Patronage Allocations
As of October 1, 2005 new member-owners will pay $25 to establish their voting share. In subsequent years, member-owners will pay a $25 membership fee per year when due to maintain membership. This fee will not accrue as equity. All member-owners have a $25 voting share and can build their member equity credits through retained patronage (below). Your voting share and member equity credits are refundable at the Board's discretion when funds are available.
One of the benefits of reorganizing as a Cooperative is that it creates more options for what can be done with any surplus money (pre-tax net income after expenses.) Each year the Board of Directors has the responsibility of making tough decisions about how to allocate resources. There will be years when the decision is in the best interest of the Cooperative to retain the surplus as capital. There will be years when some portion of the surplus will go toward building capital and some returned to the member-owners in the form of patronage allocations.
A patronage allocation is a portion of the surplus given to each member-owner or retained as member equity credits based upon that member-owner's purchases throughout the year. The way for a member-owner to build their member equity credit is through retained patronage. This retained patronage belongs to the member-owners and will be paid out in the future at the Board of Directors' discretion when surplus funds are available. In the meantime it can be used to support the continued improvements at the Co-op.
In other words, shopping at the co-op helps make the co-op stronger. As we grow stronger, the Board decides how to use the money (after expenses) to invest in the coop, save it in your member-owner account (member equity credits), or send you money. The more you shop, the more you benefit. In years of patronage allocations, member equity credits will build your member-owner accounts, or be mailed to you as a cash check, or both. In order to assure all of your patronage (purchases) are credited, it is even more important that you tell the cashier your member-owner number every time you shop!