Neighborhood Bonds are one way to raise community money for something like a food co-op.

Having  grown up in Ft.Collins a recent article about a Food Co-op expansion in Ft. Collins, Colorado caught my eye. What I found extremely interesting is how they are looking to finance the new project. The Co-op is currently located at 250 E. Mountain Avenue and has limited parking and room to grow. To service the needs of its member-owners, the co-op must triple its retail space. To do this, they are considering a new downtown site with enough room to accommodate its expansion and long sought-after community market and kitchen. The Co-op is looking at fulfilling a vision conceived by the Downtown Development Authority for a community marketplace and kitchen.

A feasibility study released in 2011 showed the desire for a project anchored by both the co-op and a community marketplace that could provide space for a year-round farmers market, kitchen and demonstration area. Now, the co-op might be able to take the lead on bringing that project to fruition. The co-op is eyeing a new method of funding that would allow the community to buy bonds for as little as $200. A Co-op in Madison, Wisconsin used this financing tool to help raise $600,000 in 60 days. I have never heard of this type of method of fund raising in the cooperative space, but can see how it could be very effective.

When I think of bonds, I either think of my 101.5 year grandfather who just passed away, and was a big fan of Treasury Bonds, as they provided a low risk, and low interest bearing investment. On the flip side, my brother works in the commercial real-estate field and has educated me a bit on how mortgages are packaged and sold as bonds to investors. With these two examples, I would be curious to learn more about how exactly the Neighborhood Bond is structured and presented to the community of investors and stakeholders?

Collaborative Consumption and the issue of Liability Insurance.

I don’t think words can describe how passionate I am about Collaborative Consumption and all the amazing things it has already accomplished, along with the potential long-term affects it could have on this planet and mankind! Like many know, the poster child for Collaborative Consumption is Airbnb, as they have revolutionized the concept of short-term lodging. They are spreading across the globe like wildfire, as countless hosts are offering up unique spaces at economical prices. Part of Airbnb’s success is in the fact that they offer a rental guarantee to protect their hosts. This covers property damage up to a million dollars.

Okay sounds like they got it covered? Well, what about if someone injures or kills themselves on your property, does the Airbnb Rental Guarantee cover that?

The answer is no! That liability falls in the hands of your homeowners or renters insurance policy.

Background

I am a host on Airbnb.  I rent out a spare bedroom in my home, along with a tree house. Over the last 2 years, I have probably hosted about 40 guests and have met people from all over the world! It has been an amazing experience. Since I am now regularly hosting people at my house, I called up my homeowners insurance company, Allied, and told them of my situation. They informed me that because of what I had told them, they were no longer going to insure me. They suggested I speak with Airbnb and ask them who they recommend to cover such things. That made sense, so I called Airbnb – they simply told me that was not something they dealt with and could not offer any recommendations or support.

I am now scrambling to find someone who will insure my home. The reality is, most all insurance companies do not cover this type of liability. The idea that Airbnb does not provide suggestions or support for what is probably the single most important issue facing Airbnb and Collaborative Consumption seems like a mistake. In the long-term if this issue is not addressed for all hosts, Collaborative Consumption and companies like Airbnb will suffer market share, as the risk verse reward for hosts like myself will be too great.

Coop Stories Workplace comedy. Will we see a Season 2?

Co-Op Stories is/was an on going comedic series about some of the daily activities that happen at the Co-Op in Santa Monica, Ca. I came upon this video series recently – being from Portland – it very much reminded me of home, and similar to the awkward and hilarious Portlandia.  Santa Monica writer/director Ben Wolfinsohn has created this half reality, mostly scripted web series. He has produced 17 episodes, but with an all volunteer crew, and an inability to use to Santa Monica Co-op location week after week, the show has temporarily/permanently stopped.

Wolfinsohn has directed four feature films and has had two previous web series that have been picked up by networks such as Nickelodeon and Cartoon Network’s “Adult Swim” channel.

“I’ve wanted to do a funny, interesting web series that involves around some daily activities at a grocery store for a while,” Wolfinsohn said. “The CO-OP was definitely a top choice in mind. Not only are there interesting people working at there, but the store promotes healthy eating/living.”

Comedic narratives tend to communicate more efficiently in the realm of social media, so he thought the videos would introduce the store to people who were previously unaware of the CO-OP, even though that wasn’t the primary goal of the project. “My intent was was to create a short videos that would entertain himself and his friends, and hopefully other people, too.  No one gets paid to make any of these videos. After filming each episode, I’d buy breakfast/food at the CO-OP for each person who participated, he said.”

Here is the Santa Monica Co-op Stories series. If you like it, let him know, maybe we can get a season two?

Here is Season 1, episode 1.

Co-op-stories All 17 Episodes

Co-op Stories Facebook Page

Elephants understand the Power of Cooperation and Teamwork

An experiment reveals that elephants not only cooperate, but that they understand the logic behind teamwork. Jorge Ribas reports on these findings in a short video. Check it out, pretty cool.

The only thing I regret is that we didn’t actually get to play the game at the conference. It seems like it would be a  fun and educational session! Maybe next year.

 

Submitted by Kenny Bavoso of Coop.org

Cooperative Capitalism

Noreena Hertz

I recently read an article – Noreena Hertz: A Post-luxe era needs Co-op Capitalism, “the world desperately needs a new form of Capitalism”, she writes. She says we are living in “Gucci Capitalism, because we overvalue status and undervalue equity”.  In Co-operative Capitalism, she talks about how “in evolutionary biology we see that learning from others and sharing information is the key to human success”. She also gives an example, “take the rapid rise of the global “freecycle” movement, whose members give stuff away rather than sell their goods on eBay, or the rise of Zipcar, which allows people to share cars.” Zipcar, Airbnb, Skillshare, Task Rabbit, Zaarly, Kodesk, GetAround, Book Mooch, are a few many examples of for-profit capitalistic businesses, requiring sharing and co-operative principles to be successful. Granted these businesses are not rooted in all 7 co-operative principles but “some is better then none”, in my opinion. These services, like Co-operatives, look to serve their members, and cooperation among members is the how the business measures success and stock value is created.

Collaborative Consumption

I am an Airbnb member, and if my membership was not voluntary and open, and if Airbnb had no concern for community, I would not be a member. As a member I make money, and meet cool members from all over the world. And though I do not have a vote, and the organization is not owned by the members – that does not mean I don’t have a voice, and that I can’t choose to have ownership, when it is available.  I would also be willing to offer, just because the company is owned by investors and will potentially go public someday, that does not mean Airbnb does not have the members best interests in mind.

Co-op Capitalism

I am not suggesting that one form of business replace another form of business, such that we replace Ccorps, with Co-ops. I am simply saying – support each other in what you have in common, rather than wrestling with what you don’t.

Cooperative Capitalism

It seems the co-operative movement can be resistant to the word Capitalism. Unfortunately this business model has been so grossly misused that, it has a lot of negative examples attached to it. I do not see co-operatives as good or evil, nor do I see capitalism as good or evil. Just like I don’t see money as good or evil, they simply are, and it is up to you to decide what you do with it. I think when we often talk about capitalism, we look at examples of where “big business” has screwed over people, the environment, and society, as there are plenty examples of this, but what about all of those small businesses – be it an LLC, Scorp, Bcorp, or Triple Bottom line business that uses co-op principles to be successful in their for-profit capitalistic ventures. I think sometimes the co-operative movement wrestles with capitalism as the enemy, rather than using co-op principles to work with the movement of capitalism, as we look to use this as a catalyst to grow the Cooperative Movement.

Submitted by Kenny Bavoso of Coop.org

Health Care Cooperatives

Here at Coop.org we have started to reach out to some of these health organizations, as we would like to be a channel to grow this sector and help with outreach. From speaking to a few organizations, it is clear they are just getting going, and figuring out systems, networks, and other countless details for making a the health care cooperative a reality. Throughout speaking to folks, it is also clear that some if not many organizations applied for the loan money but only a some were selected. I am unclear what the basis is for approval for funds, and or denial. Also not sure if there is some lottery system in place. If you know more about, please post a comment. Here is a bit more about what we do know about Health Care Cooperative.

Health insurers will be run by their customers and will be designed to offer coverage to individuals and small businesses.

More than $340 million — was allocated to serve independent contractors that are a growing segment of the workforce.

The co-ops will compete in these state-run insurance exchanges, although co-op backers said they do not yet know the cost of premiums when the program will be formally unveiled in late 2013. Initially, they expect to compete for a small share of the overall health insurance market.

The new federal awards were announced for co-ops serving Montana, Iowa, Nebraska, New Jersey, New Mexico, New York, Oregon and Wisconsin.

Loans will be given over time as they meet benchmarks for setting up claims processes, provider relationships, disease management and other cost-control efforts.

The federal government said it will be rolling out awards to co-ops in other states as more applications are processed.

Some individuals and small business owners helping with the formation of the cooperatives said they believe the new operations will help reduce one of their most worrisome costs.

*Are you an expert in this field? If so, please share your knowledge. Contribute related articles to coop.org , help educate the public on the ins and outs of Health Care Cooperatives.
Submitted by Kenny Bavoso of Coop.org

Global Cooperation Reaches 1 Billion People

The report’s author, Gary Gardner, WorldWatch.org writes that cooperatives are low-profile but powerful economic actors, with the world’s 300 largest ones generating revenues in 2008 of more than $1.6 trillion. The report also notes that the cooperative model surpasses the shareholder model in at least one area: the 1 billion member-owners of cooperatives worldwide exceed the 893 million direct and indirect shareholders of corporations. If these businesses were a national economy, they would rank ninth in the world—ahead of the economy of Spain. The report also reveals that 99% of cooperative businesses operate primarily within seven economic sectors:

Shares of Cooperatives as a percentage of all business

Submitted by Kenny Bavoso of Coop.org

If you are interested in working with me to get something started in the area. Please be in touch.

Kenny Bavoso 503.969.1836

Collaborative Consumption Part 1

Collaborative Consumption Part 1

Collaborative consumption is a fresh concept going back on old traditions. In the news today, it is something we are hearing about more and more.

For people who are not familiar with the term, Collaborative consumption, according to Wikipedia is used to describe an economic model based on sharing, swapping, bartering, trading or renting access to products as opposed to ownership. Technology and peer communities are enabling these old market behaviors to be reinvented in ways, and on a scale never possible before. Collaborative Consumption is disrupting outdated models of business and reinventing not just what people consume but how they consume it. Collaborative consumption is based on the concept that some person will pay for the benefit of having access to product as opposed to paying more to own it outright.

Is this just a hippie fad that will come and go, or is it really something society will grab onto as a new mainstream way to operate?

Politics

Will Collaborative Consumption move into the political arena with certain groups supporting it, and others dismissing it?

Economy

In term of the economic affects, will collaborative consumption slow the buying process down for consumers and negatively affect our economy?

Or will it perhaps be one of the driving forces to help us to dig out of this economy, as we find news ways to distribute wealth, and put money back into the pockets of the people who really need it?

Legal

What are the legal ramifications around peer-to-peer lending?

Will we see lawsuits with these types of activities that will slow their progress?

Or will we be able to mitigate the risks and liability like with other industries, so that it can properly grow and prosper?

Big Business

If you are a hotel, motel, conventional rental car company, builder, lender, etc., Is collaborative consumption a threat to your business?

Will big business do what they can to prevent this market from growing?

Or will they get behind it, and finds ways to grow with the market?

Environment

What are the long-term Environmental affects of collaborative consumption?

Some Background

The concept of reusing or public sharing of products is hardly a new one. For decades, many public and private entities have utilized some variant of public product sharing.

The term ‘collaborative consumption’ was coined by Marcus Felson and Joe L. Spaeth, in a paper written for the American Behavioral Scientist in 1978 and published by Sage Publications. The paper dealt with car sharing. The concept has since been championed by Rachel Botsman and Roo Rogers, co-authors of “What’s Mine Is Yours: The Rise of Collaborative Consumption describing collaborative consumption as “a new socio-economic ‘big idea’ promising a revolution in the way we consume.

In 2010, collaborative consumption was named one of TIME Magazine’s 10 ideas that will change the world

Next

In the upcoming weeks, I will attempt to dig in and start answering questions about collaborative consumption, as it relates to our environment, economy, politics, big business, legal, and other related issues. I certainly do not have all of the answers, and frankly do not consider myself an expert on the topic, far from it. But I do see Collaborative Consumption as a potentially very powerful thing, and look to learn more about it, as a dig deeper into the topic.

My Collaborative Consumption Experience

I rent out my 116 SF tree house on my property using Airbnb. I have been truly affected by the impact a rental such as this can have on the human experience. Words can not describe the feeling of giving someone the chance to feel like a kid again. Getting paid is merely a bonus, but certainly not a requirement. Seeing people’s joy is payment enough.

Submitted by Kenny Bavoso of Coop.org