Event:2015/07/20 Until the Revolution Working Group

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7/20 "Until the Revolution" Meeting

Attendees

  • Laura, Jenny, yar, Robb

Thursday's Presentation

Present current situation

  • Update from Finance WG
  • We have a major donor and a lender who's willing to finance the entire cost of the building ($1.95 million)
  • Our option to purchase exists for certain for the next 2 years (July 2017).
  • Current legal entity structure: We're a California nonprofit applying to become a full 501c3. Food Not Bombs is our current fiscal sponsor.

Background on our process up until now

  • Berkeley Business Law student practicum
    • Recommendation: Create a for-profit subsidiary that would manage rental of the space, given that rental income cannot count as nonprofit income.
  • Discussion with lender
    • Recommendation: Contractual agreement with another 501c3 that would hold us accountable to our values. Concerned about mortgages and refinancing.
  • Discussion with Jesse
    • Recommendation: Contractual agreement with a 501c3 Community Land Trust that owns the property (Omni's 501c3 owns the building)
  • Discussion with the Sustainable Economies Law Center
    • Recommendation: Trust owns the building, 501c3 is trustee, operating for the benefit of a broad class of people
  • Regular Fundraising meetings for the past two months
    • Recommendation: Community Land Trust agreement - CLT owns the land, Omni as 501c3 owns the building

FAQ

Hi, we're the fundraising WG, aka "buy the building" aka "until the revolution". People want to give us money but we need to decide a legal structure first. Right now we're a CA nonprofit and haven't applied for 501c3. We need to choose a structure that will make the donors and lenders trust us enough to give us the money. Fundraising WG thinks we should decide to incorporate as a 501c3, and give the land beneath the Omni to a Community Land Trust. We'd still own the building, and lease land from the CLT for $1/century.

  • FAQ #: Who are these people with money?
  • FAQ #: What's the timeline? Soon! Working groups may need to take fast action
  • FAQ #: What is a Community Land Trust? Is it like a regular trust?
  • FAQ #: What are the alternatives?
  • FAQ #: Why is CLT the best option?
  • FAQ #: What are the different CLTs?

Delegate Proposals to be consented upon on 8/6

  • PROPOSAL: Delegates meetings back to convening weekly
  • PROPOSAL: Omni Oakland Commons should apply for federal 501c3 status
  • PROPOSAL: finance & fundraising can act quickly to buy the building

Outstanding Questions

  • 501c2 inquiry to Jesse
  • "501c3 has to rent property (as a landlord)at market rate" Can Sarah send the IRS regulation?
  • Ask Jesse to send us a list of land trusts in order of his top recommendations
  • Read through the lease, figure out which clauses are relevant to buying the building, what loose threads still remain such as reimbursing our permit expenses, and ask Jesse to help

Action Items

  • Print the handouts (Jenny)
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