Go.Coop

How can I distinguish a co-op from other organizations?
A co-op is a business, usually incorporated, that sells goods and services. It is not a charitable organization or a social service agency.

Who benefits from the co-op's existence?
A co-op exists primarily for the benefit of its members. Many co-ops also support other parts of the community through various programs and philanthropic activities as part of their commitment to cooperative values and principles.

Who controls a co-op?
In a cooperative, members democratically control the direction of the business. In most co-ops each member gets one vote. Members elect a board of directors to monitor the business, set goals and hire management to operate their business. Ultimately, the board is accountable to the members for its decisions.

What motivates people to form a co-op?
In private or stockholder-owned businesses, individuals invest to earn a financial return. In a co-op, individuals are motivated by a shared need for certain products or services. By joining together, members gain access to products, services or markets not otherwise available to them. In other words, when forming a co-op members are motivated to become co-owners of the business primarily so that their mutual needs can be met. And co-ops return financial gains to their members, whether through discounts, lower costs or patronage refunds. People join existing co-ops for a variety of reasons. Whether it is the commitment to community, the democratic approach to business, the desire to be part of a business that is locally owned or something else "uniquely co-op" that appeals, anyone can join a cooperative!

Sole Proprietorship/Partnership
A business owned by one or more people, usually to provide employment and a return on investment to the owners. Local examples include restaurants, bakeries, and bookstores.

Investor-Owned Corporation
A business whose stock is traded publicly by any number of investors. Examples include Safeway, Whole Foods, Starbucks, Microsoft, and General Motors.

Cooperative
A member-owned and member-controlled business that operates for the mutual benefit of all members. Examples include your local food co-op, a local housing or child care co-op, Group Health Cooperative, and any credit union. The cooperative form of business is one that brings the owners, controllers, and users of a business together into one group.

Facts:

• About 30 percent of farmers' products are marketed through co-ops and there are more than 3,000 farmer-owned cooperatives in the U.S.
• Almost 10,000 credit unions provide financial services to approximately 84 million members.
• Nearly 1,000 rural electric co-ops operate more than half of the nation's electric distribution lines and provide electricity to more than 37 million people.
• More than 50 million people are served by insurance companies owned by or closely affiliated with co-ops.
• Food co-ops have been innovators in the areas of unit pricing, consumer protection, organic and bulk foods, and nutritional labeling.
• In total, 47,000 co-ops in the United States serve 130 million people — 43 percent of the U.S. population.
• More than 50,000 families in the U.S. use cooperative day care centers, giving co-ops a crucial role in the care of our children.
• Two million U.S. households receive telephone service from telephone cooperatives across the country.
• More than 6,400 housing cooperatives exist in the U.S., providing 1.5 million homes.
• The .coop web address extension has been adopted by over 3,000 co-ops and while many cooperatives may use .com or other domain extensions, when you see .coop, you can be sure that it's a cooperative. For more information, visit www.coop.
• How do co-ops impact the economy? Check out the Hoffer Report (summary) to see the impact co-ops have in Northwestern New England.