Square Roots Collective is a designated 501(c)(4) non-profit organization. We (the non-profit) build and operate both local businesses and non-profit initiatives. It’s a bit unorthodox, but our for-profit businesses allow us to financially support non-profit initiatives (which you can read more about below). 

It’s a type of non-profit structure that allows organizations to promote the common good and general welfare of society. Through this structure, we contribute any business-generated profits directly to non-profit initiatives. 

The most well-known example of a 501(c)(4) was created by Yvon Chouinard, Patagonia’s founder, who donated his shares of the company into a 501(c)(4). (You can read more about it here.) 

Our organization was started with a generous donation from the Bontrager family in 2019. Today our local businesses power our daily operations and non-profit initiatives to provide the local community with resources, networking, and other improvements. 

All of our local businesses are for-profit entities that are taxed by law. The remaining profits are distributed to our 501(c)(4), allowing us to build a financially sustainable system that generates profits in order to support community collaboration and thriving. Our non-profit initiatives, Kennett Trails Alliance and Voices Underground, are all independent and designated 501(c)(3)s.

A social impact venture is an organization focused on: 1) creating any significant or positive changes that solve or at least address social injustice and challenges; and 2) achieving these goals through conscious and deliberate efforts or activities in their operations and administrations. We do both. :)

Systemic change means improving the systems—like housing, transportation, or education—that shape everyday life, so more people can thrive in the place they call home.

Transformation is the process of turning a place into a more vibrant, welcoming, and livable community for everyone.

No, the 501(c)(4) does not create a tax benefit for the Bontragers, and they do not derive any profits from the businesses Square Roots Collective holds. Any monetary or real estate donations they give to the 501(c)(4) are taxed by law. 

Square Root Collective’s local businesses, like The Creamery and Artelo, are first taxed by law and any remaining profits are donated to the 501(c)(4). This allows us to provide economic opportunity for the local community and directly fund our non-profit initiatives and other community organizations (all without pulling our businesses from the local tax roll).

In addition to building and operating non-profits, we partner to advance community initiatives by giving grants through Square Roots Community Initiative (SRCI). Since 2022, SRCI has donated $545,000 and will continue to do so because we believe organizational collaboration strengthens the community. Learn more about SCRI here.

At this time, we do not have a formal grant application process.

Currently, The Creamery and Artelo. We have more hospitality businesses planned in the coming years, in part through our commercial real estate portfolio, where we aim to restore buildings to become spaces for community connection. We also have a residential property portfolio and management arm focused on both market-rate and subsidized housing.

We build and invest in community-oriented non-profit initiatives to realize systemic change in Southern Chester County. In addition to Kennett Trails Alliance and Voices Underground, we incubate projects that might grow into organizations in areas like housing insecurity and leadership development.

It all starts with Kennett Square, a town that’s one square mile and a place where our founder, Michael Bontrager, has been deeply rooted for over thirty years. We call ourselves a “collective” because we know collaboration is necessary to create (and sustain) a thriving community—plus, it’s much more fun to work together than alone.