How does the new patronage dividend system work?
At the end of each year, the Co-op’s Board of Directors will decide if the Co-op has a net distributable surplus (this term is explained more fully in Article 8 of the proposed by-laws) to distribute to its members as a patronage dividend. If yes, individual members will be paid a portion of the total dividends earned based on their patronage, or total amount spent, for that year at the Co-op. Depending on the Co-op’s capital needs, the board may decide to retain up to 80% of the available patronage dividend to reinvest for capital improvements in the Co-op such as facility upgrades or equipment purchases. The retained patronage dividend is held in the member’s ownership account and belongs to the member but is reinvested in the Co-op for capital improvements. Over the years, as new retained patronage accumulates, the board will, if Co-op finances allow, pay out retained patronage from previous years to the members. The Co-op may defer payments of this retained patronage dividend for u
