COMMUNITY ECONOMY DESIGN

Welcome to the comprehensive economic system design for Coalescence Ecovillage!

 We are excited to offer a co-creative design process for a fully integrated life-affirming regenerative economic system for the entirety of the project.  This includes the immediate needs of fundraising, financing, operations, income and expense generation and tracking as well as equity and economic decision-making.  It also creates the fertile ground for the creation of community businesses as well as invites our culture to go beyond the standard fiat currency-based monetary co-generation, accounting and sharing systems into pioneering new forms of monetary and non-monetary economic support systems both for within the community and to share with the larger community.

Coalescence Ecovillage is designed to be an egalitarian, Community owned, self sustaining entity. This economic process is designed to evolve and expand as we do. As we build a core team we will be discussing these details in depth and adopting models that reflect our member intentions and innovative collective intelligence. It is our number one priority that the economic design supports social and cultural outcomes that are aligned with our values and shared purpose.

An outline of the scope of this work is as follows:

1. Economic Basis of Community

2. Ownership Models

1) Membership shares

2) Community Tenure 

1. Working for the Community

2. Member Dues

3. Fundraising and Financing

4. Community Businesses

5. Educational Center

6. Revenues & Expenses

7. Accounting and Bookkeeping

8. Facilitating Non-Monetary Flows of Wealth

Economic Basis of Community

The economic basis of any project is the underlying value proposition of the project – what basis do we have that we can successfully generate the start-up funds and ongoing revenues to make the project a sustainable success.

Coalescence Ecovillage has the following Economic Basis:

• Integrated Lifestyle and Home – Coalescence Ecovillage will be creating a fully integrated, full-featured holistic community lifestyle including housing and many other services that many have a strong motivation to experience and manifest.  For many of us this is a lifelong commitment with the long term implications. There are a few different economic models to choose from for this design that will be discussed in the “Ownership Models” section. The Idea is that Members contribute Member Dues and possibly member shares in addition to member loans, investments and donations. This can represent a significant portion of the total cost and expenses of the project over time.

• Community Owned Businesses and Investments – Coalescence Ecovillage can, as a sovereign legal entity, generate and run businesses and other revenue generating activities such as leasing land and property or investments.  These businesses can be partially or solely owned by the Community.  The Community can also support Members in having lucrative private businesses.  Community Business can be generated from a wide variety of services and products including consulting, contracting, manufactured products, agricultural products, value-added agriculture, healing arts, investments, and partnerships.

• Education, Research, Development and Demonstration – Coalescence Ecovillage will be pioneering and demonstrating numerous leading-edge innovations in sustainable and regenerative community culture creation, restorative justice practices, regenerative systems design and installation, whole systems design, regenerative agriculture and food production, regenerative water and energy systems design, innovative green-building techniques and materials as well as the co-creation of a healing modern tribal culture – healing for those within and acting as a model of a life-affirming culture for others that wish to follow our lead.  These innovations, practices and demonstrations can represent a very powerful transformational education experience in a hands-on facility making the entire project an educational opportunity.  We can formalize the offerings of this educational program into a revenue generating enterprise for the Community.   

Economic Viability over Time – Need for Philanthropy / Angel Investors

The 3 sources of economic viability listed above will take time and finesse to develop.  They also are dependent on a healthy economy which in this day and age is not ensured. 

Though these three sources combined can be very robust, the following is also true:

• In the Membership Shares Model, Membership Shares may fall short of the needed development costs of the community in the short run and may not be sufficient for the full community build-out costs in the long run without compromising our values on access to a variety of “income levels” of our Members. This is also true of Member Dues in the Community Self-Ownership Model.

• Community Businesses will need time to develop and also fall short of the development costs needed in the short and medium terms and may or may not be lucrative enough to pay back community investors in the long run.

• Significant Angel Investment and/or Philanthropy will therefore be needed in the short, intermediate and long terms to make this project a success – it is essential that we secure strong Angel Investors and/or Philanthropists that believe in the overall project and that are not primarily return-on-investment (ROI) motivated. We will need Investment/Philanthropy that is patient and flexible and is comfortable having their collateral in the Community itself – even though there are no plans to sell the Community Land or infrastructure once it is built. (If the Community were to dissolve, however, there would be a protocol for paying back investors.) These Angel Investors must be comfortable with payback being sourced in the following sources:

  • In the Membership Shares Model, income over time from Membership Shares once the community is built and shares can be sold to the full complement of Members and as early Members pay off their Full Membership Shares.

  • In the Community Tenure Model, if other income sources are not adequate, Members could be assessed fees as part of their Member Dues for paying back Development Loans. (These would be considered loans made to the Community by each Member, and could be repaid to the Member as the Community’s income from other sources becomes more robust.)

  • Community Businesses becoming successful over time. This can offer Investors return in two ways – first from the revenue sharing generated by the business and secondly equity in the businesses themselves.

  • Security in being able to come to the community for personal reasons – either desire for community and future membership, oasis from world crisis or lifestyle degradation, or as a venue for specific cause-related projects that the community can host or support. (To be clear, investment itself would not buy an investor’s membership in the Community or other privileges.)

  • For Philanthropists giving to the Educational & R&D Not-for-Profit – simply satisfaction that their donations are going to the right place by showing results.

Community Ownership Models

We are currently exploring several models of ownership for Coalescence Ecovillage. One possibility is for the Community to use a Membership Shares model, with members purchasing shares in the community, with a financial investment on par with purchasing a standard home. Another model would be Community Tenure, where the Community “owns itself” by having all investment in the Community be considered gifts or loans, with loans paid back over time with income generated by the Community. Members would eventually achieve Tenure through a membership process similar to the Membership Shares model, but without purchasing shares. (Both of these models are detailed in “Integrated Economic System Designs for Coalescence Ecovillage”.)

The Membership Shares model could provide significant capital for initial and ongoing development of the Community by requiring substantial up-front and/or ongoing payments from members. This can limit the sphere of potential members, and/or place less financially resourced members in debt, yet could be financially practical for getting a functional community up and running. The Community Tenure model would require more Philanthropy and Angel Investing, but would not require substantial financial contributions from members, and so would have a greater sphere of potential members, particularly younger people. The Membership Shares model would be more familiar and feel safer and more practical to people who are accustomed to current modes of private ownership of land; the Community Tenure model would be a more radical expression of freeing land from private ownership. In either model, there are a variety of ways that the Community could choose for members to have tenure in a home, from Community-owned housing to “shared equity” home ownership. Both the Membership Shares and the Community Tenure models are workable (along with several other models), and each can be appropriate in different situations. As our Founding Circle coalesces, this is one of the central issues we will be attending to and deciding on.

1: MEMBERSHIP SHARES MODEL

Our Membership Process carefully selects and approves Members as the basis of our community body – including our social cohesion, applicable co-creative wisdom, knowledge and skill sets – as well as the very heart and soul of our culture.  With the Membership Shares model, equity, the financial commitment component of the overall commitment of Membership, would be considered essential. Therefore we will match the Member’s equity and economic decision-making powers closely with the Member’s membership process.  

The on-boarding thresholds presently proposed for our membership process are as follows:

• Exploring

• Nominee

• Provisional

• Full

Each Membership threshold (or gateway) represents a deepening commitment of the community and the prospective member in both directions.  As one becomes a long term Full Member, the community is increasingly committed to providing quality housing and a sustainable, regenerative and fulfilling lifestyle for the member – complete with a host of socialized services.  As that happens we will ask in return that the Member invest in the community to share in the Community’s bounty. The Membership Shares model would have a significant financial component to this investment in the Community.

Rather than owning a home, a community Member would be buying into owning a Full Membership Share.  A Full Membership Share will enable the Member to co-own and fully utilize the full properties and other resources of the community.  It will give them the right to occupy a home as if it was their “own”.  Shares are sellable back to the Community so that if a Member wishes to leave, their equity can be largely recouped and someone else can come in and take their place and purchase a share. The Community’s ability to pay back the departing member in one lump sum may be dependent on finding a new person but it doesn’t have to be.  Ideally we would set up a reserve fund with at least one Member’s worth share available to send the person on their way with full equity.  If not we may want to establish a base lump sum (like 50% or ?) and then a clear payment plan.  This buyout policy would be carefully worked out beforehand and the community’s liquidity and ability to buy out leaving members at any given time might even be a dynamic amount everyone is aware of with the caveat that a person leaving may receive only partial lump sum payment and then monthly payments after that depending on the status of the fund.

The value of the Full Membership Share upon resale to the community shall not grow speculatively with the price of real estate but may incorporate the time value of money – i.e. inflation, cost of living increase or similar metrics.  It also may be slightly discounted to cover legal and fiduciary costs, accounting and to repay any damages or other reparations as agreed upon by both parties.

A Full Membership Share will have threshold (or gateway) payments in step with the membership process with the remainder of the full amount paid over time after one becomes a full member.  We will also accept a regulated amount of  non-financially compensated work or “sweat-equity” – as well as other tangible assets – toward member share payments – meaning we will allow the person to not only pay into their share account with money but also with skilled contribution to the community or with land, vehicles, tools or other valuable assets.

The Member Share Account

For each member as part of their legal participation as a signatory of Coalescence Ecovillage, LLC a Membership Share Account shall be established.  That account acts as a two-way account – in line with how Membership Investments and Membership Draws work in any LLC.    Upon becoming a member, a Membership Shares Payment Plan will be set up for the Member as approved by the Economics Team or Stewards in cooperation with the Membership Team (or whatever entity we decide makes that particulator legal-fiduciary decision).  Payments into that Membership Share Account will be expected when the Member crosses the threshold of becoming a Provisional Member and another payment when they become a Full Member with the remaining balance to be paid over time.

2: COMMUNITY TENURE MODEL

Our Membership Process carefully selects and approves Members as the basis of our community body – including our social cohesion, applicable co-creative wisdom, knowledge and skill sets – as well as the very heart and soul of our culture.  With the Community Tenure Model, Membership would require significant investments of time and energy, but would not require significant financial investment. Members would not be owners of the community; the community itself would steward the property, and a Member would earn tenure and decision-making power in the community as they successfully progress through their membership process.  

The on-boarding thresholds presently proposed for our membership process are as follows:

• Exploring

• Nominee

• Provisional

• Full

Each Membership threshold (or gateway) represents a deepening commitment of the community and the prospective member in both directions.  As one becomes a long-term Full Member, the community is increasingly committed to providing quality housing and a sustainable, regenerative and fulfilling lifestyle for the member – complete with a host of socialized services.  As that happens we will ask in return that the Member invest their time, energy, skill, and enthusiasm in the community to share in the Community’s bounty.

Rather than owning a home, by gaining Membership in the Community, a Member would be gaining tenure in a home.  A Full Membership will enable the Member to fully utilize the common properties and other resources of the community.  They can occupy a home as if it were their “own”.

Achieving Full Membership will require a Member to pass through successive thresholds (or gateways) in the membership process. Passing through each of these gateways requires a Member to successfully fulfill certain obligations to the Community (for example, they have lived on the land for a certain length of time, and have contributed a certain fraction of their Development Hours commitment) and go through an evaluation to determine if the Member and the Community are both served by continuing their Membership.

In the initial phases of development of the Community, founding members will be putting in many hours of their time, and potentially assets and financial resources. We have systems for  acknowledging and tracking these contributions, and there will be clear agreements with the Community about these contributions. The financial contributions could be considered grants or loans to the Community, as agreed. The hours of time could be considered gifts to the Community, or could be accounted for, as agreed. These Development Hours would be accounted for in their Membership Account (see below). A set number of these hours, perhaps 1500 (roughly based on the number of hours a Founding Member would put in) would be required of each Full Member. Many of the Founding Members will have done most or all of these hours in the initial phases of development. One of the requirements for members to pass through each membership threshold would be to have made progress toward meeting this requirement. Also, monetary contributions (or land, vehicles, tools or other valuable assets) would be considered in lieu of some of these Development Hours, although this would be decided on a case-by-case basis, with the exchange rate of hours for money being commensurate with the income level and/or assets of a Member.

The Membership Account

For each member of Coalescence Ecovillage, a Membership Account shall be established. This account will have several sub-accounts (e.g., Member Money, Development Money, Community Hours, Development Hours) that track a Member’s contributions toward various Membership commitments: Member Dues, Community Work Hours, Development Hours, etc. Members can trade among themselves between any of these accounts, as long as they are in good standing. Each of these accounts, then, becomes a de facto community currency. Among other benefits, this can allow a Member who is currently focused on a time-intensive project for the Community to trade these hours to other Members who may have goods or services (or money) that they need.

The Challenge and Promise of the Community Tenure Model

In many ownership models for intentional communities, members are required to make financial contributions on par with purchasing a home, necessitating significant upfront and/or recurring payments. Especially as the world economy becomes increasingly destabilized, this is becoming less possible for many, especially for younger people. The Community Tenure model, by not requiring Members to make significant financial contributions, takes away this pressure and allows a broad range of potential Members.

With Community Tenure, all contributions toward its development would be considered either gifts or loans, and would not confer any special privileges such as residence in the community or decision-making power. Loans would be paid back over time, preferably with low or no interest, and preferably with deferments possible that would allow the community time to develop businesses and other income sources. These loans could, however, be backed by the sale of community property in the case of its dissolution. This would require Angel Investors who would not be primarily interested in a rapid or high ROI (return on investment), but rather are inspired to be supporting a model of healing and regenerative ways of living. Almost any intentional community ownership model would require such Angel Investors, but even more so for the Community Tenure model. Yet having a radical vision of freeing up the land from private ownership coupled with grounded and practical means for creating a functional and thriving community demonstrating regenerative ways of living on Earth will actually attract investors who truly want to fund something that inspires them and feels on the leading edge of evolution.

Community Businesses & Opportunities

It is highly recommended that we establish community owned and operated businesses right from the start that eventually produce a net positive cash flow from the activities of the land and its members.  These themselves will need investment capital to start up which can come from the general investment fund or from business specific investment vehicles like in any other startup.

The following are a typical breakdown of potential businesses amenable to Ecovillages:

• Services

  • Educational Programs

  • Immersion Experiences

  • Consulting & Contracting

    • Permaculture

    • Renewables

    • Green Building

    • Whole Systems Design

    • Sustainability Planning

  • Facilitation & Restorative Justice

  • Professional Services

  • Healing Arts

  • Venues & Events

• Products

  • Literary or How-to Books, Manuals etc.

  • Software

  • Agricultural Products (raw)

  • Agricultural Products (value-added)

  • High-Quality Manufactured Products

  • Crafts

• Investments

  • Businesses

  • Financial Instruments

  • Currencies

COALESCENCE BUSINESS VISION 

We are visualizing Coalescence Ecovillage as an educational center for: 

• Conscious Communication

• Healing Arts Modalities

• Meditation Practices

• Energy Medicine

• Plant Medicine Journey Emotional Integration

• Movement Practices (Yoga, Chi Gong, Dance, Interplay, etc…)

• Group Reflection Games, Sharing/Witnessing Practices

• Inner-Child Healing Therapies

• Group Games and Play

• Somatic Informed Emotional Integrative Therapies

• Trauma Healing Therapies

• Developmental Trauma Healing

• Collective Intelligence Modalities

• Conscious Parenting, Child Development, and Education

• Conscious Settlement Patterns

• Regenerative Lifestyle Practices

• Renewable Resource Models

• Permaculture

• New Paradigm Economics

• Dynamic Governance, Sociocracy, and Holocracy

As such we intend to have an Education Center and Retreat Center that is able to host programs that are in alignment with our values. We are also visioning a Healing Arts Collective with specific branch dedicated to Somatic Informed Emotional Integration Trauma Resolution Therapies.

Member-Owned Businesses

Members may also operate business from their homes and/or by using community facilities.  To the extent the community supports their business and to the extent they wish, Member-Owned businesses can then tithe a percentage of either their revenues or their profits to the Community.  

Alternately Member-Owned Businesses could offer partial ownership in their business to Coalescence Ecovillage, LLC. thereby ensuring profit sharing and potentially win-win investment.

Economy Design

The below charts are based on the Membership Shares ownership model and represents one potential Community Economy Design. (Created by Jeff Clearwater of Villagelab )

Accountabilities & Value Tracking

We have creative ways of acknowledging and tracking all contributions (time, talent, treasure), which will be converted to meeting membership requirements in the community at a later point when the details of that conversion can be co-created with a larger team.

Special thanks to Villagelab, Ashland Ecovillage, and Jamei Tierney for the Economic Design templates.