ABOUT CO-OPS

Cooperatives Are...

A cooperative is a business. Co-ops range in size from small store-fronts to large Fortune 500 companies. In many ways, they're like any other business; but in several important ways they're unique and different.

Cooperatives—

• Are owned and democratically controlled by their members-the people who use the co-op's services or buy its goods-not by outside investors; Co-op owners elect their board of director from within the membership.
• Return surplus revenues (income over expenses and investment) to owners proportionate to their use of the cooperative, not proportionate to their "investment" or ownership share.
• Are motivated not by profit, but by service-to meet their owners' needs for affordable and high quality goods or services;
  
• Exist solely to serve their owners.
• Pay taxes on income kept within the co-op for investment and reserves. Surplus revenues from the co-op are returned to individual owners who pay taxes on that income.
  

Cooperative Principles

Cooperatives follow seven internationally recognized principles:

    1. Voluntary and Open Membership
    2. Democratic Member Control
    3. Member Economic Participation
    4. Autonomy and Independence
    5. Education, Training and Information
    6. Cooperation Among Cooperatives
    7. Concern for Community

Why Co-ops Form

Co-ops are formed by their owners when the marketplace fails to provide needed goods or services at affordable prices and acceptable quality. Cooperatives empower people to improve their quality of life and enhance their economic opportunities through self-help. Throughout the world, cooperatives are providing co-op members with financial services, utilities, consumer goods, affordable housing, and other services that would otherwise not be available to them.

Serving Many Needs...

Cooperatives may be organized to provide just about any good or service such as:

• Business services, such as personnel and benefits management and group purchasing of goods and services
• Childcare
• Credit and personal financial services
• Employment
• Equipment, hardware and farm supplies
• Electricity, telephone, Internet and satellite and cable T.V. services
• Food and food services
• Funeral and memorial service planning
• Health care
• Health Insurance
• Housing
• Insurance
• Legal and professional services
• Marketing of agricultural and other products
  

For Everyone...

U.S. cooperatives serve some 120 million members, or 4 in 10 Americans. Worldwide, some 750,000 cooperatives serve 730 million members.

How to Start a Co-op

From the National Cooperative Business Association.