Recent Legislation in Several States May Offer Opportunities for Investors to Partner with Tax-Exempt Private Foundations Edit Title

Several states recently have created a new type of investment entity—a Low-Profit Limited Liability Company (or "L3C")—that may open the door to co-investments by tax-exempt private foundations and for-profit investors. The L3C, first authorized by Vermont in April 2008 and now authorized by five states (as of March 2010), is a for-profit entity designed to be an acceptable investment under the US federal tax rules for a Foundation. This new business entity may provide alternative means for Foundations to invest their capital, encourage new capital investments from existing Foundations and present opportunities for investors to partner with Foundations in socially beneficial ventures.

Recent Legislation in Several States May Offer Opportunities for Investors to Partner with Tax-Exempt Private Foundations

Recent Legislation in Several States May Offer Opportunities for Investors to Partner with Tax-Exempt Private Foundations March 2010 David H. Dreier, David W. Thatch DOWNLOAD PDF: Recent Legislation in Several States May Offer Opportunities for Investors to Partner with Tax-Exempt Private Foundations Introduction Several states recently have created a new type of investment entity-a Low-Profit Limited Liability Company (or "L3C")-that may open the door to co-investments by tax-exempt private foundations ("Foundations") and for-profit investors.

http://www.whitecase.com/alerts-03122010/

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