With multiple partners, it’s important to determine who will be the primary owner of the building and what form that legal partnership will take.
United States
Sole Ownership
- Most control and risk for the owner
- Can be an existing organization or a new entity
- Typically governed by a board of directors
- Loans for the building are available based on the owner’s creditworthiness
Examples
The Nonprofit Center, Third Sector New England, Boston
Community Nonprofit Ownership
- Nonprofits jointly create a new entity to own a building they jointly select
- Governed by a nonprofit board of directors
- Best fir creating a community asset
- Loans based on guarantees and value of collateral
- No equity interest for individual partners
Examples
Children & Family Services Center, Charlotte, NC
Limited Liability Corporation
- Good for Cooperative ownership
- Governed by an operating agreement
- Member or manager-controlled management options
- Owners can sell interest
- Ownership interest need not correspond to occupancy
- Can include outside investors
- Loans based on guarantees and value of collateral.
Examples:
Ninth Street Independent Film Center, San Francisco, CA
Condominium Ownership
- Each organization owns their unit
- Requires creation and operation of a condo association
- Enforcement of policies through bylaws, condo declaration, and deed covenants
- Each organization acquires their own financing
Examples
Tides Thoreau Center NY, Tides, New York, NY
Youth Opportunity Center, Nashville, TN
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Leena Waite
