the patronage refund

A patronage refund is a payment returned to members of a cooperative or mutual organization based on their use or purchase of the organization’s services or products. It reflects a share of the cooperative’s profits, distributed proportionally to each member’s level of patronage. Essentially, it rewards members for supporting the organization and helps reinvest in its services. This practice encourages continued participation and aligns the organization’s success with the benefits received by its members.