@ChicagoKentLaw#TCC2018

TransactionalClinicalC

onferenceFRID

AY+SA

TURD

AYAPRIL

27+28,2018

•CH

ICAGO,ILLIN

OIST

CC

Deborah BurandNew York University School of Law@nyulaw

BusinessasUnusual:ClinicalRepresentationofSocialEntrepreneursandImpactInvestors

2:30pm– 3:30pm

David GuentherUniversity of Michigan Law School@UMichLaw

Susan R. JonesThe George Washington University School of Law@gwlaw

Mary LanderganNortheastern University School of Law@NUSL

Tony LuppinoUniversity of Missouri-Kansas City School of Law

Grunin Center for Law and Social Entrepreneurship

U.S. Law School Mapping Surveys –2017-2018

• The Grunin Center at NYU Law conducted several mapping surveys of US law schools in late 2017/early 2018. Over the course of these surveys and desktop research, we identified over 60 US law schools that are supporting one or more of the following activities related to the fields of social entrepreneurship and/or impact investing:– curriculum, – extra-curricular activities for students, – legal research and writing by faculty members.

• These US law schools represent around 30% of US accredited law schools.

Grunin Center for Law and Social Entrepreneurship

Mapping Surveys: 55 Law School Respondents*

AlbanyUniversity

UniversityofBaltimore

BostonCollege

BrooklynUniversity

CardozoUniversity

ChapmanUniversity

UniversityofChicago

UniversityofChicago-Kent

UniversityofCincinnati

ColumbiaUniversity

UniversityofDenver

DukeUniversity

FloridaInternationalUniversity

FordhamUniversity

GeorgetownUniversity

GeorgeWashingtonUniversity

GeorgiaStateUniversity

HarvardUniversity

HofstraUniversity

IndianaUniversity

UniversityofIowa

Lewis&ClarkUniversity

MarquetteUniversity

UniversityofMiami

UniversityofMichigan

UniversityofMinnesota

UniversityofMissouri

UniversityofMissouri-KansasCity

UniversityofNebraska

NewYorkUniversity

UniversityofNorthCarolina-ChapelHill

NortheasternUniversity

UniversityofNorthernKentucky

NotreDameUniversity

PaceUniversity

UniversityofPennsylvania

UniversityofPittsburgh

UniversityofRichmond

SaintLouisUniversity

SantaClaraUniversity

UniversityofSouthDakota

UniversityofSouthernCalifornia

SouthernMethodistUniversity

SouthwesternUniversity

StanfordUniversity

UniversityofTennessee

UniversityofTennessee-Knoxville

UniversityofTexas

VanderbiltUniversity

UniversityofVermont

VillanovaUniversity

WakeForestUniversity

UniversityofWashington

WayneStateUniversity

YeshivaUniversity

*Desktopresearchindicatesthatthereareatleast7otherlawschoolsthatappeartohaverelevantcourses/activities/scholarship,butrepresentativesofthoselawschoolsdidnotrespondtothesurveys.

Mapping Survey: TeachingFaculty from the following 41 surveyed law schools responded that they are teaching courses that address social entrepreneurship and/or impact investing:

AlbanyBaltimoreBostonCollegeBrooklynCardozoChicago-KentUniversityofCincinnatiColumbiaDenverUniversityDukeFordhamLawGeorgeWashingtonGeorgetownGeorgiaStateHarvardHofstraIowaLewis&Clark

MarquetteMiamiMichiganMinnesotaMissouriMissouri-KansasCityNebraskaNortheasternNotreDameNYUPacePennsylvaniaPittsburghRichmondSaintLouisSantaClaraStanfordTennesseeVermont

VillanovaWashingtonWayneStateYeshiva

Clinics are a big part of the teaching going on in US law schools in the fields of social entrepreneurship/impact investing

• Atleast25lawschools(representing28 transactionalclinics)offertransactionalclinicsservingclientsthatself-identifyassocialenterprisesorimpactinvestors.

• Mostofthesetransactionalclinicsareservingclientsthatself-identifyassocialenterprises(notasimpactinvestors).• 21 clinicsrepresentsocialenterprises.• 7 clinicsrepresentboth socialenterprisesandimpactinvestors.

• Thisisarelativelynewtypeofclienteleformanyofthesetransactionalclinics.• 12transactionalclinicsstartedservingtheseclientsinthelast3academicyears.• 5 transactionalclinicshavebeenservingtheseclientsfor10ormoreacademicyears.

Toe in the Water or

an Incoming Wave?• Social enterprises/impact investors represent a relatively small percent of most of

these transactional clinics’ overall clientele (but there are 4 outliers that are making social enterprises/impact investors the focus of their transactional clinics’ clientele)

– 1-10% of 12 clinics’ clientele – 11-25% of 7 clinics’ clientele– Over 75% of 4 clinics’ clientele

Not for Profit vs. for Profit

• Relatively few transactionalclinicsrepresentsocialenterprisesand/orimpactinvestorsthatareincorporatedas“for-profit”organizations:*

• 15clinicsindicatethatonly1-10%oftheirsocialenterprise/impactinvestorclientsareincorporatedas“for- profit”organizations.• Yet…6clinicsindicatethatmorethan51%oftheirclientsthatidentifyassocialenterprises/impactinvestorsareincorporatedas“forprofit”organizations.

*Incontrast,18clinicsindicatedthatmorethan34%oftheiroverallclinicclientsarenowincorporatedorareplanningtoincorporateasfor-profitorganizations.

Areas of Legal Advice

• Top four areas of legal advice provided by transactional clinics to clients that self-identify as social enterprises/impact investors:– Formation/Choice of entity (26 clinics)– Contracts and agreements (26 clinics)– Governance (26 clinics)– Intellectual Property (23 clinics)

Useful Resources

• The resources/tools that are currently most helpful to transactional clinics providing legal services to social enterprises/impact investors are:– Law firm guides/commentaries • 16 clinics

– Eship Law Website and Listserve• 13 clinics

– Webinars and conferences• 11 clinics

Resource Needs – our Wish List

• Document Libraries/Templates – 23 clinics• Course Materials (case studies, readings, interactive exercises, simulations,

etc. for use in seminar component of clinic) – 20 clinics• Tools to support advising clients about legal options (such as decisions about

choice of entity/formation, local counsel checklists, etc.) – 19 clinics• Syllabi Sharing – 18 clinics

Building our Toolboxes• Some of the tools at our disposal:

– Social Enterprise Law Tracker – NYU School of Law (Grunin Center for Law and Social Entrepreneurship)

http://socentlawtracker.org/#/map– Legal Audit Checklist for Social Enterprises in the United States – The George

Washington School of Law (Small Business & Community Economic Development Clinic)https://www.law.gwu.edu/sites/g/files/zaxdzs2351/f/downloads/2018-Legal-Audit-Checklist.pdf– Choice of Entity Facilitator Tool - Duke University School of Law and UMKC School of

Law (this tool is still under development but will be part of Startup Advisor Toolkit initiatives in connection with Legal Technology Laboratory: see www.thelegaltechlab.com)

Social Entrepreneurship Choice of Entity Facilitator Tool

Duke/UMKC

• In-process collaboration of Duke University School of Law and UMKC School of Law

• Part of Startup Advisor Toolkit initiatives in connection with Legal Technology Laboratory; see www.thelegaltechlab.com

• Automated questionnaire for client to complete to help lawyer develop choice of entity recommendations (type of company, state of formation, and tax classification)

• Current draft has 45 questions, covering a wide range of topics designed to sort through for-profit, nonprofit, hybrid, and cooperative organizational forms, as well as tax status

• Next steps: refine questions/logic branches, vet that content with Clinics network, and then build software program

How we do it?• Direct Client Representation

• GW New Venture Competition

• 2018 New Venture Competition had 276 participants

• 137 teams

• 45 teams were social ventures

SmallBusiness&CommunityEconomicDevelopmentClinic

GeorgeWashingtonUniversityLawSchool

How we do it?

• Action Research Projects– Collaboration - e.g., with Ashoka, Legal Audit Checklist for Social Entrepreneurs Doing Business

in the United States available at https://www.law.gwu.edu/sites/g/files/zaxdzs2351/f/downloads/2018-Legal-Audit-Checklist.pdf.

• Relationships - Halcyon House Social Enterprise Incubator

• Working Coalition to Fund the Incarceration to Incorporation Entrepreneurship Act (IIEP) -White paper on Funding the IIEP

• Partnerships - Washington Area Lawyers for the Arts

#DCLaw159Social Entrepreneurship for Returning Citizens:

Creating Self-Sufficiency, Improving Lives, Strengthening FamiliesDeliveryofOpenLettertoMayorBowser

I’mwritingonbehalfoftheWorkingCoalitiontoFundtheIIEP(IncarcerationtoIncorporationEntrepreneurshipProgram).We’re askingyoutojoinusinashowofforceinhand-deliveringanopenlettertotheMayorexpressingfunding.We’llmeetattheJohnA.WilsonBuilding,groundfloor,Room10,onMonday,March19that9:10ambeforeheadingtotheMayor’ssuiteat9:30am.

ThisisanopportunitytojoinusinexercisingourFirstAmendmentrightswiththedeliveryofourlettertotheMayor.TheCoalitionbelievestheIIEPcanbeapathwaytocreatingwealthandfinancialindependence,particularlyforthosewhostruggletofindemploymentafterincarceration.Thefosteringofentrepreneurshipwillenableourcitizenstonotonlycreatejobsforthemselvesbutimprovetheircommunities.

TheIIEPoffersentrepreneurshiptraining,aGEDcurriculum,apprenticeshipinstruction,andaccesstocapitalthroughitsIncarcerationtoIncorporationEntrepreneurshipFund(IIEF).ThisprogrambecamelawJuly12,2016butMayorBowserhasnotfundedit!

Pleasejoinusinbringingattentiontothisimportantprogram.Weencourageanyonewhohasexpertiseorknowledgeinvideographytovideoourexpressiontoshareonthevarioussocialmediaplatforms.

Thankyou.

Supportthemovement,

Kevin

CoalitionCoordinator

ksmith12456@gmail.com

WorkingCoalitiontoFundtheIIEP

Call to Action

What more can transactional clinics do to more effectively advance the fields of social entrepreneurship and impact investing?

How can we more effectively serve clients that are social enterprises or impact investors?