Sources of Capital for a Start-Up Cooperative

CPE: 1 Credit Hour

Cooperatives, with their distinctive ownership structure, embrace a range of financing options. Join us for an illuminating exploration of funding sources tailored for the establishment and growth of cooperative enterprises, with a particular focus on worker cooperatives and consumer cooperatives. Delve into the intriguing concept of the "capital stack" as we present real-world examples of its composition.

In this enlightening event, Sarah Kaplan will delve into the realm of equity investments for cooperatives, illustrating how co-ops can attract capital from "investor members" (who may be non-patron members or non-member investors) while ensuring compliance with securities laws. Furthermore, Christina Jennings will provide insights into how CCDFIs evaluate cooperatives' readiness for loans.

By the end of this session, you will:

• Gain a comprehensive knowledge of at least three capital sources available for initiating cooperative ventures.
• Grasp the legal framework that permits cooperatives to seek investment through securities laws.
• Acquire an understanding of the criteria employed by lenders to evaluate loan readiness.

Don't miss this exceptional opportunity to broaden your understanding of cooperative financing and unlock the potential for success in your own endeavors!

Presenter and Moderator Bios

Presenter: Sarah Kaplan, Partner, Cutting Edge Counsel

Sarah Kaplan is a partner of Cutting Edge Counsel, a law firm that serves mission-driven enterprises and helps them raise mission-aligned capital. Her experience includes structuring new legal entities, advising on private and public capital-raising campaigns, structuring community investment funds, and co-op conversion transactions. Her clients include worker co-ops, food co-ops, agricultural co-ops, platform co-ops, limited cooperative associations, and charitable organizations, as well as standard business entities. Ms. Kaplan graduated magna cum laude from Chicago Kent College of Law, and has an A.B. from Princeton University. She is licensed in California and Illinois.

Presenter: Christina Jennings, Executive Director, Shared Capital Cooperative

Christina Jennings is the Executive Director of Shared Capital Cooperative, where she provides strategic leadership, oversees lending programs, and leads capitalization and fundraising efforts. Ms. Jennings has worked for over twenty years in community development finance in the US and internationally. Prior to joining Shared Capital, Jennings ran a microfinance program; provided technical assistance and training to support the development and growth of immigrant-lead nonprofits; and managed two international funds that invested in local microfinance organizations in Latin America. She has also launched and managed several small businesses and social ventures. Throughout her career, the focus of her work has been on supporting capacity building, working for economic justice and creating equitable access to capital. Ms. Jennings holds a Masters in Public Affairs focused on Community Economic Development and Nonprofit Management from the Humphrey School of Public Affairs from the University of Minnesota, and she received a BA in Gender and International Development from Hampshire College in Amherst, Massachusetts. She currently serves on the boards of directors and as Treasurer of these non-profit organizations: Cooperative Development Foundation, the City of Lakes Community Land Trust, and Latino Economic Development Center, a Minnesota CDFI.

Moderator: Wayne Sine, CPA, MBA, Director of Education, National Society of Accountants for Cooperatives

Wayne Sine is an experienced and highly knowledgeable professional in the field of Tax. Wayne recently retired as Tax Director from his company, Southern States Cooperative. He has extensive experience working with agricultural cooperatives and has been a long-time member of the NSAC. He is extremely active in the NSAC, serving as both past Chapter President of the Atlantic Chapter, and past Chair of the Tax Committee, and is currently serving as the NSAC Director of Education.. Wayne's career is marked by several accomplishments, and he has always been involved in many organizations, spreading his knowledge. Wayne is a member of the Legal, Tax, and Accounting (LTA) Committee for the National Council of Farmer Cooperatives. He is also Past Chair of both the Tax Committee of the Virginia Chamber of Commerce and the Virginia Manufacturers Association. Wayne also served on the Tax Policy Committee at the Virginia Society of CPAs and served as past Region Vice President for the Tax Executives Institute.