Session 12

Topic:  How to Form a CDC

Convenor: Donna Waddell

Note Taker: Pat McGill

Participants: Donna Waddell, Don Kebble, Rick Barnard , Mary Ann Ferris, Steve Clark, Anne Lambright, Christy Laxton

Key themes, outstanding questions, observations:

Interested in ideas about community development corporations.

Gilmer County has been working on and wants more information

Ritchie County idea came out of possibility forum.  Most important to identify reasons you want a CDC, don't want to duplicate efforts, want to develop to meet either specific or general needs, as you become a corporation especially if nonprofit have to think about what activities you will undertake.  Prior to forming want to determine the right people to be involved and want to work in the environment where you can agree to disagree.  Will discuss sensitive things and hard to do if you are the 800 pound gorilla.  Turf issues and sacred cows arise, influential personalities aris and have to have peopl,e in group that can mitigate those.  Have a year invested and at point to begin formal process.  have hired a consultant to help with formation of 501 c3 designation.

State bar has free service that they will refer local attorney's who have experience in formation of organzations. Can also use Secretary of State's office.

Can use consultant if money available, but use local people to do what is free and save money.

use references that are available like the 501 c 3 toolkit that is on the CDP website at http//:www.cdpwv.org

May want to have another set of eyes to review the work that is done by your group to make sure that your application is complete. Dealing with IRS is daunting.

Gilmer wanting to make sure their CDC meshes well with surrounding counties and communities.  Based on capacity building for groups involved.

Many groups not aware that they need help.

Question?  If you have a 501c3 that has been doing something for a period of time, should you change the focus of that organization or have a new organization?  Discussion of possiblity of losing tax exempt status and state designation.  Can't change function without going through paperwork.

Don't change bylaws while going through process of applicaiton.  Write your bylaws generally enough that you can bring the local EDA or FRN under the umbrella if needed to sustain the activities of the CDC.  One of the ways you build capacity is to share capacity so utilizing other organizations assets to increase your capacity.