What's
a co-op?
Cooperatives
are businesses-be it food, housing, or agriculture-that
exist to benefit the people that work, live, or shop in them.
Profits from business or housing cooperatives aren't siphoned
off to a single outside owner, but reinvested in the community
they came from, serving their own members economically, socially,
and educationally. In Minnesota, cooperatives are incorporated
under MN statute 308A.
Cooperatives
are community-builders. People often shop at, live
in, or work for cooperatives because co-ops make a special
effort to be active participants in improving the lives of
neighborhood families.
Cooperatives
are democracies. All co-op members have a voice
in making decisions about what direction the enterprise takes.
In this way, members gain valuable skills in governance, finance,
management, and more.
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How
do co-ops work?
Cooperatives are
usually made up of the general membership, committees, and
the board of directors.
The General
Membership makes the biggest decisions, such as
electing the Board, setting the rules and bylaws for the cooperative,
and authorizing large expenditures.
The Board
of Directors makes daily operational decisions,
manages the budget, handles emergencies-the Board cannot make
big decisions without approval from the General Membership.
The Board can establish
Committees to research and handle specific
issues that arise within the co-op.
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Different
kinds of co-ops
There are many different
types of cooperatives with roughly this structure, and each
benefit their members and communities in unique ways:
Housing
co-ops give people with low to moderate income the
opportunity to own their own homes and exert influence over
their living conditions, building skills in governance, management
and finance.
Producer
co-ops provide income opportunities for small farmers
and help increase their leverage in the marketplace. Many
of these farmers grow and market organic products that promote
a healthier work environment for farm workers. In addition,
they practice a more sustainable approach to land use and
create more options for consumers. Hundreds of small farmers
across the Midwest are NCDF producer co-ops.
Consumer
co-ops sell a wide variety of affordably-priced products
and services with all profits shared equitably among consumer
members. The majority of NCDF's consumer co-op members are
natural foods co-ops that sell fresh, wholesome, minimally-processed
and certified organic foods.
Worker co-ops
create or maintain employment and provide workers
with ownership and governance opportunities seldom available
in conventional business settings. Worker-owners of NCDF co-ops
include bakers, food warehouse workers, cab drivers and construction
workers.
Land co-ops
allow rural residents the opportunity to share scarce resources
through the shared ownership of land. NCDF members have also
used land co-ops to purchase and preserve vital river frontage,
woodlands, and wetlands, maintaining these resources for the
benefit of future generations.
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International
Principles of Cooperation
These principles
are defined by the International Cooperative Alliance (ICA)
as qualities that every cooperative should have. The following
is a revised list of the Intenational Principles of Cooperation:
1. Voluntary
and Open Membership
Everyone
who is able to use their services and willing to accept
the responsibilities of membership can join a co-op--no
one is excluded, and one can leave the co-op without
consequences. Co-ops don't discriminate based on gender,
social, racial, political or religious factors.
2. Democratic
Member Control
Members set policies and make decisions, and men and
women serving as elected representatives are always
accountable to the membership.
3.
Member Economic Participation
Members contribute to the cooperative financially--even
if it's a small amount. Members also democratically
control what happens to the money in the budget.
4. Autonomy
and Independence
Cooperatives are autonomous, self-help organizations
controlled by their members.
5.
Education, Training & Information
Cooperatives
educate and train their members, elected representatives,
managers and employees so they can contribute effectively
to the development of their cooperatives.
6. Cooperation
Among Cooperatives
Cooperatives
serve their members most effectively and strengthen
the cooperative movement by working together through
local, regional, national and international structures.
7. Concern
for the Community
Cooperatives
try to improve their communities by setting policies
that benefit the neighborhood at large.
Revised
from the International Cooperative Alliance (ICA)
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Where
else can I learn about cooperatives?
There are many cooperative
organizations and cooperative education programs in the Midwest:
Cooperative
Support Organizations
Cooperative
Housing
Credit
Unions
|
|
Student
Cooperatives
Cooperatives
and Community Development Lending
Natural
Foods Cooperatives
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