prospectacle writes:
"An important choice remains for this site. What kind of organisation will we be, practically, legally and financially?
A for-profit, shareholder corporation seems out of the question, by general consensus (correct me if I'm wrong), but other questions remain. The basic choice is this:
Will we be like a charity, a co-op, or a recreational club?
This is a gross simplification, but gives some idea of the options involved. Feel free to offer alternatives. So what should we be, what is our purpose, really? And what kind of a structure is required to make sure we serve that purpose, and that money doesn't end up in the wrong pockets?
Bonus question: which jurisdiction should we set ourselves up in to fulfil our mission most effectively?"
(Score: 2, Interesting) by Anonymous Coward on Wednesday March 12 2014, @04:15PM
> transparency regarding costs and salary policies
As volunteers, two of us run a "non-entity" where students contribute a fixed amount to join. We spend the membership fees periodically on an expensive service that few of the students could afford individually.
The books are open--a spreadsheet showing all members and all expenses (the expensive service and also incidentals) is posted on the home page. The goods (results of the service) are posted on a password protected site for download.
According to my accountant there are no tax consequences (in USA) as long as no one makes any income. The money is held in a no-interest checking account.
It's been running for nearly 10 years now and we've collected well over USD $100,000 -- and spent it on the service in large chunks every few years.
Not sure what to call it, but it is satisfying to run. The students actually send their appreciation.