Fiscal Year 2023 (FY23) ran July 4, 2022-July 3, 2023, and was a profitable year. We had income of $482,093. This surplus allowed us to continue to operate on a sound financial basis, pay our staff a profit share (totaling $42,893), and now to return a portion of the profit to Owners. We greatly appreciate your help in making it a successful year for your Co-op!
Per bylaw 6.5, your Board of Directors has voted to allocate part of the surplus, or profit, as a patronage refund, a portion of which will be distributed as a store credit. On January 15th, the 16,828 Owners who have purchased at least $537 worth of eligible goods from the Co-op in the last fiscal year will receive a store credit. For every $1000 spent, an Owner will receive $3.72 in store credit. For example, an Owner who spent $4,225 at the Co-op in the last fiscal year will receive a store credit of $15.72.
This year’s refund is a combination of 55% retained patronage equity, which is money held by the Co-op in each Owner’s name and the rest, 45%, is issued as a store credit. The retained 55% 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.
For those who have purchased less than $537, their patronage refund would have resulted in a store credit of less than $2. The cost of distributing store credits below $2 would outweigh the benefits.
Those who are being issued a store credit will receive an email or a letter in the mail between January 8th and 14th detailing your refund. Store credits will be available (for Owners receiving one) at staffed registers starting on January 15th; store credits cannot be used at self-checkouts. You may apply the credit towards a purchase, request cash back, or donate it. All patronage store credits must be used by June 16, 2024.
FAQ
How much did the Co-op make last fiscal year in total and how much was profit?
Gross sales for FY23 were $62,516,920 and $482,093 of that was profit.
How many Owners will receive a store credit?
A total of 16,828 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 give a cashier 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 the Double Dollars Fund.
Do I need to use all of my store credit at one time?
Yes, but you can choose the transaction to which you’d like to apply it, as long as it’s by June 16, 2024.
How are my purchases recorded?
In order to record your purchase, the cashier asks—before each transaction—for your Owner number. They will then confirm your name on the account before ringing up your items. All merchandise rung through after that point is recorded by our register system.
What purchases don’t count toward my patronage refund?
Any Community Room class and rental fees, e-commerce fees, equity payments, gift card purchases, donations, newspapers, event tickets, bus passes, postage, and items sold at cost for community benefit.
Can I use my store credit at a self-checkout station?
No, you must check out with a cashier to use your store credit.
What happens if I don’t use my credit?
By law, if your credit isn’t used by June 16, 2024, 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 adviser.
Why did the Co-op decide on a $2 minimum for store credit distribution?
The Board and management agreed to apply a minimum $2 store credit as a cut-off point to this and future patronage refunds because the costs associated with distributing a store credit as small as this would outweigh the benefits.
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.