A journey into the Ontario Co-operative Association and the Ontario
co-operative sector.
Ontario Co-operative Association450 Speedvale Avenue West, Suite 101
Guelph, Ontario, CanadaN1H 7Y6
Email: [email protected]: 519.763.8271
Toll Free: 1.888.745.5521Fax: 519.763.7239
OverviewOverviewAbout On Co-opOntario’s Co-op SectorWhat is a co-op?Co-op modelsWhy choose a co-op?Types of Co-opsWhat’s the difference between a co-op and other forms of enterprise?Key success factors
About On Co-opAbout On Co-op
On Co-op represents 85% of anglophone Ontario co-ops
One of 8 similar associations across the countryIncorporated as a co-op without share capital
MISSION - Lead, cultivate & connect co-ops through:Government RelationsMember Relations and CommunicationsCo-operative DevelopmentLifelong Co-operative Learning
Ontario’s Co-op SectorOntario’s Co-op Sector1300 co-ops in Ontario
1900 locations in 400 communitiesKey sectors –
Housing (587 co-ops = 45%); Financial (227; 17%); Child Care (216; 17%); Agriculture (77; 6%)
Other: (15%) funeral, renewable energy, social, retail, CED, education, organics, arts, transport1.4 million members; 49,000 volunteers (10,000 directors)
Regulated by Financial Services Commission of Ontario (FSCO)
What is a co-op?What is a co-op?
Co-ops are member-owned enterprisesPrimary purpose is to meet the needs of members
An internationally recognized business modelIncorporated under provincial or federal legislationSimilarities to not-for-profits and private businessesCan be used in virtually all business scenarios
Democratically controlled: One-member, one-vote, regardless of business done with co-op or investment in co-op
Basic Basic Co-operativeCo-operative StructureStructure
Why choose a co-op?Why choose a co-op?
Economies of scale: Bulk buying; sharing of costs and expenses; joint processing or brandingAccountable & inclusive: Open to everyone; each member has equal vote regardless of investment; local decision makingBuild stronger communities: Most co-ops are community based - investment and surplus stays in the local community; collaborationMembers’ needs met: may not always be ROI
Why choose a co-op?Why choose a co-op?
Benefits to member-owners and users:Investment and economic contributionValue addedDemocratic functioning and collaboration
Self-determination: Member ownership makes co-ops less vulnerable to takeovers by outsiders
Co-ops can own non-co-op subsidiaries or businesses
Multiple bottom lines – financial, social and environmental
Types of Co-opsTypes of Co-ops
Co-ops vs. Business Corporations
CO-OPERATIVES• Exist to meet needs of members• Accountable to members• Surplus distributed to members
• One member one vote
• Board represents members; directors must be members of the co-op
• Shares generally not traded
BUSINESS CORPORATIONS• Exist to maximize ROI• Accountable to shareholders• Unlimited return on shareholder
capital• Vote based on number of shares
held• Board represents shareholders;
director may not be shareholder• Shares may be traded
Refer to detailed comparison sheet for more detailsDownload from www.ontario.coop/toolkit (Factsheet section) ORhttp://ontario.coop/upload/Co-op%20Comparison%20-%20other%20business%20models-2009.pdf
Co-ops vs. Not-for-ProfitsCo-ops vs. Not-for-Profits
CO-OPERATIVESAlways member controlled
One member one vote
Mandated to meet the needs of membersBoard of Directors elected from membershipOperate under CC Act or CU&CP Act; with or w/out share capitalSurplus & patronage may be distributed to members
NOT-FOR-PROFITSUsually member controlled
Membership voting classes
Broader mandate to the communityBoard of Directors elected from membershipOperate without share capital under Ontario Corp. ActSurplus kept to further goals and objectives of organization
Refer to detailed comparison sheet for more detailsDownload from www.ontario.coop/toolkit (Factsheet section) ORhttp://ontario.coop/upload/Co-op%20Comparison%20-%20other%20business%20models-2009.pdf
Myths and MisperceptionsMyths and Misperceptions
Co-ops are not profitableCo-op values are incompatible with running a successful businessIt takes too long to make a decisionYou have to be a member to benefit from/use the goods and services of a co-opCo-ops are not competitiveCo-ops are poorly managed and under-funded
Challenges for Co-opsChallenges for Co-ops
Model is still not widely understood by public and potential supporters
Can be challenging to recruit /maintain membersCan be difficult to obtain financing
Regulatory regime is not as facilitating to growing and supporting co-ops as it could beLack of support and recognition from government limits growth and support through traditional business development channels
OpportunitiesOpportunities
Many sectors are experiencing growth/renewalThis can make it easier to find examples, templates and expertise
Local/organic foodChild careRural and community based stores and servicesRenewable energySocial co-ops
Contact InformationContact InformationEmail:Email: [email protected]
Telephone:Telephone: 519.763.8271
Toll Free:Toll Free: 1.888.745.5521
Fax:Fax: 519.763.7239
Website:Website: www.ontario.coop
eDirectory:eDirectory:www.coopsontario.com
Join our Social Networks!Join our Social Networks!www.facebook.com/oncoop
www.twitter.com/ontariocoops
www.ontariocoops.wordpress.comwww.youtube.com/oncoopspiritawards