This summer was the last term of classes required for my Master’s of Business Administration program. One of the courses I took was Nonprofit Law & Ethics. Over the course of the term it became apparent to me that 501(c)3 status might not be the best option for Sunflower Village. The primary reason for this is the issue of inurement, which means that people who are the board of directors of a non-profit cannot financially or economically benefit from it. This is a major issue, because I believe that a crucial aspect of the concept of Sunflower Villager is that people can develop systems to address the challenges that face them, rather than just having solutions handed to them from someone else. This includes participating in leadership roles such as the Board of Directors.
If Sunflower Village is not a nonprofit, what is it? After reviewing some of the options together, the Sunflower Village Board of Directors has decided that the designation of L3C seems most appropriate. L3C stands for Low-Profit Limited Liability Corporation. This type of organization is a business that intentionally limits its profits to shareholders so that it can support a social mission. Such an organization lacks the restriction on board members benefiting from its work, while still being able to pursue a variety of sources of funding, including those which are project based and oriented toward social enterprises.
So now what? This fall, I am finishing my studies at Marlboro College’s with my Masterwork Project, and for this project with the support of the Board and several advisors, I am writing a business plan for Sunflower Village! Throughout the next several months, we are digging into the details of just how Sunflower Village will work. As I do so, I plan to write here about the process of developing a business plan, including challenges, realizations, and shifts.
Sunflower Village focuses much more on economic issues than most intentional communities: among other things, it is intended to be a mixed-income community that promotes economic stability through increased economic integration. Because we draw on multiple economic strategies, some of the biggest challenges are figuring out how exactly we plan to use those strategies, and how those different aspects of this community will work together. We already have a lot of great ideas! Some of them we have flushed out quite well, like the dynamics of tiny houses and a community center. Others, like the income and labor exchange need a lot of deep consideration, clarity , and detailed planning.
Fortunately, this focus on the business plan is already helping with that! Just a couple of days ago, I was reflecting on David Grant’s lesson about the life stages of an organization I realized that it might be easier to think about the income and labor exchange if we started with how much it might cost to pay for a mortgage, utilities, and taxes, and then consider how much income would have to be generated per person working an external job for someone to be able to work 20-40 hours a week at Sunflower Village. The calculations I did around this have me beginning to tie the income and labor exchange much more closely to the beginning phase of the community, specifically the number of people we will have. It seems to me like 5 “tiny” households of 1-3 people each is a great start for the fledgling community, so I am playing around with that.
In a couple of months when the business plan is mostly complete, I will hold an information session to overview Sunflower Village and the business plan! Space may be limited, so if you would like to attend, let me know! I’ll post more details here when I have them. In the meantime, mark your calendar for Saturday, December 9, when I will be presenting this project at Marlboro College!