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The Community Grocer

Advise on Relationship Between Entities/Draft Operating Agreement

Summary:

Assist a social enterprise combatting nutritional inequalities by advising on its relationship with another nonprofit and drafting an Operating Agreement.

Referred by:

  • Anonymous Collaborator
Jurisdiction(s): U.S.
About the Organization: The Community Grocer (TCG) is a nonprofit working to combat nutritional inequalities. Their mission is to reinvent the corner store by creating innovative community-driven retail access points to nutrition. Currently, the language of the Farm Bill (which governs SNAP) does not allow for the sale of hot and prepared foods in exchange for SNAP benefits and prohibits a cooking model where retailers can sell eligible raw foods and swap them for cooked food on premises. This leaves many people without access to fresh, healthy, meals. To solve this problem, the TCG team is working in concert with an independent non-profit, Resident Action Committee II (RAC2). TCG has purchased and is retrofitting a building for their pilot program in Philadelphia. TCG will offer an all-day menu of meal items sold as raw ingredient recipe kits eligible with SNAP benefits. RAC2 will operate a kitchen separately in the rear half of the building. TCG customers will thus find themselves spatially able to easily transform their SNAP-eligible ingredients sold at TCG into delicious, healthy, and empowering meals.
Legal Entity Type: Nonprofit/Charity
SDG(s): End Poverty, Good Health and Well Being, Partnerships to achieve the Goals, Reduced Inequalities, Zero Hunger
Legal Issue(s):

The Community Grocer (TCG) team would appreciate guidance as they think through how best to structure the relationship between TCG and Resident Action Committee II (RAC2), as well as assistance drafting an Operating Agreement between the non-profits. Although they are working in concert, they are independent entities. Among the issues to address are how best to grant money to RAC2 to operate the kitchen and pay their staff, as well as terms for subletting space in their building for the kitchen.

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