Description
High net worth clients, charitable organizations, and private foundations are increasingly looking for innovative, scalable, and sustainable solutions to intractable social problems. Funders are looking for new opportunities to deploy capital. A 2022 GIIN report estimates impact investment AUM was almost $1.2 trillion.
In response, charitable organizations are beginning to adopt innovative for-profit business models and strategies in pursuit of their charitable purpose. Meanwhile, for-profit entities include social impact in their strategic considerations as either risks to mitigate or opportunities to capitalize. The differences between for-profit and nonprofit organizations have begun to fade in response to these efforts. The impact investment space is roiling with innovation and creation. However, clarity of purpose and a firm understanding of emergent instruments are required to successfully navigate exciting developments.
We have assembled recognized experts on how to give and receive funding through these novel mechanisms. During their presentation they will reexamine basic considerations through the lens of these new mechanisms, and highlight where the opportunities and dangers await organizations. After attending this webcast participants will be able to:
- Understand the federal tax rules applicable to a tax-exempt organization funding charitable activities through novel impact investing mechanisms
- Understand the federal tax rules applicable to a tax-exempt organization receiving funding for charitable activities through novel impact investing mechanisms
- Apply the federal tax rules and basic securities law considerations to the following:
o Perpetual purpose trusts
o Shared ownership and community ownership corporate structures
o Joint ventures between for-profit and non-profit organizations
o Pursuing charitable purposes and accessing commercial capital