South Philly Food Co-op
Resolution Regarding Fiscal Benefits to Member-Ownership
WHEREAS article 5.1 of the South Philly Food Co-op bylaws grants the Board of Directors the power and duty to direct and oversee the management of the Co-op, establishing written policies and procedures;
WHEREAS the Board of Directors wishes to offer its member-ownership greater clarity regarding the mutually beneficial financial relationship between member-owners and the South Philly Food Co-op;
WHEREAS trends in the food co-op field suggest that co-ops should adopt patronage refund models and, if desired, occasional and flexible (rather than standing) discounts for its member-owners;
NOW, THEREFORE, BE IT RESOLVED that the Board intends for the South Philly Food Co-op to offer its member-ownership fiscal benefits through patronage refunds and through flexible (rather than standing) in-store discounts.
In a patronage refunds model, the Board of Directors will approve a certain percentage of profits (in years the Co-op is profitable) to return to the Co-op’s member-owner households, proportional to what they have spent in the store since the previous refund. The Board reserves the right to choose not to allocate a refund and instead retain the capital for expansion or development opportunities in service to the member-ownership.
Flexible in-store discount options include member-owner appreciation days, special prices on selected products, coupons, special orders, case discounts, and more. The General Manager will be responsible for implementing the in-store discount program(s) for member-owners, with support and oversight from the Board of Directors.
The South Philly Food Co-op Board of Directors is permitted to null or modify the terms of this resolution at any point in time.