What Does It Mean To Be A Member-Owner?
Are you a member? Do you have a co-op card? Are you a member-owner? Can I use my mom’s membership? What about my partner’s membership? Can I serve on the board if someone in my household is a member-owner? These are all questions that circle around on a daily basis, and as a board we recently discussed that there can be confusion on what it actually means—both literally and symbolically—to be a member-owner of the Middlebury Natural Foods Cooperative.
The confusion I see most often (and I’ll admit is what I also got confused about before joining the board!) is: who exactly is a member-owner? A member-owner is an individual. Although the benefits of being a member-owner, such as the physical co-op card, the weekly Member Deals in the store, and Co-op Connection discounts, extend to the member-owner’s household, a member-owner is one person only. This one person holds equity in the co-op in the form of the annual $20 membership payment, which accrues up to $300 in share purchases, at which point they have purchased a full share. This investment is also fully returnable if an individual decides to end their membership at the co-op for any reason.
While individuals within the member-owner’s household receive the discounts and benefits, the member-owner themselves is the only person who can vote on essential issues and elections. A member-owner can sell their shares to another when they join households; however, that individual is giving up their vote. For this reason, many individuals in long-term partnerships ultimately decide to keep their shares so both members of the household can vote. Furthermore, the person who is technically the shareholder in the household is the only one who can serve on the board.
Although it may seem simply like semantics, the term “member-owner” is enormously significant. Being a member is so much more than the discounts. As the MNFC website states: “Co-op membership is co-op ownership!” Unlike having a frequent buyer’s card at a pharmacy, or a membership to a gym, being a member-owner of the co-op means you own part of the business.
Each year, if the co-op has been profitable, member-owners receive a portion of the profits directly back. This is called the “patronage dividend” and member-owners receive these checks in July. Although it may seem like a mouthful, the term “member-owner” is what the co-op’s staff and board members use both because it is the most accurate, and because it reflects such an important sentiment. As a member-owner, you literally own the store and are part of a community of friends and owners. By being a member-owner of the co-op you are voting with your dollars and making a statement about the importance of community-owned businesses.
So is it worth it to be a member-owner? I’ve often seen people calculate how much they would need to spend at the co-op to “pay back” their membership fees through their patronage dividend. This is certainly an important question; however, it does not represent the full picture of what it means to be a member-owner. For me, voting with my dollars, and spending my money investing in a local and cooperatively owned business is a deeply meaningful use of my money.
Amanda Warren is the Middlebury Natural Foods Co-op Board President