{"id":1314,"date":"2009-06-17T09:33:41","date_gmt":"2009-06-17T16:33:41","guid":{"rendered":"http:\/\/www.artsjournal.com\/artfulmanager\/wp\/2009\/06\/the_evolving_hybrids_in_corpor\/"},"modified":"2009-06-17T09:33:41","modified_gmt":"2009-06-17T16:33:41","slug":"the_evolving_hybrids_in_corpor","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/artfulmanager\/main\/the_evolving_hybrids_in_corpor.php","title":{"rendered":"The evolving hybrids in corporate structure"},"content":{"rendered":"<p>BusinessWeek offers a <a href=\"http:\/\/www.businessweek.com\/smallbiz\/content\/jun2009\/sb20090615_940089.htm\">useful overview of emerging innovations in corporate structure<\/a>, the effort to blend for-profit flexibility and responsiveness with nonprofit emphasis on mission over profit. Says author John Tozzi:<\/p>\n<blockquote><p>Social enterprises&#8230;often don&#8217;t fit neatly into existing ownership structures. Those that register as nonprofits have trouble tapping private capital to expand, while for-profit companies risk compromising their missions because they must put shareholders&#8217; returns first. But growing interest in hybrid business models has spurred recent efforts at the state level to create new corporate structures that allow entrepreneurs to integrate nonfinancial goals into for-profit businesses.<\/p><\/blockquote>\n<p>One of the emerging hybrids is the Low-Profit Limited Liability Corporation (L3C), which <a href=\"http:\/\/www.artsjournal.com\/artfulmanager\/main\/somewhere-between-profit-and-n.php\">I&#8217;ve described before<\/a>. But there are many other combinations already available mixing and mashing existing corporate structures &#8212; holding companies for valuable intellectual property generated by nonprofits, wholly-owned for-profit subsidiaries of nonprofits, partnerships, collaborative ventures, corporations with special stock classes to retain mission focus, and the like.<\/p>\n<p>Most of these require lots of lawyers, and a state-by-state analysis of what&#8217;s possible (as incorporation is a function of each state, not the Federal government).<\/p>\n<p>Arts and culture organizations often live at the edge of for-profit and nonprofit worlds (earning 20 to 80 percent of their income, and gathering the rest through grants and contributions). As the legal issues get resolved, and new forms of organization emerge, smart arts managers should be watching the evolution &#8212; especially those considering starting something new.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BusinessWeek offers a useful overview of emerging innovations in corporate structure, the effort to blend for-profit flexibility and responsiveness with nonprofit emphasis on mission over profit. Says author John Tozzi: Social enterprises&#8230;often don&#8217;t fit neatly into existing ownership structures. Those that register as nonprofits have trouble tapping private capital to expand, while for-profit companies risk [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-1314","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-main","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts\/1314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/comments?post=1314"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/posts\/1314\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/media?parent=1314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/categories?post=1314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/artfulmanager\/wp-json\/wp\/v2\/tags?post=1314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}