Tracking & Communicating Co-op Impact
•
1 like•377 views
Since 2008, the NFCA has worked with Member Co-ops to measure our shared impact on the regional food system and economy. Why do these numbers matter? Dami Odetola (National Cooperative Bank), Erbin Crowell, and Bonnie Hudspeth (Neighboring Food Co-op Association) share their perspectives on how can our food co-ops can work together to communicate the Co-operative Difference in a competitive marketplace, and the important role of finance department staff in supporting our shared success.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Tracking & Communicating Co-op Impact
Similar to Tracking & Communicating Co-op Impact (20)
More from NFCACoops
More from NFCACoops (20)
Recently uploaded
Recently uploaded (20)
Tracking & Communicating Co-op Impact
- 1. 27 October 2017 R.W. Black Center Hanover, NH NFCA PEER FINANCE DEPARTMENT TRAINING
- 3. Since 2008, the NFCA has worked with Member Co-ops to measure our shared impact on the regional food system and economy. Why do these numbers matter? Our speakers will share their perspectives on how can our food co-ops can work together communicate the Co- operative Difference in a competitive marketplace and the important role of finance department staff in supporting our shared success. MEASURING OUR SHARED IMPACT NFCA Peer Finance Department Training 2017
- 4. Dami Odetola Vice President National Cooperative Bank Erbin Crowell Executive Director Neighboring Food Co-ops Bonnie Hudspeth Member Programs Manager Neighboring Food Co-0ps NFCA Peer Finance Department Training 2017 WHO WE ARE
- 5. • NCB delivers banking and financial services to cooperative organizations complemented by a special focus on cooperative expansion and economic development • Organized under the National Consumer Cooperative Bank Act in 1978; privatized in 1981 as a cooperative financial services company • In 1988, expanded to a full-service, deposit-taking financial institution with the purchase of the federally chartered savings bank, NCB, FSB • In 2014 converted NCB,FSB to a commercial charter- National Cooperative Bank, N.A. to expand our commercial lending products nationwide. • Today owned by over 3,100 customers, participating in the success of NCB • Total assets of $2.3 billion; when combined with assets managed for investors, total assets under management over $7.5 billion The NCB Story
- 7. Tracking Your Impact Matters to NCB • Performance – Enables us to review and approve your financing request – Provides a complete picture of the co-op and your community – Looking beyond the numbers • Demonstrates knowledge of the local community that the co-op operates in and their ability to implement change/programs • Self evaluation ala projections • Shared platforms – Build bridges based on similar experiences
- 8. Tracking Your Impact Matters to NCB • Mission – To enable NCB to meet our mission and commitment to our members • Advocacy – Having impact numbers is critical for change • Recent passage of the SBA loan guarantee • Shared Audience – While we are in different sectors- Our audiences are the same • Cross Sectoral Opportunities
- 9. 2016 Community Impact in Low-Moderate Income Communities • $256 million in loans and grants to serve low and moderate income communities nationwide • 12 solar energy projects providing 105.7 MW of power • 165 new jobs created • $30.6 million for 254 unit owners • 45 affordable housing communities totaling 5,548 units • 13.4 million square feet financed • $1.7 million in investments and grants
- 10. ¡Peer to Peer Collaboration § Gatherings, Department Trainings ¡Organizational Partnerships § Cooperative Fund of New England, New England Farmers Union, Associated Buyers ¡Regional Sourcing § Cave to Co-op, Farm to Freezer ¡Marketing & Education § Press, Advertising, Curriculum § Communicating Shared Impact NFCA Peer Finance Department Training 2017 NEIGHBORING FOOD CO-OPS: WHAT WE DO
- 11. 2004: Informal Networking § Brattleboro Food Co-op 100 year vision & dialog 2007: Shared Visioning § NCG, CFNE participation § “Middlebury Manifesto” 2008: Measuring Impact § 2020 scenario planning § Economic impact study 2010: Hired Staff to Enact Vision NFCA Peer Finance Department Training 2017 THE NEIGHBORING FOOD CO-OP ASSOCIATION
- 12. In 2007… ¡17 food co-ops ¡64,000 members ¡1,240 staff ¡$28.6M wages ¡$161M shared revenue ¡$33M local purchases ¡In the face of increasing competition, how can we use impact data to better communicate the Co-op Difference? NFCA Peer Finance Department Training 2017 HOFFER STUDY 2008
- 13. The Neighboring Food Co-op Association (NFCA) is a federation of over 35 food co-ops and start-up initiatives across New England and New York that are working together toward a shared vision of a thriving co- operative economy, rooted in a healthy, just and sustainable food system and a vibrant community of co-operative enterprise. How do we measure our impact on this vision? ¡Shared Revenue ¡Members & Growth ¡Discounts & Patronage ¡Mission-Based Purchases ¡Employees & Compensation ¡Food Security & Economic Inclusion ¡Community Infrastructure NFCA Peer Finance Department Training 2017 VISION TO IMPACT
- 14. A CONVENTIONAL FINANCIAL ANALYSIS INCOME EXPENSE PROFIT The primary purpose of a conventional retailer is to generate profit — the difference between income and expenses — for its owner or owners. Income is generated by the purchase of goods and services from the business by consumers. Expenses are seen primarily as something to be minimized in order to maximize profit owners and/or investors. In the case of an investor-owned business, return is based on the capital invested, which is also linked to governance and control. After Mook, Quarter, & Richmond “What Counts: Social Accounting for Nonprofits & Cooperatives” (2003)
- 15. COMMUNICATING THE CO-OP DIFFERENCE INCOME From Members & Other Consumers EXPENSE Achieve Member- Defined Mission & Ends NFCA Peer Finance Department Training 2017 How can we communicate our unique financial structure to support consumer loyalty? A Food Co-op is designed to meet the needs and goals of its Members — Users of the business who are are transformed through Membership into its Owners. The success of the business depends on its Members for their Patronage of the business — their purchase of goods and services. Co-ops must be profitable in order to serve their Members over time. However, the goal is not to maximize profit for owners or outside investors, but to operate at cost, with any surplus (income less expenses) reinvested to achieve the mission or ends, or, in many food co-ops, refunded to Members. This basic difference appeals to consumers — if they can understand it. SURPLUS Refunded Reinvested
- 16. For 2016, Member Co-ops reported… ¡Shared revenue of $315M ¡Patronage dividends of $1M (6 co-ops reporting) How can we better communicate our shared scale and impact, and how we return benefit to our Members? NFCA Peer Finance Department Training 2017 COMMUNICATING THE CO-OP DIFFERENCE
- 17. TRANSFORMING SHOPPERS INTO MEMBERS INCOME EXPENSE NFCA Peer Finance Department Training 2017 Consumers may choose to shop at our Food Co-op because of reputation, products, or service. Membership is an opportunity to transform these shoppers into owners with a vested interest in the success of the business. This can reinforce their loyalty in the face of competition. Some Co-ops offer Member discounts as well as Working Member discounts. This expense can be seen as a value-added that encourages loyalty and use. However, these discounts should be managed carefully because the co-op is essentially giving away income before it has been realized. SURPLUS Refunded Reinvested Member Discounts
- 18. Our Food Co-ops reported… ¡Local ownership by over 130,000 Members ¡11,500 NEW Members in 2016 ¡Member discounts of $2M+ (11 co-ops reporting) How can we use these numbers to communicate local ownership by everyday people in our communities, and the benefit returned to them? NFCA Peer Finance Department Training 2017 TRANSFORMING SHOPPERS INTO MEMBERS
- 19. VALUE-ADDED: PURCHASING FOR IMPACT INCOME EXPENSE NFCA Peer Finance Department Training 2017 SURPLUS Refunded Reinvested Value-Added can support greater consumer loyalty in a competitive marketplace. In addition to encouraging shoppers to participate as Members, we can better communicate how their Purchases generate the Income that enables the Co-op to achieve its mission and/or ends. Many Food Co-ops prioritize purchasing from local producers as well as offering organic, fairly traded and co-op made products as part of their mission or ends. The impact of these expenses can be measured and communicated as part of the value-added of shopping at the Co-op. Local & Regional Purchases Organic Purchases Fair Trade & Co-op Purchases Member Discounts
- 20. Member Co-ops purchased… § over $60M in local products (16 co-ops reporting) § Only 7 co-ops reported regional purchases ($1.3M – underreported). § $31M+ in organic products (12 co-ops) § $1.8M in Fairly Traded products (9 reporting – clearly underreported) § $2.8M from co-op suppliers (6 co-ops reporting – clearly underreported) These are impressive numbers — and we can communicate our impact much more effectively! NFCA Peer Finance Department Training 2017 VALUE-ADDED: PURCHASING FOR IMPACT
- 21. VALUE-ADDED: GOOD JOBS INCOME EXPENSE NFCA Peer Finance Department Training 2017 SURPLUS Refunded Reinvested Supporting good jobs is a value-added in a competitive marketplace. Co-op shoppers want to know that their purchases support good, local jobs. Supporting employee membership encourages them to engage more fully in the success of the Co- op. Retail Food Co-ops have been leaders in building good, sustainable jobs in our communities. Employment, compensation, low turnover and the portion of full time jobs can all help communicate how the expense of providing good jobs can be seen as a value-added for the Co-op and the wider community. Local Purchases Organic Purchases Fair Trade & Co-op Purchases Member Discounts Good Jobs, Pay & Benefits
- 22. Member Co-ops reported… ¡Employment for over 2,157 people ¡$49.5M in wages ¡$1.5M in employee discounts ¡$457k in employee profit sharing How can we measure other factors such as career tracks, longevity, and benefits? NFCA Peer Finance Department Training 2017 VALUE-ADDED: GOOD JOBS
- 23. VALUE-ADDED: FOOD SECURITY & ECONOMIC INCLUSION INCOME EXPENSE NFCA Peer Finance Department Training 2017 SURPLUS Refunded Reinvested Ensuring equal access to healthy food and co-op membership is a competitive advantage. Food Co-ops have their roots in food security. But as competition has increased, they can be perceived as exclusive. NFCA efforts to strengthen Healthy Food Access programs help co-ops challenge this perception. Building on the experience of our Members, we have supported 12 Co-ops in launching programs that help make healthy food more affordable and co-op membership more accessible for people on limited incomes. Related expenses can be measured and communicated as part of the value-added of shopping at the Co-op. Local Purchases Organic Purchases Fair Trade & Co-op Purchases Member Discounts Employment, Pay & Benefits Healthy Food & Membership
- 24. Member Food Co-ops reported… § 13 with Food for All Programs § $3.7M in sales to Food For All participants § 2,714 participants in Healthy Food Access programs Again, these numbers are very underreported. How can we better to communicate our contribution to food security and community ownership? NFCA Peer Finance Department Training 2017 VALUE-ADDED: FOOD SECURITY & ECONOMIC INCLUSION
- 25. VALUE-ADDED: COMMUNITY INFRASTRUCTURE INCOME OTHER EXPENSE NFCA Peer Finance Department Training 2017 SURPLUS Refunded Reinvested By shopping at the Co-op, people are investing in community infrastructure. Shopping at the Food Co-op contributes to payment of taxes that support a wide variety of local community services, as well as donations and other support of community organizations. By tracking expenses related to taxes, and charitable donations and other support of local organizations, Food Co-ops can communicate their contribution to more stable, vibrant, and sustainable communities. These impacts can be measured and communicated as part of the value-added of shopping at the Co-op. Local Purchases Organic Purchases Fair Trade & Co-op Purchases Member Discounts Employment, Pay & Benefits Healthy Food & Membership Taxes Community Donations
- 26. Member Co-ops reported… § $668,000 in donations to community organizations What else could we measure, together? § Round up at the register? § Food donations? § Community education? § Volunteer hours? § Community partnerships? § Local taxes? NFCA Peer Finance Department Training 2017 VALUE-ADDED: COMMUNITY INFRASTRUCTURE
- 27. ¡ Affordable community ownership & democratic control ¡ Focus on service, meeting needs before profit ¡ Develop local skills & assets ¡ Ability to assemble limited resources ¡ Difficult to buy-out or remove from a community ¡ Anchor community wealth ¡ More sustainable and resilient NFCA Peer Finance Department Training 2017 THE CO-OP DIFFERENCE
- 28. ¡35+ Food Co-ops & Start-Ups ¡Locally Owned by 130,000 people ¡Providing over 2,000 good jobs ¡Generating $315 million in shared revenue ¡And purchasing over $60 million in local products “You get more than good food when you shop at your local food co-op. You also help…” ¡Keep it Local ¡Provide Good Jobs ¡Support Sustainability ¡Build Community NFCA Peer Finance Department Training 2017 NFCA 2016 IMPACT SUMMARY
- 29. Measuring our impact matters in a competitive marketplace. 1. How can we make it easier for you to measure your impact? 2. What else should we be tracking? 3. What are your stories of success? 4. How can we use our 10th anniversary study in 2018 to tell a compelling story of food co-op impact? NFCA Peer Finance Department Training 2017 YOUR THOUGHTS & FEEDBACK