Lomakatsi Ecological Services – a for-profit corporation
In 2006, opportunities in stewardship contracting and other restoration-based work with federal and state natural resource management agencies enabled the Lomakatsi Restoration Project (LRP) to employ many more workers and treat many more acres than ever before. However, the cash flow necessary to support our expanded operations began to exceed the amount of grants and donations that our non-profit organization was receiving. Since non-profit organizations are required to receive the majority of their funding from non-profit activities, our executive staff and Board decided to form a for-profit corporation to handle the increased income and responsibilities that were coming our way.
The business structure is organized so that the majority of shares in Lomakatsi Ecological Services, Inc. (LES) will always be owned by LRP. As the for-profit arm and contractual entity of Lomakatsi Restoration Project, LES is structured as a “C Corporation” in the state of Oregon. It operates as a completely separate business entity from Lomakatsi Restoration Project, but is one of the non-profit’s programs toward achieving our mission.
This organizational structure is designed so portions of potential profits earned from contracts can then be donated by LES to LRP, to support the non-profit’s generally underfunded programs, such as our education and outreach efforts. In addition to the profits being used to support LRP’s non-profit programs, restoration workers also share in the profits and receive health and retirement benefits.
This innovative business structure has given LES the ability to procure multi-year, large-scale restoration forestry and watershed enhancement contracts with federal land management agencies that would have been out of reach for a non-profit corporation like Lomakatsi Restoration Project. More employment opportunities for the workforce and the associated service and timber subcontract outfits we work with have been created. And this in turn has increased our ability to fulfill our mission of restoring ecosystems, creating green jobs, and building the skills of workers.
LES also provides services to private land owners who hire us to implement fuel hazard reduction and restoration work. Lomakatsi’s staff of resource professional’s also assists landowners with planning forestry and restoration projects, and drafting stewardship plans.
Both LRP and LES are managed by the same two principle executive co-directors, Marko Bey and Justin Cullumbine. Lomakatsi’s key personnel and workforce work for both corporations.