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Governing and Financing Blended Enterprise

Chicago-Kent Law Review, Forthcoming

Brooklyn Law School, Legal Studies Paper No. 183

29 Pages Posted: 23 Feb 2010  

Dana Brakman Reiser

Brooklyn Law School

Date Written: February 23, 2010


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.

Keywords: Charity, Nonprofit, Philanthropy, Social Enterprise, L3C, Community Interest Company, B Corporation, Hybrid Organizations

Suggested Citation

Brakman Reiser, Dana, Governing and Financing Blended Enterprise (February 23, 2010). Chicago-Kent Law Review, Forthcoming; Brooklyn Law School, Legal Studies Paper No. 183. Available at SSRN:

Dana Brakman Reiser (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street, Rm. 814
Brooklyn, NY 11201
United States
718-780-0396 (Phone)
718-780-0376 (Fax)

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