Co-op software: what to use for your kind of co-op
Most of a co-op runs on ordinary business software. The co-op part is member records, patronage dividends and member votes. Pick your type of co-op.
What co-op software has to handle
A co-op pays out part of its earnings to its patrons, usually its members, as patronage dividends, in proportion to the business each did with it. Part can be kept as member equity, recorded for each member. Under US tax rules, the kept part generally counts as a qualified allocation only if at least 20% of the dividend is paid in cash. In primary co-ops, members vote one member, one vote.
- Net earningsfrom business done with patrons, usually members
- Split by useeach member's share of the business they did
- Paid outpart in cash (at least 20% in the usual case), part kept as equity
- Recordedper member, until the equity is paid back
26 U.S.C. §1388, patronage dividends (Cornell LII)International Cooperative Alliance, cooperative identity and principles
Member records
Who the members are, when they joined, and the shares or equity each one holds.
Patronage dividends
Each member's share of the year's earnings, based on the business they did with the co-op.
Member equity
The part of each dividend kept in the co-op, tracked per member until it is paid back.
Voting
Board elections and big decisions, often at an annual meeting. In primary co-ops, one member, one vote.
Ordinary accounting
Invoices, payroll and reports, as in any business.
What to look for
- Patronage worked out from each member's purchases, sales or hours, the way your bylaws set it.
- Member equity kept per member, with the year it was allocated and when it is paid back.
- Reports and exports your accountant can work with.
- Secret-ballot voting that allows one vote per member, if you hold elections online.
Looking for co-op advertising software, to manage marketing funds suppliers give distributors? That is a different product, usually sold as co-op and MDF software.
Farm supply and grain co-ops
Farm co-ops need grain accounting, agronomy and energy sales, and patronage records in one system.
Greenstone (Agris)
Agribusiness software with trading and patronage tools for full-service cooperatives.
From its own website.
AgTrax
Grain, agronomy and accounting software, including patronage and member equity; its case studies include several farmer cooperatives.
From its own website.
Grocery and food co-ops
Food co-ops need a grocery point-of-sale system that knows who is a member-owner.
ECRS (Catapult)
Grocery point of sale; for food co-ops it tracks membership and owner patronage.
From its own website.
Housing co-ops
Housing co-ops need building and resident management: requests, notices, packages and the board's records.
BuildingLink
Building and resident management, with condos and co-ops among its markets.
From its own website.
Fuel and convenience co-ops
Co-ops that run fuel stations and stores need back-office software built for fuel.
Red River Software
Back-office software for fuel dealers and convenience stores; for cooperatives it tracks patronage and member reporting.
From its own website.
Boards and member votes
Worker co-ops and co-op boards need a way to discuss, decide and hold secret-ballot elections.
Loomio
Group decision-making: proposals, discussion and votes. Built by a worker co-op in New Zealand.
From its own website.
ElectionBuddy
Online voting for elections and meetings, with cooperatives and credit unions among its markets.
From its own website.
Questions people ask
What is co-op management software?
Software that handles what makes a co-op different from other businesses: member records, patronage dividends, member equity and member voting. Many co-ops pair it with ordinary accounting software.
Can a small co-op use QuickBooks or Xero?
Yes, for ordinary accounting. Ask your accountant whether it can record patronage dividends and member equity the way your co-op needs, or use a co-op system alongside it.
What software do farm co-ops use?
Farm supply and grain co-ops use agribusiness systems that combine grain accounting, agronomy, energy and patronage records. Greenstone (Agris) and AgTrax describe cooperative customers; Agvance and AgVantage cover the same grain and agronomy work.
How can a co-op hold an online vote?
Online voting services run secret-ballot elections and meeting votes, one vote per member. ElectionBuddy lists cooperatives among its markets; Loomio is built for group decisions and discussion.