{"id":389,"date":"2011-04-29T12:13:51","date_gmt":"2011-04-29T19:13:51","guid":{"rendered":"http:\/\/www.artsjournal.com\/state\/wp\/2011\/04\/using_the_l3c_organizational_m\/"},"modified":"2011-04-29T12:13:51","modified_gmt":"2011-04-29T19:13:51","slug":"using_the_l3c_organizational_m","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/state\/2011\/04\/using_the_l3c_organizational_m\/","title":{"rendered":"Using the L3C Organizational Model"},"content":{"rendered":"<p>This past week I realized that I really could have used the L3C model in each of my professional leadership positions, and that in doing so, i would have alleviated pressure on the annual balance sheet.&nbsp; I must admit to feeling a bit &#8220;slow&#8221; when I realized this, as I have been asked countless times if the L3C has any <em>real<\/em> use in the arts and culture sector.<\/p>\n<p>The realization is that I could have created any number of subsidiary entities with the L3C structure.&nbsp; As is typical of any large not-for-profit organization, there are numerous low-profit ideas for ventures that emerge from co-workers, board members and audience.&nbsp; Normally these ideas are discarded because the start-up costs outweigh any predicted profit.&nbsp; When these ideas <em>are<\/em> pursued, start-up costs are borne by the organization&#8217;s endowment, or annual budget, or a combination of both.&nbsp; The result of this is increased pressure on the annual budget, or a weakening of the organization&#8217;s capacity to deliver its mission.<\/p>\n<p>With the L3C, a subsidiary organization can be formed and can seek investment from individuals, perhaps most especially board members who are already &#8220;invested&#8221; in the mission of the mother organization.&nbsp; If the capital needs of the venture are large, some foundations could be approached to provide PRI&#8221;s.&nbsp; Regardless of the mix of investments, the cash in would be all new cash, and the risk would be walled off from the mother organization.&nbsp; And, profits from the new venture would flow back, increasing capacity.&nbsp; <\/p>\n<p>Perhaps also important (as I have learned from my study of entrepreneurship), the new venture, in order to attract investment, would have to produce a full business plan, one that demonstrates feasibility, potential market, etc., etc.&nbsp; It would require not-for-profit leaders to acquire an essential skill set (one rarely taught in coursework for developing not-for-profit leaders).<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This past week I realized that I really could have used the L3C model in each of my professional leadership positions, and that in doing so, i would have alleviated pressure on the annual balance sheet.&nbsp; I must admit to feeling a bit &#8220;slow&#8221; when I realized this, as I have been asked countless times [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":[17,4],"tags":[],"class_list":{"0":"post-389","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-elsewhere","7":"category-main","8":"entry"},"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts\/389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/comments?post=389"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts\/389\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/media?parent=389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/categories?post=389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/tags?post=389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}