Last week in the Denver Business Journal, Bruce Goldberg helped us announce changes to the EFCO model that expand support beyond just 1% of equity for fast growth companies, to include 1% of Profit in LLC, LLP and S corporations.
Based on a review of other Entrepreneur Foundation Affiliate models and a desire to increase our reach and services, our board voted to expand the membership model for EFCO. Beginning in March of 2010, we now have two different membership models and an optional membership fee.
- For equity-financed, high-growth companies, we continue to offer the 1% equity model. This model works through a warrant mechanism that executes at change of control.
- For partnership and profit-centered businesses, we are now offering a 1% of profit model. This model allows more profit focused firms to donate 1% of annual and/or 1% of liquidation profits to EFCO. This mechanism operates through non-binding promissory note.
- For all members, we have created a new EFCO operating fund at the Community Foundation serving Boulder County. This is now an optional, but default, 10% allocation to this fund for all new members. We will use this fund to operate EFCO and provide services in the forms of community volunteering, marketing and education services.
- For all members, we have created an optional membership fee. Like the new EFCO fund above, these fees will fund services in the forms of community volunteering, marketing and education services. These modest, $1,000 to $3,000 per year fees, directed at the large members (greater than 50 employees), will be instrumental in helping grow an income stream with a goal of hiring a part-time Director in 2011.
Thank you so much for your support. Let us know if you have any questions.