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Michelle Smith's avatar

Thanks for bringing to our attention, Kevin! I'm going to share it with the GRC (Global Regeneration CoLab) regenerative governance group.

Jon Connors's avatar

How the Farmland Commons Model Works; In this framework, the 501(c)(25) acts as a neutral, limited-scope entity that holds the deed to the land.

The "Parents": Between 3 and 35 existing 501(c)(3) organizations (like local land trusts, food banks, or community development corps) come together to form the 501(c)(25).

The "Child" (The Commons): The new 501(c)(25) is incorporated specifically to hold the title to the farm. Its only job is to manage the land, collect lease income from farmers, and pass that income (minus expenses) back to the parent nonprofits.

Local Control: The board of this new entity is typically made up of representatives from the parent 501(c)(3)s and, crucially, the farmers or community members actually working the land.

Why use a 501(c)(25) instead of just a 501(c)(3)?

The Farmland Commons creators chose this route for a few strategic reasons:

Liability Firewalls: It separates the risk of land ownership (accidents, environmental issues) from the primary 501(c)(3) organizations.

Multi-Organizational Ownership: A standard 501(c)(2) can usually only have one parent. The 501(c)(25) allows a coalition of local groups to share ownership without one single organization having total control.

Limited Scope: Because the IRS forbids a 501(c)(25) from doing anything other than holding property and leasing it, the entity is legally "locked" into its mission. It can't suddenly decide to pivot into unrelated advocacy or high-risk business ventures.

Asset Protection: It prevents the land from being treated as a commodity. The bylaws are written so that the land is held in trust for the community and regenerative farmers rather than being sold off to the highest bidder if a single nonprofit faces financial trouble.

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