Wednesday, November 21, 2012
Steven Dean (Brooklyn) presents Hunting Stag with FLY Paper: A Hybrid Financial Instrument for Social Enterprise (with Dana Brakman Reiser (Brooklyn)) at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series hosted by Ben Alarie:
Social entrepreneurs and
socially motivated investors share a belief in the power of social
enterprise, ventures that pursue a “double bottom line” of profit and
social good. Unfortunately, they also share a deep mutual suspicion.
Recognizing that social ventures—just like traditional for- and
nonprofit enterprises—need capital to flourish, this Article offers a
financing tool to transform that skepticism into commitment. Unlike the
array of new entities that have emerged in recent years—including L3Cs,
benefit corporations and flexible purpose corporations—the hybrid
financial instrument it describes provides a robust and transparent
solution to the puzzle that lies at the heart of every social
enterprise: how to blend a profit motive with a social mission.
Recognizing their shared dilemma as an example of what economists call a
stag hunt, FLY Paper strikes that elusive balance by allowing investors
and entrepreneurs to credibly signal a reciprocal commitment to the
pursuit of a dual bottom line.