Your share of the surplus, returned to you.
When the planned cooperative runs a surplus on your patronage, that surplus comes back to you — as patronage equity, not as a tip, a coupon, or a token. This is how legitimate cooperatives have worked since 1865.
Mechanics on this page describe the intended design of the American Dream of the Future Cooperative, subject to formation, bylaws, and securities clearance.
Posted to your account immediately under Subchapter T as a qualified written notice of allocation. You can apply it to your own co-op invoice at par, or transfer it to another member at par.
Held in your name on the co-op's balance sheet. Funds growth and the planned board-declared cash redemptions per the bylaws and Subchapter T.
1. Apply it to your own co-op invoice.
$1 of patronage equity = $1 off. Reduces a mowing, pool, or service invoice. No expiration tied to the Allocated portion.
2. Transfer to another member at par.
Gift it to a neighbor, pool with a family member, trade for a chore. No fee, no markup, no marketplace. Both parties must be members in good standing.
3. Wait for a board-declared cash redemption.
The board declares redemptions of the Retained portion per the bylaws, typically annually or after a major surplus event. Members receive a check or ACH, not an on-demand withdrawal.
- Not a token, coin, or cryptocurrency. No blockchain, no wallet, no exchange.
- Not a credit balance you trade for cash on a marketplace. We do not run a P2P fiat exchange. Selling patronage equity to non-members for cash would make us a regulated money transmitter, and we won't go there.
- Not a security you can "pledge" cash for today. Cooperative membership shares are securities. We will not collect money tied to a future membership share until the cooperative's offering has been filed and accepted under the Arkansas Invests in Arkansas Act, Regulation CF, or Regulation D. Read the disclaimer.
- Not a floating value. $1 of patronage equity is always $1 of patronage equity. No re-pricing, no inflation, no dilution.
Allocations are reportable to the IRS on Form 1099-PATR when your annual allocations and cash redemptions exceed the IRS threshold (currently $10). The cooperative issues the form; members file it with their personal return.
Because the Allocated portion is a qualified written notice under Subchapter T, it's taxed in the year of allocation — not the year of redemption. This is standard cooperative tax treatment, not a special program.
We are not tax advisors. Talk to a CPA familiar with Subchapter T about your specific situation.
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