Ownership Information

What About These Patronage Rebates?
Your Questions Answered

What is a patronage rebate?
A patronage rebate is the amount of money received at the year’s end by owners who have patronized New Leaf Market during the year if the business has made a profit.

How did you figure out how much my rebate was?
The percentage of profit available for patronage rebates is based on the percentage of total sales attributable to owners. Because we are able to track our sales to owners at point of sale, we know that for the fiscal year ending June 27, 2009 the total percent of sales to owners was 54%. Therefore, 54% of the total profit is available for rebate.

Who decides how much to rebate?
The IRS requires New Leaf Market to return a minimum of 20% of the profits generated by the owners. The Board of Directors has the discretion to return up to 100%.

How much has the Board of Directors elected to return this year?
For the fiscal year May 1, 2008 - June 27, 2009 the Board of Directors voted to return 70% of the profit generated by the owners.

What are you going to do with the other 30%?
The money that is not returned to you, known as “retained patronage,” will be used for reinvestment in the business.

What about the profits generated by non-owners?
It is also retained by the Co-op for reinvestment in the business. This money, along with owners retained patronage, ensures that we have enough to cover operating costs, capital expenditures and emergencies. It also means that we are less dependent on interest accruing bank loans to achieve our goals.

How much is being returned this year?
$50,541

When will I get my check?
According to our by-laws, New Leaf Market is required to mail rebate checks no later than January 15, 2010.

I shopped, but I didn’t get a check. Why not?
There are several reasons why you may not have received a check.

• Do we have your current mailing address? If your check is returned to the Co-op you may need to pick it up here. Checks are void after 90 days.
• We do not mail checks that are for less than two dollars in order to save money on postage. You may check at customer service if your rebate was held, and acquire it if available.
• If you have not received your check and want to inquire on its whereabouts, you may fill out the Patronage Rebate Check Request form which you will find at the customer service desk and someone will contact you.
• If you joined after the end of the fiscal year, June 27, 2009 your purchases will not be eligible for rebate until the end of the next fiscal year, June 26, 2010.

I got a patronage rebate check. Do I have to include it as income on my tax return?
No, as long as the products you purchased during the year were for your own personal consumption.

Can I cash my check at New Leaf Market?
Yes! You may also use it as a credit against your purchases the next time you’re in the store. Of course, you may also present it at your bank for cash or deposit. Please note that your check will become void after 90 days if not cashed.

Tell me again why patronage rebates are a good thing.
Like all true cooperative businesses, New Leaf Market operates according to the Principles of Cooperation. These lead us directly to patronage rebates by stating that the economic results (profit) arising from the owners, belong to the ownership in direct proportion to their patronage. This ensures that no owner benefits at the expense of another. They also help ensure that the financial health of your co-op is sound. It means that the Co-op will be able to serve you and all of the owners for many years to come.