By Rita Galowich
President, Fund Inc
A JB&A Strategic Partner
Rita Galowich
Last Monday, August 10, the Chicago Tribune carried an article on the formation of a new legal business entity in Illinois: LC3’s. These are for-profit businesses with a strong social leaning that accept program-related investments. Investors to an LC3 can earn a return and hold equity in the company. LC3’s are not tax exempt.
This type of business comes at a perfect time in the state of Illinois, when we are faced with the possibility of tremendous cuts to social service programs due to the huge state budget deficit. If these new businesses can be successful they will provide an alternative way to serve areas currently being served by non-profit organizations that may be in jeopardy.
I see this as a most creative way to maximize social enterprise opportunities in our state at a time when funding has become extremely difficult to come by. What do you think?