May 20, 2008
(Burlington, Vt.) Thomas H. Moody, a director at Downs Rachlin Martin PLLC and chair of the firm’s Business Law Group, addressed a gathering of philanthropists and private foundation managers in Salt Lake City, Utah on May 15th regarding Vermont’s recently enacted L3C Act. The new law provides for the creation of a new organizational structure designed to facilitate program-related investments by private foundations and donor advised funds. The L3C, or low-profit limited liability company, is essentially a limited liability company formed under Vermont law for the purpose of furthering some charitable or educational purpose, where the social mission takes precedence over generating a profit.
Moody co-presented with Curt Bassett, CEO of Princeton Social Capital and formerly the Director of Foundations and Strategic Philanthropy at Merrill Lynch. Moody and Bassett presented on the benefits of the L3C structure for private foundations wishing to make program-related investments. The program was held at the Alta Club in Salt Lake City.
Vermont is the first state in the nation to authorize the creation of L3Cs. Moody, together with DRM’s Taxation Group Chair Wm. Roger Prescott, has formed a subspecialty group within the firm to assist with the formation of L3Cs, enabling foundations and philanthropic investors to promote job creation and economic growth while supporting socially responsible efforts in the communities where they choose to invest.
DRM, with more than 85 attorneys and legal professionals in seven offices in Vermont, New Hampshire and New York, provides legal services to local, national and international clients in practice areas that include litigation, business law, labor and employment, captive insurance, environmental law, trust and estates, family law, tax law, public utilities, real estate, health care, intellectual property, insolvency and creditors rights, venture capital and insurance defense. The firm represents clients in legislative, regulatory and public affairs through the Government Affairs group. DRM is the law firm member for Vermont of Lex Mundi, the world's leading association of independent law firms.
