Cooperatives

I have received many inquiries about cooperatives leading me to believe that there is some interest to know more about it on a technical basis. By the very word, we already know that a cooperative involves the cooperation of people towards a common goal. But as we also know, many join groups without fully understanding what they are joining. They are just brought in by friends and relatives who, most of the time do not also know the most important matters regarding the cooperative. In my view, “cooperativism” is one of the highest forms of effective leverage. Cooperatives provide their members strength in numbers. They pool resources of their varied memberships and they provide a ready venue for exchange of ideas and skills. More importantly, in coming together for a common cause, cooperatives increase the intellectual capital of the members thus providing opportunities where none existed. Opportunities are indeed created when cooperatives perform and live up to their real mission. In short, the cooperative as a movement is truly the only practical tool to achieve unit of purpose and thus secure the “Power of One” “The Power Of One can lead to changes for the benefit of the many. But these changes come from the many, only if they come together, to form that which is invincible, the Power Of One…” Anonymous It is one of the blessings that we can enjoy. Recently, the new Cooperative Code was enacted. From all indications, it is even better than the present code in force. The rules for regulation are presently “work in progress” and should be released very shortly. For now , here is a primer on the existing Cooperative Code governing cooperatives in the Philippines. The Cooperative Development Authority (CDA) is a government body that supervises cooperatives. Their official definition is: “A cooperative is a duly registered association of persons, with a common bond of interest who have voluntarily joined together to achieve a lawful common social or economic and making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally acceptable cooperative principles.” Cooperatives may fall under any of the following types: 1. Credit Cooperative – promotes thrift and savings among its members and creates fund in order to grant loans for productive and provident purposes. 2. Consumer Cooperative – procures and distributes commodities to members and non-members. 3. Producers Cooperative – undertakes joint production, whether agricultural or industrial. 4. Marketing Cooperative – engages in the supply of production inputs to members, markets their products. 5. Service Cooperative – engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services. 6. Multi-purpose Cooperative – combines two or more of the business activities of these different types of cooperatives. The following principles govern Cooperatives: 1. Membership in a cooperative is voluntary and available to all individuals regardless of their social, political, racial or religious background or beliefs. 2. Cooperatives are democratic organizations administered by persons elected or appointed in a manner agreed upon by members. 3. Members contribute equitably to and control the capital of their cooperative. At least part of that capital is usually common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: - developing their cooperative, possibly by setting up reserves, part of which at least would be divisible and benefiting members in proportion to their transactions with the cooperative, - supporting other activities as approved by the membership. 4. Cooperatives are autonomous, self-help organizations controlled by its members. If they enter into agreements with other organizations (including government) or raise capital from external sources, they do so on terms that ensure democratic control by the members and maintain their cooperative independence. 5. Cooperatives provide training and education for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders about the nature and benefits of cooperation. 6. Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. 7. Cooperatives work for the sustainable development of their communities through policies approved by their members. It might interest you to know that there is a Kapatiran sa Kasaganaan Service and Multipurpose Cooperative (KsK Coop). KsK Coop’s Investment Strategy: • Achieve critical mass of members, initially 2,000 to 4,000 members • Continuous trainings and seminars on the fundamentals of financial independence • Acquire established and profitable businesses that, aside from dividends that can be earned by the members, can also be a source of employment as long as the coop member or his/her family (sibling) is qualified for employment • Put up a KsK Coop Bank for the service and benefit of the coop members for their deposits, loans, remittances and micro-financing needs. • Collective investment of the coop in financial instruments for better yield or returns not available if pursued individually at smaller amounts • Provide seed funding for coop members with sound businesses or projects FOR MORE INFORMATION VISIT: http://www.kskcoop.com or write us at info@colaycofoundation.com