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Non-profit design/build

dcozb

Does anyone have experience in proposing a non-profit design or construction organization? We want to help the ghetto.

 
Dec 16, 08 7:48 pm
spark

I suggest researching organizations that already exist in the area where you would like to work. Surely some of them could benefit from your involvement and you wouldn't have to start from scratch.

Dec 16, 08 9:13 pm  · 
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contemax

maybe this site could be useful for you guys
http://www.openarchitecturenetwork.org/

Dec 17, 08 8:47 am  · 
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contemax

dont know what these guys are doing but sounds pretty "non-profit"
http://asf.international.free.fr/index.php

Dec 17, 08 8:52 am  · 
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dcozb

Contemax,

Thank you for your suggestions, they both seem like helpful websites. I appreciate your efforts.

Dec 17, 08 5:04 pm  · 
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b3tadine[sutures]

i guess the first thing, if you're serious, is to perhaps re-think the approach to the "ghetto." just my nickel.

Dec 17, 08 5:13 pm  · 
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dcozb

In all honesty I'm just being tongue in cheek about the term. I used to live in South Central LA after I got kicked out of my great illegal loft near SCI-Arc in downtown LA. I lived there for over a year in the heart of a pretty bad neighborhood near Florence and Normandie, if you know LA. It was the only place I could find big enough for my family on short notice. As for my background, I have a B.Arch. and about 12 yrs of arch/construction experience. I actually hold the 'hood very dear to my heart and the people I met and the culture I came to understand better. After leaving and returning occationally to visit I realized just how bad it was. You get used to the helicopters, the pan-handlers, the sirens, the racial tensions, and never appreciate the environment until you leave and return. Not that it really matters too much, but I'm not white, I'm mexican-american, native californian. I have a plan to help people and I hope to. Those who know me, know my sincerity. Thank you beta for your concern, I actually appreciate it.

Dec 17, 08 5:33 pm  · 
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b3tadine[sutures]

cool dcozb, i am thinking about a non-profit as well, something that teaches at risk and disadvantaged students - urban and outlier - about their environment, architecture, sustainability, etc...my thought is that not only are the arts - music, art - but that architecture, urban design, rural planning, infrastructure, are equally important.

Dec 17, 08 5:46 pm  · 
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dcozb

Nice! and true. Get 'em into Green-collar work, as it's called now. That's my plan, sort of. Where are you?

Dec 17, 08 7:54 pm  · 
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beekay31

Non-profit is great but in the architecture profession I would worry about my financial survival, because for-profit is bad enough as it is!

Dec 18, 08 3:47 pm  · 
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chupacabra

Project Rowhouses in Houston

http://projectrowhouses.org/

Dec 18, 08 3:50 pm  · 
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dcozb

beekay31,

non-profit does not mean no money or pay. The contrary in fact, you can be paid, and by the government. This is a way for me to get paid in these times when I can't find a job, and to do good while I'm at it. In fact for more than just myself and partners to get paid, I'm hoping to get many many people paid and trained and ready for work. I must admit it's not just about me, it's too big of an endevour to take on alone. I think I have the right people and it's just a matter of getting things in order before certain application dates. Hope and pray (if you do that) for me, my family, and all of the people I intend on helping. I can't stand the way the hood is and it's a matter of bringing out the best in people. There is so much to love about the hood but most of the enjoyment is short lived due to the rest of the environment. And by environment I mean immediate surroundings. Somethings in human nature we cannot change, we can't get rid of drugs, for example, but hopefully I can help change the addicts train of thought by giving them a job.

Dec 18, 08 4:07 pm  · 
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dcozb

chupacabra

nice link, that's dope. I'm hoping to rehabilitate too. I hope I can get organizations like that involved too. First things first, like getting the non-profit organized and investers to see it as a profitable thing. I know it sounds funny... a non-profit that makes money for profit. but it's out there folks.

Dec 18, 08 4:13 pm  · 
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4arch

dcozb,

I'm not sure I'm seeing a really concrete vision in the statements you've made so far. I'm guessing it's there, just not being clearly communicated. It may be cliche, but perhaps a good place to start would be to write a clear, concise statement of vision for the organization you hope to launch. It would also be a good idea to create a simple list of goals that are realistically attainable in your first three to five years of operation. One way or another, you'll need to take these steps to get outsiders on board with your ideas.

You might also want to talk to a good accountant. As I understand it, a non-profit can earn profits, but those profits must be used in furtherance of the organization, not in paying dividends to investors.

Beyond that, it's not a bad idea to start thinking now about who you'd want to have serve on a board of directors. This may seem like a needless formality, particularly in the early stages, but it lends a legitimacy to your potential organization and its vision that will make people more comfortable with opening their checkbooks. The board can be a mixture of people who are 100% on board with your vision and people who may not be as fully bought in but who are good at finding people/companies/other non-profits with money and convincing them to give it to you.

Dec 18, 08 5:26 pm  · 
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dcozb

4arch,

Thank you very much for taking the time to post. I recently found a business plan template in which I hope to layout my vision. I'm on the same page with you about re-investing the profits. I guess the investor I'm thinking of is more about making sure he'll be paid as a member of the NP. He is actually more of an partner than investor. Actually, he's a current client that is interested in purchasing property in the South LA area and when he told me I flipped. I laid out my concept to him and he's interested. I would be more specific about the plan but I guess I'm just looking for advise about resources not my vision.

However, if anyone reading this string is in LA and interested so far, let me know.

Dec 18, 08 5:35 pm  · 
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dcozb

I found a good guide and thought I would share it

http://www.nonprofitalternatives.org/images/StartingANonprofitToolKit1stEdPub.pdf

Dec 19, 08 1:52 am  · 
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outed

dcozb -

i don't have enough time today to respond in full but i was hired several years ago by a non-profit to set up a d/b studio. nothing is as easy as you're describing and i'll try to go into more detail this weekend.

the first thing you need to do is figure out what non-profit status you're going to obtain: a 501c-3 is the 'classic' non-profit structure, as it allows contributions to be tax deductible. it has a lot of restrictions on how contributions (and grants, etc.) have to be spent, limits on pay for executives, etc. there would be no 'investors' per se because there is no entity which you will 'own' in a classic sense. you will have no ability just to pull profits back out for distribution to the equity partners.

you'll have to have a board of directors (and 4arch has some good comments about who to pick), be very transparent in your accounting, etc. it's a lot of work and if this is just to try and get grant money, you may have better options.

finally, be very aware that no liability insurance company will insure a non-profit like this, except (and this is a big maybe) if you can prove your only activity is design. otherwise, you'll have to get contractor's insurance or some other kind. maybe the design corps or afh folks have a different take. i do know we were turned down by every arch. ins. company and it was a deal breaker on the entity being able to take on public scale work. i've talked to bryan bell at design corps and they just operate without any...

Dec 19, 08 9:52 am  · 
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dcozb

laru-

I guess it's both for me. If you can't find a job... create a job, and a passion for humanity and bringing talent to try to make the world (so. LA) a little better.

Thank you for your words of caution. I don't think this will be easy.

The plan is this (why not explain a little) ;

Buy a single fam. turn-of the century home. Apply LEED for remodel/renovations. Use all of the city, state and fed rebates and incentives for greening the house. Use only local labor, preferably local welfare-to-work program labor within 2 miles or so of each home. Get with the local trade college which is offering green construction classes, get with the mayor's office which just passed an aggressive go solar program. Then rent the home to section 8 tenants, or re-sell the home with EEM qualifier, or VA program. All profits from rent or selling the house will go back to get more property. It's all about applying a formula to each house. I found at least three government grants that apply, one even for a for profit type business such as this. There seems to be endless opportunity to be harvested. It will not be easy, or fast, I know.

Dec 19, 08 10:22 am  · 
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PsyArch

There might be organisations like the hub in your area. They provide a base for social enterprises of the sort you are proposing. To an extent it's just serviced office space, but as my firend who has just set up the Milan branch (as a not-for-profit) would point out, the benefits are in the networking with like-minded individuals.

Dec 19, 08 11:00 am  · 
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outed

dcozb -

everything you laid out seems fine - why do you need a non-profit designation? is it to help subsidize the construction costs to a point where it can be affordable for section 8 housing? or some other proforma consideration? otherwise, a non-profit structure, legally, seems like it will impose more restrictions than not.

Dec 20, 08 10:55 am  · 
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won and done williams
Buy a single fam. turn-of the century home. Apply LEED for remodel/renovations.

do you have capital to invest in the initial investment? i mean serious capital to actually buy the property and proceed with the reno? all the tax credits in the world don't mean anything if you don't have start-up money. sorry to sound pessimistic, but i've heard many similar ideas that originate from a good intention, but ignore the very basic economics of the proposal.

i would forget the 501c-3 for now and put all your efforts into raising funds. i think the non-profit angle may be a bit of a distraction at this point in time.

good luck.

Dec 20, 08 11:11 am  · 
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dcozb

laru & jafidler

you both make me think twice about the non-profit. So did one of the members of my board. We have the capitol for purchasing the property. Enough for two or three, in fact my partner (client) was thinking more along the lines of an apartment building before I suggested 2 or 3 homes.

my BofD

an architect, FAIA
a mortgage broker
a general contractor
possibly a CPA
myself a non-licensed designer/builder
another friend like myself
need a lawyer

the NPO concept is mainly to secure the goverment support and local city support in a way a for profit wouldn't. I'm hoping we can allocate enough in salary that we can still feed the kids and take care of living expenses without trying to make big bucks for us. the NPO opens big doors and coffers of big gov. money. I honestly am torn in that my broker and GC want to do it without NPO but will still do it, they just have another approach.

Dec 20, 08 1:56 pm  · 
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snook_dude

NPO.....creates a certain level of bookeeping which you will certainly need a CPA to overview. There are CPA Firms that do only non-profits due to the complexity. I know this for a fact having been the President of a Board of Directors for a Non-profit which provides services to over 250 people on a dailey basis.

Government money always comes slow....so you will also need a good line of credit to buffer the times the goverment money is not
at your door step. We have a 1.5 million dollar credit line just to keep the doors open in difficult times.

Dec 20, 08 4:33 pm  · 
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