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    3 Replies Latest reply on Jul 1, 2009 11:23 AM by LUCKIEST

    Starting a community fund

    malhar1974 Newbie
      Hello All

      Very new to this forum so please go easy on me. I and a few friends want to set up a fund to help each other in difficult circumstances like funerals,dire financial assistance etc. Its not going to be in an income generating institution.Each member will contribute a certain equal amount every month and this will deposited in a non interest bearing bank account.Any withdrawals will be based on specific criteria we decide on at the outset. I want to know what type of institutional structure( Non profit, partnership, LLC) would be most suitable for the above institution and what your reasons are? I really would appreciate your assistance on this issue.

      Regards

      Malhar
        • Re: Starting a community fund
          LUCKIEST Guide
          Starting a community fund, Welcome

          What a great idea. Who are you?? Where are you?? Go to Members page and share some info.

          You need a written agreement, you need a lawyer to review the agreement. A formal agreement is recommended in order to address potential conflicts before they arise, like who will be responsible for performing tasks, who is charge of deposits and withdrawals. You also have to define "dire financial assistance". What happens if a friend gets married or moves away or wants out. Does the friend get back their prior contributions. Can you add new friends in the future??

          This is NOT a business venture, it will NOT generate income so why do you need a "business structure"

          Great idea, please keep us up to date, LUCKIEST
            • Re: Starting a community fund
              malhar1974 Newbie

              Hi Luckiest

               


              Thanks for the advice. I look forward to sharing some info on my profile soon.The reason i wanted to have a particular structure was because that way we can have a bank account and accounting records in the name of the institution instead of a an individual.But i do see your point.So how do you suggest i deal with things like opening a bank account and keeping financial records?Sorry if i am asking too many questions.

               


              Regards

               


              Malhar