2021 Patronage Refunds
Patronage distribution for 2021 will end 10/15/2022. After this date, you will not be able to request your refund as a check or as a donation, however you will still be able to access your patronage as credit on your account.
The Board of Delegates declared that 30% of the profit made from member-owner purchases, $20,222.36, be distributed as a refund for 2021. If you have a question that has not been answered below, please contact Owner Services at ownership@mariposa.coop or 215-729-2121 x03.
Patronage Basics
What is a patronage refund?
Patronage refunds (or dividends) are the cooperative method of sharing a co-op’s earnings with its member-owners in profitable years. Your patronage refund is based on your total purchases for that particular year and the profit that the Co-op made on those purchases. This is why it is important to use your card or give your member-owner number to the cashier when you pay.
Distribution of a patronage refund lets member-owners share in the success of our community business. The reinvestment of some of these profits enables us to maintain the store that you love.
**A patronage refund is not your equity investment. Learn more about equity here.
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 Cooperative Executive Officer recommends a few options and the Board uses this information when making their decision.
Who qualifies for the patronage refund?
Member-owners who purchased $554 or more of retail products in 2021 are eligible to receive refunds. Total purchases below this amount yield a refund less than $2 and will be donated and not distributed. Equity payments are not included in patronage refund calculations. If you joined on or after January 1st, 2022 you will not be eligible to receive a 2021 refund.
How is patronage calculated?
At the end of the fiscal year, our Finance department determines how much profit the Co-op made and how much of that profit was generated by member-owners; this is the total member-owner patronage. The Board then decides how much of a refund to distribute from this pool, if any.
According to the IRS, at least 20% of the total patronage must be distributed to the member-owners when a refund has been declared. The Board may choose to retain up to 80% of the total patronage for projected capital expenses and other business needs. For 2021, the Board has made the decision to distribute 30%.
How Will I Receive And Redeem My Patronage Refund?
All qualified member-owners will be notified of their refund via email. Those who do not have an email on file will receive notice by mail.
New this year: Patronage refunds are considered redeemed as an automatic credit to Member-owner accounts. They do not expire. Member-owners can then request that this credit be used in the following ways:
As a credit toward a purchase at any time (If left on the account, these credits will not expire).
Toward their equity investment.
As cash (check). May take 5-7 days to process.
As a donation to an organization selected by the Education & Outreach Committee (EOC). This year, EOC has selected The Collective Courage Fund!
If you want to request a check or a donation instead of account credit, this must be done so by October 15th, 2022. After this date, patronage refunds will only be accessible as account credit.
Do I have to claim this as income on my tax return?
No. The IRS regards this as a refund, not income. If you are a business, you should consult the person who prepares your taxes.
