WHAT ARE CAPITAL CREDITS?
As a cooperative, Freeborn-Mower Cooperative Services does not earn profits in the sense that other businesses do.
Instead, any margin (revenue) remaining after all expenses have been paid, is returned to you, the members in proportion to use of cooperative's services.
This is done through the Capital Credit allocation process. Each member is assigned a Capital Credit account into which allocations are kept.
Capital Credits represent member equity in the cooperative. Prior to their retirement, Capital Credits are used to strengthen the cooperative and reduce the need for borrowing funds. They are important in ensuring the financial health and stability of the cooperative. Each year the cooperative's board of directors determines whether the cooperative's financial position will allow the retirement of Capital Credits and if so, the amount.
A member who terminates service, no longer receives additional Capital Credit allocations, however, the balance in the member's account is maintained until it is retired in full. This is why it is important to notify our office of any address changes until your Capital Credit account is depleted. In the case of a member's death, Capital Credits become part of the deceased member's estate. Please contact our office for more information regarding deceased member's Capital Credits.
Freeborn-Mower Cooperative Services is owned and controlled by the members we serve. Capital Credits are a benefit of your membership in our cooperative.