On April 30, the governor of Vermont, Jim Douglas, signed an L3C bill
(H.775) into law. The bill allows for the creation of a hybrid between a
nonprofit organization and a for-profit corporation. The entity would be a
low-profit company with "charitable or educational" goals. The legislation
gives private foundations the opportunity to have a modest return on an
investment and provides low-profit companies that have socially responsible
goals access to financing by broadening the scope of investors to include
private foundations, governments, and independent investors. Vermont is the
first state in the nation to pass an L3C bill.
