User-owner. The members own and use the cooperative; thus, they are responsible for the growth and development of the cooperative through adequate financing and patronage.
User-control. The members exert absolute control over the operations of the cooperative. They have decision-making privileges and the members themselves are elected as Board of Directors.
User-benefit. The members earn benefits from their actual use of the cooperative.
Patronage Refunds. The net earnings of the cooperative are returned and distributed to the members according to their use of the cooperative.
Limited Return on Equity Capital. While members receive earnings based on their use, cooperatives usually limit the returns they give to members who gave direct capital investment so as to promote patronage rather than monetary investments.
Cooperative Cooperation. Differentcooperatives usually collaborate to maximize the resources and services they offer to their members.
Cooperative Education. Cooperatives sponsor advocacy programs geared to educate both members and non-members of the importance of cooperatives to the community and to individuals.
Geographical characterization definesa cooperative’s size and scope ofoperations in reference to servingmembers.
Local. Small region covered, a barangay or so.Super local. Two or more provinces (branches).Regional. Numerous provinces or more.National (nationwide)International (worldwide)
Centralized Structure. In this structure, individuals are direct members. Cooperative Member Member Member
Federal Structure. In this structure, cooperatives and individuals are directed members. Cooperative Local Cooperative Member Member Member Member Member
Directly from Member. Members provide funds to the cooperative by payment of fees and contributions, capital investment and deposits, and deferred payment for the products they bring in to the cooperative.
From cooperative business surpluses. Not all cooperative earnings are returned to members, part of it is retained by the cooperative as capital and used to create and provide more business for the cooperative. In principle, cooperative business surpluses are still owned by members; collectively, that is. If and when the cooperative shuts down, these are then returned to the members.
From outsiders. Another important source of cooperative funds are the financial aids or grants, loans, and trade credits from banks, suppliers and government or donor agencies.