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Toya's Precious Jewels of the Permian Basin

Provide Consultation to Address Concerns from Potential Funder (guidance on relationship between for-profit and non-profit entities)

Summary:

Assist an organization increasing access to childcare in Midland, Texas by providing a consultation on structuring the relationship between their for-profit and non-profit entities and addressing specific concerns posed by a potential funder.

Referred by:

Jurisdiction(s): U.S. (Texas based organization)
About the Organization: Toya’s Precious Jewels is working to increase access to childcare in the Midland, Texas area. They are in the process of expanding their capacity to support working parents and to care for more children.
Legal Entity Type: Nonprofit/Charity
SDG(s): Quality Education
Legal Issue(s):

Toya’s Precious Jewels of the Permian Basin started operations as an LLC. They were approached by a potential funder (a coalition of energy companies in the region), interested in supporting Toya’s Precious Jewels and increasing their capacity. Part of the reasoning was to increase access to childcare for employees at member companies. The funder generally supports non-profit entities. As a result, the founders of Toya’s Previous Jewels established a 501(c)(3). Now, the funder is concerned about the complexity of the relationship between the for-profit and non-profit entities. However, they are also concerned that maintaining only a non-profit entity will disqualify certain higher income students (including children of member employees) from attending the center. They have put a pause on moving forward until a solution is found.

The Toya’s Precious Jewel’s team is seeking guidance on whether there is a viable path forward for them. To this end, they would appreciate a consultation to discuss their options and to address the concerns presented by the funder. Importantly, they would like to better understand what the implications would be if they moved certain assets of the for-profit entity to the non-profit entity. They would also like to understand whether the non-profit entity could continue to provide services to higher income students, while remaining a non-profit.

Ideally, they’d like to have this conversation by the end of June. However, this is not a hard deadline.