Co-op Membership FAQ's

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January 2, 2018
Co-op Membership FAQ's

This list of Frequently asked questions should help you understand the benefits of Co-op membership.

  1. Who can become a member of Neerlandia Co-op? Anyone can become a member of the Neerlandia Co-op.
  2. How do I become a member of Neerlandia Co-op? Fill in an application form and purchase an initial share for $25. Once your membership has been processed you are assigned a member number which is used to track purchases for the purposes of Co-op patronage.
  3. Do I have to be a member to shop at the Neerlandia Co-op? You do not have to be a member to shop at Neerlandia Co-op; however, membership means becoming part owner in a local business and sharing in the earnings.
  4. What is Co-op Patronage and how does it benefit me? The Neerlandia Co-op is member owned; at the end of each year all profits are allocated to member equity accounts, calculated as a percentage of your purchases throughout the year.
  5. What is my Co-op Equity account? Neerlandia Co-op profits are allocated to members equity accounts at the end of each year. As your purchases increase, your equity account grows. Part of your equity is paid back to you each year as an Annual Cash Repayment. The amount paid back is determined by the Board of Directors and Co-op Management and depends on the cash position and financial health of the Co-op. In 2016 $1.6 million was paid out directly to Neerlandia Co-op members.
  6. How do I get my equity out of the Neerlandia Co-op? Your equity account continues to grow as you support the Neerlandia Co-op. Some of member's equity is paid out to members each year (see #5). The balance of your Equity account is paid out in one of three ways:
    1. Over age withdrawal - once members turn 65 they can apply to withdraw their equity, which is normally paid out over 4 years depending on the size of the equity account.
    2. Move away from the trading area - members can apply to withdraw their equity if they move away from the trading area, at the Board of Directors discretion.
    3. Deceased - your equity will be paid to your estate.
  7. Is my Co-op Patronage tax refundable? A tax of 15% is withheld from refunds exceeding $100. If your purchases are for personal use they are not taxable; you can claim the amount found in Box 22 of your T4A as prepaid income tax by including this amount on line 437 of your income tax return. If your purchases are for business purposes, the amount of your refund can be included as part of your income tax calculation.
  8. What does it mean to be a charge customer or a cash customer? Cash customers pay for all products & services at time of purchase. Charge customers are invoiced once a month for all products & services purchased during that month. The statement received at the end of each month must be paid by the 15th of the following month to receive up to a 3% cash rebate (see #9) or by the end of the following month to not be considered in arears.
  9. What is the Neerlandia Co-op cash rebate? Members with cash accounts receive a 3% discount at time of purchase. Members with charge accounts receive a 3% rebate on account if they pay their monthly statement by the 15th of the following month. This is a Neerlandia Co-op specific policy and represents immediate savings to you as a member!