Q: Is this a “Time Bank”?
A: The Ballona LETS is a bit similar to a Time Bank, in that members are trading credits. But it’s even better than a Time Bank because the value of your trade isn’t strictly limited to the number of hours you put in. A LETS system allows the two people who are making the transaction to set the valuation.

Q: Is it legal?

A: Yes, exchanging favors between friends is perfectly legal.
Note that you are responsible for any taxes that might apply.

Q: Is it taxable?

A: Probably not, particularly if the goods and services you're offering through Ballona LETS aren't something you typically do for a US$ job.

   The IRS taxes barter transactions which are made in the taxpayer's line of business, for instance "a plumber doing repair work for a dentist in exchange for dental services." However the IRS says that barter "does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis." (IRS Tax Topic 420 as of March 4, 2010) The Ballona LETSystem is an informal exchange where members trade favors without any contractual obligation to each other.  IRS pages on barter income are here, or consult with your tax advisor.

Q: What if someone spends a lot of LETS units, then runs off without fulfilling their commitment?

A: This does happen occasionally, but the inverse also tends to happen - people leave the group with favors still due to them from the community. In either case no individual is affected, only the group as a whole, and the two tend to balance one another out over the long term. It is also unlikely that anyone will be able to spend a lot of units unless they are considered trustworthy by other members of the community.

Q: Who does the Ballona LETS serve?

A: Principally, Westchester (90045), Playa del Rey (90293), and Inglewood (90301, 90320), but we'll also include Marina del Rey (90292), Ladera (90056) and Playa Vista (90094). People at the northern portion of this map may find that they have the option of participating in several local exchange systems currently being set up.

Our principal area includes over 46,000 households (per 2008 statistics from the Internet).

click on map to enlarge

Q: What's with the name?

Ballona = By-oh´-nah, just like the creek, our local watershed.  And bullion (gold) has traditionally been been considered a good hedge against inflation. Ballona bullion units are designated with a "ß" beta symbol.

Q: How long have you been in operation?

We're kicking off the Ballona LETS in March 2010.

Q: Who is running this thing?

A: Members of the Environmental Change-Makers community group initially set up the BallonaLETS program. We are currently forming an organizing team which will run the LETSystem.  Your volunteer hours are welcomed, and are in fact compensated in Ballona bullion.  If you can help out, browse the BallonaLETS requests on the member database or email us.

Q: Where is the "Ballona LETS office"?

A: c/o the Environmental Change-Makers, 6700 West 83rd, Los Angeles 90045.

• A great homemade YouTube video (4:14) about a LETS community
• A YouTube orientation video (8:32) from the Asheville,NC LETSystem
• our system is modeled on the Calgary dollars system.  Similar systems in Asheville, NC
• brief overview of LETS
• An article which gives you a glimpse of the breadth to which LETS can be taken
• LETS FAQs (skip the "Multi-LETS," we're not doing that)
• an in-depth discussion of LETS. 
• Examples:  Fourth Corner Exchange Life Dollar (Pacific Northwest with far-reaching branches); listing of US LETs systems
• why alternative currencies?  see right sidebar here and read No More Throw-Away People: The Co-Production Imperative by Edgar S. Cahn
• other ways of sharing within our neighborhoods

Imagine ... a local economic system based on mutual respect and reciprocity

We can work together as a community.  We can help each other and get to know each other in the process.  We can reclaim some of that old-fashioned neighborhood and community feeling right here in the big city.

Ballona bullion will be very helpful as a means of creating and sustaining our community self-reliance.  Part of the process is learning which goods and services our communty provides for itself and which it imports from elsewhere.  This can help local businesses identify areas for potential development.

Ballona bullion is designed to help us take charge of our community's economy.  Ballona bullion cannot enrich people who then take our jobs away to exploit cheap labor elsewhere.  It must be re-spent back into our community.  It does not earn bank interest so it is designed to discourage hoarding and encourage active trading.

Ballona bullion can also help our senior citizens get things they might otherwise be hesitant to ask for, such as companionship or letter writing or computer help.  You can also help our local charities and faith communities -- even when cash is tight -- by donating your bullion to them; they can use it to help meet their needs.

Account balances: At any time you may check your account balance or trading activities through our online database. Contrary to the U.S. dollar system, a “good” account balance hovers right around zero. A balance close to zero means you are giving just about as much as you are taking. Sometimes in this process your balance may dip slightly below zero and that’s normal and okay.  The system is set such that a balance cannot go below ##ß owing to the community.

Also unlike the U.S. dollar system, your account balance is public information.  This is so that BallonaLETS membership can build trust with each other and proceed to trade with confidence.