2023 Patronage Dividends

When a cooperative realizes a profit, it is allowed to return a portion of that profit back to the membership and therefore reduce its tax obligation. As a young co-op with a significant amount of start-up debt, we were unable to do this for our first few years. That changed when we issued our first patronage dividends last year. We are thrilled to announce that 2022 was another profitable year for our Co-op and we can issue patronage dividends again this fall.

Letter from John Crane, General Manager

Dear Portland Food Co-op Member-Owner,

Thank you for your continued support of the Co-op! In 2022 our Co-op was able to achieve financial success by realizing a net income of $109,063.

Patronage dividends represent a return of surplus net income to Member-Owners based proportionately on how much each Member-Owner purchased throughout that year. IRS regulations state if the Board of Directors decides to distribute a portion of this surplus, then taxes on the entirety of net income from Member-Owner purchases are forgiven, provided the Co-op distributes at least 20%. This allows the Co-op to return a portion of net income to Member-Owners while reinvesting the balance in operating capital.

For this year, the Board of Directors has agreed to distribute 20% of this income to Member-Owners in proportion to their purchases, totaling $16,710 to split among 3,899 purchasing Member-Owners. The deferred $66,838 is retained by the Co-op and used to make ongoing capital improvements, ensure sufficient liquidity to enable operations, and maintain sufficient funding to pay down short- and long-term debt. This dividend is not taxable income to you.

Thank you for your ongoing support of our Co-op. We truly are stronger together.

In Cooperation,
John Crane
General Manager

Important Points

This year’s dividends range from a few cents to around $75, depending on how much you purchased from the Co-op in 2022.

All dividends have been applied as store credit to your Member-Owner account. The next time you shop, you can simply ask to have your dividend amount applied to your purchase. (It does not need to be used all at once.)

Dividend amounts over $5 can be redeemed via a check instead of store credit. Email john.crane@portlandfood.coop if you would like to do this.

Dividend amounts are calculated only on purchases made in 2022.

All dividends have been applied to your MO account. The next time you shop, you can simply ask to have your dividend amount applied to your purchase. (It does not need to be used all at once)

Dividend amounts over $5 can be redeemed via a check instead of store credit. Email john.crane@portlandfood.coop if you would like to do this.

CURIOUS ABOUT YOUR DIVIDEND?

Curious about how much of a dividend you might have earned? Here is a very basic guide based on how much you purchased from the Co-op in 2022

• Under $500 = $2 or less

• Under $5000 = up to $20

• Over $5000 = up to $75.00

DEADLINE FOR CLAIMING

You have until December 27, 2023 to claim your dividend. Dividends not claimed by December 27, 2023, will be donated to the Cooperative Maine Business Alliance to support their work in developing Maine’s cooperative economy.