Organizations, pools and funding
Kapitala is our own software for accountable community finance. Its starting point is institution-supported lending operated by the cooperative for eligible individual members in Siargao. Other organizations may later use the software under their own authority; the cooperative's legal authority does not travel with the code.
Funding arrangements are not interchangeable
| Funding class | Intended record | What must be explicit |
|---|---|---|
| Institutional financing | An agreement between the institution and the cooperative | The legal instrument, permitted use, ownership, repayment, compensation, maturity, loss exposure and termination |
| Member share capital | A member capital record | Lawful membership, capital and surplus rights; not an automatically withdrawable savings balance |
| Any permitted member savings or financing | A separate account or agreement | Its legal classification, repayment/withdrawal obligations and applicable protections |
| Donation or guarantee | A restriction or support undertaking | Conditions, authority and enforceability; a guarantee is not money already available |
Institutional financing is not automatically cooperative share capital or ordinary membership. A commitment period alone does not determine the legal instrument. Member funds must not be placed under one generic contribution rule.
The conceptual flow
The cooperative records funding arrangements and eligibility per program. Eligible members borrow under adopted terms. Settlement evidence and accounting establish what happened before any permitted distribution. Return allocation and loss allocation are separate policies, not one universal formula.
This is local capital circulation: keeping more financial value within the community. It is not circulation without leakage. Servicing costs, defaults, taxes, reserves and external expenses all remain.
Who holds the money
The intended first operator is the cooperative. Exact lender, account ownership, signatories, custody and settlement responsibilities must match verified authority and contracts. A program is not automatically a separate legal entity, bank account or legally protected fund. Accounting attribution alone does not isolate losses. No automatic cross-program lending or transfer is the proposed starting software default; any exception needs explicit authority and traceable records.
What must be settled before a program opens
Funding, custody, costs, loss allocation and any member outcomes must be set in the approved structure and applicable rules. Economic parameters, rates, allocation formulas and projections remain unpublished while the model is being finalized. Software access does not authorize an organization to hold funds or lend.
Current state
No lending program is operating through this software yet. Institutional support is intended to provide most initial capacity, but this is not evidence of executed funding agreements. Any smaller member funding needs separate classification. Rule and record behaviour is tested with fictional data, not real funds.