Here is a summary of the LETS scheme according to James Taris author of ’The LETSaholic Twist’ (published 2005).
His key feature is that LETS is a self-help scheme involving an exchange of favours…
- LETS stands for Local Exchange Trading System. It is a voluntary self-help group of people in a community who all agree to exchange goods and services without the need for cash.
- A LETS group are like-minded people who give their time and experience to help their fellow members in times of need and also feel welcomed to ask for favours.
- LETS offers a way of improving your life-style without the need to spend money.
- The trading currency is a made-up name. Ours is known as ‘MARTS’. It is important to think of marts as favours rather than a cash equivalent. Thus marts represent a value of appreciation by the member who has been assisted.
- The LETS group’s function is to act as a bookkeeper for their members activities – keeping a record of these ‘favours’ and putting the members’ accounts into debit or credit accordingly. These credits have no value and cannot be exchanged for cash. There are no penalties for going into debit. Indeed this may be necessary in times of need. The long term aim is to come back into zero balance.
- It is important that members begin trading with one another, preferably upon joining. You don’t have to wait for someone to ask you for a favour first, although some prefer to. LETS is all about trading, trading , trading!!!
- Taris advocates monthly meetings as the ideal frequency. (Our own monthly group combines a ‘pot-luck’ supper in a member’s home with the business meeting).
- Members can learn new skills in the core group or as a casual helper and earn five marts per hour in the process. Skills include recording and typing minutes of meetings, organising the newsletter, contributing features to it, writing press releases for the local newspaper, contacting new members, organising social events, book-keeping, producing the directory and website management.
- In order to be a truly effective LETS group Taris advocates a 100% non-cash environment. The only exception is when there is a cost of materials or ingredients involved. These then become the responsibility of the member receiving the service. The LETS scheme should not be viewed as a way to make money.
- LETS groups help to build community between its members and forge new friendships.
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