Due to the financial strain the owner discount puts on our Co-op, Mariposa’s Board of Delegates and management team has made the decision to move toward patronage refunds and discontinue the owner discount.
Mariposa’s projected date to discontinue the owner discount at the register is June 1st. To learn more about this process, please attend the Owner Meeting on Saturday, March 25. Additional information sessions will be held Sunday, April 2 from 12:30 - 2:00 p.m. and Thursday, April 6 from 6:30 - 8:00 p.m. All meetings will be held at the Cedarworks at 4919 Pentridge Street.
What is a patronage dividend or refund?
Patronage dividends, or refunds, are the cooperative method of sharing a co-op’s earnings with its owners in profitable years. Your patronage dividend is based on your purchases for that particular year and the profit that the co-op made on those purchases.
Will I get a patronage refund every year and whose decision is it?
Patronage can only be distributed in profitable years and at the discretion of the Board of Delegates. Typically, the General Manager recommends a number of options and the Board uses this information when making their decision.
Who qualifies for the patronage dividend?
Owners who purchased retail products are eligible to receive dividends. Equity payments are not included in patronage dividends.
How is patronage calculated?
At the end of the fiscal year, after determining the amount of owner generated profit (based on the percentage of owners sales from total sales), the Board decides on a refund percentage to distribute, if any. According to the IRS, at least 20% of patronage must be distributed to the owners when a dividend has been declared (this is the “refund”). The Board may choose to retain up to 80% of the patronage dividend for projected capital expenses and other business needs.