FUNDING

Financial Structure

  • The X_Factory  will operate as an education non-profit entity with a mission of supporting innovation, while specifically targeting the skills and resources required to create hard goods, software and technology for individuals and startups alike. The primary focus will be the operation of the makerspace on the premises of the X_Factory campus. The secondary focus will be fostering support for new startup companies in the incubator that the non-profit will operate. The day-to-day operations of the incubator and the makerspace will be overseen by an executive director with all personnel that work for the non-profit reporting to that individual. There is also the intet to have a board of trustees that helps guide the direction of the X_Factory.

  • The X_Factory Incubator and X_Factory Makerspace would function as an education non-profit looking to further creation through innovation and collaboration. The structure of this will be explored as the proposal moves forward and the non-profit and governance structure is codified.

  • Given the central goal of education and innovation, the X_Factory will seek recognition as a 501(c) 3 non-profit. This will afford many benefits as well as allowing for donations to be tax deductible.

  • The initial investment in the property, equipment and renovation will be seen as donations to the non-profit.

  • The makerspace will be set up per the overview for the X_Factory Makerspace using a diverse set of income streams to ensure liquidity as a non-profit entity

Non-Profit Status

Fundraising

  • Initial Investment

    • Due Diligence Funding

      • This is a $5,000-$20,000 grant, investment or gift

      • This will be to cover the fees associated with:

        • Legal fees for creation of non-profit

        • Exploration of liability and property insurance structure

        • Additional fund raising expenses

          • Travel

          • Hosting launch/fundraiser

        • Stipend for exploratory team

    • Startup and 2018 Budget

      • Estimated  5-6 million

        • Building purchase

        • Renovation

        • Equipment

        • First year salary for director and support staff

  • 501(c)3

  • Given the nature of the makerspace with a primary goal of fostering educational opportunities this status would be a viable possibility though the specifics will need to be investigated further.

  • This status is most desirable because it eliminates property taxes as part of the operating costs.

  • Contributions to the non-profit are tax deductible

Revenue Sources

  • Makerspace memberships

  • Makerspace equipment rental from outside individuals and companies

  • Makerspace project packages, classes, certifications and camps

  • Incubator rental fees

  • Creating training courses and regimens for companies at the incubator and other local businesses

  • Target: After the initial investment and the first year of existence no additional outside funding will be required and the X_Factory will be self sustaining

  • In order not to preclude startups with unique ideas that have yet to find funding, grants will be offered by the X_Factory Incubator

    • Companies and individuals will apply for grants in a competition format

      • Application process and time in between application cycles will be determined by the board

    • Grant funding sources

      • Government partnership or existing grant programs

      • Internally funded through annual fundraising or bequests

        • Note: Though the X_Factory will reach fiscal stability quickly with no additional outside funding the X_Factory grants will fall into a special category.

X_Factory Grant

Help the X_Factory Become a Reality!