Friday, February 28, 2014

Blog Series - Not-for-Profits - Hybrids

Hybrid Organizations, also called Social Enterprises or Social Ventures, are organized to include a for profit business with a non for profit entity. Hybrid corporations usually consist of a charitable organization that has established a related way to earn revenue. For example a company, Toms, sells shoes and for every shoe they sell they will send a pair to children in need in a different country.  So what is a hybrid organization?

The Social Entrepreneurship Spectrum: Hybrids (Inc., May 2011)

Entrepreneurs And The 'Hybrid' Organization (Forbes, August 2013

Research finds rising numbers of 'hybrid organizations' across sectors (Devex Impact, June 2013)

In Search of the Hybrid Ideal (Stanford Social Innovation Review Summer 2012)

Low-profit limited liability company (Wikipedia) - This link provides a summary of a new legal business structure for hybrid organizations.  A L3C is currently only available in 9 states, with legislation proposed in 26 more.  NYS does not have this type of business structure available right now.

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