What to Know About Your 2023 Patronage Refund

The Skagit Valley Food Co-op Board of Directors is proud to declare a Patronage Refund to Co-op Member-Owners based on their 2022 purchases. Patronage refund announcements are sent by mail in April, so look for yours sometime in the first weeks of May.

If you receive a Patronage Refund, please consider donating it to Community Action’s Skagit Food Distribution Center. Skagit Food Distribution Center supplies food to our 15 area food banks and 4 meal programs.

You can also use your refund to purchase goods in the Co-op. Just tell your cashier you want to use your refund when you’re checking out. Simple as that!

Please donate or redeem your refund by July 29, 2023. Otherwise, your store credit becomes taxable for the Co-op and you forfeit your patronage refund.

So What is a Patronage Refund?

A Patronage Refund is profit-sharing, plain and simple: a portion of the profit returned to you, the owner.

The long explanation? Patronage Refund is like a dividend. It is determined by a percentage of the Co-op’s profit from the previous fiscal year. The Board of Directors allocates the total amount, and a refund for eligible Owners who were in good standing for the fiscal year in question is calculated based on their purchases, or patronage, during that year. (That means the more you purchase at your Co-op, the more of a refund you are likely to receive.) A patronage refund is not a guarantee each year: the store must profit and the Board must determine that it is a financially viable decision. The amount will vary from year to year, as needs and profits do.

A percentage of the refund (determined by the Board of Trustees) is held back from distribution and stays in the Co-op. It belongs to the members as a group, to further build the Co-op and promote our practices, until such time as the Board opts to return it to the individual owners.

Under Internal Revenue Code section 1385 (b) (2), dividends received for purchases made for personal, living or family purposes are exempt from taxable income. If you made purchases for business purposes, however, you might want to consult your tax advisor about whether your allocation should be reported as income or if your expense deduction or property basis should be adjusted.

The 2023 refund is based on 2022 profits and allocated according to 2022 member-owner purchases, and can be redeemed for merchandise. If you prefer to receive your refund as a check, please email refund@skyupiradio.com or call 360.336.5087 x150. Please note, check requests take approximately three weeks to process.

If you have additional questions about your Patronage Refund, please email refund@skyupiradio.com or call 360.336.5087 x150.

Thank you for your support, which makes Patronage Refunds possible. It is great to be able to keep more of our money in our community.