Acumen and Embrace: Corporate forms and hybrid impact
Become familiar with the various types of corporate form, and the reasons behind selecting any one form over another. We will also begin to frame the concept of social impact, and understand how impact might be defined and measured.
:: READINGS ::
Case — Acumen Fund and Embrace: From the leading edge of social venture investing.
:: BE PREPARED TO DISCUSS ::
Should Acumen adopt the hybrid organization structure (i.e., comprised of both a nonprofit and for profit units) as described in the case? Why or why not?
How would we define Embrace’s social impact and measure their social return on investment beyond financial return?
:: ADDITIONAL BACKGROUND ::
Please follow the links from the page below for readings on six types of business structure, as described by the Small Business Association. These six forms are: Sole Proprietorship, Limited Liability Company, Cooperative, Corporation, Partnership, S Corproration.
https://www.sba.gov/starting-business/choose-your-business-structure
Life Cycle of a Public Charity/Private Foundation
https://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Life-Cycle-of-a-Public-Charity-Private-Foundation
Exemption Requirements - 501(c)(3) Organizations
https://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Exemption-Requirements-Section-501(c)(3)-Organizations
Life Cycle of an Exempt Organization —non-501(c)(3)
https://www.irs.gov/Charities-&-Non-Profits/Life-Cycle-of-an-Exempt-Organization
Requirements for Exemption — non 501(c)(3)
https://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Requirements-for-Exemption