The LETSystem Design Manual
2.3 LETShare, CapitaLETS and other familial types
Variations on a themePersonal money networks can be adapted to apply to almost anything.
Naturally and without intervention, they provide for the coordination of the activities of many elements.
They can do this in many ways, for differing purposes - group projects or subscriptions, joint endeavours - co-operatives, consumer and worker, capital formation, underwriting agreements, congregational maintainance, etc , etc
Varying the core components
The LETShare is used where there is no immediate exchange possible, but all participants are concerned with distributing the load of an expense of time, energy and money.
So there is not necessarily any trading between accounts; in fact - in most cases - this is not intended. Trading is generally allowed, however, so that my excess effort on one joint project can be seen to offset yours on another. The essence of the LETShare is just: “Who put in what”?
A record is kept of contributions by the various parties involved - so much by Jo, Mary, Rob etc. Records can be in terms of time, money or expenses generally. This may be just for the record, and/or to encourage others to put in their share. The records can also be a key factor for internal group maintainance and morale.
Examples might be keeping track of who works what hours at the food co- op / parent support in the school / flower arrangements in the church.
Rather than assure or assume equality of effort in the group, this accounting allows all concerned to be clear about who has been doing what. The emphasis is put on showing differences rather than masking or otherwise overlooking them.
Community and business projects can also be tracked in this way. The purpose might perhaps be to prepare for distribution of the spoils / revenues / profits according to some agreed formula - as in the profit sharing agreements for theatre or film productions.
There is nothing new in this - just a way of looking, with a LETSystem perspective, at what's been there for a while
If it's a :
- then it could be called a LETShare arrangement.
The group meets to review individual submissions for acknowledgement. Valuations are likely to be negotiated before they are acknowledged by the group and entered into the records. Often submissions need to be defined as preliminary statements, rather than presentations of invoices, which could lead to tax implications before revenues exist.
In summary, a LETShare is keeping score within a group, perhaps for allocating rewards. This is the recommended pattern for regional development programmes
Allows large numbers of diverse participants to make practical contributions to projects that will actually be carried out by only a few.
It is a form of community "sweat equity" - where the dentist and the cook and the retailer are effectively contributing to the construction of the new swimming pool without ever showing up on site. Those who are actually doing the work are paid in the promises of others to provide their services.
CapitaLETS can be for broad sharing of load without direct reward, and can also be used to attribute ownership, for instance, of a commercial venture.
The capital comes from promises to serve in the future, rather than risking savings from past efforts. Perhaps only some have any savings to consider. Direct contribution of sweat equity is likewise restricted to those with the particular skills needed and time available to provide them.
There are three phases: