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Community Supported Tax Office

Executive Summary

The Community Supported Tax Office (CSTO) is a Europe-wide tax advisory cooperative specializing in handling tax matters for businesses, non-profit organizations, and individuals across the EU, Switzerland, and Norway. CSTO offers tailored solutions for non-profit organizations, solidarity farming projects, and logistics companies closely linked to the TEIKEI network and similar communities.

The establishment of the CSTO involves important intermediate step: the creation of a working group of tax advisors who will sign a Letter of Intent (LOI) to declare their intent to form the cooperative while simultaneously launching initial pilot projects.

It is also being evaluated whether the cooperative structure is the optimal form for CSTO. While the establishment of a cooperative appears promising, it is not yet certain if it will be the final structure. However, it is certain that such a structure will be an integral part of TEIKEI Stewardship, in line with its principles of solidarity and transparency.

Goals and Vision

Long-term goal: To establish a tax advisory entity that acts as a trusted partner for tax matters, reflecting TEIKEI's principles of solidarity. The final organizational form, likely a cooperative, will be anchored as part of TEIKEI Stewardship.

Short-term goals:

• Formation of a working group through a Letter of Intent (LOI), bringing together tax advisors who are willing to prepare the foundation and already implement initial projects.
• Focus on recruiting tax advisors with expertise in Switzerland, Germany, Greece, Scandinavia, and the Netherlands to cover all essential tax regulations in these regions.
• Clarification of the long-term organizational structure, with the cooperative being the preferred option, although the final decision is yet to be made.

Market Analysis

Target audience:

• Non-profit organizations, especially those involved in solidarity farming and sustainable supply chains.
• Logistics companies operating in a Europe-wide network.
• Individuals and small businesses active in the TEIKEI ecosystem or similar models, requiring specialized tax advice.

Market opportunities: The trend toward sustainable, solidarity-based economic models is growing continuously across Europe. Many of these organizations require specialized tax advice to legally secure their non-profit activities and benefit from tax advantages.

Service Offering

Tax advisory: Europe-wide tax support for businesses and non-profit organizations, focusing on the specific needs of sustainable and solidarity-based projects.

Non-profit work: Legal and tax support for organizations and individuals running collection points, with the option to receive tax-secured credits in the TEIKEI ecosystem.

International expertise: Advisory and support for cross-border tax issues, focusing on Switzerland, Germany, Greece, Scandinavia, and the Netherlands.

Business Model and Financing

Cooperative model as an option: Establishing a cooperative is being considered as a potential organizational form. This will depend on the future development of the network. It is certain that the structure will be part of TEIKEI Stewardship, aimed at fostering solidarity and transparency.

Letter of Intent (LOI):

• Intermediate step towards formation: Before the formal establishment, a Letter of Intent (LOI) will be signed to bring together tax advisors and potential members.
• Content of the LOI: Intent to form a cooperative or alternative structure at a later stage; Clarification of common goals and cooperation during the transitional phase; Definition of initial pilot projects; Establishment of a timeline for formalization.
• Working group: Tax advisors will already begin working together to implement services and gather practical experience while the legal structure is being prepared.

Revenue streams: Membership fees and services charged to non-profit organizations and businesses.

Cost structure: Establishment costs (legal advice, registration); IT infrastructure; Personnel and office costs.

Marketing and Member Acquisition

Reaching the target audience: Focus on attracting tax advisors interested in sustainable economic models through network events and targeted online campaigns.

Partnerships: Building partnerships with existing networks like TEIKEI to reach potential members.

Management and Personnel

Tax advisor network: Establishing a Europe-wide network of tax advisors with expertise in Switzerland, Germany, Greece, Scandinavia, and the Netherlands.

Additional roles: IT development team to build and maintain the digital platform; Legal advisors specializing in non-profits and international business formations.

Financial Planning and Forecast

Start-up capital: Provided through membership fees and crowdfunding.

Revenue forecast: After the first year, expected revenue is €250,000 through membership fees and service charges, with annual growth of 20% in the following years.

Legal aspects

Legal form: The cooperative is being considered as a potential option, although it is not yet final. What is certain is that CSTO will be part of TEIKEI Stewardship to meet the principles of solidarity and transparency.

Risks and Challenges

Regulatory challenges: Different regulatory requirements in each country.

Technological infrastructure: Building a secure, GDPR-compliant platform.

Timeline

Phase 1 (0-3 months): Member acquisition, drafting and signing the LOI, recruiting tax advisors in Switzerland, Germany, Greece, Scandinavia, and the Netherlands.

Phase 2 (4-12 months): Launching pilot projects, clarifying the final organizational structure.

Phase 3 (12-24 months): Official formation and start of Europe-wide activities.