Strategic Organization – November 30, 2004
Mission Statement & Purpose:
Utah Biodiesel Cooperative (UBC) will be a non-profit, membership organization dedicated to advocacy, promotion, research, and education of environmentally sustainable alternative fuels for on-road and off-road vehicle use in government, business, and in and among the private sector.
UBC will typically focus on biodiesel fuel. To achieve the goals of the mission statement, UBC will run a membership organization that will be the root of the “cooperative.”
Tax Structure:
Utah Biodiesel Cooperative will not be for-profit, but instead will be an organization dedicated towards expanding the success of biodiesel fuel. This goal takes precedent over all other aspects, including making a profit. Therefore, it made the most sense that Utah Biodiesel Cooperative become a non-profit organization.
After some research and discussion as to “what type” of non-profit organization, with the goals of the organization in mind, it was decided that UBC should apply for 501(c)(3) status. The biggest advantage is that 501(c)(3) is the most preferred status for non-profit organizations, as donations can be tax deductible, and foundations and grant-givers typically prefer this designation over any other.
This leads to some discrepancy over the title of the organization, Utah Biodiesel Cooperative. Most notably, a “cooperative” is usually a for-profit business structure where all members have an equal opinion, but more importantly own part of the organization. UBC will be a democratic membership organization but it will not be owned by anyone, as it will be a non-profit.
UBC chose to use the name “cooperative” for a few reasons:
This was the name the organization had already chosen before it had decided what direction it would take as a non-profit organization.
UBC sought to provide some positive benefits a cooperative can provide to its members and the community.
The organization sought to organize a group of people in the community and encourage them to use biodiesel by providing them biodiesel related benefits. Each of these persons becomes an advocate of biodiesel, therefore furthering the reach of the cause.
Even though the organization is a non-profit, it will have some “cooperative-like” characteristics; specifically in terms of being able to connect some of its members who are interested in pooling funds and labor for the purposes of producing biodiesel.
This structure imposes some limitations on the organization. These limitations are evident when comparing UBC to a true cooperative.
Members do not own any part of the organization though they do have a vote on important matters.
Upon the dissolution of the organization, any assets it has acquired will be sold and used for charitable purposes as mandated by the government.
Any profits acquired by the organization must be used for purposes specifically regarding the mission statement of the organization.
The organization can engage in no partisan political activity.
The organization must strictly abide by all rules and regulations placed on 501(c)(3) organizations.
Purpose Of The Membership in the Organization:
The purpose of the membership is to organize a group of people interested in biodiesel fuel in Utah and surrounding states and provide a support mechanism and community for them to successfully use biodiesel as a means for achieving the mission statement of the organization.
It was realized that in order to organize a group of members that would be sustainable, structurally, the group must have several aspects:
Members must have reliable access to suitable biodiesel whether it is fuel that they buy or whether they brew it by themselves or with a team of members.
Realizing that members have private lives, jobs, etc, the organization should not dictate their commitment.
There must be some significant incentive to becoming a member of the organization versus not being a member.
The organization must serve as an information source and research pool for the good of the community and individual members in the organization.
The organization must conduct all activities in a completely legal manner. With a group of members and some funding, the organization can achieve all necessary EPA, IRS, and all other applicable regulations.
Generally, the organization must continually provide reasons for members to choose to become, and remain, members.
Structure Of The Organization and Membership:
The goal of the organization will be to advocate biodiesel and provide a support mechanism for anyone interested in biodiesel in Utah and surrounding states.
All members will be required to pay an annual $25 membership fee. This fee is not tax deductible.
Members who choose to sell biodiesel commercially under the wings of the organization will be charged reasonable fees for taxes, legality, and to pay for benefits the organization will offer to these members. See info on these types of members below under Category 3 – Authorized Producers.
The organization will run a “clubhouse” where it can engage in cooperative-like activities as well as other projects for members and guests.
Being a member of UBC will never be mandatory for anyone. We will always be very careful to respect the wishes of any individuals whether or not they are member of the organization.
Officers will serve as stewards and servants to the mission statement and the organization. Typically, officers will carry on the majority of basic day-to-day items so that the organization can succeed in its mission statement.
UBC will not focus on biodiesel production in any shape or form. It will, however, produce some biodiesel to meet its mission statement.
UBC will (make all efforts to) partner with commercial biodiesel producers to meet its mission statement.
UBC will welcome all persons, members and guests alike, regardless of race, religion, sex, or creed. However, as a representative of UBC, members will have some benefits that non-members may not have.
Businesses can become members of UBC.
UBC will sell and offer merchandise to any persons interested as a means of publicity for the organization.
Benefits extended to all members:
All members receive an equal vote and voice regarding structure and major decisions of the organization.
All members are entitled to any discounts for supplies or biodiesel that UBC has negotiated with various vendors.
All members are entitled to access facilities, information, workshops, events, activities, etc, that UBC may put on (minus an occasional reasonable fee or suggested donation).
Will receive discounts that are redeemable with the use of a membership card.
Assurance that any biodiesel they purchase through UBC will be high quality.
An infrastructure which supports the production of high-quality biodiesel
Requirements for all members:
Payment of dues (annual $25 fee).
Must abide by UBC bylaws.
“Authorized Producers” must adhere to additional rules.
The different categories of members will be:
Category 1 – General Membership, Consumer or Independent Home-brewer.
This is for the type of member who will generally buy fuel or wish to use their membership to purchase discounted biodiesel production supplies.
Wants to be involved but with minimal labor or time required.
Wants to be involved but may not be interested in a “cooperative” aspect of an organization where others will expect work from them.
Has the flexibility to be as active in the organization as they choose.
Access to any UBC activities or events, facilities, and a full vote on important matters.
Access to any discounts on biodiesel and/or biodiesel producing supplies.
May apply for “Authorized Producer” status.
Category 2 – General Member, Seeking Coop-Like Structure.
This type of membership is for people interested in doing labor or gathering with a group of people for further ease of costs and labor related to producing biodiesel.
Has all benefits of Category 1 membership plus:
Members can either group with other members for a mini group (such as the Park City group or Scott McLeod’s group).
May be interested in joining coop-like activities at the UBC clubhouse (when acquired).
Will NOT be allowed to sell, trade, or barter for any biodiesel under UBC protection (the rights guaranteed Category 3 members). Any transactions done by these members involving biodiesel are solely their own responsibility.
Can reap the benefits of groups to pool labor and costs without traditional “cooperative” requirements.
The organization will encourage and assist whenever possible in placing these groups of people together.
Has the flexibility to be as active in the organization as they choose.
May apply for “Authorized Producer” status.
Category 3 – Authorized Producer, the only official designation of membership other than “general member.”
General Membership may apply and be granted “Authorized Producer” status and in turn they become an authorized production facility of UBC.
Will not start accepting applications until UBC meets all required regulations.
Must have shown proven track record and ability to regularly produce high quality biodiesel on a continuous basis for a reasonable amount of time.
May be an individual, or groups of individuals, or a business.
By joining UBC, they gain immediate access to a market of consumers of biodiesel with no marketing required.
Satisfies curiosity of members who have commercial interests but lack capital and business organization to become real biodiesel producers.
First priority must be to sell to members of UBC before the selling to non-members.
Price of fuel sold to both members and public will be determined by UBC, not by the individual producer, to assure that producer gets proper price and to eliminate any price gouging.
Is granted access and rights to all NBB, EPA, IRS, and any other required laws, taxes, and regulations through Authorized Producer membership status of UBC.
All transactions will be conducted through UBC to provide these benefits to both consumers and producers. All checks for purchases will be written to UBC and reimbursement to producer will come from UBC minus applicable fees for taxes and cost required to meet any laws and regulations. This will be a per-gallon fee.
By selling through UBC they are shielded from personal liability that UBC will then assume.
Any purchasers of fuel will sign a document acknowledging that they are purchasing WVO-derived fuel (“home brew”) and that they personally assume any damage that might come to their vehicle as a result.
Access to discounts and any other benefits available to normal members.
Category 4 – Business Members.
TBD by the organization at a later date.
The Clubhouse – UBC will acquire a “clubhouse” where it may:
Conduct both official and unofficial activities.
Offer an industrial spec. processor for members or groups of members to use.
UBC will also run some programs out of the clubhouse including a shared labor program.
May serve as offices of the organization.
May offer mechanical facilities for automobiles and other equipment.
May offer anything else the organization might see fit.
General Outreach and the Public:
The organization will never declare that it is “what biodiesel is” in Utah with respect to those who have been brewing biodiesel on their own and/or might not be interested in joining UBC, whatever the reason might be.
The organization will always try its hardest to advocate and allow people interested in using biodiesel to do so in a manner that is always positive and never dissuades people from using biodiesel.
UBC will host an email list and database for anyone interested in using biodiesel in Utah as a service. For the mean time, there will only be one email list that will be shared with members of UBC as well as those in Utah and surrounding states who are generally interested in biodiesel. If too much UBC-related activity occurs with a number of people who remain on the email list that never join UBC, then a separate list for UBC members will be created.
A fully automated system on our website where people interested in biodiesel in Utah and surrounding states can network.
Will offer detailed write-ups and information on producing biodiesel.
All UBC hosted activities and events will be open to general public.
Any services UBC will provide will also be open to the general public.