best opportunity in 2010 to learn, network, and connect with hundreds of top social enterprise/financial leaders and organizations from Latin America, the Caribbean, and the state of Florida- in addition to organizations worldwide which have an interest in expanding to the region.
interSector Partners' Caryn Capriccioso and Rick Zwetsch will be attending, speaking and moderating at this inaugural conference.
Rick will be speaking on the HARD-CORE L3C AND MORE panel with Robert Lang and Marc Lane on Thursday, March 18th at 1:45pm.
L3Cs have created a buzz as a new form hybrid legal
structure, and our panelists can explain why many states
are now adopting L3C legislation. Moreover, other forms of
for profit/non profit and hybrid legal structures will be
covered in this discussion.
Caryn will be moderating SOCIAL ENTERPRISE: WHERE DO WE DRAW THE LINES AND DO THE LINES EVEN MATTER? on Friday at 3:00pm.
Does applying one fixed definition of social enterprise
make sense anymore? What are the limitations associated
with strict definitions and how do those limitations
affect the ability for the social entrepreneur to successfully
partner with organizations that one would not normally
associate with social enterprise? Our panelists help you
figure it out.
Principal Partner Rick Zwetsch will participate on a panel at the 2010 Sustainable Opportunities Summitto be held in Denver March 2-4, 2010.
Rick’s panel will cover the emergence of several new forms of corporate organization/governance that integrate triple bottom line concepts and practices. We'll look at ESOPs, L3Cs, B Corp. The discussion will focus on: the motivations/trends behind these corporate forms, the advantages these legal forms offer shareholders and the broader society as well as some guidance on how other companies (those in the audience) can take action to revamp their organizational process if so inspired. The format will allow for lots of Q&A.
_______________________________________________
The Summit offers opportunities to hear from over 70 leading industry experts, who will discuss sustainability in the areas of finance, economic development, energy and human capital. The event is hosted by CORE (Connected Organizations for a Responsible Economy), the City of Denver, and University of Colorado’s Deming Center for Entrepreneurship.
Principal Partner Caryn Capriccioso participates on post-screening panel:
Colorado Citizens Finding Happiness Through Giving
Andrew Shapter Filmmaker, Photographer and Indie Film Blogger
The pursuit of happiness. The men who wrote the Declaration of Independence famously put that idea on paper and called it one of our "inalienable" rights.
And do we ever pursue it. In fact, Americans spend great amounts of our time, money and energy chasing it. The biggest problem is, for many people, we're not even sure what it is we're chasing.
That's the enigma that led me my latest film, Happiness Is, a road trip that explores the myths and the truths of the "pursuit of happiness" in America.
Each screening of the film, benefits a local group or organization. Our next stop is Boulder Colorado Thursday February 25th, 7pm at the Dairy Center for the Arts and proceeds from the screening will go to the Colorado Coalition to End Hunger.
Up2Us Denver Regional Conference
(in partnership with SOS Outreach)
Friday, January 29, 2010
9 AM- 3:30 PM
Colorado Convention Center
700 14th Street, Denver CO 80202
Cost: Free Caryn's panel: 2:15 – 3:15 p.m.
Strategic Partnerships: Developing win-win relationships with organizations to promote program development
This workshop will give participants a concreted education on best practices in strategic partner development. The panel will include a cross-section of corporate, foundation and government representatives. Each panelist will share their insight and welcome questions from participants about what promotes a successful partnership with nonprofit organizations. Up2Us members will learn how to better position their organizations in approaching these entities.
Panelists:
Confirmed – Nicky DeFord, Charitable Contributions Vail Resorts
Pending – Robert Marcovitch, K2 Sports or Bill Nicoll, Salomon
Pending – Christiano Sosa, Denver Foundation or Jeanne Bistranin, Coors Foundation
Confirmed – Susan Alden, Partnership Liaison United States Forest Service
Confirmed – Dace West, Co-Director Denver Office of Strategic
Partnership
Confirmed - Caryn Capriccioso, interSector Partners, L3C
Be sure to attend our Session at this year's Colorado Nonprofit Assoiciation's Fall Conference!
Friday, October 30th - 1:10pm to 2:30pm
Advanced Practioner
Friday -3B
What's new and why you should care: An Ignite-style overview of hot trends and why they matter to your nonprofit
Caryn Capriccioso, InterSector Partners, L3C; Rick Zwetsch, InterSector Partners, L3C; Matt Buchanan, tuggl; Katie Taft, insideGOOD; Martha Vail, Martha Vail Consulting, Training and Facilitation
Confused by "hot trends" like Twitter, Shared-services, Facebook, B-Corp, LinkedIn, L3c and/or others? Using an Ignite* approach we'll check out what's new and discuss how to take advantage! (*this is one of the hottest trends!) Take-home: An overview of five hot new trends influencing the sector and the world; A tool to help nonprofits determine which trends andopportunities may be a good fit; Ideas for keeping up with what's new while keeping focus on what matters.
LONGMONT — Putting for-profit businesses in touch with the right nonprofits and helping nonprofits think more like businesses are the two goals of a new Longmont consulting company.
The old model of the corporation is a straight jacket for businesses that want to focus on the mission. New promising models, from the LC3, to the new stakeholder legislation in California are showing some good early results.
InterSector Partners, L3C was founded in February in Longmont as the first L3C doing business in Colorado. The L3C is a new hybrid business model whose primary purpose is social mission with a profit as a secondary goal. Principal partner, Rick Zwetsch talked with the Camera about the new company and their social entrepreneurship.
L3C marries the best features of the LLC with nonprofit’s social conscience
By Patricia Kaowthumrong
July 24, 2009
What does a business plan 10 years in the making – with 20 years of nonprofit experience and 30 years of for-profit work in business, marketing and development behind it — amount to?
Strategic partnerships are an important part of any nonprofit's sustainability strategy. In good or bad economic times, partnerships can help expand your reach, reduce expenses, and help you stay engaged in the community. In this training and panel discussion, we will talk about various types of partnerships, share an overview of the pros and cons, and discuss the three stages of partnering.
Following a brief overview, you will hear from local nonprofit leaders who will share their real-world experiences developing and managing strategic partnerships.
Presenter:
Caryn Capriccioso, MNM Principal Partner
interSector Partners, L3C
Panelists:
Meg Allen
Executive Director
Colorado Coalition Against Sexual Assault (CCASA)
Sharon Stevenson, MA
Former Manager
Colorado Public Health Alliance
Catherine Underhill
Executive Director
Colorado Music Festival
Please feel free to bring your lunch. Water and cookies will be provided.
At REI Boulder in the Community Room
1789 28th Street ~ Free Parking in Front
Founders and Principal Partners Caryn Capriccioso and Rick Zwetsch presented "Making an Impact to Increase Your Bottom Line" at the Business Leader's Insight Lunch hosted by Chuck Blakeman and Team Nimbus.
Rick and Caryn were joined by Matt Buchanan, founder of Tuggl.com discussing how they are using their online business to build a new community focused on small business owners that connects individuals with those businesses who give back to their community. The new economy will reward small businesses that are not only choose to be good, but to do good as well, redefining local business success.
Rick will be presenting - The L3C: Introducing the new, socially responsible limited liability company at the Denver Boulder Startup and Founder Meetup at the CU Leeds Business School in Boulder on May 13, 2009.
tuggl.com and interSector Partners, L3C have teamed up to give our nonprofit friends an opportunity to win cash and interSector consulting services just by recognizing your local business supporters. Each time you recognize a business, you’ll be entered to win up to $200 in cash and a complimentary consulting service.
The first drawing will be held on June 3rd, so visit tuggl today to read about the contest, then click on “Get Started” to sign up (it’s free!) and recognize your favorite local business partners.
We are proud to support tuggl.com as an example of a new business that is focused on promoting and supporting those that are doing good work on behalf of the community, regardless of the sector in which they operate. Check out tuggl.com and let us know if you agree!
Good luck!
P.S. Please feel free to forward this contest to other nonprofits that may be interested!
Rick Zwetsch will be in New Orleans attending the Social Enterprise Summit Pre-Conference Session The L3C A to Z:A Primer for Everyone from Attorneys to Accountants to Social Entrepreneurs who want to know all about the L3C - How to use it, Finance it, Organize it, and Keep track of it.
The L3C is a new vehicle for social enterprise. Although L3Cs can be useful to social enterprises that use business ventures of various sizes to raise funds for their mission, the real value of the L3C is to integrate mission and the revenue under one umbrella and have the enterprise be self sustaining while carrying out a socially beneficial activity. Since the L3C became legal in all 50 states last April hundreds of individuals and organizations have been investigating and starting to organize the form.
Scheduled Presenters:
Sander (Sandy) Davies, Name Partner, O'Connor Davies, Munns & Dobbins LLP; Marc J. Lane, Founder, The Law Offices of Marc J. Lane, P.C.; Robert (Bob) Lang, CEO of the Mary Elizabeth & Gordon B. Mannweiler Foundation, Inc. and CEO of L3C Advisors L3C; Marcus Owens, Partner, Caplin & Drysdale, Chartered; Heather Peeler, Managing Director, Community Wealth Ventures; Rosemarie Rae, Executive Vice President of Strategy, Volunteers of America; Mitchell Strauss, Credit Director, OPIC (Overseas Private Investment Corporation); John Tyler, Secretary and General Counsel, Kauffman Foundation; Ben Valore-Caplan, Managing Partner, Syntrinsic Investment Counsel; Arthur Wood, VP of Social Finance, Ashoka
Since the L3C appeared on the social venture scene last year, this new corporate form has been catching on. One of the latest L3C entrants is Intersector Partners, L3C, a Colorado-based consulting firm headed by Rick Zwetsch and Caryn Capriccioso. The new firm is offering education and consulting services to nonprofits, for-profits, and government agencies. They also plan to consult with any new ventures exploring the L3C route.
LONGMONT - A new consulting firm in Longmont wants to help nonprofit organizations become more profitable and for-profits become more socially responsible.
interSector Partners L3C, headed by Rick Zwetsch and Caryn Capriccioso, will in part help organizations and companies form a new type of business entity called an L3C to tap benefits from both sectors.
An L3C is a low-profit, limited liability company that has a primary charitable, community or social responsible mission. The hybrid business model allows charitable foundations to receive some profit returns for their investments, and allows for-profit businesses to receive foundation investments for their charitable missions.
InterSector Partners L3C Launches First L3C Doing Business in Colorado
Longmont, Colorado -- March 2, 2009: Caryn Capriccioso and Rick Zwetsch combine years of nonprofit and for-profit consulting experience to form interSector Partners, L3C in Colorado.
According to Robert Lang, creator of the L3C, the L3C is a new form of limited liability company (LLC) which combines the best features of an LLC with the social conscience of a nonprofit. Mr. Lang goes on to say the L3C is "the for profit with a nonprofit soul."
The firm's founders have spent a combined 50 years in their respective sectors with 30 of those years devoted to consulting with nonprofits, for-profits and government agencies. Caryn Capriccioso, principal partner says, "our services will bring the best of our experience to bear on the needs and opportunities our clients face."
Rick Zwetsch, principal partner describes interSector Partners' social mission as "providing inter-sector education and consulting services designed to help nonprofits become more sustainable, businesses become more socially responsible and governments to support both sectors in the community."
