Whether you are an activist, lawyer, wealth holder, or inhabitant of our highly unequal society, you may be wondering: How can we redistribute the wealth? In this webinar, Moh Mookim and Janelle Orsi of Sustainable Economies Law Center will share what they’ve learned about wealth redistribution and the law. In particular, what are the legal and tax considerations of people and foundations voluntarily gifting their wealth? What are considerations for people and organizations receiving that wealth?

Our goal is for wealth to flow without legal barriers and in the spirit of solidarity, not charity. Far too often, professionals like lawyers, financial planners, and foundation leaders misunderstand the law, causing unnecessary blockages to redistribution. We’ll do our best to give a broad overview of the legal terrain and the various resources we’ve created on these topics, helping dispel some myths while we’re at it.

Topics we’ll cover include:

💰 Gifts to individuals
💰 Making grants to non-501c3s
💰 Gift tax
💰 Charitable tax deductions
💰 Rules applicable to public charities, private foundations, and donor-advised funds
💰 Endowment law
💰 Giving land and homes

This activity is approved by the California State Bar for 1.25 MCLE credit.

Please email [email protected] for accessibility needs, if you can't afford the ticket price, and/or if you have any particular questions you hope will be answered by this webinar.

Presenters

Mohit Mookim 

Mohit Mookim (they/them) is a land justice and wealth redistribution lawyer committed to abolition, landback, and anti-capitalist solidarity economies. Their work at the Law Center aims to liberate land from the speculative market by supporting collectives led by Black, Indigenous, and/or poor people. Mohit also leads the Law Center's wealth redistribution work, helping donors opt out of extractive financial systems and instead commit to grassroots social movements. They were raised in a big South Asian immigrant family on Lenapehoking (the NYC metro area) and have lived on Ohlone land in the Bay Area, CA for the last decade. They went to Stanford University for undergrad and law school.

Janelle Orsi

Janelle Orsi is a cartoonist, lawyer, and advocate focused on cooperatives, land trusts, housing justice, community-owned energy, and democratizing finance. She is Co-Founder of the cooperatively-structured nonprofit Sustainable Economies Law Center, which facilitates the growth of more sustainable and localized economies through education, research, and advocacy. She likes to have fun conversations and make cartoons about abolishing private property, abolishing the legal profession, and abolishing private wealth accumulation.

Host your own "Learning to Think Outside the Boss" workshop!

Thank you for your interest in hosting"Learning to Think Outside the Boss: An Introductory Workshop on the Legal Nuts and Bolts of Starting a Worker Cooperative!" Below, find resources we've created to teach about how the law works in, against, and for worker cooperatives. This is a shorter, participatory, discussion-orientated version of our half day "Think Outside the Boss" workshop.

View and download the Facilitator Guide here

View and download the Participant Guide here

View and download the Powerpoint Slides here

NOTE: These materials are updated at irregular intervals and might change from time to time. Updates are based on feedback from participants and those who facilitate the "Learning to Think Outside the Boss" workshop. Please send questions, feedback, or comments about this guide to [email protected].

What is it?

This workshop provides an introduction to the practical steps individuals and groups need to take to establish, build, and successfully manage a cooperative enterprise. This introductory workshop attempts to bring forward basic legal and structural questions such as what is a cooperative, what is a legal entity, what rules govern fundraising and financing for cooperatives, and more. This workshop provides an overview of the content contained in Sustainable Economies Law Center's Think Outside the Boss: How to Create a Worker-Owned Business manual.

Why Do it?

This workshop is meant to provide an introduction for those looking to support cooperative development and for entrepreneurs and activists seeking to build a worker cooperative. By the end of the workshop, participants should be able to

• have a basic understanding of the cooperative form from a functional and principled perspective,
• understand the Cooperative Principles in practice,
• distinguish cooperatives from other business forms,
• distinguish between the different kinds of cooperatives,
• understand basic questions that should be asked when founding a worker cooperative,
• and think about cooperatives as they relate to the needs in their lives.

Method

Facilitators should use a combination of lecture (minimal), experiential learning, and popular education techniques to engage the group actively in the process of learning about worker cooperatives and cooperative business development.

Background

Beginning in 2013, SELC and the East Bay Community Law Center have been hosting half day workshops called "Think Outside the Boss" three times per year in the San Francisco Bay Area. These Think Outside the Boss workshops provide community members an introduction into the nuts and bolts of starting and running a cooperatively owned business. We go over legal issues in an accessible way to help you understand the relationships between cooperatives, employment, and community wealth-building. Attorneys, law students, and experienced cooperative professionals give short presentations on legal issues, governance structures, financing, and more. We also typically host breakout sessions on specialized topics with attorneys, cooperative accountants, business planning specialists, and discussions led by cooperative worker-members. To find the next Think Outside the Boss workshop, please visit theselc.org/events. 

This facilitator’s guide was originally prepared for the 2014 JACKSON RISING: NEW ECONOMIES CONFERENCE in Jackson, Mississippi. Their clarion call to build a broad based solidarity economy in the southern US led us to deepen our intention of making legal education accessible to those building economic democracy all around the country. With feedback from the worker cooperative community, allies, and others who use our resources, we have attempted to refine this facilitator’s guide in order to increase its usefulness to the movement. We hope this guide can introduce cooperative entrepreneurs, practitioners, and cooperative developers to the basic legal concepts when starting and operating a worker-owned cooperative.

DISCLAIMER

THIS GUIDE WAS PREPARED FOR A 2016 WORKSHOP ON STARTING A WORKER-OWNED BUSINESS. THE CONTENTS OF THIS GUIDE AND ACCOMPANYING THINK OUTSIDE THE BOSS MANUAL SHOULD NOT BE RELIED ON AS LEGAL ADVICE.

ALSO, SOME OF THIS INFORMATION COULD BECOME OUTDATED, AND LAWS VARY FROM PLACE-TO-PLACE. FURTHERMORE, ALTHOUGH WE TRIED TO COLLECT ACCURATE INFORMATION AND GIVE THE LAWS OUR BEST INTERPRETATION, SOME INFORMATION IN THIS GUIDE AND ACCOMPANYING MANUAL COULD EVEN TURN OUT TO BE INCORRECT OR SUBJECT TO OTHER INTERPRETATIONS BY COURTS OR REGULATORS! WE SURE HOPE THAT’S NOT THE CASE, BUT, WHAT CAN WE SAY? LAW IS COMPLICATED STUFF! THAT'S WHY WE STRONGLY RECOMMEND THAT YOU CONSULT WITH AN ATTORNEY BEFORE USING THIS INFORMATION TO FORM OR OPERATE A COOPERATIVE.

A Discussion with Jessica Gordon Nembhard

The US has the world's largest prison population at over 2,217,000 inmates. What would happen, though, if we began looking at worker cooperatives not only as an economic development tool but also as a tool for those incarcerated by the prison industrial complex? What transformational effects could this lead to? Are there examples of cooperatives made primarily of incarcerated or formerly incarcerated individuals and what can we learn from them? How can worker coops be an effective tool for those who were formerly incarcerated and how would it support re-entry? 

For those seeking new, real solutions for our incarcerated or formerly incarcerated brothers and sisters, SELC hosted a discussion with Jessica Gordon Nembhard, professor at John Jay College, CUNY and author of Collective Courage: A History of African American Cooperative Economic Thought and Practice.

Listen below!

Video recording of a teach-in and community conversation hosted at Sustainable Economies Law Center's Resilient Communities Legal Cafe, July 02, 2014 at LOL Makerspace, including 350 years of American land enclosures in 5 minutes!

Legal Resource Library

We conduct legal research on land and housing issues and publish easy-to-read legal information on our online legal resource library - CommunityHousingLaw.org. This website is still a work in progress, so stay tuned for more information on starting housing cooperatives, community land trusts, and other forms of shared, cooperative, and equitable housing! 

Incubation of East Bay Permanent Real Estate Cooperative: 

In partnership with the People of Color Sustainable Housing Network, the Law Center is piloting a new model of collective land ownership that mobilizes community capital to preserve affordable and democratically controlled housing and commercial spaces. Read more about this model on our PREC Pilot Project page, or visit EBPREC’s website.

Supporting Permanently Affordable Housing

In this video, the Northern California Land Trust, Oakland Community Land Trust, and the Law Center cover the legal nuts and bolts of permanently affordable/shared equity housing, including different legal models and funding mechanisms to remove housing from the speculative market.

Aging Cooperatively

Elders deserve to live with housing security in a community of their choosing and retain self-determination for as long as possible. The Sustainable Economies Law Center is increasing its legal support for cooperatively-owned, resident-controlled housing options for seniors. That's why we've brought on a Borchard Fellow for Law & Aging, Julie Gilgoff, to help realize this vision. To find out more, please visit our Aging Cooperatively webpage. 

Legal Services at the Resilient Communities Legal Cafe

The Resilient Communities Legal Cafe provides direct legal advice, workshops, teach-ins, discussions, and legal services supporting the creation of:

Find the dates and locations for each Legal Cafe on our Legal Cafe events calendar.

Teach-ins at the Legal Cafe

Our Teach-ins provide practical, participatory, and action oriented discussions around food, housing, livelihoods, transportation, and more! Many of our most popular teach-ins focus on housing co-ownership, innovative ways of financing land and housing, and more. Check our events calendar for upcoming events and teach-ins!

Past Teach-ins have included:

• Legal Basics: How to Start an Ecovillage with Tony Sirna

• The Gritty, Moral Solution to the Housing Crisis with David Giesen

• Legalizing Tiny Homes: The Ten-Year Plan

Legal Guides

Chapter 9 of the Law Center’s book, Practicing Law in the Sharing Economy, focuses on legal tools for the creation of more economically sustainable housing models. 

Legal Case Studies 

The Law Center is creating detailed legal case studies of communities and housing solutions that emphasize sharing, affordability, and sustainability. This work looks particularly at models of shared housing, including cohousing communities, ecovillages, and housing cooperatives.  The legal case studies are designed to allow other groups to replicate existing housing models. Click here for one legal case study by the Sustainable Economies Law Center.

Please find all the dates and locations of the Law Center's Resilient Communities Legal Cafes and Teach-ins below. You can also view all of our events, including workshops, trainings, Happy Hours, and more on SELC's events page by clicking here. We look forward to seeing you at a future Law Center event where we provide not only resources but create the community relationships that will build the new economy!

Have a legal question but not quite ready to read a full legal guide? These Bite-Sized Legal Guides are a great place to start! 

¿Tiene una pregunta legal pero no está listo para leer una guía legal completa? ¡Estas Guías Legales Cortas son lugares excelentes para empezar! Desplácese hasta la parte inferior de la página para obtener recursos en español. 

JUMP TO Bite-Sized Legal Guides for: Worker Cooperatives | Nonprofits | Land Return & Housing Justice | Food and Farm | Employment Law | Misc | En Español

LEGAL DISCLAIMER: These Bite-Sized Legal Guides have been prepared by Sustainable Economies Law Center staff and volunteers as handouts for the Resilient Communities Legal Cafe. The contents of the Guides should NOT be relied on as legal advice. Furthermore, some of this information could become outdated, laws may vary from place to place, and although we've tried to collect accurate information and give the laws our best interpretation, some information in these Bite-Sized Legal Guides could be incorrect or subject to different interpretations by courts and regulators. We hope that's not the case, but, what can we say? Law is complicated stuff! That's why we STRONGLY recommend that you consult with an attorney before using this information.

worker cooperatives

⭐ How to Choose an Entity for Your Cooperative: This bite-sized legal guide will help you choose between filing as an LLC or as a Cooperative Corporation
⭐ How to Form a Cooperative Corporation: This bite-sized legal guide provides a step-by-step guide to forming a California Cooperative Corporation.
⭐ How to Finance a Worker Cooperative: Explore ways for worker-coops to obtain financing through internal equity, loans, government loans, & outside equity.
⭐ How to Make Decisions in a Cooperative: Explore the different ways coops navigate making decisions in a democratic workplace.
⭐ How to File Taxes as a Subchapter T Cooperative: Explore how cooperatives can avoid the double tax by deducting patronage dividends.
⭐ How to Convert Your Existing Business Into a Cooperative: Explore the significant potential advantages of converting traditional capitalist ownership structures into worker cooperatives.

nonprofits

⭐ How to Become a Worker Self-Directed Nonprofit: Explore the legal considerations for becoming a worker self-directed nonprofit.
⭐ How to Form a Nonprofit Organization: Learn the steps to forming a 501c3 nonprofit organization.
⭐ How to Receive Grants and Donations Through Fiscal Sponsor: Explore the pros and cons of finding a fiscal sponsor vs. forming a 501c3. 
⭐ 10 Things to Consider When Starting a Fiscally Sponsored Project with a Partner: Here's the skeleton to your future "Co-Director Agreement."
⭐ How to Exit a Fiscal Sponsorship: An outline of steps that a fiscally sponsored project will typically undergo to become an independent nonprofit corporation.  
⭐ How to Be an Unincorporated Association: Here, we explain what an unincorporated association is and outline the steps to operate as a nonprofit unincorporated association.
⭐ How to Navigate Conflicts of Interest in Your Nonprofit: Here, we explore how nonprofit corporations or associations can design a conflict of interest policy to meet their needs and comply with the law.
⭐ How to Apply the Public Support Test for Your Tax-Exempt Organization: Here, we explore the difference between a public charity and a private foundation and how to apply the IRS's public support test.
⭐ How to Pay Your Board of Directors: Here, we explain how nonprofit public benefit corporations can pay their board of directors.

land return & housing justice

⭐ How to Get Property Tax Welfare Exemption: The welfare exemption is a property tax exemption for certain properties owned by nonprofits. 
⭐ How to Choose Between a Cooperative and a Nonprofit for your Radical Real Estate Project: There are certain benefits to using the nonprofit entity form and other benefits to using the cooperative entity form. Click here to learn more!
⭐ How to Transfer Real Estate Without Professionals: People in California, you can transfer title to a property without a real estate agent, title, or escrow company. 
⭐ Resources for Radical Home Sellers: The system makes it difficult to remove your home from the speculative market. Here are some resources to begin your long journey. 

food and farming

⭐ In How to Start a Homemade Food Business, we explore the California homemade food law and provide guidelines for starting a homemade food business.
⭐ In How to Become a Personal Chef in California, we explore the certifications and permits you'll need to become a personal chef in California.
⭐ In How to Create an Accessible Urban Garden, we explore methods for increasing access to urban farms.
⭐ In How to Operate a Pushcart, we explore how to operate a pushcart under Oakland's pilot mobile vending program. 
⭐ In How to Sell Eggs, we explore the rules for small-scale egg production and sale in California. 
⭐ In How to Sell Produce From Your Small Farm, Community Garden, or Backyard, we explore rules for selling urban grown produce & foraged food.
⭐ In How to Become an Organic Producer, we explore the legal definition and requirements for "organic," who can (and must) be certified organic, how you can become a certified organic producer in California, and how to label organic products.
⭐ In How to Navigate Employment Law for Food Enterprises, we explore the definitions, rights, and responsibilities of volunteers, employees, independent contractors, and employers.

employment law

⭐ In How to Comply with AB5 (RE Independent Contrators), we help you comply with California's new employment law AB5. Learn what makes a new hire an independent contractor or an employee.
⭐ In Having Employees, we list some of the basic things you need to do and know to get set up as an employer.
⭐ In Who is Not an Employee, we explain the difference between unpaid interns, partners/owners, independent contractors, and volunteers.
⭐ In this How to Deal with Employment Law in Worker Cooperatives, we help you figure out what to do if cooperative members need to be treated as employees under the law.
⭐ In How to Deal with Workers' Compensation Insurance, we discuss cost, exemptions, brokers, and more!
⭐ In this How to Know Who is a Volunteer (Not an Employee) we cover federal and California law on how to mitigate the risk that nonprofit volunteers will be seen as employees.
⭐ In How to Navigate Employment Law for Caregivers, we provide an analysis of both federal and state employment laws, and how they might impact caregiving registries.

miscellaneous

⭐ In How to Incorporate as an LLC or Partnership, we explore some steps to establish limited liability entities. 
⭐ In How to File Doing Business As ("DBA"), we explain the purpose of a DBA and link to resources that provide a step-by-step guide of how to file. 
⭐ In How to Establish a Self-Directed IRA and Solo 401(k), we explore how to pull your retirement savings out of Wall Street and invest it in things that enrich your local community.
⭐ In How to Navigate Trademark Law, we explore the basics of trademark law, including trademark registration, eligibility for trademark protection, trademark infringement, and more.
⭐ In How to Raise Capital, we explore the common exemptions to federal and state securities law that can be used when raising capital for your enterprise.
⭐ In this Bite-Sized Legal Guide, we explore how to run a cooperative child care arrangement in California.
⭐ General business license requirements vary from city to city. In Business Licenses for Gig Workers, we answer questions specific to Oakland, Berkeley, San Francisco, and Richmond.
⭐ In How to Work With Lawyers, we explore some things to consider before seeking legal advice. 
⭐ In this Bite-Sized Legal Guide, we provide a step by step guide to obtaining a contractors license. 
⭐ In California LLC State Taxes & Fees, we define what an LLC is and explain when and how to file taxes & fees as an LLC.
⭐ Who needs a seller's permit? How do you obtain one? Find the answers in this Bite-Sized Legal Guide.
⭐ Comprehensive General Liability Insurance protects orgs from legal liability arising from certain risks when those harmed sue the organization. Click here to learn more! 

En Español:

AVISO LEGAL: Estas Guías Legales Cortas han sido preparadas por personal y voluntarios del Sustainable Economies Law Center como documentos para el Café Legal de Comunidades Resilientes. El contenido de las Guías NO se debe confiar como asesoramiento legal. Además, parte de esta información podría quedar obsoleta, las leyes pueden variar de un lugar a otro, y aunque hemos intentado recopilar información precisa y dar a las leyes nuestra mejor interpretación, parte de la información en estas Guías legales de tamaño reducido podría ser incorrecta o estar sujeta a diferentes interpretaciones de los tribunales y los reguladores. Esperamos que ese no sea el caso, pero, ¿qué podemos decir? ¡La ley es algo complicado! Es por eso que recomendamos encarecidamente que consulte a un abogado antes de utilizar esta información.