Community Co-operative Model

What is a Community Co-operative?

•	A community co-operative is an umbrella co-operative structure.
o	This is especially timely due to the restructuring of the municipal councils.   Community co-op can provide a structure to a previously unorganized group of people (ie. community members), into a democratic and participatory organization.
•	A community co-operative can provide an incorporated structure for many types of local social and economic development projects. Even if a group starts out focusing on one project or issue, i.e. a local community centre, the community co-operative model allows the flexibility to eventually move on to other issues or projects.
•	This model is very action-oriented.
•	Under this non-profit model, community businesses can also be created, raising money for local goals.

Why consider a Community Co-operative Model? 

•	Member participation
A true sign of a successful co-op is member participation.  Community co-operatives have a board of directors, but its members are seen as facilitators, equal to all the other members of the co-op.
•	Inclusiveness
The co-op is open to all residents of a community and promotes partnership with other groups such as local cottage associations.
•	Unique organizational structure
The community co-operative provides a versatile structure because anyone can join and the scope of its projects is limitless.
•	Promotes partnership
As a non-profit corporation, the co-op has the power to approach other partners for assistance. It is in a position to apply for grants from, for example, the different levels of government, agencies, local organizations and/or businesses.
•	No nominations or electioneering
Under the community co-operative model, there are no nominations or elections.  Each year, all the members of the co-op names are written on a list.  Members select a number of appropriate board members, based on availability, skills, etc. Those individuals are then asked whether they will sit on the board.  It is rare to see anyone turn down the position, as people are elected out of respect, rather than because people had limited choices.
•	Promotes unity 
Co-ops operate using a consultative process.  The goal of the co-op is to promote unity within the community, creating an atmosphere of tolerance, thoughtfulness and consideration. As well, the open and all-inclusive membership of the co-operative reduces the risk of divisions which may develop between groups: those with money/those without; seniors/young members; and long-time residents/new residents, as co-ops provide for one member, one vote. 
•	Encourages learning
Community co-operatives encourage members to expand their skills and take on new challenges.  They support young members and nurture them into future community leaders. 
•	Promotes enthusiasm 
Community co-operatives promote fun.  Members often volunteer a large number of hours and the co-op provides venues and/or events where people can kick back and relax.

•	Promotes self-determination
By using all of its members’ strengths and resources, and its ability to initiate, partner and follow through on solutions to identified needs, a community co-operative is proactive, rather than reactive. A community co-operative is action-oriented.  The members’ time is spent on accomplishing identified goals.
•	Provides a systematic visioning process
Community co-ops hold annual local community meetings, bringing members together to consider the future, identify current gaps and/or needs and to suggest possible solutions.  The annual meeting is also an opportunity for the co-op to educate people on the role of the co-op and encourage further participation. 

Examples

Example #1
•	Municipal restructuring is on the horizon. People are worried about how the change will affect them. The community co-op organizes a series of community meetings to provide information. The events result in a list of local needs, and members of the community band together to advocate for solutions that best suit them (i.e. a children’s drop-in, community access to the internet, support for local seniors, etc.)

Example #2
•	Cottagers feel they pay taxes but don’t get much in return; they also have the financial resources to make a contribution to the community. The local community co-op negotiates with the cottage associations for an annual contribution for the community centre in return for agreed times of usage in summer months.

Example #3
•	Once the summer is over, many businesses close and year-round residents have a long drive to buy necessities. The community co-op obtains space or constructs an addition on to a local building to create a small community store

Example #4
•	It’s hard for people to keep in touch in such a rural area. The nearest newspaper doesn’t cover community activities due to distance. Many new people have moved in and are not aware of local activities. The community co-op helps out with communications by partnering with local churches, the volunteer fire department, etc. in promoting issues and events that benefit the whole community. They provide a newsletter once every couple of months, informing people about local events. They also produce an annual brochure, identifying and promoting all local businesses and services.

Example #5
•	Members of the community need an event to rally around, for raising community spirit and helping out with fundraising. The co-op worked to present a successful, annual Winterfest.  Revenue generated in a hamlet of 400 was over $1,000.

Case Study
The school board and the local municipality are only able to negotiate a transfer of assets to an incorporated, non-profit group that represents the community. Members of the local community co-op decide to take over the facility to use as a community centre.
Community Centre

Members of a small, rural community are about to lose their elementary school due to cost cutting by the board of education. The school board and the local municipality are only able to negotiate a transfer of assets to an incorporated, non-profit group that represents the community. Members of the local community co-op decide to take over the facility to use as a community centre.  They form a community co-operative.  

What would the Community Gain from Owning its Own Community Centre?

•	Preserving a part of the fabric of the community. Historically, school property was a designated part of any village’s property makeup and it was the Village that raised the money to build the school and paid the teacher.  A community centre could still be used for broader educational purpose, such as evening and weekend courses.

•	Independence Members of the community co-operative would make all decisions about renovations, programming, activities, property improvements, etc.

•	Ownership of a community asset.

Sample Costs to Renovate & Operate a Community Centre from a Two Room School House
	
     Annual Operating Costs To Consider
Hard Costs
Heat – Hydro -   $2,000  approximately
General Liability Insurance 
Could possibly be added to the municipality’s policy as an added, named insured.  For example, the Town of Gravenhurst added the Gravenhurst Food and Community Co-operative to its insurance policy and the Town of Huntsville added the Aspdin Community Centre to its policy.
Taxes 
The municipality might forgive these, as they do not collect taxes from other halls.
Soft Costs 
    	(Cleaning, Snow Removal, Grass Cutting)
Soft costs at kept to a minimum by giving community members a choice. They can use the community centre for a fee (members pay less) or they can volunteer to do a job. For example, the Girl Guides could have the use of the centre free each week – if they volunteer to clean once every two months. Baseball groups could pay a reduced rate for the ball diamond if they mow the lawn once every summer. The goal is to have the centre active all the time, promoting a healthy, active community. Allowing members the option of using it for free in return for participation, does two things, keeps your cost down and builds a positive community.

Revenue Generating Opportunities
Membership Fees
$10.00 annual membership fee
$1,000.00, with approximately 100 members
Turkey Dinner - After Fall Fair - Traditional Event
	Average 200 people
	Cost to attend  - $10.00 adult; $5.00 children; free 4 and under 
	Money Raised - $1,200, Cost of event  $400.00 – profit   			$800.00
Roast Beef Dinner – Spring – New Event
	Much smaller – same cost to attend					    	$200.00
Weekly Euchre Card Game
Charge $2.00 - $3.00 per person
Two people – different each time bring sandwiches and snacks
Coffee provided
Twice a year free – a way of saying thank-you
Market Day
Vendors are invited to participate, $5.00 - $10.00 tables
Community co-op should have a table – for craft and baked goods
(… To make money two ways)
Craft Days/Nights
Participation is free, except for the cost of supplies.   Participants make one extra item.  It is saved for market day and is sold on the community table.  If there is a teacher, the cost is split among the participants.  It averages out to about $10.00 a time or between $2.50 to $20.00 depending on the craft.
Rental of  Hall 
For events such as weddings, Christmas dinners, etc.
	Cost is $65.00 + a $25.00 deposit (if left clean – will return)
	$10.00 is added if they used kitchen.
Halloween Party 
	Not a money maker, $3.00 per child, each receives prizes and treats
 Christmas Play
      The event is free, potluck, children perform.
Community Kitchens
Hall charges $1.00 per person to help cover cost of propane.
March Break – Christmas Break
$1.00 per child – 6 or 7 different crafts

The project may also incur renovation costs. It would be advisable to initiate a reserve replacement fund for larger repairs needed in the future.