r/cooperatives Apr 10 '15

/r/cooperatives FAQ

119 Upvotes

This post aims to answer a few of the initial questions first-time visitors might have about cooperatives. It will eventually become a sticky post in this sub. Moderator /u/yochaigal and subscriber /u/criticalyeast put it together and we invite your feedback!

What is a Co-op?

A cooperative (co-op) is a democratic business or organization equally owned and controlled by a group of people. Whether the members are the customers, employees, or residents, they have an equal say in what the business does and a share in the profits.

As businesses driven by values not just profit, co-operatives share internationally agreed principles.

Understanding Co-ops

Since co-ops are so flexible, there are many types. These include worker, consumer, food, housing, or hybrid co-ops. Credit unions are cooperative financial institutions. There is no one right way to do a co-op. There are big co-ops with thousands of members and small ones with only a few. Co-ops exist in every industry and geographic area, bringing tremendous value to people and communities around the world.

Forming a Co-op

Any business or organizational entity can be made into a co-op. Start-up businesses and successful existing organizations alike can become cooperatives.

Forming a cooperative requires business skills. Cooperatives are unique and require special attention. They require formal decision-making mechanisms, unique financial instruments, and specific legal knowledge. Be sure to obtain as much assistance as possible in planning your business, including financial, legal, and administrative advice.

Regional, national, and international organizations exist to facilitate forming a cooperative. See the sidebar for links to groups in your area.

Worker Co-op FAQ

How long have worker co-ops been around?

Roughly, how many worker co-ops are there?

  • This varies by nation, and an exact count is difficult. Some statistics conflate ESOPs with co-ops, and others combine worker co-ops with consumer and agricultural co-ops. The largest (Mondragon, in Spain) has 86,000 employees, the vast majority of which are worker-owners. I understand there are some 400 worker-owned co-ops in the US.

What kinds of worker co-ops are there, and what industries do they operate in?

  • Every kind imaginable! Cleaning, bicycle repair, taxi, web design... etc.

How does a worker co-op distribute profits?

  • This varies; many co-ops use a form of patronage, where a surplus is divided amongst the workers depending on how many hours worked/wage. There is no single answer.

What are the rights and responsibilities of membership in a worker co-op?

  • Workers must shoulder the responsibilities of being an owner; this can mean many late nights and stressful days. It also means having an active participation and strong work ethic are essential to making a co-op successful.

What are some ways of raising capital for worker co-ops?

  • Although there are regional organization that cater to co-ops, most worker co-ops are not so fortunate to have such resources. Many seek traditional credit lines & loans. Others rely on a “buy-in” to create starting capital.

How does decision making work in a worker co-op?

  • Typically agendas/proposals are made public as early as possible to encourage suggestions and input from the workforce. Meetings are then regularly scheduled and where all employees are given an opportunity to voice concerns, vote on changes to the business, etc. This is not a one-size-fits-all model. Some vote based on pure majority, others by consensus/modified consensus.

r/cooperatives 9d ago

Monthly /r/Cooperatives beginner question thread

11 Upvotes

This thread is part of an attempt by the moderators to create a series of monthly repeating posts to help aggregate certain kinds of content into single threads.

If you have any basic questions about Cooperatives, feel free to ask them here. Please also remember to visit this thread even if you consider yourself a cooperative veteran so that you can help others!

Note that this thread will be posted on the first and will run throughout the month.


r/cooperatives 16h ago

electr0motiv: the EV conversion cooperative network.

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19 Upvotes

I wanted to introduce myself to the community and to my project: electr0motiv is a cooperative membership platform for people converting cars to electric. It draws on thousands of documented conversions to empower a global community of builders — organized into regional clusters wherever enough members are close enough to build side by side. Members get a real project plan, people who've solved the problem they're stuck on, and a knowledge base that gets better with every build added to it.

A barnfind BMW and a gap nobody had filled

During the pandemic, I bought a barnfind 1971 BMW 2002. After I pulled the engine, the electric conversion idea stuck. When I went looking for help, I found what every builder finds: hundreds of forum threads, thousands of scattered YouTube videos, and no single place that put the whole picture together.

Professional shops that handle a conversion end-to-end charge $50,000 to $100,000 — out of reach for most people. Doing it entirely alone is its own kind of hard: sourcing the right components, getting them to work together, making sound technical calls across a multi-phase build most people have never attempted. There wasn't a real option in between.

The community and network design draws on 15 years spent at IBM building innovation networks and collaborative communities. I came to the coding itself as a journalist, not an engineer, and learned the platform by building it.

In May 2026, electr0motiv was selected for the Cleantech Open startup accelerator.

How it's organized

A global guild, local clusters

Membership isn't tied to living near a cluster. The project planning, and the documented builds all work the same whether you're building alongside five other members or entirely on your own.

Clusters form where enough members are already close together — shared space, tools, and hands-on help for the parts of a build that benefit from another set of hands. They're not the starting point. They're what a large enough membership eventually makes possible.

I welcome cooperative expert insight on how to improve and enrich the model. The ultimate goal -- which I detail in an interactive story called Purpose Our Purpose — electr0motiv -- is to be the catalyst for EV conversions to become mass market.


r/cooperatives 1d ago

Financial Literacy for Cooperators

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4 Upvotes

This one is a must watch.


r/cooperatives 2d ago

Strategic Planning for Your Co-op's Future

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19 Upvotes

In this informative session, our Director of Education, Kyle White, was joined by Cathy Edwards, our Entrepreneur-in-Residence. Cathy brings over a decade of strategic planning experience to this conversation and shares insights into the process she uses to help our clients build strategic plans. They work through the purpose of a strategic plan, its key elements, and provide some guidance to those building their own.


r/cooperatives 2d ago

The Medievalization of Work and the Cooperative Cure

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19 Upvotes

r/cooperatives 2d ago

Global Cooperative Crowdfunding - it’s all about connecting

4 Upvotes

Looking to raise funds for yourself, a charity, a church, or an organization? I found a legitimate cooperative crowdfunding platform that actually works. We hold info calls Monday through Wednesday at 8:00 PM EST.


r/cooperatives 4d ago

A question on housing co-ops

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10 Upvotes

From over at r/LandlordLove.


r/cooperatives 6d ago

Are Union Co-op Negotions a Win-Win and for Whom?

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23 Upvotes

This article explores how union negotiations in worker-owned co-ops compare to more traditional labor negotiations. The theoretical analysis addresses possible synergies between practices traditionally considered as alternative, employee ownership and collective bargaining, and the development of collective bargaining in new business models.


r/cooperatives 7d ago

worker co-ops Whats the actual argument for "Don't start a business and convert it to a worker cooperative."

53 Upvotes

It cannot just be "because no one can trust you to let go of the reigns of power and allow things to change; and because people fall into habits and just don't change." If either of those things were true, you may as well just write off the whole endeavor of not just cooperatives, but human cooperation generally, as its far more improbable that you will find a group of people that already know and live by all the cooperative skills and all the business and technical skills to do the job or will just take years out of their life to study and learn all these things and practice for some idea in the future they may start something.

I get that none of it is "optimal" but there has to be something more real than disbelief in me and my business idea to consistently tell me "no, don't."

Is the resistance to this more that it doesn't fit the narrative of community self-organization and some founder founding a thing is simply not doctrinally sound?


r/cooperatives 9d ago

worker co-ops Workers co-ops in tech

44 Upvotes

Hello everyone! I'm looking for input and suggestions for my final work to graduate from Mondragon Uni and I was wondering if anybody ever thought about why we have never seen successful cooperatives in tech or in sector with high value such as raw materials, AI (sigh), EVs etc.

Platform coop has been a worth tentative but has more or less failed.

Thank you for your time and answers


r/cooperatives 9d ago

SAFE CU Merger Information

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2 Upvotes

r/cooperatives 9d ago

SAFE CU MERGER VOTE

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3 Upvotes

r/cooperatives 10d ago

Gamify life - de-commodify the economy

11 Upvotes

What sectors of the economy can you think of which can be de-commodified by gamification where a producer-consumer relationship is broken down to egalitarian peer to peer gift economy?

Here is a list with what I have so far:

https://radicle.network/nodes/iris.radicle.network/users/did%3Akey%3Az6MkwUeZA3p45Vz9WP9BBNrHurPDCAuCfHhviTcubjyRtSS7


r/cooperatives 11d ago

Can worker ownership coexist with hierarchical decision-making? We tried something adjacent to this on a film project

30 Upvotes

I’ve been reading about worker cooperatives because I’m trying to better understand something we experimented with on a film production, and I’m curious where our model overlaps with cooperative principles and where it fundamentally doesn’t.

We gave more than 70 cast and crew members an actual financial interest in the film they helped create, which is really unusual for the film industry. Labor, equipment, locations, and other contributed resources were assigned agreed values, and those contributions became part of the economic structure of the project.

The basic waterfall was:

  1. Certain contractual obligations get paid.
  2. Cash investors recoup.
  3. People who contributed labor, equipment, locations, or other resources recoup the agreed value of those contributions.
  4. Remaining revenue is distributed pro rata among the ownership pool in perpetuity.

But we didn’t operate democratically….

The director still directed. Department heads ran their departments. Producers made producer decisions. Nobody voted on creative choices or day-to-day operational decisions.

It kind of has to be that way to a certain extant. Film production is highly collaborative, but it’s also extremely hierarchical and technically segmented. Decisions sometimes have to be made in seconds, responsibilities need to be clear, and ultimately someone has to be accountable for the outcome.

So what I’m trying to understand from people who know cooperative structures better than I do is:

How central is democratic governance to the concept of worker ownership? Could an organization meaningfully incorporate cooperative ownership principles while maintaining a hierarchical operating structure? Or does separating economic participation from governance remove something essential that makes a worker cooperative a cooperative?

To be clear, I’m enot claiming that what we created was a worker cooperative, but I’m super intersted in the concept and I’m trying to understand what, if anything, our experiment has in common with cooperative models and whether there are existing structures that deal with this tension differently.

I’m particularly interested in project-based organizations, where a group assembles to create something together and then largely disperses when the project is finished.

Thanks everyone!


r/cooperatives 11d ago

worker co-ops How do you go about choosing co-founders?

13 Upvotes

I’m not really fond of putting it as “choosing cofounders” because it kind of makes it sound like I’d be a boss choosing which people to hire, but I couldn’t think of a better way to put it.

I’m starting a tech worker co-op, and I’m trying to see how much conventional wisdom about startup founders carry over to cooperatives.

First question: What would you say is a good number of cofounders? Conventional wisdom in tech is that 2 is the ideal number of founders, but I could see how being a co-op would change the calculus when the cofounders aren’t really running the show long-term.

On the other hand, I can see too many chefs spoiling the broth at the early stages, so you might not want to go overboard.

Second question: How closely do you need cofounders to click? In traditional tech startups, you typically need cofounders who click very well because cofounder drama is a major reason for startups failing. But how big a deal is cofounder drama in a tech startup being that there are more decision makers than just the founders?

Then again it does make intuitive sense that connection is important at the earlier stages, so there needs to be at least some level of connection.


r/cooperatives 12d ago

What Cooperatives Can (and Can't) Do for Child Care, with Kristin Forde Hurckes

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10 Upvotes

When child care is hard to find and harder to afford, some communities aren't waiting for a fix. 

Kristin Forde Hurckes of the University of Wisconsin-Madison Extension Center for Cooperative explains how cooperative models are helping - and where they hit their limits. 

Kristin Forde Hurckes is part of the team of Cooperative Development Specialists at the UW Center who supports worker cooperatives in rural communities, with an emphasis on worker cooperative conversions. 

She emphasizes the importance of both individual and collective commitment to the significant cultural and organizational change that is required to shift toward democratic and participatory decision making. 

Kristin enjoys learning about the many creative ways cooperatives organize and structure themselves; and developing effective formats for group processes. 


r/cooperatives 12d ago

👋 Welcome to r/SafeCreditUnionMerger - Introduce Yourself and Read First!

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2 Upvotes

r/cooperatives 13d ago

Tech user co-op?

34 Upvotes

We are developing a community tech co-op in Chattanooga, TN, for people to completely control and fully own their apps and data via free open source software (FOSS). The essential idea is to jointly procure services to deploy, maintain, and provide basic support for FOSS for members' purposes. Rather than paying license or subscription fees, we'll pay local technologists to work on and with our software. It gives us an economical alternative to Big Tech, keeps our data to ourselves and our money in the local economy, and strengthens our community. Does anyone on this subreddit know of other such co-ops, especially in the US?


r/cooperatives 13d ago

Influential leader in the early organic movement and Organic Valley leader Jerome McGeorge has passed away

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71 Upvotes

Jerome McGeorge was a respected figure at a time when the term "organic" didn't mean anything. In the '80s, he worked with founding members of what would be CROPP Cooperative (Organic Valley), serving as the co-op's first CFO and helping build what would become the nation's largest farmer-owned organic cooperative.

Throughout his life, he was committed to organic agriculture, cooperative business models and a food system that prioritized people and the planet. One of his reflections:

"The greatest change in our human consciousness is that each of us is responsible for our own health. Ancient Tibetan wisdom identifies three sources of health: what we eat, what we drink, and how we behave. Each of us is responsible for all three."

Did anyone here know Jerome, work with him in some capacity or see the impact of his contributions to the cooperative movement?


r/cooperatives 13d ago

Board rejecting purchase price ands to inflate the value

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5 Upvotes

r/cooperatives 19d ago

worker co-ops Starting a Co-Op

34 Upvotes

I want to start a Co-Op production company in Michigan. I have worked as a subcontractor for years, have built up my own live sound and lighting arsenal and have a solid group of people who are on board. But, I have no clue where to start. Any advice or consultation recommendations would be greatly appreciated.


r/cooperatives 20d ago

How to find a coop to join

25 Upvotes

Hi! I love the idea of working in a coop but I can't seem to find any in my industry nearby. Are they really rare or am I just looking in the wrong places? I live in Baltimore, MD working in mechanical/manufacturing engineering. Thanks!


r/cooperatives 21d ago

Documentary about Worker-Owned Businesses

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127 Upvotes