Re: Group Forming need advice
From: Raines Cohen (rc3-coho-Lraines.com)
Date: Thu, 25 Jan 2007 08:05:39 -0800 (PST)
On Jan 24, 2007, at 4:29 PM, Ann O'Quinn wrote:
I was wondering if anyone knew how to go about finding a non- profit that would serve as a fiscal agent or "sponsor" for fundraising purposes

Greetings, Ann, and welcome to Cohousing-L. And congratulations on getting a cohousing group going in Northern California!

It's unusual for a cohousing group to do nonprofit-style fundraising (seeking donations) or to seek nonprofit status... most cohousing groups take the form of individuals acting as an unincorporated association ("club") until they are collecting serious money for a pooled investment in land or professionals at which time they form a Limited Liability Corporation (LLC), and then enter into limited partnerships with development professionals to build the property, which then forms a Home-Owner's Association (HOA) that consists of individual unit or lot owners collectively owning shares of common property and managing it. Funds come from individual households investing and sometimes outside investors.

Perhaps you could say some more about what kind of fundraising you envision and what public purpose would be served by the group. Nonprofits can't use their tax-exempt status to shelter money/ activities that are for the benefit of individuals, particular corporations, or a small set of individuals, like future homeowners. There are exceptions for affordable-housing, but the laws around this are complex and you would be well advised to work with knowledgeable local specialist attorneys and housing development corporations that are familiar with this area. Just last night we were at a meeting in Sebastopol, CA, for a cohousing project that will be 100% affordable, and the developer was still tentative/finding its way despite 20 years of experience (they use a self-help model similar to Habitat For Humanity).

From what I can gather from your blog on your mySpace page (typo alert: "Mountain" is misspelled in your profile name; you also might want to separate out some of the info on the group from the personal connections to make it clearer what's what), you've already got a site and some people interested. That definitely gives you a leg up in the process; but what's the zoning there? How about utility capacity? Since you're in the Sierra foothills, you've got The Cohousing Company/Cohousing Partners right in your backyard, and lots of other knowledgeable folks a train ride away.

Also wondering about liability insurance for a cohousing project that has work parties and public events

Definitely a good idea, and worth budgeting up to $1,000 a year for a million dollars of coverage (you may be able to find it for less). Are you having everybody who comes onto the land sign a liability waiver? I know of at least one retreat center I know that does this, and it seems like a good idea. Costs may depend a lot on the number of people and type of event... where construction is concerned, liability for the workers is the least of your concerns, construction liability will be essential if you're going to use any outside contractors, because you (and they) can be liable for up to ten years for any defect in the property, and yes, even in cohousing, problems have emerged that have led to lawsuits brought by the owners long after developers/builders were "done" with the project.

I'm sure others on the list would love to know more about your project, the vision for it, who's involved, your location... and what makes it cohousing? While I'm delighted to see you link to the Coho/ US website with definitions of cohousing, it's not clear from the rest of your site how that relates to what you have now and where you're going with it.

Raines Cohen, Berkeley, CA, cohousing

Cohousing Coach
Planning for Sustainable Communities

Regional Organizer, Northern California
Cohousing California


Results generated by Tiger Technologies Web hosting using MHonArc.