2022/2023 Patronage Information:
The first full two years in our expanded space have brought great support from our owners and the greater community surrounding our cooperative. Our sales are strong, but this year we faced some challenges. To lessen the impact of inflation and keep prices low for you, we avoided widespread price increases, which had a negative impact on our profit margins. Additionally, we increased the wages of our staff in appreciation of their hard work and to help with higher living costs that we’re all experiencing. This year we also started paying back a loan from our expansion.
Unfortunately, all this led to our first loss in over eight years. This means that we will not be paying out patronage dividends for the fiscal year which ended on June 30, 2023.
Despite this, we’re optimistic about the future. Our sales are even stronger this year, and inflation is slowing down. The recent holiday season was our busiest ever in our short history, and we’ve been tightening up store expenses to get back on track.
Thank you for shopping with us.We look forward to seeing you around the co-op! Please contact the Board or General Manager if you have any questions.
Find Our 2022/2023 Financials Here.
Frequently Asked Questions
What is a Patronage Dividend?
When Co-ops make a profit, the Board may vote to declare a percentage of the surplus to the Owners. The profit is allocated in direct proportion to a co-op Owner’s purchases in that fiscal year and the allocation is called a “Patronage Dividend.” Simply put– the more you shop, the more you receive.
Why does the Co-op sometimes retain a percentage of the Patronage Dividend?
A percentage of the Patronage Dividend is retained and used by the Co-op to operate, to grow, and to achieve our Ends Policy. With the help of the retained earnings, the co-op repaid our start-up debt.
What will influence the potential amount of my Patronage Dividend in future years?
Your dividend is related to how much you shop at the Co-op, how successful we are as a business, and the expenses we face in a given year. The more successful we are, and the more you contribute to that success, the more you could get refunded. Please be sure to present your owner card, or give the cashier your last name, so your purchases can be rung up under your account.
How are my purchases recorded?
In order to record your purchase, present your owner card to the cashier. All merchandise rung through under your account is recorded by our point-of-sale system.
Do I have to pay income taxes on my patronage dividend refund?
Patronage dividend refunds are not taxable income unless your purchases were for purposes other than personal use. If this is the case for you, please consult your tax advisor.
What are the advantages of patronage dividends?
1. Patronage dividends are a fiscally responsible way to manage the co-op’s profits—patronage dividends are disbursed at the end of the year only after the co-op knows it made a profit.
2. Retaining a portion of patronage dividends enables the co-op to prioritize saving for the future by funding capital improvements out of co-op profits instead of relying on outside debt.
3. Refund of patronage dividends to Owners allows a portion of profits to be reinvested in the co-op tax-free. This is a significant tax advantage because the co-op doesn’t pay tax on profit allocated to patronage dividends.
Have more questions about our food coop? Please e-mail info@friendlycity.coop
