Re: [Coworking] Non-profit vs for profit co-working spaces

[Alex Hillman]

Hi Cat,

Can you say more about why you think the 501c3 status is needed for your
programming model?

In my experience, even with hybrid models, the value of having a 501c3 is
to unlock certain funding opportunities...but I also think people grossly
underestimate the wide range of funding sources that *don't* depend on
501c3 status. Plus, a 501c3 comes with lots of additional paperwork,
reporting, and governance, and often limitations on *how* you're able to
spend your funds.

In certain environments, you absolutely *want* the slower turning wheels of
a board governing your every decision. And if you're depending on massive
donations to keep you afloat, 501c3 can definitely open certain channels.

But based on what you've described, you're opening a small business. I
consider agility and control are among the biggest assets someone can have
during the period of figuring things out. And as you've already noted, you
can build in a nonprofit arm down the road if and when it's *truly* needed.

Another thing to consider before doing your own nonprofit is exploring
options for what's called a "fiscal sponsor" which is a model that allows a
parent nonprofit to essentially "delegate" it's status to a smaller
organization. You generally have to agree to some rules, and pay them a %
of the money you move through their systems as a management fee. This model
is most successful when there is an alignment of goals/interests between
the parent and child orgs, naturally. And it's a LOT less work than setting
things up from scratch, but can be helpful if you're certain that you can
only access the money you need my having this infrastructure in place.

I hope this helps. All in all - you're already working double duty to
essentially launch two businesses at once - it's important to do ANYTHING
you can to simplify, streamline and stay focused on the REAL work (instead
of the meta-work, which can easily creep into being a time-suck if you're
not careful).

Good luck!

-Alex



--
*The #1 mistake in community building is doing it by yourself.*
Better Coworkers: http://indyhall.org
Weekly Coworking Tips: http://coworkingweekly.com
My Audiobook: https://theindyhallway.com/ten


On Thu, Jun 28, 2018 at 2:06 PM Catherine Pena 
wrote:

> Hello all!
> I am new to the group and so very thankful that it exists. I am working
> with a small group to open a co-working space in Memphis, TN that supports
> creatives called Wonder/ Cowork/ Create (Wonder CC
>  for short). Memphis does not have a very large
> traditional co-working culture but that may not be the case for very long.
>
> We are working towards opening a two-year pilot project in the fall to
> test whether Memphis can support a full-service creative co-working space.
> We worked out a deal with a landlord to let us rent the space for $1500
> (utilities included) for two years. The space is in an up and coming
> neighborhood so at the end of the lease we may need to find a new
> spacebut we may also realize that we need more space.
>
> We want to set a high emphasis on programming that is partially generated
> by member skill sharing as well offer space for shows (art, music,
> literary, etc) and hosting workshops for needed skills that don't exist
> within the membership. We are starting out in a 3,000 sq ft space that will
> have two private offices, a meeting room, 4 ish dedicated desks, and lots
> of movable furnishings so that part-time community members needs can shape
> the communal spaces.
>
> Initially, we thought we would open as an LLC and then work towards
> managing our programming under a 501-c3. Now I am starting to wonder if we
> should open as an 501-c3 but worry about the two pilot project focus (i.e.
> putting all the work/time into getting that status if in two years we find
> that it doesn't work out).
>
> *MY QUESTIONs ARE: *
>
>- Do any of you have any advice you can share on this matter?
>- Do you know of/manage a co-working space that operates a
>hybrid model?
>- If so, how did the organization first start out?
>
> Thank you in advance for your help!
> Cat Peña
>
> --
> You received this message because you are subscribed to the Google Groups
> "Coworking" group.
> To unsubscribe from this group and stop receiving emails from it, send an
> email to coworking+unsubscr...@googlegroups.com.
> For more options, visit https://groups.google.com/d/optout.
>

-- 
You received this message because you are subscribed to the Google Groups 
"Coworking" group.
To unsubscribe from this group and stop receiving emails from it, send an email 
to coworking+unsubscr...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

[Coworking] Non-profit vs for profit co-working spaces

[Catherine Pena]

Hello all!
I am new to the group and so very thankful that it exists. I am working
with a small group to open a co-working space in Memphis, TN that supports
creatives called Wonder/ Cowork/ Create (Wonder CC
 for short). Memphis does not have a very large
traditional co-working culture but that may not be the case for very long.

We are working towards opening a two-year pilot project in the fall to test
whether Memphis can support a full-service creative co-working space. We
worked out a deal with a landlord to let us rent the space for $1500
(utilities included) for two years. The space is in an up and coming
neighborhood so at the end of the lease we may need to find a new
spacebut we may also realize that we need more space.

We want to set a high emphasis on programming that is partially generated
by member skill sharing as well offer space for shows (art, music,
literary, etc) and hosting workshops for needed skills that don't exist
within the membership. We are starting out in a 3,000 sq ft space that will
have two private offices, a meeting room, 4 ish dedicated desks, and lots
of movable furnishings so that part-time community members needs can shape
the communal spaces.

Initially, we thought we would open as an LLC and then work towards
managing our programming under a 501-c3. Now I am starting to wonder if we
should open as an 501-c3 but worry about the two pilot project focus (i.e.
putting all the work/time into getting that status if in two years we find
that it doesn't work out).

*MY QUESTIONs ARE: *

   - Do any of you have any advice you can share on this matter?
   - Do you know of/manage a co-working space that operates a hybrid model?
   - If so, how did the organization first start out?

Thank you in advance for your help!
Cat Peña

-- 
You received this message because you are subscribed to the Google Groups 
"Coworking" group.
To unsubscribe from this group and stop receiving emails from it, send an email 
to coworking+unsubscr...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.