Governing and Financing Blended Enterprise

The image of nonprofit and for-profit as dual and exclusive categories is misleadingly simple. This blurring of the boundary between for-profit and nonprofit has gone on for years and appears only to be gaining steam. Yet, traditionally, the law has put organizations to a choice of either the nonprofit or for-profit form of governance. In the first decade of this century, organizational law is beginning to catch up with the boundary-blurring trend. Legislatures are creating new forms for blended enterprise, including several U.S. states’ low-profit limited liability company (the “L3C”) and the community interest company (the “CIC “) in England and Wales. Along with these more formal efforts, at least one self-regulatory scheme provides a framework to fashion a blended form (the “B Corporation”) under traditional state for-profit corporation law. This article describes and compares these forms, evaluating whether they can enhance the governance and finance of blended enterprise.





Brooklyn Law School


D. B. Reiser


February 23, 2010

Media Type:



Philanthropy, Social Entrepreneurship