2024 Patronage Dividends

When a cooperative realizes a profit, IRS tax code allows it to return a portion of that profit back to the Member-Owners and therefore reduce its tax obligation. We are happy to announce that 2024 was another profitable year for our Co-op and we can once again issue patronage dividends this fall. Just as a reminder, patronage dividends are based on previous year performance so this whole conversation is about 2024. We will not be discussing 2025 performance until the fall of 2026.

Letter from John Crane, General Manager

September 2025

Dear Portland Food Co-op Member-Owners.

In 2024, our Co-op was able to achieve financial success by realizing a net income of $60,449.

Those of you who have been around for a while will notice that this is significantly less than in the previous four years. Our sales and membership continue to grow so it would be logical to presume that our net income would grow as well. Two factors cut into our net income last year and therefore the amount of excess profit we can distribute to the membership. I want to ensure you all understand why this is the case. The first is that our store is ten years old and our equipment is aging. I authorized spending well over $60,000 to upgrade compressors, condensers, and other mechanicals that keep our refrigerators and freezers running correctly. I also increased the quality of our staff health insurance plan. All full-time staff now have access to a gold-level health plan for which our Co-op pays 85% of the premium for them and 65% for their partners and children.  These expenditures cut into our net income, but I felt confident that these investments in our systems and staff were ones the membership would support.

Our accountant recommended, and our Board approved, a patronage dividend dispersal of $5,573, based on 2024 net income. This will be divided between 4258 Member-Owners who shopped at the Co-op in 2024. This will be dispersed based on each Member-Owner's total Co-op purchases in 2024. Some will receive only a few cents while others will receive upwards of $20.00. This dividend is not taxable for you.  

You are welcome and encouraged to take this dividend. It is your reward for your support of our Co-op. When you give your Member-Owner number at the check-out, the cashier will let you know if you have a patronage dividend available and ask if you would like to apply it to your purchase.  

If your dividend is $5.00 or more, you are welcome to ask for a check instead of a register discount.  

If you feel so inclined, however, we are providing the option for Member-Owners to donate their dividend to the Cooperative Maine Business Alliance. Our Co-op is a member of the CMBA. Your donation will support their mission to improve the success, sustainability, and awareness of cooperatives in Maine through peer-to-peer technical assistance, mentoring and networking, and through public education, organizing and advocacy that promotes an equitable and democratic economy. To donate your dividend to the CMBA, all you must do is not take it.  

You have until December 23rd, 2025, to take your dividend. All dividends not claimed at that time will be donated to the CMBA.

Thank you for your ongoing support of our Co-op. We truly are stronger together.

In Cooperation,

John Crane

General Manager