Document Type
Article
Publication Date
2010
Publication Information
Daniel S. Kleinberger, The Fatal Design Defects of L3Cs, The Nonprofit Quarterly, Summer 2010, at 39-43.
Abstract
This article argues that the L3C is an unnecessary and unwise contrivance, and it's very existence is inherently misleading. The notion that an L3C should have privileged status under the Internal Revenue Code (known as the Code) for access to tax-exempt foundation resources is inescapably at odds with the key policies that underpin the relevant Code sections, and L3Cs are not on track-let alone on a fast track-to receive special status under the Code. An ordinary limited liability company (LLC) can perform precisely the same functions proclaimed of L3Cs. In addition, because of technical flaws, the L3C legislation adopted to date is nonsensical and useless.
Repository Citation
Kleinberger, Daniel S., "The Fatal Design Defects of L3Cs" (2010). Faculty Scholarship. 263.
https://open.mitchellhamline.edu/facsch/263