Your Co-op membership offers you a lifetime of rewards including the promise of high-quality products and services at competitive prices. We also offer the potential for annual cash-back and an equity account that grows over time, as well as the opportunity to get involved as a member-owner.
This makes us a different kind of business, our profits are your profits and they are invested directly back into the community through you.
To become a member:
- You purchase an initial share in Red River Co-op (see the Become a Member page for more information)
- You receive a Red River Co-op membership number
Every time you make a purchase at your Co-op, you will be asked for your number, which is used to record your purchases. Your purchases are recorded because your share of the Co-op’s earnings is based on your purchases throughout the year.
Your local Co-op number works only within the communities served by your local Co-op. Communities served by other Co-ops will not use the same member number. Each Co-op is independent and has different policies regarding equity and cash back.
No, but by becoming a member you become a part owner of the business and share in the earnings of the Co-op. You can also attend annual meetings, vote on resolutions and run for a position on the Board of Directors.
Co-op equity started with the purchase of a $5 membership.
Earnings from the Co-op are distributed to members, in the form of an allocation, based on the member’s purchases during the year.
The Co-op may buy back a portion of your equity each year. This amount is a cash payment to you, a member-owner. Red River returns a portion of the member’s equity in the form of a general repayment in late February.
The equity portion that remains will be used in calculating your cash repayment in future years. It also helps finance the business, and to maintain and upgrade assets to ensure ongoing success of your Co-op.
Equity is normally paid out as follows:
- A portion each year as a general repayment
- When you move away from the trading area
- When you reach the age of 65
- When the equity is paid to your estate.
All requests are subject to Board of Director approval.
- If your purchases are for personal use, the allocation is not taxable income.
- If your purchases are for business/farm purposes, the amount of the allocation that relates to business/farm use is taxable income.
- A tax credit of 15% is withheld from allocations exceeding $100 and reported to Canada Revenue Agencies (CRA) as prepaid income tax.
- See “Understanding your T4A” for a further explanation.