patronage refund

A patronage refund is a return of a portion of the profits to members or customers of a cooperative or mutual organization, based on their individual level of use or patronage. Instead of earning dividends like in a traditional corporation, members share in the cooperative’s success proportionally to their participation. This refund encourages continued support and reflects the organization’s goal of benefiting its members. Essentially, it’s a way for members to get back part of what they’ve invested or spent, aligning rewards with their contribution to the organization’s operations.