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For Boards of Directors Templates for Boards A Guide to Co-operative Insurance How to Read Financial Statements Keeping track of members in a co-op Everything you need to know about managing records Board Governance Tips for Indigenous Co-operatives Sample Bookkeeper Contract How to write a Board of Directors’ Code of Conduct  Write a compliance checklist How to issue dividends Sample Co-op Equity Statement Member Engagement and Onboarding Guidelines for co-operative elections Filing your Annual Return Co-operative Annual General Meetings Ongoing Capitalization How to allocate your co-op’s profits

Sample Co-op Equity Statement

If your co-op shares its profits with your members, you should also provide members with an equity statement. An equity statement will set out a member’s share of annual profits, the portion being retained by the co-op, the cash they’ll receive, and the equity they build up over time.    

If your co-op has multiple lines of business or different ways for the members to use the co-op, you should identify those on the statement.  

  1. The purchases/contributions are the business the member has done with the co-op. In this example, the members both purchase supplies from the co-op and contribute produce to the co-op.  
  2. A member’s return is determined annually by the board to calculate patronage dividends. A return is usually calculated as a percentage of business done with the co-op during the co-op’s fiscal year.  
  3. A member’s allocation is the value of their share of the co-op’s profit that they’ve been allocated.  
  4. This is the member’s equity/interest in the co-op as of the beginning of the fiscal year. This amount reflects their initial investment as a member and the portion of their allocations that have been retained by the co-op in past years. 
  5. A member’s total allocation is the total value of their share of the co-op’s profits.  
  6. A co-op will normally withhold a portion of a member’s allocation for taxes.  
  7. Co-ops will normally issue a cheque to members for part of their allocation. Other co-ops, like worker co-ops, may be set up with direct deposit and can deposit member allocations into their chequing accounts. The board will determine the proportion of a member’s allocation the co-op will issue to them via cheque, and the proportion the co-op has retained in the member’s name.  
  8. This is the member’s equity/interest in the co-op at the end of the fiscal year. In this example, the co-op retained a portion of the member’s allocation in the member’s name, increasing the member’s total equity. 
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