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Niki  
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 More options Feb 15 2012, 4:04 pm
From: Niki <na...@thessbi.com>
Date: Wed, 15 Feb 2012 13:04:26 -0800 (PST)
Local: Wed, Feb 15 2012 4:04 pm
Subject: Nonprofit status

Are any of your centers nonprofit? Do you think it makes sense to be
nonprofit as opposed to a private enterprise? I keep running into brick
walls with my county and city because they see me as a private business
entity and don't want to support the center. (This is a discussion we've
been having in a different thread). I'm now wondering if the center would
get more respect as a not-for-profit. I know I would be able to get grants
and financial support not available to me at this point. Thoughts?

Nancy
Business Success Unlimited
where we help business grow: connecting, motivating, and collaborating
www.success4biz.biz


 
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Tom Brandt  
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 More options Feb 15 2012, 4:09 pm
From: Tom Brandt <twbra...@gmail.com>
Date: Wed, 15 Feb 2012 16:09:03 -0500
Local: Wed, Feb 15 2012 4:09 pm
Subject: Re: [Coworking] Nonprofit status

Getting 501(c)(3) status is a real pain, and comes with restrictions, but
it can help to change perceptions of your motives. And, as you point,
foundation grants and so forth are available for non-profits that are not
available to for-profits.

--
twb
member, Workantile <http://workantile.com/>
@twbrandt

 
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Jacob Sayles  
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 More options Feb 15 2012, 4:25 pm
From: Jacob Sayles <ja...@officenomads.com>
Date: Wed, 15 Feb 2012 13:25:07 -0800
Local: Wed, Feb 15 2012 4:25 pm
Subject: Re: [Coworking] Nonprofit status

Yes, a federal 501c3 is tricky because of the tax implications, but a state
non-profit in Washington only takes a few hours to setup.  Donations are
not tax deductible but it's still a full fledged non-profit.  Different
states have different law.

That said, Office Nomads is a private LLC.  When we evaluated our options
we went with LLC because it gives us the most flexibility.  Also, the
non-profit/for-profit argument is often confused as good/evil which really
has nothing to do with it.

Jacob

---
Office Nomads - Individuality without Isolation
http://www.officenomads.com -  (206) 323-6500


 
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Joshua Marpet  
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 More options Feb 15 2012, 4:46 pm
From: Joshua Marpet <jmar...@datadevastation.com>
Date: Wed, 15 Feb 2012 16:46:33 -0500
Local: Wed, Feb 15 2012 4:46 pm
Subject: Re: [Coworking] Nonprofit status

We're debating it now.  Disclaimer: We do not have a space yet, but are in
the process of building membership, board, funding, etc.

Non-profit is a PITA, and reduces possibilities of Lots O' Money.  However,
it increases grant and funding ease.

Overall, is it worth it?  Damn, I wish I knew.  Let me know what you
decide, please?

Joshua Marpet


 
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Matthew Wettergreen  
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 More options Feb 15 2012, 5:00 pm
From: Matthew Wettergreen <mwettergr...@gmail.com>
Date: Wed, 15 Feb 2012 16:00:32 -0600
Local: Wed, Feb 15 2012 5:00 pm
Subject: Re: [Coworking] Nonprofit status

The question of whether to set up your coworking space as a for-profit
entity vs. a non-profit entity was discussed fairly heavily a couple of
years ago.
Here are two threads I pulled:
http://groups.google.com/group/coworking/browse_thread/thread/58fd2e5...
http://groups.google.com/group/coworking/browse_thread/thread/a93c9d3...
The general concensus thus far has not been that non-profit is a "bad" way
but that the for-profit model offers as Jacob just said, the most
"flexibility."

Why?

Operations
The management of a well run non-profit entity carries with it far greater
responsibility and reporting guidelines than a for-profit entity. In
addition to the extra paperwork there is also the (sometimes) lengthy
process of obtaining 501(c)(3) status.

Good Vs. Bad
The perception of non-profit status as one which positively impacts public
opinion and willingness to partner with a coworking space is a fallacy.
First of all, this bins non-profits as "altruistic" and for-profits as
"opportunistic." In the end, these and other incorrect designations
(good/evil) come down to the core values and mission of the
organization. Triple
Bottom Line <http://en.wikipedia.org/wiki/Triple_bottom_line> businesses
(Hat Tip Alex Hillman) and B
Corporations<http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0C...>are
perfect examples of for-profit businesses driven by profit but
not-at-the-cost of services, people, or place.

Finances
501(c)(3) status seems attractive for a number of reasons but until more
coworking spaces play around with this model the cost/benefit analysis just
doesn't seem to be there. On one hand you have the opportunity to be
awarded grants for your organization. On the other hand, very few people
know how to write grants. Even less know how to write them well. While you
are working on grants you could be focusing on delivering on the core
values of your coworking space to the members, community and surrounding
areas.
Counting on donations solely due to non-profit status is similarly a poor
bet as, tax deductible or not, donations and contributions key more closely
to individual's belief, confidence, and trust in an organization and its
mission, not whether the donation itself will be tax-deductible.
Furthermore, there are more valuable contributions that your community will
bank with you than money. That's reciprocity, sweat equity, evangelism, and
presence.
On the profit/loss side, coworking entities' revenue/expenses work like
providing a service meaning that yearly taxes should be super low anyways.

The key thing to remember is that every space and community's needs are
different. If you think that you can run more effectively as a non-profit
entity, that's ok. Regardless of the choice, the key is to make sure that
your values show through in your actions, operations, and commitment to the
people you are looking to interact, work, and share mindspace with.

Matthew

On Wed, Feb 15, 2012 at 3:25 PM, Jacob Sayles <ja...@officenomads.com>wrote:

--
Matthew Wettergreen, Ph.D
e: mwettergr...@gmail.com
w: http://matthewwettergreen.com
c: 713.825.4613
t: @organprinter

 
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Alex Hillman  
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 More options Feb 15 2012, 5:02 pm
From: Alex Hillman <dangerouslyawes...@gmail.com>
Date: Wed, 15 Feb 2012 17:02:46 -0500
Local: Wed, Feb 15 2012 5:02 pm
Subject: Re: [Coworking] Nonprofit status

As others have said, it is 100% dependent on your goals.

There are two common reasons to go non-profit, both have been mentioned
here:

1) grant opportunities
2) adjust perceptions of motivations

*Grant opportunities* usually don't just walk in the door, and they also
don't come without strings attached. If you've never done grant work before
and you're considering the non profit option for the purpose of grant
money, I'd recommend you carefully weigh your options

If you need to be a non-profit to adjust peoples' *perceptions* *of your
motivations*, maybe there's an underlying problem that needs to be
addressed.

We chose to be a for-profit LLC for two reasons: agility and sustainability.

*Agility* means that we can make fast decisions when needed.
*Sustainability* means that it's our members who decide if we get to stay
open another year, not a grant foundation.

-Alex

-Alex

/ah
indyhall.org
coworking in philadelphia

On Wed, Feb 15, 2012 at 4:46 PM, Joshua Marpet
<jmar...@datadevastation.com>wrote:


 
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Mike Pihlman  
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 More options Feb 15 2012, 5:12 pm
From: Mike Pihlman <telbitconsult...@gmail.com>
Date: Wed, 15 Feb 2012 14:12:23 -0800
Local: Wed, Feb 15 2012 5:12 pm
Subject: Re: [Coworking] Nonprofit status

I went thru the 501c3 for http://ForCarol.com last year using
LegalZoom....it was not as bad as I expected.  Of course our goals for
ForCarol.com are way different than my goals for AltamontCowork.  It cost a
total of $1200 to get the 501c3 (and several months of waiting / effort).

Mike

On Wed, Feb 15, 2012 at 2:02 PM, Alex Hillman
<dangerouslyawes...@gmail.com>wrote:

--
Mike Pihlman, Video Conferencing Consultant
TelBitConsulting.com
95 W. 11th Street, Suite 203
Tracy, CA 95376
Phone: 209-757-8862
Twitter: @AltamontCowork
Drive Safe! Never Forget  http://ForCarol.com <http://forcarol.com/>

 
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julianne  
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 More options Feb 16 2012, 7:03 am
From: julianne <juliannebecke...@googlemail.com>
Date: Thu, 16 Feb 2012 04:03:03 -0800 (PST)
Local: Thurs, Feb 16 2012 7:03 am
Subject: Re: Nonprofit status
Hey there Nancy,

I am definitely not the expert on non-profit v. for profit status in
the States.

I know a few people who are starting businesses in the EU which have
an ultimate goal of making social change - the term that they use is
called 'Social Enterprise'.  'A social enterprise is an organization
that applies business strategies to achieving philanthropic goals.'-
according to Wikipedia -http://en.wikipedia.org/wiki/Social_enterprise

If this is the direction you are heading for it may be something to
include in your business plan description.

Just a thought.

Good luck with your decision and your space!

Julianne

On Feb 15, 10:04 pm, Niki <na...@thessbi.com> wrote:


 
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Tom Brandt  
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 More options Feb 16 2012, 9:36 am
From: Tom Brandt <twbra...@gmail.com>
Date: Thu, 16 Feb 2012 09:36:39 -0500
Local: Thurs, Feb 16 2012 9:36 am
Subject: Re: [Coworking] Re: Nonprofit status

At Workantile we are looking at becoming an
L3C<http://www.nonprofitlawblog.com/home/2008/07/l3c.html>,
which is a low-profit LLC (and believe me, we are low-profit :)). It gives
you the flexibility of an LLC, but still allows you to pursue foundation
grants. Michigan, Vermont, and a few other states have passed legislation
allowing them.

There is, of course, paperwork involved. At the state level in Michigan,
you just have to declare you are an L3C. But to get foundation grants you
have to have a ruling from the IRS stating that your mission is compatible
with non-profit status (not necessarily 501(c)(3)). This IRS ruling allows
foundations to make grants to you as though you were a non-profit. To get
this ruling, the mission or purpose statement in your LLC operating
agreement must reflect some charitable, educational, or other purpose
compatible with what the IRS allows for non-profits. This can be tricky.

This may be an option worth looking into if your state allows it. You will
need a lawyer who understands all this stuff to pull the paperwork together
correctly.

On Thu, Feb 16, 2012 at 7:03 AM, julianne
<juliannebecke...@googlemail.com>wrote:

--
twb
member, Workantile <http://workantile.com/>
@twbrandt

 
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sking@emergentresearch.co m  
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 More options Feb 16 2012, 2:27 pm
From: "sk...@emergentresearch.com" <sk...@emergentresearch.com>
Date: Thu, 16 Feb 2012 11:27:42 -0800 (PST)
Local: Thurs, Feb 16 2012 2:27 pm
Subject: Re: Nonprofit status
The Wall Street Journal has a good summary of some of the new legal
structure options for socially oriented firms - LC3, B-Corps and
flexible purpose corps.  The article is at:
http://online.wsj.com/article/SB1000142405297020341330457708860406339...

On Feb 15, 1:04 pm, Niki <na...@thessbi.com> wrote:


 
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Niki  
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 More options Feb 16 2012, 2:51 pm
From: Niki <na...@thessbi.com>
Date: Thu, 16 Feb 2012 11:51:38 -0800 (PST)
Local: Thurs, Feb 16 2012 2:51 pm
Subject: Re: Nonprofit status

Thanks for all the thoughts, guys. I really don't want to be a non-profit.
I've worked in the non-profit arena for years and know many of the ins and
outs. However, as discussed here previously -- I can't get funding for
things (they all say "only for non-profits") and the recognition I'm trying
to garner, the opportunities to work with the community won't come because
the county and city I'm located in will not talk with "the competition",
with for profits, with outsiders (I'm not originally from this town). The
trials of small town farming communities. I'm just trying to figure out
what would make the mentality of people change to evolve and want to build
community. So far, I've offered free spaces on the weekends for
entrepreneurs to showcase their wares in my downtown storefront. We're
holding a FREE CYCLE event Saturday, but no one has shown interest (can't
even get the newspaper to cover it). Want to do a Dress for Success program
where entrance is free and women get professional clothes (free), a free
lunch, resume writing and work etiquette classes... Keep in mind I am in
one of the hardest hit economic locations in the country (was reliant on
auto industry up until a few years ago), and most people have lost jobs and
are now trying to start biz themselves. I'm really just trying to figure
this all out. It is MUCH different than when I did the same type of thing
in Washington, DC a few years ago when I had LOTS of people flocking to me.

I'll get it figured out some day, I'm sure. Thanks, again, all.

Nancy
Business Success Unlimited
where we help business grow: connecting, motivating and collaborating
www.success4biz.biz

 Post reply
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 Feb 15 (22 hours ago)


 
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Mike Pihlman  
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 More options Feb 16 2012, 6:59 pm
From: Mike Pihlman <telbitconsult...@gmail.com>
Date: Thu, 16 Feb 2012 15:59:22 -0800
Local: Thurs, Feb 16 2012 6:59 pm
Subject: Re: [Coworking] Re: Nonprofit status

Small towns have their own dynamic.  It is all about trust and comfort.

You need to be truly committed to your small town, join the chamber and
mix.  Don't tell people u are ready to go back to "San Jose".  Make sure
they know ur kids go to school locally and that you support local charities
and community stuff.

Unfortunately, this takes time.  I have lived in Tracy since 1985.  My
daughter is 20 now, and a native.  I am still considered by some a
newcomer.  Go figure.

I have had "Bay Area" members who came here thinking Tracy was easy
pickings.  They found out differently and failed.

Mike
On Feb 16, 2012 11:52 AM, "Niki" <na...@thessbi.com> wrote:


 
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Alex Linsker  
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 More options Feb 17 2012, 4:13 am
From: Alex Linsker <alexlins...@gmail.com>
Date: Fri, 17 Feb 2012 01:13:25 -0800 (PST)
Local: Fri, Feb 17 2012 4:13 am
Subject: Re: Nonprofit status
Hi Nancy, What is your vision statement for your business? Do other
people see what you see, when they hear your vision statement?

Have you asked someone in town why they haven't come to one of your
events? What did they say?

Alex
--
 Alex Linsker, "Collective Agency" Coordinating Council member
 (503) 517-6900 landline  (503) 517-6901 fax  (503) 369-9174 mobile
 322 NW Sixth Ave, Suite 200, Portland, Oregon 97209
 http://CollectiveAgency.co

On Feb 16, 11:51 am, Niki <na...@thessbi.com> wrote:


 
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Niki  
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 More options Feb 17 2012, 4:14 pm
From: Niki <na...@thessbi.com>
Date: Fri, 17 Feb 2012 13:14:00 -0800 (PST)
Subject: Re: Nonprofit status

Alex, good questions. My vision statement is my dreams come to reality.

Within the next five years,Business Success Unlimited will have helped
create a energetic, productive community filled with entrepreneurs and
small businesses acquiring the education,skills and resources necessary,
along with a place to work, a group to share and collaborate with and
programs to help build self-sufficient prosperous lives. Along with this
success of others, BSU will also see success through at least $100,000 a
year from rentals, meeting memberships and admin support work.

When I ask people to come to meetings (i.e., a twice a month mastermind
program) they say, wow sounds great. I'm too busy. Can't come. Or -- they
simply ignore the invitations. I have had people say, you're no different
than the Chamber or SCORE -- they didn't help me, why should I think you
will?


 
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Alex Linsker  
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 More options Feb 23 2012, 2:56 pm
From: Alex Linsker <alexlins...@gmail.com>
Date: Thu, 23 Feb 2012 11:56:35 -0800 (PST)
Local: Thurs, Feb 23 2012 2:56 pm
Subject: Re: Nonprofit status
If I lived there, I would come to the mastermind group, because I've
already been to a great mastermind group in another town. Each week
for 10 weeks, we reviewed business basics, read from a text, and
talked about building our businesses. I made friendships, and am
constantly reminded of the importance of the basics, which help me
manage my time, plan priorities, communicate, etc.

I'd recommend getting advice from the Chamber and from SCORE about
your business. The experience that you have with them will give you
the experience that people in your town expect to have with Business
Success Unlimited. I think that has to be the first step, if you
haven't already.

Then the question is: what does a different experience, the one that
you are confident can happen (but people there don't yet know can
exist in their town), what does that look like? what actually happens?
what are the results? what does it feel like? How do people in town
describe an experience similar to what you will do, in their own
words?

And then the challenge is finding some people (likely in one or two
industries only will attract more people total) who will do that with
you. Who will pay you (either immediately or later on) and especially
who will tell their friends to have the exact same experience with
you.

To rephrase: the experience you want to create, people will only
believe after it happens to them, or after they make it happen
somehow. So the way to make happen it is to do it somehow, with the
resources you already have, the people and places you already know. To
make your vision real, you will need to do it by educating and being
educated, skill-sharing and having skills shared with you (you are
already doing that by posting to this group), resource-sharing and
having resources shared with you, collaborating on your own projects
and other people's projects, and identifying the ways (and making
those visible to the people around you) that you already have a self-
sufficient prosperous life, and identifying the ways that the people
around you already have a self-sufficient prosperous life: and sharing
those ways so that they appreciate the prosperity they already have,
themselves.

Then there is no need for anything, there is a growing appreciation of
what and who already exists, and  then people can breathe to
appreciate and participate in and grow your vision along with their
own.

Alex
--
Alex Linsker, "Collective Agency" Coordinating Council member
(503) 517-6900 landline  (503) 517-6901 fax  (503) 369-9174 mobile
322 NW Sixth Ave, Suite 200, Portland, Oregon 97209
http://CollectiveAgency.co

On Feb 17, 1:14 pm, Niki <na...@thessbi.com> wrote:


 
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