Structure Q&A

If you've asked yourself some of the questions below,
Structure Lab is a wonderful opportunity to take this thinking to the next level. 

Finance: Do you have to be a non-profit to get a grant?

Not necessarily!  Both for- and non-profits can receive charitable contributions if they create the appropriate legal structures and adhere to IRS guidelines.  In the Structure Lab you'll use frameworks to assess your financial picture and learn about the tools you can employ to make sure you can receive revenue from as many sources as possible.

An L3C is a "low-profit limited liability company" that attempts to address a need for a for-profit corporate form for socially-responsible businesses by including non-profit IRS language in its operating agreement.  The L3C structure was designed to take advantage of a variety of revenue streams and allows for clear "branding" as a social venture, but legally they remain largely untested.  In Structure Lab, we explore L3Cs and other new forms, discuss the potential benefits and pitfalls, and also review ways to update older corporate forms to serve mission-driven enterprises. 

You have a tremendous variety of options for growth - licensing, franchise, mergers and acquisition, and organic growth.  Structure Lab will help you design a growth strategy that takes advantage of the legal structures available, while also exploring other mechanisms, such as Stewards councils, independent regulatory bodies, and contracts that best preserve your mission.

Profit: As a non-profit can you make a profit?

Yes!  IRS tax-exemption does not mean that a nonprofit can't be "in the black."  Nonprofits can even own for-profits.  However, because no one owns a nonprofit, the organization must adhere to certain rules about how profits are spent.  In Structure Lab, you will explore hybrid models, holding companies and other structures that simultaneously allow you to leverage your revenue and protect your mission.  

Exit: How can you preserve a venture’s mission beyond founder involvement?

Exit strategy is an enormously important consideration, and the earlier a founder plans for exit, the more options are available.  In Structure Lab, we focus on exit considerations including preservation of vision and values, structures that support the ability for a liquidity point, and planning for (and preventing) a forced exit.