ABSTRACT
This chapter aims to capture the alternatives available to social entrepreneurs as they design and structure their ventures from a legal and organizational perspective. For-profit, non-profit, and hybrid models are examined and their advantages and limitations discussed. Before entrepreneurship became a major factor in the accomplishment of social goals, the delivery of social services was largely accomplished by entities labeled "charities" or "charitable organizations." These were tax-exempt organizations that the US government gladly relieved of their taxpaying duties because they were undertaking difficult activities that government officials were unwilling or unable to perform in areas such as health, education, and community development. One of the chief advantages of adopting the nonprofit structure is the multiple options it affords for generating revenue. Not only does it provide the ability to produce earned income, within the limits discussed, but it makes the social venture eligible to receive philanthropic dollars—both traditional and nontraditional.
