Cooperative and Non Profits

1. Cooperative and Non Profits Philip Katterjohn, Silas Connolly, Whitney Woodward

2. Cooperative • A cooperative is a jointly owned enterprise engaging in the production or distribution of goods or the supplying of services, operated by its members for their mutual benefit, typically organized by consumers or farmers.

3. Producer Cooperative • This refers to people engaged in production in separate enterprises, whether these are farms, fishing boats, forests, artist studios, or craft workshops. The co-op members are the independent producers, and they may cooperate in many possible ways.

4. Advantages and Disadvantages • Advantages:- No single individual has to set up the business themselves, they have the support and money of other workers.- If the business was to enter financial difficulties, the workers could put together their own money, and because of how many workers there usually are in a producer cooperative, they may be able to pay of the debts and relieve the business of its financial difficulties. Disadvantages:- If a decision had to be made about a certain issue, one worker isn't able to make the decision, they would to get the opinions of all the workers before making a decision. This can be very time consuming.

5. Consumer Cooperative • These businesses are owned and governed by people who want to buy from the co-op. Consumers can create a cooperative to provide pretty much anything they want to buy. Their purchases may include groceries, electricity or telephone service, housing, healthcare, or—under the label of credit unions--financial services.

6. Advantages and Disadvantages • Disadvantages: • 1. Meeting both co-operative aims and business needs requires complex management. • 2.They can limit your choice of external finance. • 3.Employment benefits often can't match those offered by other business types. • 4.Workers' co-operatives can enjoy tax incentives, such as employee share schemes, but most small co-operatives find these too costly to run. • Advantages: • 1. Cooperatives can thrive in economic environments that non-worker owned businesses cannot • 2. Cooperatives can be competitive in an open market. • 3. The cooperative distribution of profits can be more economically relevant compared with profit distribution based upon an owner's equity interest.

7. Worker Cooperative • These businesses are owned by some or all of the workers. Depending on the start-up capital needed, they can offer workers a chance to own their own company with very little financial investment. This can make them an ideal structure for people of modest or low incomes. They are also increasingly popular with small groups of attorneys, designers and engineers, fundraisers, and other professionals.

8. Advantages and Disadvantages • Disadvantages. • Meeting both co-operative aims and business needs requires complex management. They can limit your choice of external finance. Employment benefits often can't match those offered by other business types. Workers' co-operatives can enjoy tax incentives, such as employee share schemes, but most small co-operatives find these too costly to run • Advantages. • Worker cooperatives create jobs. Cooperatives can thrive in economic environments that non-worker owned businesses cannot. Cooperatives can be competitive in an open market. Cooperative members can self-finance a cooperative with retained earnings allocated to members without incurring a current tax liability. The cooperative distribution of profits can be more economically relevant compared with profit distribution based upon an owner's equity interest. Individual members of cooperatives cannot control the business to the detriment of other members.

9. Non-Profit • A non profit organization is an organization not established for the purpose of making a profit; not entered into for money: a nonprofit institution.

10. Charitable Organization • The most common nonprofit is a charity, and refers to an organization that operates to fulfill any of the following purposes: religion, education, science, literature, public safety testing, amateur sports, and the prevention of cruelty to children or animals. Common types of charitable organizations include food banks, museums, theatre groups, colleges, low-income housing organizations, and day care centers.

11. Civic League, Social Welfare Organization, or Local Employee Association • These types of nonprofits are created to promote community and individual welfare. Lobbying activities are not limited by law, and regulations regarding partisan political activities Labor and Agricultural Organization. This is created for educational or instructive purposes, designed to improved conditions and efficiency of work. Types include labor, agricultural, or horticultural organizations.

12. Trade or Professional Association • These are created to improve business conditions. Types of these nonprofits include Chambers of commerce, retail merchants associations and real estate boards. They are typically not subject to legal limitations on lobbying and political activity.

13. Advantages and Disadvantages • Advantages • Contributions to non-profits are tax deductible, but the organization also benefits from a variety of other factors. Simply put they are: tax exemptions, limited liability, perpetual legal existence, employee benefits, and formality. • Disadvantages • Things are not completely rosy however. Nonprofit corporations have a great deal of paperwork to deal with, the high cost of incorporation costs and fees, and lots of time & energy to maintain.

14. Statement • We believe Producer owned cooperatives are the best because you get to work with other people. The more people you have working together, the better and quicker the job will get done.