Sample Co-op Equity Statement - Co-op Creator

Early Stages

How to start a co-operative: a step-by-step guide Creating an action plan What is a steering committee, and what does it do? Choosing a business structure: A questionnaire How to name your co-op: a by-province guide Transitioning a Business to a Co-operative Co-operative Members and Governance Choosing a Co-op Type Hosting a Community Meeting Focusing Ideas for Your Co-operative Co-operative Business Model Comparison with Other Models Building Consensus

Incorporating

A Guide to writing Rules of Association in BC Guide to Writing a Financial Plan

A Guide to writing co-op bylaws in Manitoba

Guide to writing Bylaws in Saskatchewan

Guide to Federal Bylaws

Choosing a ‘Co-op Type’ and its Impact on Your Business Incorporating a co-op in Western Canada — a provincial comparison Incorporation time frame Articles and bylaws (video) Choosing a name (video) Why should you incorporate your co-op? (video) Shaping your Co-op’s Identity Incorporation Checklist

Business Planning

Do a PESTLE Analysis How to find new co-op members How to create a governance structure Creating a Preliminary Budget — A Guide Building a Business Model Canvas Risk Identification and Management Legal Risks for Co-op Start Ups Why create a business plan? (video) Roles and Responsibilities Business Planning Pitch Practice How to allocate your co-op’s profits Co-operative Members and Governance

Financing

How to handle share capital in a co-op Debt vs Equity (video) Tax Treatment of Co-operative Businesses Ongoing Capitalization Guide to Writing a Financial Plan Financing your Co-operative Business Budgeting and Co-operatives

Up and Running

Three AGM Resolutions Every Co-op Needs for their Annual General Meeting What you need to know for your first AGM How to Waive an Audit Sample Board Duties How to Build a Board Calendar How to write a Board of Directors’ Code of Conduct Write a compliance checklist How to issue dividends Creating a Terms of Reference Creating a Strategic Plan Creating a Human Resources Policy Free Online Governance Course Creating a Conflict of Interest Policy Board of Directors Evaluations Board Member Recruitment Board Decision-Making Exercise How to allocate your co-op’s profits

How to write a Board of Directors’ Code of Conduct Write a compliance checklist

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

Additional Resources

Goparity Pacific Economic Development Canada Co-ops and charitable status Prairies Economic Development Canada

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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.

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.
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.
A member’s allocation is the value of their share of the co-op’s profit that they’ve been allocated.
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.
A member’s total allocation is the total value of their share of the co-op’s profits.
A co-op will normally withhold a portion of a member’s allocation for taxes.
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.
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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Template Equity Statement