What is a Co-op?

Co-ops are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Co-ops are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Men and women serving as elected representatives are accountable to the membership. Members have equal voting rights (one member, one vote).

Members contribute equitably to – and democratically control – the capital of their cooperative. At least part of that capital is usually the common property of the co-op. Members receive limited compensation, through capital credits, on a cycle determined by each board of directors. Members allocate these capital reserves (through margins) until distribution for any or all of the following purposes: developing their co-op, benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

Co-ops are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

Co-ops provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their organizations. They inform the general public—particularly young people and opinion leaders—about the nature and benefits of cooperation.

Co-ops serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

While focusing on member needs, cooperatives work for the sustainable development of their communities.