The Greenbelt Consumer Cooperative, Roosevelt Center’s Co-op grocery store, had such a profitable year that members received cash back for a portion of their purchases for the first time in seven years. To save on postage and because some members have moved since 2014, refund vouchers were initially distributed to delighted members from a table in the store on December 10 to 21 in two- to four-hour shifts. Co-op staff and volunteer members of the Board of Directors talked with Co-op members, updated their contact information and had a chance to chat with members about the store. Board President Bill Jones said, “We wanted to connect with members during this difficult time. Giving people unexpected money is a great way to spend a Sunday afternoon!”
Preparing 2,394 vouchers was a Herculean effort. First, Co-op staff, led by Assistant Manager Dave Brinks, closed the books on the fiscal year ending July 31, 2021, and calculated annual profits. Next, the store’s auditors reviewed the Co-op’s financial records and generated a Reviewed Financial Report. After careful consideration of long-term finances, the Board of Directors voted to distribute $100,231 in patronage refunds and $40,000 in staff bonuses and retirement plan contributions.
Refund Calculations
To calculate each member’s patronage refund, staff totaled every member’s spending at Co-op over the year. Equitably distributing refunds meant each member should receive an amount equal to 1.1 percent of purchases made with their member number. For example, if a member made $4,000 in purchases, they received a voucher for $44. Jill Stevenson, the Co-op’s membership, marketing and community outreach coordinator, led the distribution effort by creating a personalized one-page letter and voucher for each member’s refund, a massive mail merge. Staff spent several days printing and organizing the letters. Each member initialed a tracking sheet to confirm in-person receipt of their voucher. Members picked up approximately 748 vouchers in the store. Remaining vouchers will be mailed through the U.S. Postal Service before the end of January.
Amounts Vary
Since a member’s refund is based on what they spent, the amounts received varied from a few dollars to over $400, with an average of $41. This is why it’s important for members to give their membership number every time they make a purchase. Pharmacy purchases greatly increased some member refunds as both the member’s payment and what the insurance company pays are all part of Co-op’s net earnings.
Surprise! Surprise!
Many members were surprised and full of questions. One member had no idea refunds were part of Co-op membership, since she had never received a voucher in seven years of membership. “We’ve refreshed everyone’s memory about how we all share in the Co-op’s profits. It’s been nice to hear people’s excitement at a little holiday surprise,” said Director Kim Kash. Another member exclaimed she was going to spend her refund on plane tickets. Each member can choose to spend their refund at any checkout line, add it to their member capital account or donate it to the Co-op’s sustaining equity. Patronage refunds under $2 were automatically added to the member’s capital account. Since the current Co-op started in June 1984, it has returned $2.15 million in patronage refunds to the community.
Happy Members
“It’s always gratifying to have a financially successful year and to be able to return a portion of that back to Co-op members. We are doing our best to bring people the groceries they want and demonstrate that Co-op membership keeps their money in the community,” said Dan Gillotte, Co-op general manager since 2020.
Johanna Goderre Jones is a member of the Greenbelt Consumer Co-operative Board of Directors.