Fiscal Year 2025 (FY25) ran July 1, 2024–June 29, 2025, and it was a profitable year. We had a profit of $579,723 before our allowance for income taxes. This profit allowed us to continue to operate on a sound financial basis, pay our staff a profit share (totaling $42,893), and to return a portion of the profit to Owners. We greatly appreciate your help in making it a successful year for your Co-op.Thank you!
Per Bylaw 6.5, your Board of Directors has voted to allocate part of the net income, or profit, as a patronage refund, a portion of which will be distributed as a store credit. On January 12th, the 17,194 Owners who have purchased at least $586.50 worth of eligible goods from the Co-op in the last fiscal year will receive a store credit. For every $1,000 spent, an Owner will receive $3.40 in store credit. For example, an Owner who spent $3,492 at the Co-op in the last fiscal year will receive a store credit of $11.87.
For those who have purchased less than $586.50, their patronage refund would have resulted in a store credit of less than $2. The cost of distributing store credits below $2 would exceed the store credit amount itself.
This year’s refund is a combination of 60% retained patronage equity, which is money held by the Co-op in each Owner’s name and the rest, 40%, is issued as a store credit. The retained 60% of the total refund that is retained is reinvested in the Co-op and helps to secure our long-term financial health. If at some point in the future the Co-op felt that it no longer needed the retained patronage equity, the Co-op could choose to pay it out to Owners.
Those who are being issued a store credit will receive an email or a letter in the mail between January 5th and 14th detailing your refund. Store credits will be available (for Owners receiving one) at staffed registers starting on January 12th; store credits cannot be used at self-checkouts. You may apply the credit towards a purchase, request cash back, or donate it to the Double Dollars Fund. All patronage store credits must be used by June 28, 2026.
FAQ
What were total Sales for FY25 and how much was profit?
In FY25, the Co-op had sales of $69,661,160 and profits of $579,723 before our allowance for income taxes.
Did you pay out quarterly profit share to staff in FY25?
Yes, FY25 Q3 profits qualified for profit share. The total profit share paid out for Q3 was $39,106. For staff who worked 40 hours per week in the quarter, the amount of profit share was $138 before income taxes.
What is the difference between net income and profit?
Nothing. Net income represents profits after expenses, so they are the same thing.
How many Owners will receive a store credit?
A total of 17,194 Owners will receive a store credit.
Do I have to buy something or can I just get my store credit as cash?
You can get your store credit as cash if you prefer! Just stop by our customer service desk and give them your Owner number, show your photo ID, and they’ll give you your store credit in cash.
Can I donate my store credit?
Yes—just let your cashier know that you’d like to donate it to Double Dollars.
Do I need to use all of my store credit at one time?
Yes, but you can choose the transaction you’d like to apply it to, as long as it’s by June 28, 2026.
How are my purchases recorded?
In order to record your purchase, the cashier asks for your Owner number. After entering the number, the cashier will confirm your name on the account. All merchandise on the transaction is then attributed to your Owner record by our register system.
What purchases don’t count toward my patronage refund?
- Cash donations of any kind (including CHIP donations)
- Classes
- Ticket sales
- Equity payments
- Gift card purchases
- Sushi
- Postage stamps
- Community space rentals
- Fees of any kind (including e-commerce fees)
Can I use my store credit at a self-checkout station?
No, you must check out with a cashier to use your store credit.
Can I use my store credit to purchase a gift card?
Yes you can use your patronage towards the purchase of a Willy Street Co-op gift card.
Can I use my store credit to buy groceries online?
At this time we’re not able to accommodate this.
What happens if I don’t use my credit?
By law, if your credit isn’t used by June 28, 2026, the Co-op must record the amount of your store credit and retained patronage equity as income and pay the necessary taxes on that amount; your refund is officially forfeited if this happens.
Do I have to pay income taxes on the patronage refund?
No, patronage 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.
Why did the Co-op decide on a $2 minimum for store credit distribution?
The Board and management agreed to set a minimum $2 store credit for this and future patronage refunds because the costs of distributing a store credit this small would exceed the store credit amount.
What can I do to make sure I receive my refund in years when it’s distributed?
To be informed of your refund and all cooperative news, it is important to keep your current mailing information up-to-date with us. If you have a refund due, the register system will alert the cashier. They will ask if you’d like to use the credit with that transaction, or save it to be used at a later date.
How did the Co-op determine what amount of Owner purchases justified a patronage refund?
The amount was calculated to both use the money the Board allocated for the patronage refund and ensure that all store credits would be at least $2. The costs associated with distributing a store credit smaller than $2 would cost more than the credit itself.
How does the Co-op determine how much of the patronage to pay out and how much to retain?
In years when the Co-op is profitable, we evaluate how much of our profits need to be retained to ensure our long term financial health. Some years 100% of the profits are needed to fund future growth and ensure our ongoing financial sustainability. In years where we determine we do not require maintaining 100% of our profits, we are required by IRS regulations to pay out at least 20% and can pay out 100%.
The specific amount paid out each year is determined in conjunction with our Finance Committee, Board of Directors, and our tax accountant. We take into consideration our future cash needs, potential projects related to our strategic plan, and the impact of the decision on our federal income tax liability.
