BerkShares

Short Summary

BerkShares are a highly successful regional currency that is widely used in the mostly rural Berkshire region of Massachusetts (population ~130,000). The program aims to increase the circulation of goods, services and capital within the Berkshires, thereby bolstering the local economy and community self-reliance.

“We can all be richer, both financially and community-wise, if we keep our money local, do our best to support our local businesses, and do as little outside sourcing as possible.” Steffen Root, owner of Berkshire Bike & Board (source)
Website: berkshares.org

Location: Great Barrington, Berkshire County, MA, USA

Author: David Bollier

Editors: Maxine Gunther-Segal, Abigail Whittier

BerkShares Business of the Month source

Profile

Dubbed “a great economic experiment by The New York Times , BerkShares can be used at over 400 regional businesses, including bakeries, law firms, general stores, nurseries, and breweries. BerkShares currency is printed on counterfeit-proof paper, and is adorned with regional heroes like W.E.B. Du bois, Norman Rockwell, and a Native American Mohican, the original inhabitants of the area.

Shoppers can exchange $95 USD for 100 BerkShares at participating community banks, and purchase goods and services with BerkShares at their USD face value, giving users a 5% discount on purchases. Businesses that accept the currency then recirculate it by purchasing goods and services at other local business. At any time, roughly 140,000 BerkShares are in circulation.

The Schumacher Center’s website reports that “BerkShares local currency is a sophisticated buy-local program, distinguishing local businesses from their global counterparts and building pride in Berkshire County-sourced goods and services.” In the future, BerkShares hopes to grow to the point where municipal governments in the Berkshires will accept tax payments in the currency, or that loans will be offered to generate new businesses that are able to fill recognized needs in the community. In turn, Berkshire municipal governments could make payments to local businesses in BerkShares, deepening the economic impact on the region even further.

The currency is managed by BerkShares, Inc., a democratically structured nonprofit organization that works in collaboration with local banks, businesses and nonprofits. Any resident of the region can join the organization with a membership fee and enjoy an equal vote on policies and board members with other members.

BerkShares is a hybrid that does not separate commons and commerce, but rather blends them in an attempt to make the regional economy more socially and ecologically responsible.

In 2022, BerkShares Inc. launched digital BerkShares, which are valued 1:1 with U.S. dollars. They can be spoent and exchanged on iPhones and Androids. As part of the launch, the organization gifted 60,000 BerkShares to the greater community.

The currency notes feature prominent historical figures from the region, including: a Stockbridge Mahican inhabitant of the area ($1); abolitionist W.E.B. Du Bois ($5); and Robyn Van En, a pioneer of community land trusts ($10). source

Friends and Partners

Finances

BerkShares, Inc. is a state-chartered nonprofit. It is not tax-exempt because currency issue is not considered to be a tax-exempt activity by the IRS.

Member households pay annual dues of $25; other sources of income include event sponsorships and general donations.

The Schumacher Center is a fiscal sponsor for BerkShares and acts as a platform for donations, which are tax-deductible. These donations are earmarked for the local currency program's development.

See Also

YOUTUBE jLpuiz7DnwU Explanation of how digital BerkShares work

Sources