Patronage rebates are one of the great things about co-ops. Member-owners shop at the co-op. At the end of the year we divide up the profits and give them back to those member-owners. Checks are relative to your purchases - big shoppers receive larger checks.
Keep reading to learn more about the rebate and why you need to cash your check by March 30th!
In December the Board of Directors reviewed our financial reporting for fiscal year 2011 and declared a patronage rebate of $313,186. We are excited to be issuing a rebate to the more than 8,000 member-owners who were active shoppers at the co-op between July 1, 2010 and June 30, 2011.
Patronage rebates are considered the most equitable and fiscally responsible way to distribute co-op profits to the membership. If the co-op finishes the year with a profit, the surplus can be distributed among members proportional to their individual purchases. In this way, each member receives their portion of the profit. Using your member number when you shop is thus important: your transaction totals are recorded, and at the end of the year we determine your total purchase amount and your proportional share of the profits.
Federal tax code allows the cooperative to retain up to 80% of a declared patronage rebate as a means of reinvesting capital into the business. By reinvesting in a sustainable way in ourselves, we strengthen our cooperative and our community. For fiscal year 2011, the Board has elected to retain 70% of the total amount declared. Each member-owner will receive a check equal to 30% of their share of the rebate, with the exception of those whose check would be less than $5. Due to the administrative costs associated with the check processing, a minimum check amount of $5 has been set. For those member-owners with a rebate check of less than $5, the co-op will retain the equity in an account in their name. The Board may decide, at some point in the future, to return some or all of our retained patronage, and may choose to include these funds at that time.
Patronage rebates mean tax benefits for the co-op, but only if the rebate checks are cashed. If a member-owner does not cash his or her check, current tax code requires that the co-op pay taxes on both the distributed and retained portions of that member’s rebate. The code further requires that these checks be cashed by the end of the fiscal year, June 30, 2012 in order for the co-op to enjoy the tax benefit. Any of our cashiers will be happy to accept your check the next time you are in one of our stores.
In the past we have had member-owners who wished to donate their portion of the rebate back to the co-op. The Bloomingfoods Cooperative Community Fund (BCCF) is an endowment fund that was established to help us improve our ability to give back to the community. You can donate your rebate to that fund simply by bringing your rebate check into the store with you when you shop. Our cashiers will be happy to help you make a contribution to the BCCF.
We are pleased to be in a strong financial position and able to issue a rebate. Thank you for your contribution to the success of the co-op.
It is once again time to recognize and honor a Bloomingfoods member-owner, staff member (past or present), or board member (past or present) by awarding them the Bill Krejci Memorial Cooperative Service Award.
Bill was a pivotal figure in the history of Bloomingfoods, devoting many years of service to our co-op through multiple terms on our board of directors, as a staff member responsible for implementing many needed operational improvements, and even as a vendor, helping strengthen our regional economy.
We’re happy to announce a new community partnership with Indiana University’s Friends of Art Bookshop. Nestled within the School of Fine Arts, the shop boasts a one of a kind book selection, as well as art supplies, posters, calendars, paper goods and handmade gifts. From rare art books to Moleskine journals, the Bookshop offers an opportunity for academic and artistic growth for all.
As a non-profit, the mission of Friends of Art is to support the School of Fine Arts and its students through fundraising, education, and social engagement in the wider community. Every year, they provide over $30,000 in scholarships and grants for students, as well as funding for the Fine Arts Library, the Grunwald Gallery of Art, and student organizations. Support the arts next time you’re on campus and enjoy the 10% discount for Bloomingfoods member-owners!
Located at 1201 E. 7th St, Room 125. Academic year hours are: Monday – Thursday, 9am to 6pm; Friday, 9am to 5pm (later if there is a Grunwald Gallery opening), Saturday – Sunday, 1pm to 5pm. (Reduced hours during summer and University breaks.) Visitor parking is available in the Jordan Ave. garage or the Indiana Memorial Union lot.