The CBD operates much like a homeowners association. Once formed, a CBD will typically form a 501(c) nonprofit organization. This organization will have a Board of Directors made up of members of the district including property owners and merchants and often neighborhood representatives too. As a 501(c) nonprofit the district becomes eligible for grants and tax deductible donations. Grants often extend the dollars going into the neighborhood. Noe Valley has received almost $1,000,000 in grant money since their inception in 2005. This money makes a difference.
The board of directors will hire a part time Executive Director to run the district. The director will be responsible for taking care of all of the day to day activities and ensuring the services are being provided as per the Management Plan. The ED is also responsible for filing all of the necessary documentation to remain compliant with city and state laws. There is a tremendous amount of clerical work involved.