Building Good Karma

A wonderful L3C that I have had the privilege to learn about working at the Law Office of Becki Kammerling is Karma Builders L3C. A social enterprise located in The Bronx, New York, Karma Builders trains and employs formerly incarcerated individuals in the service of woodworking for local sustainable companies. Through a six-month program, these individuals are trained in green woodworking and assembly and are also introduced to yoga and mindfulness. It is a very unique idea, I think, and one that will allow these individuals to finish the program with a strong skill set to enter the workforce and an enlightened perspective on life. What better way to help them become positive citizens in society!

Karma Builders- helping to break the vicious cycle of unemployment and re-incarceration

Karma Builders is a great organization and a fantastic example of a true L3C. In fact, they are currently in the running to receive the “Philanthropic Small Business of the Year” award from the Classy Awards, the largest philanthropic award ceremony in the United States. This award would be an amazing acknowledgement for them, so please vote for them here: http://classyawards.stayclassy.org/classy-awards/voting. From that page, scroll down to the bottom to "Philanthropic Small Business of the Year" and click to find Karma Builders. Then head to the top of the page and submit your vote! (You do not need to vote for the other categories if you do not want, just specify you would only like to vote for that one category)

Whether you are an entrepreneur yourself or are simply interested in social change, please take the time to learn more about Karma Builders L3C and cast your vote to help them achieve the Classy Award! Voting ends August 26th!

To find out more about what an L3C is, check out Becki's blog post at: http://lagreenlawyer.blogspot.com/2011/08/what-is-l3c.html

What is an L3C?

Social entrepreneurs and new start-up companies are taking advantage of a new legal entity: the L3C (low-profit limited liability company).   

An L3C functions much like an LLC and any other for-profit company except that earning a profit takes a back seat to providing a social benefit to society.  This legally allows the managers of the L3C to achieve their organization’s social mission without violating duties to the company’s investors in the event that that social mission does not “maximize profits” in a traditional sense.

Another benefit of forming an L3C is that it may attract investment from foundations.  Foundations are non-profit organizations that, under certain circumstances, can  invest in for-profit companies.  However, these investments, called Program Related Investments, require that the investment further the public benefit purpose of the foundation.  For example a foundation which  has a purpose to educate at risk youth could invest in an  L3C whose mission, through its for-profit venture,  is also to provide education to at risk youth.  Not only does the L3C benefit by having a like-minded investor, the foundation has the opportunity to increase their funds through receiving a return on their investment. 

The  L3C, while still new,  has the potential to enhance the business world with a fresh and sustainable approach to doing business as well as the potential to increase the amount of money available to traditional foundations. 

If you would like more information about setting up an L3C or a social benefit company please contact my law office.