1. basuel, don andrew bsit

2. 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.

3. 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.

4. User-benefit.
The members earn benefits from their
actual use of the cooperative.

5. Patronage Refunds.
The net earnings of the cooperative are
returned and distributed to the members
according to their use of the
cooperative.

6. 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.

7. Cooperative Cooperation.
Differentcooperatives usually
collaborate to maximize the resources
and services they offer to their members.

8. 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.

9. Geographical characterization defines
a cooperative’s size and scope of
operations in reference to serving
members.

10. Local.
Small region covered, a barangay or so.
Super local.
Two or more provinces (branches).
Regional.
Numerous provinces or more.
National (nationwide)
International (worldwide)

11. Centralized Structure. In this structure, individuals
are direct members.
Cooperative
Member Member Member

12. Federal Structure. In this structure, cooperatives
and individuals are directed members.
Cooperative
Local Cooperative Member Member
Member Member Member

13. 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.

14. 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.

15. 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.

16. basuel, don andrew bsit