WHAT IS A CO-OP?

The cooperative is formed because of the recognition by persons that as individuals they cannot achieve their economic or social goals by working separately. Only by “group-action” and through cooperation, will they be able to achieve common objectives.

Members who use the cooperative own the co-op. Cooperatives are democratically controlled in that a person owning at minimum, one share of stock is entitled to one vote during member meetings.

Members finance the cooperative in a variety of ways. Each cooperative determines how the enterprise will be financed. Risk is limited to how much money a member has put into the business.

Members benefit from the cooperative based on the amount they use the co-op. All or a portion of the co-op’s profits may be distributed proportionately, based on the member’s use, or patronage, of the co-op.

In summary, a cooperative is an “autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise.” International Cooperative Alliance, Statement of Cooperative Identity.