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, and a patronage dividend system allows us 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 purchased 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.