Patronage Dividends are a traditional way for Co-ops to share profits back with their members. As Member-owners of the Co-op, you also own the profits. A patronage dividend system allows the Co-op to share and reinvest those profits in a transparent, mutually beneficial way.
Member-owners receive a share of the profits in proportion to how much they purchase during the fiscal year (April – March). The more you shop, the more you are eligible to earn. At the end of the fiscal year, if the Co-op is profitable, your Board of Directors will review any anticipated projects and financial needs for the Co-op. They will use that information to determine how much of the profits to retain and how much to give back to the member-owners.
The amount retained stays in the Co-op, it belongs to the member-owners as a group and becomes part of what we own together as an investment in community ownership. The remaining profits are then returned by check or voucher to the member-owners. Law requires that at least 20% of patronage be returned to member-owners.
2026 Change: Refunds as Store Credit
In 2026, we’re changing how we pay out Patronage Dividends. Beginning with this September’s distribution, refunds will be issued as store credit on member-owners’ store accounts rather than by paper check.
This change improves both efficiency and service. Mailing paper checks costs the Co-op approximately $6,000 each year and requires significant staff time to print, prepare, and mail thousands of dividend checks. By issuing refunds as store credit, we can reduce these costs while making refunds available more quickly and conveniently for most member-owners and issuing dividends to more members than before. In the past we donated patronage amounts less than $5 because the cost of issuing a paper check exceeded the value of the check. Now we’re issuing store credit dividends from $1 and up.
The new process will also reduce issues with mailed checks, including postal delays, misdelivery, and lost checks. Plus, many member-owners have historically redeemed their patronage checks as store credit when shopping, so this change aligns with how a large number of members already choose to use their patronage refunds.
Member-owners who prefer to receive a paper check will still be able to request one during the September distribution.
FAQs:
How does store credit work?
In early September 2026, each member-owner receiving a dividend will have store credit available in their account to use on any purchase. Ask your cashier to apply it to a purchase. (The exact date Patronage credit will be available will be announced in August.)
How will I know how much I have?
In early September, member-owners who have a dividend will receive an email with the details of their patronage for Fiscal Year 2026. This includes the amount of your purchases April 1, 2025 – March 31, 2026 and the portion which is being refunded as credit to your store account. If you don’t use email, please see below.
How do I change my email address?
Please email <membership@middlebury.coop> to tell us what email address to use for your account. The email address on file should belong to the individual name on the member-ownership account.
What if I don’t have an email address?
If you’re receiving a patronage dividend, the store credit will appear in your store account in early September regardless of email. The exact date that Patronage credit will be available will be displayed in signs at the Co-op in late August. You can inquire with a cashier about the amount of your store credit after that date (they will not have individual information in advance). If you have more questions, please contact Finance Manager Sara Granstrom at (802) 388-7276 x224.
How is my dividend calculated?
The patronage amount is prorated based on purchases made during our last fiscal year, between April 1, 2025 and March 31, 2026. If you were a member-owner all year, then your dividend is based on all 12 months of shopping. If you joined sometime after April ‘25 and before March ‘26, then your payout this year is based on your purchases for a shorter length of time.
Does everyone receive a patronage dividend?
No. If you’re a new member since March 31, 2026, you may receive a dividend next year. Additionally, the Co-op donates all dividends below $1 equally to HOPE and CVOEO. If your dividend would have been less than $1, it’s donated instead of issued as store credit.
Do I have to use my credit right away?
No, you can choose to apply the credit to a purchase within six months of issue.
Does the store credit expire?
Yes. As with the paper checks in previous years, all dividends issued as store credit will expire after six months. Any credit left on accounts as of February 28, 2027 will be removed and donated equally to HOPE and CVOEO. This has been the Co-op’s practice since the patronage system began.
Can I still get a paper check?
Yes. When you receive a personalized email in early September with information about your specific dividend, you can reply to that email to request a paper check. If you don’t have email, you can request a check at the registers after credit has been issued. Please allow 4 weeks to process.
Can I get cash back at the register for my patronage credit?
Yes. We offer cash back up to $20 when you’re making a purchase. If your patronage amount is higher than $20 or if you prefer to receive a paper check in the mail, you can request a check by responding to the September email containing your personal patronage details.
What if my account is shared with other people?
Co-op member-ownership is held in one individual’s name, but members of their household are free to use their account. The Co-op cannot prevent other people using your account from applying the dividend credit to a purchase. If there are people not in your household using your account, please encourage them to join as member-owners under their own names.
Can I donate my dividend to HOPE and CVOEO?
Yes. Please ask your cashier about donation at the time of checkout. All donations will be equally divided between HOPE and CVOEO.
Who do I contact with more questions?
Please reach Finance Manager Sara Granstrom at <patronage@middlebury.coop> or (802) 388-7276 x224.