The question: Whether to launch a "community way" project or whether to consider how to effectively and efficiently incorporate "community way" concepts within an existing LETSystem or by creating a new LETSystem???....

By Tom J. Kennedy

A Brief Synopsis of "community way"

Michael Linton, the creator of the initial LETS software and a dedicated LETS associate, Ernie Yacub have been working for the past six years to devise and adapt the "community way" concept as a possible way to induce businesses to participate with local LETSystems. The "community way" concept does offer creative solutions to the problems of stagnating LETSystem growth and development.

Basic to the "community way" concept is the creation of one or more new "community currencies" within the respective local communities. Businesses are given a "heart-centred" pitch about supporting their local community by donating a "community currency" to one or more beneficiaries. The hope is to create a database of businesses willing to participate by asking the owners to sign a document "I will ... if they will..." When a sufficient number of businesses commit to participating with the "community way" project it can be officially launched. Twenty businesses would be the minimum BUT certainly a "community way" project would be much more effective if it were launched with fifty or one hundred participating businesses.

In addition to one or more "community currencies" depending on the size of the geographical area there can also be a "business to business" currency. The "smart card" technology is destined to be an accepted part of the infrastructure of any "community way" project. This "smart card" technology includes the "money organizer" and/or the "point of sale" device as well as the plastic cards with the chip to hold and transfer credits between traders. At this time incorporating the "smart card" technology within a "community way" project incurs a significant cash cost as each money organizer costs $100 (US Funds) and each plastic card costs $5 (US Funds).

Working as a volunteer "community way" advocate during the summer of 1999 I was able to sign up half a dozen local businesses for a "community way" project to be launched in the area of Ottawa-Carleton in the province of Ontario, Canada. Since the "community way" project cannot be launched until a database of at least 20 businesses show a commitment and the business people with whom I was communicating wished to know how they could trade immediately, I simply advised them to join the Ottawa LETSystem. This creates an interesting scenario since there has been much adversity from many members of the Ottawa LETSystem towards launching a "community way" project in the area of Ottawa-Carleton. It seems that many existing members of the Ottawa LETSystem members do not fully comprehend the stated mission of a "community way"project and they view it as being competitive and detrimental to the Ottawa LETSystem.

As a result, several of these local business owners have recently opened a personal account and/or a business account with the Ottawa LETSystem. This experience has caused me to consider the question: Can any existing LETSystem function in a fashion similar to "community way" with some minor adaptations? and/or Can a new LETSystem that incorporates some "community way" elements and/or concepts be created by local "community currency" advocates?

 The "community way" concept invites businesses to open an account with a local database using the LETS software and then immediately donate (cw$) community currency from their account to the account(s) of one or more beneficiaries of their choice. Such a donation does have appeal to most business owners because there is a zero cost incurred - in cash or product or service. The "community way" concept permits businesses to donate 1000 cw$ per (FTE) full time equivalent in the respective business. For example, a business with three full time employees and four full time employees is deemed to have 5 FTE’s and can therefore donate 5000 cw$ to one or more selected beneficiaries.

The beneficiary gratefully accepts this donation of "community currency" and finds creative ways to move it into the hands of loyal supporters who just happen to be consumers of goods and/or services in the local community. In facilitating this exchange the beneficiary earns some federal dollars to satisfy its immediate cash needs while working other "community way" participants with a specific, long term goal of creating a willingness to accept "community currency" for the mutual benefit of everyone.

Instead of donating cash and requesting a "receipt" for income tax purposes the loyal supporters of a beneficiary are now encouraged to donate cash to the beneficiary and request cc$ in exchange - dollar for dollar. Beneficiaries are also encouraged to reward their volunteers by paying them with "community currency" for their service. These supporters of the beneficiary who also happen to be consumers are advised to spend the cc$ with one of more of the businesses who have made these donations of "community currency."

At this point in the "community way" project the businesses which have made a commitment to redeem the "community currency" for skills, products and/or services welcome consumers who will request to purchase skills, goods and/or services using part "community currency" and part cash.

Each business can limit the percentage of each transaction that they will accept in cc$. For example, a local food store might only accept 15% "community currency" with 85% cash for a purchase of food whereas a theatre might choose to accept 25% "community currency" and 75% cash for an advance ticket BUT five minutes before the show the theatre might be willing to accept 75% cash and 25% "community currency - or even 100% "community currency" - since an unsold seat is a total loss. In summary, any business can use the "community currency" to attract new customers and find creative ways to establish the very best customer "loyalty" program.

 According to Michael Linton and Ernie Yacub, "community way" is a short term project designed to raise the profile of the LETSystem concept of using a "community currency" to facilitate exchanges of goods and/or services between members of any local community. It is the "donation" element of the "community way" concept that is the unique and mutually beneficial motivating factor that invites all parties to become involved as willing participants for the betterment of the whole community. The implementation of "smart card" technology and/or the use of "paper notes" are attractive "bells and whistles" that are making the "community way" project popular with the public - though neither of these is exclusive to "community way."

"Community way" projects (cw) are in initial launch stages in Worcester, UK and in the Comox Valley, B.C. - where Michael Linton and Ernie Yacub both live. For those of us who are looking for efficient and effective ways to "Further LETS Development" a questions arises.... Is it time for LETS enthusiasts from elsewhere to consider how to effectively and efficiently incorporate selected "community way" concepts or elements within an existing local LETSystem or by creating a new LETSystem ?? Feedback on this question is welcomed.

There is a website about "community way" which has an abundance of useful and relevant information for review by anyone contemplating how to "Further LETS Development" in their respective local community. The URL is:

The website for the Worcester, UK "community way" project is under construction but there is already much information posted at this URL:

Twinning the Best concepts of LETS with the Best elements from "community way"

LET"S explore new possibilities of "Furthering LETS Development" by twinning the best of LETS with the best of "community way."

There has been some discussion among LETS leaders who entertain a greater vision of a "Global LETS" to contemplate the possibility of blending the powerful elements of "community way" with workable concepts from any currently operating LETSystem rather than launching "community way" as a separate and seemingly competitive project. If any local LETSystem resists the suggestion of incorporating elements of "community way" within the existing infrastructure of any local LETSystem then it is likely that the "community currency" advocates will create a new LETSystem as a means to achieve their goal of "Furthering LETS Development."

Some LETS leaders are convinced that by incorporating selected "community way" concepts within the infrastructure of an existing LETSystem (or by establishing a new LETSystem) they can create the "rocket engine" that will propel the LETS software into a higher public awareness and wider acceptance in their respective local communities.

 Some background information will be useful to enhance this explanation. I was a pioneer and a very active member of the first Ottawa LETSystem from 1986 until 1990 when it folded because of insufficient trading among its small group of participants. In 1991 the Ottawa LETSystem was reborn and I made application to rejoin.

After a lengthy wait for the approval of my LETSystem application I was finally accepted as a member of the rejuvenated Ottawa LETS. (The long delay was caused because I was - and still am - an active associate within the network marketing industry otherwise known as the (MLM) multi-level marketing industry or the (SDI) self directed incomes industry. My application created a controversy because the executive of the Ottawa LETSystem was somehow motivated to pass a motion banning anyone from being a member of the Ottawa LETS if they were active as a full time associate in the network marketing industry.) Luckily for me, I was and still am an active associate in the network marketing industry on a part-time basis. I strongly disagree with this limitation on any LETSystem membership. I have always maintained that we ought to be able to buy and/or sell with "community currency" whatever we can buy and/or sell with cash.

As a current trader with the Ottawa LETS I have traded in excess of $2000 of "ecodollars" with other members of the Ottawa LETS during the past year. There are about 120 members listed on the database of the current Ottawa LETS. Of these less than one quarter of them are active traders. Without a doubt, LETSystems in general and the Ottawa LETSystem specifically needs some additional concepts to be added to the equation to generate growth and wider acceptance as we approach the new millennium.

My frustration has always been not only the limitations imposed on LETSystem memberships but also the ongoing scarcity of LETSystem participants willing to reach out and market their respective unique skills, products and/or services. Trading has been minimal partly because businesses have for some reason been reluctant to join the Ottawa LETSYSTEM and partly because people are resistant to consciously changing their buying habits.

Though LETSystems are flourishing all around the world most trades are still negotiated between individuals. There is however, a growing interest among businesses - yes even among network marketing entrepreneurs - to re-evaluate the many benefits of buying and selling products and/or services using a "community currency" which just happens to be "interest-free." Historically, LETSystem membership diminishes because participants are denied applications based on unfair rules and because participants complain of insufficient listings on the local LETSystem database to facilitate ease of trading.

My personal experience in promoting the LETSystem of trade and barter for the past 17 years has revealed that it is very time consuming making an effort to "re-educate" individuals and/or local business owners about the unique benefits of using a "community currency."

When I explain that any "community currency" just happens to be "interest-free" some people immediately understand how it is different from the "interest-bearing" currency which is traded by people using credit cards. Other people understand that a "community currency" complements buying and selling with the traditional cash and/or credit cards - both of which are part of the "interest-bearing" system of orthodox finance. Most people just want to get something of value for their used clothing, furniture etc. and any other products and/or services which they may have for sale. When they understand that they can spend "community currency" for products and/or services that they want they willingly accept it.

The mission of creating wider exposure for the concept of "community currencies" could be greatly facilitated by inviting local businesses to create workable alliances with local LETSystems which are willing to implement some of the more creative concepts common to the "community way" project. If a local LETSystem is not prepared to incorporate the suggested "community way" concepts then, a new LETSystem would simply be created with the co-operation of the local LETS enthusiasts and some local businesses which are open to "furthering LETS development."

For example, a local newspaper could be invited to take on the mission of re-educating the local business community, the leaders of beneficiaries (i.e. charitable groups, schools, sports clubs, churches etc.) and the consumers about the many mutual benefits of buying and selling with "community currencies." In reality, the introduction of "community currencies" complements the regular cash economy and everybody wins.

Any local daily newspaper could create strategic alliances with (a) with other leading electronic media organizations (radio, television), with (b) the weekly/monthly community newspapers (c) a local flea market (d) one or more local credit unions and (e) with other selected community businesses. Together, a group of community-minded leaders from the business community could pool their resources and underwrite the cost of creating and printing a series of paper notes in different denominations to represent the "community currency" for the LETSystem of which they are a part.

The logo of one or more of these supporting businesses could be imprinted on each paper note. Either the local daily newspaper or the weekly community newspapers could publish a Directory or a series of local directories whereby every participating business qualifies for a "free"listing with the option of purchasing additional advertising space for a portion of "community currency" and a portion of cash.

A local building could be located and a rental fee (part "community currency" and part cash) could be negotiated for space where a daily or weekly flea market could be hosted. At this flea market, the preferred medium of exchange would be "community currency."

Local farmers (organic or otherwise) could be invited to display their fresh fruits and vegetables for sale. An area could be set aside where people could leave used furniture and other goods for sale on consignment and/or a Dutch auction could be set up so that there would be continuous movement of goods. Schools and/or other charitable groups might be interested in co-ordinating such consignment flea markets or Dutch auctions as a worthwhile fund-raising activity.

Leaders of local beneficiaries (i.e. charitable groups, schools, sports clubs, churches etc.) could organize these co-operative fund raising events much like "United Way" projects. They could agree to be listed as "beneficiaries" and willingly accepts donations of "community currency" from businesses and/or individuals. The core supporters of these "beneficiaries" can likewise be encouraged to join the local LETSystem and exchange some cash for "community currency." Though the "community way" model does not address this issue, I am suggesting that any individual consumer listed on the database of a local LETSystem could donate up to 200 cc$ to one or more beneficiaries of his/her choice.

With a directory of participating businesses in hand these consumers will be motivated to show loyalty to those businesses which are committed to accepting a portion of "community currency" and a portion of cash for the purchase of any skill, product and/or service.

Local ISP’s (Internet Service Providers) could be encouraged to create alliances with the LETS community and set up secure websites whereby LETSystem participants could make trades on the internet. An area of a website could be established as a place to display photos of large and/or small items that a member would plan to bring to the daily or weekly Dutch Auction. Other items could be listed in a classified advertising area. This would permit people to learn about and/or view the items in advance and place bids by way of the internet.

Another possibility is for the local LETSystem to create alliances with one or more local credit unions. Historically, credit unions were created with a specific goal to foster "community". Though banks need not be excluded from being involved with such a project, it seems more likely that credit unions will be more willing to become active participants with any project advocating "community currencies." Credit unions have the technology and the capacity to set up dual accounts (cash and "community currency"). Thereby they can efficiently take on the responsibility of doing the accounting for all willing LETS participants - for a reasonable fee. If the credit unions have to hire additional staff to make this project work they could seek to hire those people who are willing to accept a portion of their pay cheque in "community currency."

Credit unions could also assume the task of granting smart cards to those members who wish to use this new technology to facilitate trading. These smart cards would be issued with small amounts of "community currency" loaded onto the chip embedded in the card. The participants would be able to come to the credit unions to deposit "community currency" into their account and/or withdraw "community currency" and load it on their smart card. Of course, they could likewise deposit and/or withdraw the paper notes.

The credit unions would be instructed to communicate with the participating beneficiaries and make the arrangements to engrave their respective logos on a selected number of smart cards to demonstrate a "loyalty" to a particular beneficiary. In addition, every LETS participant would be encouraged to open a cash account with one or more of the credit unions which are committed to the working towards the success of establishing "community currencies" as a complement to cash in the local community.

Since the "community way" model permits a business is to donate 1000 cc$ to a beneficiary per full time equivalent working in the business then I suggest that any individual ought to be permitted to donate 200 cc$ to a beneficiary within any existing LETSystem. The addition of "smart card" technology to any existing LETSystem will facilitate growth and development at a rapid rate.

Such a unique arrangement with one or more credit unions would permit all LETS participants to exchange and/or withdraw and/or deposit "community currency" with ease given the many benefits of modern technology. Such a project could eventually involve every business and every consumer and even the local government within a targeted municipality opening "community currency" and cash accounts with one or more credit unions.

The Issue of Being In "commitment" on a LETSystem

The discussion of permitting members of a trading system such as a LETSystem to be in "commitment" (i.e. having a negative balance on the account) needs to be resolved as some people with less LETS experience envision possible abuses by the participating members. Historically, this has not been a problem as LETSystem traders cherish that the LETS software permits them to buy and sell with an "interest-free" "community currency" when there is a scarcity of "interest-bearing" cash. Abuses have been minimal within those LETSystems that have been operational for the past 16 years.

I am suggesting that since the "community way" project permits a business to go into commitment for 1000 cc$ for each full time equivalent then an individual on an existing LETSystem ought to be permitted to go into commitment for any amount up to 500 cc$. (I am unsure of whether the maximum limit of commitment should be 500 cc$ - any suggestions are welcomed.)

An individual committed to "furthering LETS development" might choose to donate 200 cc$ to one or more beneficiaries. Therefore, they would be permitted to go into commitment for an additional 300 cc$ for personal purchases of goods and/or services. This donation of 200 cc$ plus the personal purchases of 300 cc$ makes a total of 500 cc$.

It should be pointed out that any LETS member can pay off any portion of their "community currency"commitment by a cash payment to the local LETSystem account at any time. Any LETS member is always grateful for having had an "interest-free" loan of "community currency" for the given period of time and the local LETS office is always grateful to receive a cash payment since they regularly incur some cash costs.

Of course, any LETS member can exchange cash for "community currency" with any participating beneficiaries. Such exchanges will be initiated by those who understand that by so doing they can accelerate the velocity of the "community currency" thereby expediting the growth and acceptance of "community currencies" and consequently, raising the profile of LETSystems everywhere. My experience with LETS traders is that they are honourable and therefore they can be trusted to honour a commitment of 500 cc$ within the period of one year.