Consultation on Nonprofit Investment
Assist a U.S. nonprofit addressing the housing crisis in Africa by advising on whether they can invest in mission-aligned for-profit entity in Switzerland.
Referred by:
EarthEnable is a 501(c)(3) incorporated in Massachusetts. EarthEnable’s founder is working very closely with the founder of a mission aligned for-profit entity in Switzerland called Oxara. Oxara has developed a ground-breaking, patented, earth-based alternative to cement. This material is critical to expanding EarthEnable’s work and has the potential make safe, clean, affordable, housing readily available across the African continent and the rest of world.
Pestalozzi (Lex Mundi member firm for Switzerland) is advising on the relationship between EarthEnable and Oxara from a Swiss perspective. The two organization’s founders are acting as co-founders in moving this work forward and may restructure their organizations accordingly down the line. For now, EarthEnable’s founder is acting as a fractional CFO for Oxara, while Oxara’s founder is acting as a CTO for EarthEnable.
The EarthEnable team is now seeking a consultation with a tax-exempt attorney to discuss whether they can use their donor money to invest in Oxara. If so, what are their options (e.g., can they make a PRI)? Ultimately, they’d like to better understand the parameters and to discuss whether there is a potential conflict of interest given their current relationship.
Down the line, they would greatly appreciate further assistance/guidance executing on these investments/drafting any necessary legal documentation. However, this is a secondary request.