The question was raised if we need to spend a certain amount of money to remain a non-profit
If so, how should we spend it?
The Board has previously discussed owning part of the building by purchasing shares from those in the Milwaukee Makerspace Investment Group, LLC (MMIG)
If we achieve non-profit status and own the building, we can apply for property tax exemptions and save money; possibly as much as $11K per year
Tom explained two ways MoMI could own the building:
Buy shares from individual MMIG shareholders
This has the benefit of purchasing shares slowly
Buying shares would be discretionary and we could start/stop as needed
Broker a deal with all MMIG shareholders to purchase all shares at once
This would tie up a lot of money all at once, but would move faster
7:33 - Joe R. asked if getting a separate mortgage would be worthwhile
Tom said it could, but it would have bank fees also; up to $5K possibly
Tom also noted the shares could be used as a down payment in some cases
Joe R. indicated that we have a surplus of approximately $1500 per month
Tom noted that means we have saved about $30K in 18 months (since moving)
Joe agreed that rate sounds accurate
Shares in MMIG (i.e. the building) cost $2500 each
When asked, Tom indicated the share price could change but he did not believe there would ever be a reason to change it; taxes and accounting would get trickier also
The group considered buying one or more shares each month whenever a surplus allowed it
VOTE: The Board unanimously agreed to purchase 3 shares of the building.
Tom indicated he would inform the shareholders on our behalf