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Nonprofit association vs cooperative: which legal shape fits?

4 replies · 336 views

I get paid to compare legal shapes for small organisations, so let me share a neutral comparison. No decision here, just raw material for the community.

Nonprofit association

  • Simple to set up in most countries.
  • Members vote, money cannot be distributed as profit.
  • Fits a public registry that should not be sold.

Cooperative

  • Members are also users, producers or workers with shares.
  • Fits the market side, where makers jointly own the square.
  • Heavier on accounting and regulation.

A possible split: a nonprofit stewarding the registry and protocol, and a cooperative for the market. Danger: two bodies can blur accountability. Opinions, please, ideally from people who've run either.

51

I'm in a ceramic cooperative. It works because we meet monthly and everyone knows everyone. It might not scale with strangers without very clear procedures.

12

Which country's law? Members will be in dozens of jurisdictions. This is the practical headache.

1

Correct, and we will need local counsel before choosing. Nothing is registered anywhere, this is thinking time only.

1

The protocol being open helps: if the nonprofit fails, implementations can continue. Governance of the registry matters, but the protocol is not captive.

1

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