Putting Things Together: Subsidiaries, Complex Organizational Structures, Joint Ventures, and Joint Funding Vehicles

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35th Annual Nonprofit Organizations Institute, Austin, Texas, 01/19/2018 Co-written and co-presented with John F. Crawford

Charities can enhance the depth and breadth of their operations and impact by utilizing subsidiaries, affiliates, and other joint venture vehicles.  This paper and presentation examine choice of form, tax status of the vehicle, and how different options affect the exempt organization and its tax status, including a look at joint venture and funding vehicles along with fundraising and transfer pricing issues.

LLCs in the World of Nonprofit and Mission-Minded Organizations

LLCs in the World of Nonprofit and Mission-Minded Organizations26th Annual LLCs, LPs and Partnerships Conference and Primer, Austin, Texas, 07/13/2017

The opportunity to use the LLC form for nonprofit and mission-minded purposes is rarely considered by practitioners not working in the tax-exempt organization space, but this popular entity choice proves to be advantageous when utilized in this capacity as well and has become more discussed following the creation of the Chan Zuckerberg Initiative.  This paper and presentation look at various ways the LLC may be used in the nonprofit and mission-minded area, including use of the single member LLC for liability protection and ancillary joint venture participation, use of the LLC for social enterprise businesses, and use of the LLC by entrepreneurs engaged in philanthropy.

Governance of the Social Enterprise: Structural and Operational Considerations

State Bar of Texas, Governance of Nonprofit Organizations Course, Austin, Texas

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Social enterprises use business methods to do good.  Whether certified as a B Corp., operating as an L3C, or taking another form, these organizations give entrepreneurial voice to mission activities.

Written to serve as an introduction to this developing sector, this paper systematically examines half-a-dozen structural options for Social Enterprises, including nonprofit, for-profit, and dual purpose models.  The bulk of the paper examines the responsibilities of managers/owners and tax issues unique to each model’s governance structure and purpose before delving into government regulations specific to this new sector.  A variety of real-world examples and a flowchart overview for selecting the best structure for your purposes are included, and helpful resources are cited throughout.