Yes, But Can You Get Donations With It?

In my letter to President Obama post I advocated for increased options under which non profits could incorporate. So I was very happy to see Drew McManus’ post today on that same theme.

I was even happier when one of the commenters to the entry, Ian David Moss, pointed out there were people working on that option. Namely, the L3C. In the comments section, Drew asks if anyone has successfully gotten a grant under that status. Moss responds that it lends itself more to attracting social investment and micro loans rather than grants.

I am going to keep an eye on this thread in the hopes that more information about other options emerge. (I am also going to add Non Profit Law Blog where this information originates to my reading list!)

What surprised me most was that the structure was proposed by an individual, Robert Lang, and that by getting Vermont to pass legislation recognizing it, the structure became viable nationwide since people can incorporate in Vermont the same way companies do so in Delaware. How this is all possible is being hashed out on many fora where people are a little wary about how the IRS may react. Thanks to a link on a Fractured Atlas blog post that apparently failed to register with me a year ago, I was able to track down a FAQ on the site of Americans for Community Development who are promoting this format.

I would be rather excited if this were successful because it facilitates the development of other forms of incorporation that might be helpful for activities currently performed by non profits.

About Joe Patti

I have been writing Butts in the Seats (BitS) on topics of arts and cultural administration since 2004 (yikes!). Given the ever evolving concerns facing the sector, I have yet to exhaust the available subject matter. In addition to BitS, I am a founding contributor to the ArtsHacker ( website where I focus on topics related to boards, law, governance, policy and practice.

I am also an evangelist for the effort to Build Public Will For Arts and Culture being helmed by Arts Midwest and the Metropolitan Group. (

I am currently the Director of the Grand Opera House in Macon, GA.

Among the things I am most proud are having produced an opera in the Hawaiian language and a dance drama about Hawaii's snow goddess Poli'ahu while working as a Theater Manager in Hawaii. Though there are many more highlights than there is space here to list.


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