Cooperative Disaster Relief Fund
Your financial assistance is needed to aid cooperatives affected by the destruciton hand of mother nature this past spring.
At this time Northcountry and the Cooperative Grocers' Information Network of the
National Cooperative Grocers Assoiation are taking
donations for the Cooperative Distater Relief Fund.
Above you will find a link to donate electronically via PayPal or if you prefer make checks payable to:
Northcountry – Co-op Disaster Relief
219 Main Street SE, Suite 500
Minneapolis, MN. 55414
What is the Cooperative Disaster Relief Fund and why was it started?
The Cooperative Disaster Relief Fund (CDRF) was started in 1997 in response to the tremendous flooding of the Red River Valley of the North that damaged and destroyed many homes and businesses. Among those affected was the Amazing Grains food cooperative in Grand Forks, N.D., which sustained extensive damage. Fortunately for the folks at Amazing Grains, cooperators from around the country gathered for the annual Consumer Cooperative Managers Association (CCMA) conference shortly after the great flood. A lunchtime appeal was made for assistance and co-ops from all around the country raised more than $8,000 for the Grand Forks store in less than three minutes. A later appeal by mail more than doubled that figure, and the funds raised allowed the co-op to rebuild and rise from the disaster better and stronger than before.
Luckily for Amazing Grains, the CCMA conference was held right after the worst of the floods and many people attending the conference were familiar with the disaster through the extensive news coverage of the event. Cooperators were able to respond quickly to an emergency situation. Recognizing that not every victim of natural disaster would be quite so fortunate in terms of timing and television coverage, the CDRF was established by the cooperative community as a permanent ongoing fund to be used solely for disaster relief for any food cooperative in need at any time.
In 2008, we found renewed interest in the CDRF after early summer floods devastated parts of Iowa, Wisconsin and other states. And, because of the widespread damage, the CDRF was expanded to offer help to organic or sustainable family farmers in addition to food cooperatives.
What kinds of disasters are covered by the CDRF?
The CDRF was established to respond to damage caused by natural disaster (flood, tornado, hurricane, earthquake etc.) of a type not generally covered by conventional business insurance. It is not designed to serve as a replacement for adequate business insurance.
How much money does the CDRF have, and how much is given away?
The CDRF began with a goal of maintaining an ongoing fund with a minimum balance of $20,000. Because so many food cooperatives and organic or sustainable family farmers were devastated in 2008, CDRF will limit the dollar amount to $5,000 per applicant (or half the fund’s assets, whichever is less).
What kinds of expenses can be covered?
Fund grants may be used to pay for clean-up, repair or replace damaged equipment or rebuild facilities. Funds may also be used for damage and loss of saleable products, loan and mortgage payments and testing for contaminants from runoff. Other uses for funds may be proposed by applicants in their application letter. CDRF money cannot be used to replace income from lost sales or other uses of a speculative nature.
Can any food co-op or farmer apply for a grant? What about non-co-ops?
The CDRF is intended for use by food cooperatives across the country working in the natural or organic foods industry. Applicants may be consumer, producer, worker, or secondary cooperatives. In addition to food cooperatives, the Fund has added assistance to organic or sustainable family farmers for 2008 as many of these producers also suffered major losses.
Priority for grants is given to smaller cooperatives or family farmers, or those with otherwise limited assets. Non-cooperatives may apply for funding only if the organization essentially operates on a cooperative basis by incorporating the essential elements of cooperation in its governance structure.
A co-op or farmer does not have to be a contributor to the Fund in order to apply for and receive a grant from the CDRF.
Who makes the decisions for funding?
The CDRF trustees are responsible for generating funding guidelines and for making all funding decisions. The financial need of the applicant and the relative impact of the disaster on its continued operations are key criteria for funding decisions. All decisions of the trustees are final.
If my co-op is a contributor to the CDRF, are we guaranteed of getting our money back should our co-op ever suffer a disaster?
No. The CDRF is not an insurance pool. Any co-op, contributor or not, may apply and receive a grant. Funding decisions are based on the nature of the disaster and the need of the applicant. Contributor status is not a factor in awarding grants. The goal, however, is to build the Fund to such a size that every co-op in need would receive funding. The amount of money awarded each year will be a function of both the amount of money in the CDRF and the number of requests we receive.
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