How Potential Dividends are Determined
PCC members are eligible to earn a potential annual dividend. If awarded, PCC’s dividend is a sum of money paid to active members out of the operating income that the co-op makes specifically from member sales.
2020 was the first year of the new PCC member benefit program and the first year that co-op members could earn toward a possible dividend. Here is the process flow that the PCC Board of Trustees uses to determine whether to declare a dividend:
1. Jan-Mar
The Board looks at the co-op’s preliminary financials for the year prior and considers the current and future financial health of the co-op. If the co-op is on track to earn a profit, the Board discusses whether all the funds accrued for member dividends should be paid to members, retained for use in operating the business, or a mix of both.
Dividends are not guaranteed because they depend on the co-op making a profit and PCC’s business needs.
2. Apr-Jun
The financials for the prior year are finalized and certified by the independent auditors; this gives the Board an accurate view of the co-op’s total and member operating income.
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- The Board revisits its discussion from Q1 (January-March) to determine whether to declare a dividend and, if so, for how much.
- b. If the Board declares a dividend, members are alerted via email.
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3. Apr-Jun
If a dividend is issued, it is provided to members as a merchandise credit. Dividends are available for use through December 31 of the year following the year of issuance.
If a dividend is awarded, you will need to present your legal identification alongside your membership card or membership number when you check out for redemption. You are not required to have your membership linked to your email, but it is strongly advised!
Members who wish to have their dividend cashed out will be able to make a formal request.