For-Profit VolunTourism Operators, L3C Designation, And More
There is some very good news on the horizon for the for-profit VolunTourism Sector in the U.S. Although the nonprofit sector has clearly had the upper-hand with such things as “tax-deductible” trips, free Google Ads, free software, and other amenities based upon their nonprofit designation, the tide may be turning, and that right soon.
For-profit VolunTourism Operators can celebrate with some recent announcements and advocacy at very high levels within the private and public sectors. Will it be enough to “180″ the non-profit psychology of the US Citizenry? Will it open doors to new media & communications opportunities for these operators? Will they be able to gain access to untapped networks? Things certainly look promising.
The Social Innovation Fund
Last week, Suzanne Perry of The Chronicle of Philanthropy, posted a news update on the appointment of Sonal Shah to the head post for the new White House Office of Social Innovation. (As you can see, there is still not an official website for the office, but it will likely come soon.) What will it mean to have the former director of global development for Google.org at the helm? Very likely, those of you with a social-purpose-based business, e.g. voluntourism, may very well have access to new monies – monies specifically designed to help you do what you do even better!
Low-profit Limited Liability Company Or L3C
A year ago, Vermont became the first state to adopt the Low-profit, Limited Liability Company or L3C structure. On 15 April 2009, Nicole Wallace inked a short piece for The Chronicle of Philanthropy detailing that 4 new states – Utah, Wyoming, Michigan, and North Dakota – and the Indian Crow nation have signed on to accept this structure. Robert Lang, CEO of the Mary Elizabeth and Gordon Mannweiler Foundation, has been spearheading this message since 2006. For those considering new structures, even as nonprofits, but certainly those companies which have been set up as LLCs, and may be looking for investment at this particular time, the L3C structure certainly gives you options through Program Related Investments (PRIs) from private and corporate foundations.
The B-Corporation
B-Lab is actively engaged in bringing the B-Corporation to the forefront of the business community. We hear more and more discussion of “certification” within the VolunTourism Sector, well, take a look at what this group offers as their declaration and what they are trying to accomplish through the proactive, social distribution of profit. If B-Corporation continues their work in advocating for tax breaks for socially conscious companies, we may be looking at a very intriguing proposition for for-profit Voluntourism Operators.
Concluding Thoughts
We know that VolunTourism is integrating the Third Sector and the Private Sector despite the resistance being expressed in ways seen and unseen, heard and unheard. Nonetheless, everything points to the fact that new structures and new approaches to supporting said structures are evolving and coming to the forefront.
Having a social conscious should not mean that your activities be barred from profitability and, subsequently, sustainability. Likewise, maintaining a system that is antiquated, and in many cases stifles the emerging social entrepreneurs of the world, is clearly becoming less and less acceptable. With the advent of the Social Innovation Fund, the L3C and the work of B-Lab, we may very well realize greater balance in the voluntourism space as more for-profit companies gain access to the benefits of social engagement.
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[...] The debate as to whether social entrepreneurism must reside in either the nonprofit or the for-profit sector experienced another blurring of the lines over the last couple of weeks. With Sonal Shah, former Google.org global development director, being named the new head of the Social Innovation Fund as part of the Executive Office of the President (EOP), we could see a real boost in the chances of for-profit structures to benefit from tax breaks and funding streams traditionally granted solely to the nonprofit sector. The introduction of L3C’s and a strong push by B-Lab to create tax breaks for B-Corporations could mean very good things for for-profits in the voluntourism sector. Read More>>> [...]