Getting an initiative funded

Anything involving money in the co-op is handled by the finance committee.

The Finance committee deals with money in two basic ways:

1. Co-op members work together with Garsten/Perennial Management Co. (GPM) and Twin Cities Housing and Development Corp. (TCHDC) through a series of meetings to develop the Annual Budget.

2. Each year the co-op sets aside discretionary funds (usually $1,000) that the Finance committee manages. All other building expenses of the building are managed by GPM.


What do I do if I have an idea for something in the Co-op which needs money?

1. How much money do you need?

  • Small expenses (under $100) can be funded out of the Discretionary Fund at any time during the year. Check with the finance chair to be sure there are discretionary funds left for the year.

  • Medium expenses ($100 - $500 approximately) can also be funded by the Discretionary Fund, but need to be formally requested from the Finance Committee and approved before the funds are disbursed. Such expenses can be funded at any time during the year, but need to be planned in advance as it can take a month or two for meetings to be held and the co-op to be informed and given a chance to vote on the expense.

  • Large Expenses (over $500). Because large expenses exceed or significantly deplete the Discretionary Fund, they are best funded through the Annual Budget process. The Budget process starts in August and does not generally receive final approval until November. Once approved, the Budget goes into effect in January. Because of this timetable projects funded through the Annual Budget need to be well researched and planned in advance. This should not discourage members from pursuing such projects because this is how co-op members can effect positive changes improving the building facilities and the co-op community.


    2. Which committee will sponsor your idea?

  • The Finance Committee handles only the money request, any other work or organization of volunteers should be handled by a sponsoring committee.

  • Board members, committee chairs, and other residents can help you determine which committee is appropriate. The idea should be worked on in this committee.

  • When the idea has a finalized plan, the sponsoring committee chair will inform the finance committee chair of the need to hold a meeting to vote on the project.


    3. Submit your request for funds to the Finance Committee as follows:

  • Small Expenses: When approved by the sponsoring committee, requests for funds will be made to the Finance Chair by the sponsoring committee chair. This process ensures that even small expenditures are related to committee-approved projects and will be overseen by three co-op officers who have been voted in to act on behalf of the co-op (the sponsoring committee chair, the Finance Chair, and the President).

  • Medium Expenses: Follow the same general procedure as for small expenses. The expenditures must be voted on by the Finance Committee. A meeting must be held and the posting for the meeting must inform co-op members of what expenses will be voted on. This ensures that all interested members can invest and safeguard the co-op’s discretionary funds by attending and voting at the meeting.

    -- You should have a written estimate if possible when asking the committee for funds.

    -- If the proposal is complicated or requires a significant amount of volunteer work, you should have a written plan showing the Finance Committee that the non-financial aspects of the projects have been worked out already.

    -- The chair of the sponsoring committee should bring the request for the expenditure to the Finance Chair. This ensures that the project has already been approved and discussed in committee. The Finance Chair will then schedule a meeting and post fliers informing co-op members of what will be voted on (the general project, members should attend the meeting to hear details). It is not the responsibility of the sponsoring committee chair to make the presentation of the request to the Finance Committee. The co-op member(s) working on the project should be prepared to attend the meeting and make the presentation. The Finance Chair should work to schedule the meeting so that those members making the presentation are able to attend.

    -- It is possible for the Finance committee to approve reimbursements of this size. The small expense procedure should be followed, except that copies of the receipts should be submitted by the sponsoring committee chair to the Finance Chair along with the request for a meeting. Reimbursement is not possible without receipts. Without pre-approval from the Finance Committee, members are not guaranteed reimbursement. If the finance committee approves the expenditure, the Finance chair will then provide the co-op member with the approved funds.

  • Large Expenses: Requests for large amounts of money will be handled through the Annual Budget. The Budget Process is outlined separately, but here are a few guidelines to start with:

    -- Start the project following procedures for small and medium requests.

    -- Even more than with a project being funded thorough the Discretionary Fund, any written documentation that you pull together increases the chances of the project being supported. Cost estimated should be as accurate as possible. Are there any legal aspects, co-op policies, or building codes that will come into play? Communication with the Management/Legal Docs Committee, GPM, and TCHDC can help answer these questions early so difficulties can be worked out before a project is in the Budgeting process. The chair of Management/Legal Docs is the liaison for communication with Garsten, and the President or Vice-President is the liaison to communicate with TCHDC. Co-Op members should not directly contact either GPM or TCHDC. Because of this, Board meetings are a good place for individual co-op members to bring up their ideas once they have been discussed by the sponsoring committee. The appropriate members can then take the idea to GPM and TCHDC as needed to move the project along.

    -- Because Budget planning often comes down to trying to shave small amounts off of different budget items (in order to minimize rent increases) approval for a project often comes down to how flexible and lean the presented proposal is. While there’s no harm in asking for everything a project might benefit from in the beginning, be prepared to find ways for the project to succeed on less money. As much as co-op members want new projects to succeed, being faced with a rent increase of any size is never welcome. A flexible proposal helps individual members support new projects without seeing it as contributing to their own financial stresses.


    JUST A REMINDER:

    1) BE PATIENT!! Things do not happen quickly in any democracy. It is rare for something to be accomplished in its entirety at a single meeting, especially regarding the Budget.

    2) IF NO ONE IS WILLING TO DO THE WORK, NOTHING WILL GET DONE! If at any point in the process, no one is willing to do a given task which is necessary to the project, the project will be on hold until someone volunteers, or until an alternative course of action is proposed. All work is voluntary. If a project is indefinitely stalled by inaction, this probably means that the Co-op as a group does not view it as something to pursue. At no time are committee chairs obligated to carry a project forward solely by themselves. Their positions are volunteer and primarily organizational.

    • This page is part of the website of the Tilsner Artists' Cooperative, based in Lowertown, St. Paul, Minnesota.