A Primer on L3C - Tax Status - an alternative corporate structure with a social responsibility.

Corporate Social Responsibility or CSR, has certainly earned a name in the philanthropic lexicon. It seems that everyone has an opinion on if and how corporations should engage in social impact work.

From the corporate/for-profit perspective, the idea is that you give back to the communities of customers, employees, and the global public. This can be a pure marketing strategy that is determined to reach your customer where they're are at; or by taking on a systemic social issue that your own for-profit product development encounters to help society or the environment.

However, either as Cause Marketing or as work for Social Impact, the ultimate goal of a corporation is to maximize profits for their shareholders. So, as Public Relations or Philanthropy, it must ultimately be self-serving to the Limited Liability Corporation, or LLC, for it to truly reach corporate nirvana. A bit of a pity, but at least we know the true stripes of the animal we call a corporation. Regardless, the CSR concept begins to acknowledge the value and impact a corporation already has to the social fabric of a community and our global ecosystem. In fact, many organizations and leaders are currently dedicated to developing the standard of measures for ROI that are social and environmental.

An evolution of these ideas is a new business status of a Low-profit Liability Corporation, or L3C has made it's way into 3 states. Vermont has passed the law, Michigan is waiting for the Governor's signature, and North Carolina has it in the Senate Finance Committee. For a good definition and information on the structure, read Americans for Community Development's FAQ's on L3C. "An L³C is run like a regular business and is profitable. Unlike a for-profit business, however, the primary aim of the L³C is not to make a profit, but to achieve socially beneficial purposes. Profit is a secondary goal. The L³C thus occupies a unique niche between the for-profit and charitable sectors."

In the white paper Mobilizing Change released by the Aspen Institute in 2008, L3C status was listed as one of the top ten policy recommendations for the social/nonprofit sector in the future.

"Idea #2: Promote the growth of enterprises that mix business practices with social missions by creating a special tax code designation for social-benefit enterprises." Quoted in that article is Heather Peeler with Community Wealth Ventures who wrote The L3C: A New Tool for Social Enterprise.

Other Resources via wikipedia:

International Business Report (2008). Corporate Social Responsibility: a necessity not a choice, Grant Thornton.

Baker, Mallen. "Arguments against Corporate Social Responsibility". Business Respect. Retrieved on 2008-03-07.

Building A Vision: Vision Regeneration - A Storybook

BUILDING A VIS...

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As a part of our Storytelling Initiative, DSVP has produced a "storybook" about the youth and mission of Vision Regeneration, Inc. A DSVP investment of three years, Vision's mission is unique in South Dallas focusing on changing the culture among the youth they serve to one of positive reciprocity. DSVP has worked with founder and executive director, Omar Jahwar, to move his vision from a grass-roots initiative to a national model for youth engagement and cultural transformation.

The book was created for Vision Regeneration, by Dallas Social Venture Partners . Featuring photography by local artist Sarah Jane Semrad and creative direction by Benjamin Hancock; it is a breathtaking example of how local social artists combined with community organizers can amplify the message of a mission. Each book purchased will gift back $100 to Vision Regeneration.

If you are interested in your own, you can order it directly from the manufacturer at a rate that includes the price of the book, plus a $100 contribution to Vision Regeneration.
We encourage you to support them in this way!

Is there a connection to school discipline tactics and prison?

Recently, DSVP's Philanthropy Education Committee hosted a discussion about the report "Texas' School-to-Prison Pipeline, Dropout to Incarceration: The Impact of School Discipline and Zero Tolerance" released by Texas Appleseed. The committee brought together leaders from Texas Appleseed along with North Texas educators and civic leaders to react to the research and discuss their best practices for discipline in the school. Our respondents provided thoughtful and passionate points of view based on their own experience in the schools.
Listen to the discussion!

In the report, major findings include:

• In Texas, Disciplinary Alternative Education Programs have five times the dropout rate of mainstream schools.
• Two-thirds of the students sent to DAEPs in Texas are referred at the discretion of school districts, and are not mandatory removals under state law.
• In Texas, 211 school districts disproportionately referred African American students to DAEPs for one or more years between 2001 and 2006.
• Although special education students represented 11 percent of the overall Texas public school population in 2005-2006, they accounted for 22 percent of total annual DAEP referrals, 26 percent of out-of-school suspensions, and 21 percent of ISS referrals per year.
• Fourteen Texas school districts accounted for about 85 percent of referrals of 500 pre-K and kindergarten children and about 2,700 1st graders to DAEPs between 2001 and 2006. DAEPs are restricted by Texas law for children under age six unless they are found carrying a gun to school.

Framer: Texas Appleseed's Rebecca Lightsey, Executive Director
Texas Appleseed is a nonprofit partnership of pro bono attorneys and other professionals who are focused on systemic solutions to major social problems.

Presenters: Steve Colmus, Principal, Kipp Truth Academy
Kamalia Cotton, Principal, H.S. Thompson Learning Center
Rachel George, Executive Director, Transformation Management Office, DISD
Travis Wortham, Superintendent, Cottrell Transition Center, TYC Dallas