4. Legal and Financial Model

Updated: Apr 30

Legal Structure Eco Villages Australia is a non-profit company limited by guarantee that was officially registered in 2018.

Funding the Eco Village/s We rely on philanthropists to fund communities. These people LOAN money at 0% interest, and is paid back by the weekly contribution (rent) that residents pay. It normally takes 10-12 years to pay these loans back.

All members are volunteers, the directors do not draw a wage or make any financial gain from Eco Villages Australia.

Founders of each new EVA community can seek loans from philanthropists who have funds to loan for the purchase, maintainance and the improvement of the land.

Why is there no bank loan and no interest payments?

This provides a great starting point, saving Eco Villages Australia thousands of dollars every year. Not relying on the banks is both a practical and philosophical decision for Eco Villages Australia. By using existing money to purchase the property outright, no new money is added to the financial system through debt creation, which means that we are not contributing to unsustainable economic growth that interest payments necessitate. Read Charles Eisenstein's book, Sacred Economics, for more background on the structural problems of the debt system.

Some communities may have to draw a bank loan, but our preference is to not use the banking system.

How are loans protected?

Great care is taken not to over-capitilise a property. Even though our model does not include capital gain from the sale of property (we effectively lock property away from the speculative market), we ensure that if the property is sold, it will always be worth more than the sale price. If sold, philanthropist's loans are paid FIRST. We also only accept loans that have the capacity to be paid back. Any capital gain must remain with the non-profit and cannot be distributed to the members or directors as per the company constitution.

If a property has no bank loan, the risk is lessened. We also carry healthy cash reserves and have world class accounting practises and yearly audits.

How big are loans?

Philanthropists can loan however much they would like to give. $2000, $20000, $200000 or $2000000. If there are one or two philanthropists who have large loans, these loans can be reduced as new loans are made. In this way, the project can begin to be less reliant on a small number.

Can philanthropists become residents?

Yes. But they are not given priority. We have seperated residency from financial contribution.

Surely this doesn't work?

There are millions of people who have discovered that money doesn't bring happiness. Eco Villages Australia invite those with financial means, who wish to change culture, to partner with us. Yes, it does work. It's working now.

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