Benefit corporations are new legal structures that we should know about.  It is one of several new legal structures to emerge alongside the rise of “social entrepreneurship” in recent years.  The interesting thing about these structures is that they shield the board from investor lawsuits.  In a regular corporation, any actions other than those taken with the purpose of maximizing shareholder value could be liable.

Here’s an excerpt from the article:

What is a ‘benefit corporation’?
A company whose charter allows the board to consider social or environmental objectives ahead of profits.

What is the advantage?
Protection from investor allegations of not maximizing shareholder value.

Does that make it a nonprofit?
No, a benefit corporation isn’t a nonprofit nor is it tax exempt.

How many states allow it? Seven. With bills introduced in four additional states.

What are the downsides? ‘For an investor, this is a terrible idea’ due to lack of accountability, says Charles Elson, who teaches corporate governance at the University of Delaware. If management makes a bad decision, ‘there’s very little you can do about it as a shareholder.’

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WSJ outline some innovative legal structures designed for entrepreneurs who are driven as much by mission as money. The cost of using one of these new legal structures will vary depending on lawyer fees, but generally those fees shouldn’t exceed more than $10,000 for a start-up with fewer than 10 employees.

Here’s an overview:

L3C

Ideal for: companies that want to blend traditional capital with “philanthropic” capital, such as from foundations

Available to start-ups in: Vermont, Michigan, Wyoming, Utah, Illinois, North Carolina, Louisiana, Maine and soon in Rhode Island.

BENEFIT CORPORATION

Ideal for: companies that want to create a measurable positive impact while and providing greater transparency to the public

Available to start-ups in: Maryland, Vermont, Virginia, New Jersey, Hawaii, California and soon New York

FLEXIBLE-PURPOSE CORPORATION

Ideal for: companies seeking to do good on their own terms

Available to start-ups in: California.

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The Tech Awards is an international awards program that honors innovators from around the world who are applying technology to benefit humanity.

The Tech Awards program inspires global engagement in applying technology to humanity’s most pressing problems by recognizing the best of those who are utilizing innovative technology solutions to address the most urgent critical issues facing our planet. People all over the world are profoundly improving the human condition in the areas of education, equality, environment, health, and economic development through the use of technology. It is the goal of The Tech Awards to showcase their compelling stories and reward their brilliant accomplishments.

To submit a nomination, click here.

Good Intentions are Not Enough.

hat tip to Marginal Revolution

The Legatum Center is now accepting applications for the 2010-2011 Fellowship, with a deadline of February 10, 2010.  Led by Professor Iqbal Quadir, the Center administers a competitive fellowship program for incoming and current MIT graduate students, across all academic and professional disciplines, who demonstrate the potential to create innovative, sustainable, for-profit enterprises that promote prosperity in low-income countries.  The Fellowship provides financial assistance, business plan coaching, specialized seminars, and opportunities to engage with some of the world’s leading thinkers and change-agents.  Recognizing that even the best innovations can be rendered useless if not distributed effectively, the Center works closely with Fellows to design not just innovative products and services, but also workable, affordable, and sustainable business distribution methods.

Applicants will need to submit an online application and two letters of recommendation.  Prospective applicants can find more information, video, profiles of current and past Fellows, and the online application at http://legatum.mit.edu/fellowship.  Please direct any questions to legatum@mit.edu.

The Mind Trust’s Education Entrepreneur Fellowship is a nationally  unique incubator for transformative education ventures. The Fellowship offers  promising education entrepreneurs the opportunity to develop and launch their break-the-mold education ventures and the support necessary for success. Fellows  receive two years of salary, benefits, a stipend for travel and professional development, and more. With this support, fellows will be able to realize their  visions and achieve extraordinary results for some of the nation’s most underserved students.

Fellowship ventures target underserved or disadvantaged populations with  solutions that attack the root problems in the delivery of public education.  The Fellowship is for people who envision entirely new approaches to the challenges of public education, and possess the relentless drive necessary to exploit opportunities to fulfill their visions.  Fellows join a growing network of education entrepreneurs dedicated to forging dramatic change in public education.

For the third cohort of fellows, The Mind Trust plans to select three highly capable people by November 20, 2009.  Each fellow works with The Mind Trust staff to establish an appropriate start date.

Fellows are full-time employees of The Mind Trust throughout the Fellowship. Fellows receive a $90,000 annual salary and a full benefits package that  includes medical, dental, and retirement benefits. Fellows will receive a $20,000 stipend to support their work, which can be used for customized  training, travel or other reasonable purposes.  The Fellowship is a full-time responsibility; fellows should not have additional employment, consulting  contracts, or other professional responsibilities.  Fellows may live anywhere in the United States during the Fellowship, but will be required to participate in meetings with their cohort of fellows in Indianapolis at least quarterly.  In addition, Fellows must include Indianapolis as part of their initial growth  plans.

Important Dates and Application Information

The Mind Trust is now accepting Statements of Intent online through July 31, 2009.  Select applicants will be invited to submit Full Applications.  Full  Applications are due September 25, 2009.  Statements of Intent and Full Applications are accepted only via The Mind Trust’s online application form.  Visit www.themindtrust.org for the application form and more information on the Education Entrepreneur Fellowship.  Fellowships for the third cohort will be awarded by November 20, 2009.

After 22 years inspiring a community of 500 entrepreneurs, investors and nonprofit leaders working together to build a more just and sustainable economy, Social Venture Network (SVN) is looking to honor and support the “next generation” of social entrepreneurs with the 2009 SVN Innovation Awards. Winners of the 2009 Awards will be honored during a special ceremony at the 2009 SVN Fall Conference at the Estancia La Jolla this October 22-25, and will also receive a year-long membership in SVN, waived registration and travel and hotel expenses to attend the Fall Conference, waived registration for the 2010 SVN Member Gathering, recognition on SVN’s website for a full year, publicity in other media outlets, and advice and mentoring from members of the SVN community.

To be eligible, applicants must currently hold positions as C-level executives (CEO, President, Executive Director, etc.) at a business or nonprofit having a positive social or environmental impact, and their organization must be less than five years old. The Awards are open to both current SVN members and individuals who aren’t members of SVN.

To learn more about the Awards or to download an application, please visit http://www.svn.org/awards.

For more than 22 years, SVN members have transformed the way the world does business. From the organic revolution to fair trade to socially responsible investing and so much more, our members pioneered a movement that has proven that business can truly be used as a tool for making the world a better place.

As SVN looks to the future, we’re committed to inspiring and supporting the next generation of innovative, socially responsible business and nonprofit entrepreneurs. That’s why we created the Innovation Awards. The goal of the Awards program is to recognize the leaders of emerging enterprises, bring them into the SVN community, and give them access to a network of 500 successful socially responsible business and nonprofit leaders, investors, and other resources and connections that can help them achieve success with their own enterprise.

For more information please check out svn.org

YIP is a new social entrepreneur training in Järna, Sweden, for youth aged 18 to 25 who want to create a positive social change in the world. It’s basically a course in how to bring your own initiative into being. YIP brings in experienced international course leaders to teach a wide array of topics, teaching the skills needed to run a project. There is also artistic work and internships.

The first year started up last August, and we have 39 participants from 18 countries (all continents represented), speaking 25 different languages. From the very first day, the participants have shown that they abound with initiative. (I am amazed they get time to sleep!) The impressions from friends and relatives following the participants from home is strong: some have tears of joy when seeing how participants are blossoming and taking responsibility for the world and their own life.

You can also read more about the program at the web site: http://www.yip.se (You can read participant contributions here) I can also recommend you the public lectures podcasts. The participants are currently organizing the conference “360° Exploring Community” (http://www.360theconference.se/), 11-17 July.

Application for the next YIP year closes 30 June 2009.

The Engineers for Social Impact Fellowship is a unique program that connects top engineering talent to credible social enterprises driving market-based solutions to development in India. It serves a dual need: matching talented students with worthy social enterprises and increasing awareness of for-profit approaches to development.

The Engineers for Social Impact (E4SI) fellowship program has commenced its second annual rigorous recruitment process to match the most talented ten undergraduate students from fifteen elite Indian engineering schools with partner social enterprises that focus on development by means of sustainable for-profit entrepreneurship. E4SI fellowships promise to be highly entrepreneurial in a way that combines the best of consulting, technology, and social innovation. Fellows will gain unprecedented access to the development sector as they work with leading social entrepreneurs, attend leadership workshops at the Indian School of Business (ISB), Hyderabad, and pitch their ideas to thought leaders as they join an outstanding cohort of exceptional young leaders.

Please see this press release (PDF) for more information.