Cohousing-L Mailing List: Re: Cohousing communities and tax-exemption, 501c3

[Sharon Villines (sharon]

On Tue, Jun 09, 2015 at 12:16:53PM -0400, Ken Winter wrote:

> I have a slightly-but-hopefully-not-too-far-off-topic question:
> 
> Do any cohousing *communities *have 501(c)(3) status?

It’s indicative of how cohousers view their community developments that this 
question frequently comes up. Cohousers view developing a community as a public 
service, not a profitable venture. The quest for diversity, openness to 
everyone, and the desire to accommodate all economic circumstances, makes it 
feel like a public service organization to most cohousers. “I do this for my 
neighbors and my community, not just for myself.”

The fear of taxes and the desire to avoid them is actually not a big concern, 
however. As a condo, the income is offset by expenses so there is little if any 
profit. Until your reserves are large enough to earn significant earnings in 
interest, there will be little if any income to tax.

Experts, please correct me if I’m wrong.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org