# Legal Structure

### How It Works

Dream DAO sits under the legal entity of [Civics Unplugged](https://www.civicsunplugged.org/), a 501c3 non-profit parent organization. We use Civics Unplugged in certain situations where a legal entity is required. This allows us to legally receive grants in USD and pay members in USD who cannot receive crypto, for one reason or another.

### Why We Created This

Dream DAO is a product of Civics Unplugged. In the case of unfavorable legal situations, DAO members are protected. Civics Unplugged has resources we can utilize, like a bank account that allows the flow of USD and a legal team.

### Learnings

It can be extremely beneficial for a DAO to have a parent/partner organization that exists under a legal entity. DAOs can live in legal gray areas, and having the support of an existing organization can be helpful in navigating uncertainty and providing resources. Many DAOs have legal entities based outside of the US to take advantage of more favorable regulatory environments, but DAOs should always consult a lawyer.



