How we grow cooperative wealth
Members collectively capitalise a cooperative that builds real businesses
Members do not place savings into an investment account. The cooperative uses its capital for approved activities and owns the assets and projects it builds.
The flow
From member to shared benefit
Tap any stage to see what it means.
Cooperative surplus
Surplus — not interest on a deposit
The cooperative earns revenue through its activities. Only after expenses, liabilities, taxes, provisions, losses, required reserves and approved retained amounts can it tell whether a surplus exists.
A surplus is not guaranteed.
Surplus is never assumed to be shared simply by the number of shares held. Under the Co-operatives Act, the portion allocated to members is generally based on each member's business with the cooperative (patronage), and at least 5% must go to an indivisible reserve.
See how it works
Where would a surplus go?
Move the sliders to see how costs and reserves come first. This is an illustration, not a forecast.
Illustration only
Accounting surplus
R 450 000
- Reserve fundR 45 000
- Retained / reinvestedR 202 500
- Available for approved member allocationR 202 500
Actual allocations are decided under the Constitution and by general meeting, usually in proportion to each member's business with the cooperative — not automatically by shares held.
Cooperative reserve
How the reserve fund is reported
Opening reserve
Current-year allocation
Amounts utilised
Closing reserve
The reserve supports the legal minimum allocation and any additional requirements in the Constitution. Members can view reserve reports in the Financial Reports section.