Cohousing-L Mailing List: Re: Forming a nonprofit?

[Alice Alexander (aliceanne4]

The question of forming a nonprofit in connection with cohousing is
periodically raised.

As I understand it, a nonprofit designated as a 501(c)3 organization cannot
have owners, and therefore no one can have an equity position, or transfer
interest. When dissolved, a nonprofit normally must transfer all assets to
another nonprofit. So I am perplexed why communities would consider this
ownership structure. Or even how they would propose to create a nonprofit
legally, since nonprofit status requires a mission to serve the *public*
interest. Cohousing presents as a great housing and lifestyle choice yes,
but a community serves only its members.

I've heard arguments that creating a nonprofit would allow communities to
apply for foundation grants, but most foundations prioritize supporting
target audiences of need, not communities of typical cohousers creating a
environment for themselves.

Has anyone succeeded in securing foundation grants for supporting or
enhancing their communities? That would be a good related question.

Alice Alexander
Durham Cohousing

On Thu, Nov 2, 2017 at 11:17 AM, Bob Leigh <bobleigh [at] twomeeps.com> wrote:

> I'm interested in this, too, since our choosing community has one unit
> (with full accessibility features) owned by a small group, and we'd like to
> either create or locate a nonprofit to eventually own and manage that unit.
>
> Bob Leigh
> Cornerstone Village Cohousing
> Cambridge, MA
>
> On Thu, Nov 2, 2017 at 11:05 AM, Liz Brown <lbrown1250 [at] gmail.com> wrote:
>
> > Hello, has anyone formed a nonprofit arm of your coho community, or
> > partnered with an existing nonprofit?
> >
> > We would like to hear from you if you’ve done it (or explored it and
> > decided  against)
> >
> > Here are some of our questions:
> >
> > Why did you (or decide not to)? Affordability? Marketing? Fundraising
> from
> > non-members? Receiving grants/contributions?
> > Other?
> >
> > What has your experience been?
> >
> > Pros and cons?
> >
> > Anything else?
> >
> > Thank you - on behalf of Flower City Cohousing Community, Rochester, NY
> > _________________________________________________________________
> > Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> > http://www.cohousing.org/cohousing-L/
> >
> >
> >
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://www.cohousing.org/cohousing-L/
>
>
>


-- 
Alice Alexander