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 Shares, Dividends, and Patronage Refunds Explained

What are the different types of shares? Why are there different types?

Currently available share types are Creator, Affiliate, and Supporter. In the future we will announce Investor Shares as they become available. The different share types are tailored to the ways you might want to engage with the Coop — as a creator who wants to sell work, an affiliated business in a related field such as a bookstore or gallery, or a shopper looking for amazing finds and supporting homegrown talent and businesses. More details are available on the differences when you choose your membership. 

Do I have to buy a share to shop?

No, we welcome all shoppers! However, Supporting Membership gives you access to special programs and discounts and supports the Coop, benefitting everyone.

Will the Coop distribute patronage refunds to all members?

Decisions are up to the board, and it is our goal to make patronage refunds available to all members who shop or sell with us. The refund amount will depend on how much the member engages with the Coop.

While patronage refunds will mostly benefit shoppers and creators in the short term, if our affiliate members make purchases at the Coop they will receive patronage refunds like every other member. A future goal for the Coop is to set up a wholesale system for affiliates, and they may also receive dividends if and when the Coop issues them, depending on the Coop’s earnings (annual surplus).

So supporting members would pay an annual support fee that is different from purchasing a share?

Yes, a share purchase lasts forever, and makes the member a part owner of the Coop. The annual support fee is a donation, and may result in special benefits like discounts on purchases. For example, as a thank you for your annual support you might get coupons to use on your purchases. If you don’t make a donation in a given year you still get the benefits of owning a share (if you bought one) but you don’t get the other benefits – like coupons.

Would investors get both dividends and profit sharing? What is the difference?

Think of dividends on investment shares like earning interest on a loan. Issuing investment shares is a Coop board decision, as are the rate and other terms, and terms are announced in advance by the board. For example, the board may decide to issue investment shares with a $25,000 minimum purchase, an annual interest rate of 2.5% and a profit based dividend paid annually. All investment carries some risk of loss, so when the Coop is successful investors receive a share of the profit in the form of a dividend. No profit, no dividend, but, like on a loan, the interest would be paid profit or not. The BC Securities Commission sets some rules on investment shares, which may impact who can buy them.