TYPES OF CO-OPS
Agricultural Cooperatives
Agricultural cooperatives help farmers gain market power through jointly marketing, bargaining, processing, and purchasing supplies and services. Benefits are derived and distributed equitably.
Arts and Crafts Cooperatives
Cooperatives offer benefits to artists and craftspeople. By working together, artisans can gain marketing advantages, reap quantity discounts on supplies through joint purchasing, and share studio space and equipment. Performing artists use the cooperative model to increase their artistic freedom and control over performances.
Business Cooperatives
Business cooperatives are formed by small enterprises to cut expenses and gain market advantages through joint purchasing and marketing of supplies or services. They vary widely both in size and type.
Child Care and Pre-school Cooperatives
Parents are attracted to child care and preschool cooperatives because they offer high quality, affordable child care or early education programs. The parent involvement allows parent input and intimate knowledge regarding their child’s out-of-home experiences, as well as opportunities to interact with other parents. As members, parents elect a board of directors who establish policies and hire qualified staff to run the day-to-day operations.
Credit Unions
A credit union is a member-owned, nonprofit, financial cooperative organized by consumers to encourage savings and to obtain loans at the lowest possible cost. Its members share a common bond such as having the same occupation or employer, belonging to the same association or religious group, or living in the same community. Members elect a board of directors on a one-member, one-vote basis.
Food Cooperatives
Food cooperatives range from multi-outlet supermarkets to small buying groups with a few members. These cooperatives are formed by consumers to obtain lower prices and greater control over product range and quality. Many cooperative supermarkets began as small buying clubs and developed into storefront cooperatives as membership increased.
Housing Cooperatives
Housing cooperatives make up one of the largest sectors of cooperatives in California. They are set up as corporations and are owned by members or shareholders who receive services from the corporation in the form of housing. Each member owns a share in the corporation, which entitles him or her to occupy a unit of housing.
Insurance Cooperatives
Insurance cooperatives provide insurance services to their members. Policyholders constitute the membership and elect the board of directors.
Retail Cooperatives
Retail cooperatives sell consumer goods to members and non-members. Members enjoy discounts, patronage refunds, or both. Patronage refunds are a percentage of the total amount of money a member has spent on purchases over a specific period of time. These refunds come from the earnings of the cooperatives.
Student Cooperatives
Student cooperatives are set up and run by students for a variety of specific needs. Housing and food cooperatives are the most common student cooperatives. Other types include child care cooperatives and bookstores.
Utility Cooperatives
Utility cooperatives provide services such as communication services, electricity, and water to their members.
Worker Cooperatives and Collectives
A worker cooperative is a business owned and controlled by the workers. The cooperative form of organization allows ordinary people to combine their energy, capital, and skills to gain steady employment and income, participate in the ownership and management of their business, and share the profits made from their investment and labor.