PATRONAGE REFUNDS
program
begins Jan 01, 2010
In 2009,
the Co-op’s owner-members voted to include in our
bylaws the possibility of extending Patronage
Refunds to Co-op owners.
This means that at the end of a year, if the Co-op has been profitable, and if the Board determines that we have made sufficient profit (after reserving some as a “rainy day” fund to protect the financial integrity of our business), the Board may vote to return some percentage to current Co-op owners in the form of a Patronage Refund. The Co-op would much prefer to return profits to our member-owners than to send it along to the IRS in the form of taxes!
To be eligible for a refund, you don’t have to be paid in full, but your membership must be current.
We’re not talking hundreds of dollars per person here – for most of us, the Patronage Refund will come out to be less than the price of a grocery trip. The easiest way for you to redeem your refund will be in the form of store credit, but we will also cut you a check, if you prefer.
The more you shop, the more you get back. If your purchases for the year equaled one percent of all purchases by Co-op owners, your share would be one percent of the Patronage Refund dollars. So, big shoppers who spend more will receive more back at the end of the year.
We’re putting the plan into action for 2010, which means if we have a good year of business, your first patronage refund will be available in the latter part of 2011. Patronage Refunds are NOT guaranteed – they are based on how profitable the business is in any given year. Our priority is to remain a viable and healthy business, and if we have a good year but not a great year, the Board may choose NOT to issue Patronage Refunds for that year, in order to retain capital for infrastructure improvements.
All Co-ops, including ours, are committed to having their owner-members share in their financial success. Co-ops are a powerful model of equality and fairness in today’s economy, and Patronage Refunds are an important example of that. When you join the Food Co-op as an owner, you wisely put your shopping dollars to work supporting a fairer economic system and a healthy food system, which will benefit you and your family immediately and in years to come.
If your refund amount is not large, you may think “I’ll just let the Co-op keep it -”; but if you don’t redeem your refund then that amount becomes taxable income and we must pay taxes on it. We hope that you will use your refund as store credit and we can keep that capital circulating among Co-op owners.
We want this process to go smoothly; here is how you can help:
• Stay current with your owner-share payments. Make sure your purchases count. We can’t update your membership at the Deli registers, but front cashiers can help.
• Make sure you are giving us your member number at the start of each transaction.
• Members of other co-ops: we’re happy to continue extending our pricing to you, but if you do the bulk of your shopping with us, now is a great time to become an owner-member here. Our cashiers can help walk you through this process, just ask!
• ATTENTION SENIOR MEMBERS: To qualify for Patronage Refunds, federal law requires that you become a PAYING OWNER-MEMBER of the Co-op, because patronage is payable ONLY TO OWNER-MEMBERS who make equity payments to the Co-op. Most seniors currently shopping at the Co-op receive complimentary member sale pricing solely as a benefit of their status as seniors, and are not currently required to make equity payments like regular members. BUT AFTER JANUARY 1, IF YOU WANT TO QUALIFY FOR PATRONAGE, WE NEED TO CHANGE YOUR STATUS IN OUR MEMBERSHIP COMPUTER, AND YOU WILL NEED TO BEGIN
MAKING EQUITY PAYMENTS AS A REGULAR OWNER-MEMBER (unless you have already previously paid in the full equity amount = $100).
If you want to qualify for Patronage in 2010 and beyond, please call the Co-op at 336-9777 as soon as possible in December, or fill out a form with any cashier next time you come in to shop. Once you notify us, we will then update your status to paying member and you’ll be all set for Patronage next year.
• EBT customers: again, we offer you complimentary owner pricing, but unless you are using your current member number during each transaction, it won’t count.
This means that at the end of a year, if the Co-op has been profitable, and if the Board determines that we have made sufficient profit (after reserving some as a “rainy day” fund to protect the financial integrity of our business), the Board may vote to return some percentage to current Co-op owners in the form of a Patronage Refund. The Co-op would much prefer to return profits to our member-owners than to send it along to the IRS in the form of taxes!
To be eligible for a refund, you don’t have to be paid in full, but your membership must be current.
We’re not talking hundreds of dollars per person here – for most of us, the Patronage Refund will come out to be less than the price of a grocery trip. The easiest way for you to redeem your refund will be in the form of store credit, but we will also cut you a check, if you prefer.
The more you shop, the more you get back. If your purchases for the year equaled one percent of all purchases by Co-op owners, your share would be one percent of the Patronage Refund dollars. So, big shoppers who spend more will receive more back at the end of the year.
We’re putting the plan into action for 2010, which means if we have a good year of business, your first patronage refund will be available in the latter part of 2011. Patronage Refunds are NOT guaranteed – they are based on how profitable the business is in any given year. Our priority is to remain a viable and healthy business, and if we have a good year but not a great year, the Board may choose NOT to issue Patronage Refunds for that year, in order to retain capital for infrastructure improvements.
All Co-ops, including ours, are committed to having their owner-members share in their financial success. Co-ops are a powerful model of equality and fairness in today’s economy, and Patronage Refunds are an important example of that. When you join the Food Co-op as an owner, you wisely put your shopping dollars to work supporting a fairer economic system and a healthy food system, which will benefit you and your family immediately and in years to come.
If your refund amount is not large, you may think “I’ll just let the Co-op keep it -”; but if you don’t redeem your refund then that amount becomes taxable income and we must pay taxes on it. We hope that you will use your refund as store credit and we can keep that capital circulating among Co-op owners.
We want this process to go smoothly; here is how you can help:
• Stay current with your owner-share payments. Make sure your purchases count. We can’t update your membership at the Deli registers, but front cashiers can help.
• Make sure you are giving us your member number at the start of each transaction.
• Members of other co-ops: we’re happy to continue extending our pricing to you, but if you do the bulk of your shopping with us, now is a great time to become an owner-member here. Our cashiers can help walk you through this process, just ask!
• ATTENTION SENIOR MEMBERS: To qualify for Patronage Refunds, federal law requires that you become a PAYING OWNER-MEMBER of the Co-op, because patronage is payable ONLY TO OWNER-MEMBERS who make equity payments to the Co-op. Most seniors currently shopping at the Co-op receive complimentary member sale pricing solely as a benefit of their status as seniors, and are not currently required to make equity payments like regular members. BUT AFTER JANUARY 1, IF YOU WANT TO QUALIFY FOR PATRONAGE, WE NEED TO CHANGE YOUR STATUS IN OUR MEMBERSHIP COMPUTER, AND YOU WILL NEED TO BEGIN
MAKING EQUITY PAYMENTS AS A REGULAR OWNER-MEMBER (unless you have already previously paid in the full equity amount = $100).
If you want to qualify for Patronage in 2010 and beyond, please call the Co-op at 336-9777 as soon as possible in December, or fill out a form with any cashier next time you come in to shop. Once you notify us, we will then update your status to paying member and you’ll be all set for Patronage next year.
• EBT customers: again, we offer you complimentary owner pricing, but unless you are using your current member number during each transaction, it won’t count.
