MMV Legal Structure

(to be determind by founding members/core group) The following is provisional/proposed content:

Articles of Incorporation
Bylaws

As it is true that the illusion of separation is the root of all suffering, so it is true that unity is the universal answer.

As it is true that no person can own land, the Earth, nor any other persons or beings, so it is that MMV’s congruent legal and organizational structure is that of the communal 501(d); designed to bring human beings together in the sharing of personal and material resources, work, and responsible stewardship of the land. 

It is often the ugly side of the American fetish for private property, lawsuits, and the corporate form that inspires us to create grassroots democracy and trust-based intentional communities in the first place.  While many who seek intentional communities already have an aversion to legal procedures, government regulation, and taxes, we must still form, intelligently and with right intention, a legal structure and even a system of self-government that appropriately reflects our vision of community.

What is a 501(d) community? First of all, it is a nonprofit corporation and is subject to much of the same corporate law as other nonprofits. However, tax benefits/requirements for 501(d) groups is much different than that for a 501(c)3 nonprofit.  The substantial advantages of the 501(d) may be outweighed in communities that would prefer to hold property privately, but this is not our case at MMV.

If a 501(d) show a profit, it adds up the income of all members and the community, divide it by the number of members, and each` member files their return paying tax on that amount.  If no income is recorded (such as if it is reinvested or expensed), of course, there is no tax obligation. 

501(d) defining elements are:

  • that the group must have a "common treasury." This generally means the same thing as "income sharing"-- all income earned by members must go into the community account.
  • a spiritual focus (the IRS interprets 'religious' and 'apostolic' very liberally; this can include self-described spiritual beliefs or practices, or secular beliefs that are strongly, 'religiously' held.) (See Statement of Spirituality)

The meeting of these and other specific IRS criteria, the 501(d) may apply for this tax-exempt status.

During the first six months of residence, Resident Members operate somewhat outside this full communal system and make individual agreements to live responsibly here.. During that time, RM can weigh and decide whether communal living is something they want to invest in.  At that time, Council Membership status, along with voting and other rights, could be attained, and the 501(d) system will apply fully.

Upon becoming a Council Member of the MMV commune, individual consideration of personal assets is weighed. Generally, members retain personal property and funds outside the MMV system, but some restrictions may apply. (See Embracing a Gift Economy)

Departing members may or may not receive equity when they leave, depending on the specific internal agreements created upon initiation.