We have blogged before about the State of California handing over some of their activities to nonprofits in hopes that the cause will be supported by the public (instead of the government).  However, there has also been a recent trend of for-profits turning over their activities and organizations to nonprofits and vice versa.  Some nonprofits, like Blue Cross Blue Shield (a 501(c)(4) social welfare organization), have examined other types of legal structures given the recent scrutiny they have received for director compensation.   Not all of the “turnovers” have been successful or without complications.

The Nonprofit Law Prof Blog has compiled a list of several other states who have followed in this trend, http://lawprofessors.typepad.com/nonprofit/2011/10/no-money-have-a-nonprofit-do-it-california-parks-and-more.html.