CHAPTER V 

 FINANCING A COOPERATIVE ORGANIZATION 



THE financing of a farmers' cooperative organization 

 may be handled in several ways. The most common 

 methods of raising money to establish a non-profit asso- 

 ciation are the assessment of members, membership dues, 

 and a contribution by each member in the proportion 

 that his acreage or product bears to the total acreage 

 or product handled through the association. After the 

 charter is secured and the organization is formed, the usual 

 method of securing money to erect buildings or to supply 

 the equipment needed is to give a corporation note to a 

 bank as security for a loan, and then to repay the bank 

 with money raised in any of the ways already noted. If 

 the organization is incorporated as a stock corporation 

 for profit, the funds may be raised by the sale of stock, 

 by adopting the method described above, or by a combina- 

 tion of both methods. 



CITRUS-FRUIT ORGANIZATIONS 



The citrus-fruit marketing associations in California, 

 though desiring to operate on the cooperative plan, were 

 nearly all formed under the stock corporation laws, be- 

 fore the non-profit agricultural association law was enacted. 

 A brief review of their methods will be suggestive. 



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