Internet Access, Internet Community for Peace and Democracy Movement and Activists

Sample Contract with Non-Profits

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The following is a contract between The Democracy Workshop having an address at 2490 Black Rock Turnpike #352, in the town of Fairfield, county of Fairfield and the state of Connecticut and ______________________________________, registered under section 501 C 3 of the United States tax code and having an address at

_______________________________________________________________________

Explanation:

The Democracy Workshop will be engaged in the sale of products & services to its virtual community members through its website. From the sale of such products and services, a portion of the profits, or as agreed on with the businesses providing the services will be placed in a bank account referred to as the Non-Profit Fund. This Non-Profit Fund will be under the control of a board independent of the management of The Democracy Workshop. The Democracy Workshop will provide the board with a representative to answer questions and supply relevant information.

By the sixth month from starting business, The Democracy Workshop will conduct a voting within its virtual community in order to allocate the funds in the Non-Profit Fund to the various listed non-profits. The listed non-profits will receive a portion of the Fund that is proportional to the vote they receive.

After the first six months, the membership can petition the addition of new non-profits that are registered under Section 501 C 3 by providing a petition signed by 1% of the associate members.

The duties of the board are to oversee the implementation of the result of the vote and should not be held liable for carrying its duties.

The relationship between the businesses offering products and services and the Non-Profit Fund will be clearly listed on the web site.

The Non-Profit Fund will be audited by a Certified Public Accountant semi-annually and the summary of the results of the audit as it relates to the Non-Profit Fund will be posted on the web site 2 weeks prior to the scheduled community voting. The overseeing board would receive a copy of a compete audit.

Important Note: The Democracy Workshop is working on setting up a Scholarship Fund under section 501 C 3 for the benefit of its associate members. Such fund will be included in the list of Non-Profits to be voted on. Certain business, either by law or internal bylaws can only contribute to educational funds and might not consider the Non-Profit Fund as a proper venue. In such cases, the contributions from such businesses will go directly to the Scholarship Fund. When voting takes place, if for example, the membership votes 35% for the Scholarship Fund and its funding from such businesses meets or exceeds the required 35% then the totality of the Charitable Fund will be disbursed among the other Non-Profits proportionately. If the funding from such businesses is less than 35%, only the portion of the Non-Profit Fund that complements the Scholarship Fund to the 35% level will be used.

It is also the intent of The Democracy Workshop to enter into contract with five (5) non-profit organizations that are registered under 501 C 3 during its first six months in business.

Duties to the listed non-profits under this contract:

The duties of The Democracy Workshop to the non-profits listed on its website are the following:

To provide them with one web page describing their efforts and a link to their web site if such web site is available.
To overview the activities of the businesses in order to insure their compliance to the contractual obligation.
To inform them of new products and services listed and their relationship with the Non-Profit Fund.
To inform the non-profits listed and the membership of any default on contractual obligations of any business providing services through the website as soon as such default is confirmed.
To exercise reasonable efforts in securing from such business the contribution to the Non-Profit Fund. Reasonable effort is solely determined by The Democracy Workshop.
To assist the independent board in its duties and provide the independent auditor.
To insure that all funds are disbursed based on the will of the virtual community.
To insure that funds are only disbursed to non-profits who are in compliance with section 501 C 3 of the United States tax code.
To insure that all funds in the Non-Profit Fund are disbursed within a month of every vote.
To insure that all funds due to the Non-Profit fund are posted on the website 2 weeks prior to voting.
Upon termination of business activity, the Non-Profit fund will be disbursed based on latest election results.

Duties of the listed non-profits under this contract:

To maintain compliance with section 501 C 3
To inform The Democracy Workshop immediately of any change in their 501 C 3 status.
Not to hold the board overseeing the Non-Profit Fund and The Democracy Workshop liable for executing the will of the membership.
To periodically visit the website and get updated and familiarized with any changes to the website.