About Co-ops
The following information is borrowed from the Canadian Co-operative Association website.
What is a Co-op?
Co-operatives are business organizations owned by the members who use their services. Control rests equally with all members ("one member, one vote") and surplus earnings are shared by members in proportion to the degree they use the services. Co-ops are structured in a democratic way that allows members to have a say in their actions.
The members elect the board of directors and decide what should be done with any surplus that is generated in the co-op. The members of the co-op are people, or groups of people, who use and need the services and products a co-operative provides. If the co-op is created to provide work, the workers are the member-owners. If the co-op is created to purchase goods and services, the consumers (buyers) are the members. Co-ops can be either for-profit or not-for-profit enterprises.
In Canada, most co-ops in the healthcare, childcare and housing sectors are not-for-profit co-ops. While some co-ops (such as family housing co-ops) receive some government funding, co-operatives are NOT government organizations. Co-ops are community initiated organizations and businesses.
What are the different types of Co-ops?
Co-ops exist in almost every sector of the economy -- in agriculture; retail/wholesale; healthcare; childcare; housing; transportation; communications; food and restaurant; insurance; finance, forestry and fishing. A "supply" co-operative makes various kinds of merchandise available to the members (such as animal feed, farm machinery, petroleum and building materials).
A "service" co-operative provides services to the members, such as healthcare, housing or childcare. A "marketing" co-operative is organized by producers, such as grain, dairy, or livestock farmers, to sell their products. A "financial" co-operative, such as a credit union, provides financial services to the members. A "consumer" co-op can be either a retail or a wholesale co-op. A retail co-op sells products or services to the members, such as a food or mountain equipment co-op. A wholesale co-op distributes products to the retail co-op. A "worker" co-op provides employment and the workers are the member-owners. Worker co-ops are found in many sectors, such as forestry, printing and publishing.
How are Co-ops structured?
Co-operatives are organized so that the members control the organization. The structure enables members to elect the board of directors. Members may also run for the board. The board hires the manager(s). The manager hires the staff. In co-operatives, the board is responsible to the members -- the people who need and use the co-op's services.
How can a Co-op help my community?
Co-ops are a way for communities to exercise control over the economic, social and cultural activities that affect the lives of community members. Establishing co-operatives and credit unions in communities (or for a community of people) is a powerful and democratic way to put decision-making in the hands of those who need and use the services. Co-ops and credit unions are directed locally and invested in locally. The surplus profits of the co-op are returned to the members and, therefore, remain within the community.