4) Associations

Companies, coops and partnerships can create social value through the distribution of economic surpluses to Founder, Labour, User and Investor members. What about situations when you want a legal structure to ensure the reinvestment of all surpluses into a community or public service? For this situation, a FairShares Non-Profit Association Rules Generator exists. Trading surpluses are still divided amongst stakeholders, but they are allocated to restricted funds that are controlled by each stakeholder group. A FairShares Non-Profit Association ensures that surpluses are spent on projects aligned with the association's objects. Funds are controlled by, rather than distributed to, primary stakeholders.

A FairShares Non-Profit Association does not issue shares or have shareholders. It issues memberships that confer membership benefits through access to a collectively managed resource or service. On account of its non-profit status, it may be eligible for funds unavailable to companies and cooperatives, but it will be harder to raise funds from sources used by private companies. Crowdfunding technologies, however, are well-suited to the needs of associations and may provide a solution when financial capital is needed. Choose an associational legal form if non-profit status is important to your marketing and/or income generating strategy, or if you need to guarantee to funders that investments will go towards community and/or public services.