The Checks are in the Mail!
We are so excited to issue our first ever patronage refund checks! The checks go into the mail today, so you should receive your share of our profits very soon!
Here’s a quick overview of how this benefit works. Last year, member-owners voted to switch from a 2% discount at the register to a patronage refund system. This simply means that every year that the Co-op is profitable, you will receive a share of those profits in direct proportion to how much you’ve purchased. So, the more you shop, the more you’re eligible to earn!
At the end of each fiscal year, if the Co-op is profitable, your Leadership Team, comprised of both Management and the Board of Directors reviews any anticipated projects and financial needs for the Co-op.That information is then used to determine how much profit to retain, and how much to return to you.
The amount retained stays in the Co-op. It still belongs to all memberowners and becomes part of what we own together. It also represents another aspect of our investment in this community-owned organization. The remaining profits are then returned (refunded) to you, a member-owner, in the form of a check. Your check stub includes the total amount of your purchases at the Co-op during the nine months since we started our patronage system, July 2015-March 2016.
Because our Co-op was profitable in the last fiscal year, the Leadership Team decided to return 40% of the profits to the member-owners and retain 60% to reinvest in the Cooperative.
For more information about how our patronage refund system works or the by-laws that govern it, click here.
Here are some options and ideas for enjoying your patronage check:
- Cash or deposit your check within 90 days (deadline is September 13, 2016).
- Donate it to support the local food shelves, HOPE and CVOEO, in Middlebury to help us combat food insecurity in our community. To do this, simply endorse the back of your check “payable to MNFC” and return it to any cashier.
Please note that if you don’t cash, deposit, or return your check within 90 days, the check becomes void and the Co-op will donate that amount to be split between the two food shelves.
Thank you so much for helping make your Co-op a successful part of our vibrant local community!
Facts about this year’s patronage refund:
- We started the patronage system July 1, 2015, 9 months of total sales = $9,896,257.
- Member purchases totaled about 76.83% of those sales.
- The total declared patronage = $395,690 … profit from member sales before taxes and patronage.
- The Board decided to return 40% of patronage to member-owners in checks.
- The retained money will be reinvested in the Co-op to support our planned expansion project, allowing us to borrow less money from the bank and keeping the Co-op’s future more secure.
- The money saved on Co-op taxes will be used to expand our Co-op Basics program & Support our Member Deals program.