If Ampled has a fiscal surplus left over at the end of year, meaning operating revenues are greater than total operating costs, the Board may vote to allocate a share of the surplus to be distributed to members in the form of dividends. The Board may also decide to allocate a share of the profits to re-invest in the sustainable growth of the co-op.
It's important to note that Ampled seeks self-sustainability and service to members more than profit. Once Ampled has achieved operational maturity and is able to sustainably and continually perform our core functions in alignment with our shared values, we hope eventually to reach a point where we have sustainable operational surpluses.
Being able to issue dividends to members would be an incredible accomplishment for an organization like ours. And because we're a co-op, dividends would be redistributed back to Artist-Owners and Worker-Owners, rather than lining the pockets of a small group of founders and investors. For more information on this, view our bylaws.
Let's say that in a full year of operation, the co-op was able to collect $1,000,000 from membership dues, but our expenses were only $900,000. This means that the co-op would have a $100,000 budgetary surplus at the end of the year.
Then, the Board decides whether to reinvest that surplus back in Ampled, or redistribute back to Owners in the form of dividends.
Here is how this would work at Ampled, outlined in our Bylaws.
How dividends are distributed
Distributing Surpluses to Artist-Owners: 85% of surpluses available for allocation are paid to active Artist-Owners pro rata based on the amount of total support received by the particular active Artist-Owner through Ampled.
Distributing Surpluses to Worker-Owners: 15% of surpluses available for allocation are paid to active Worker-Owners. This is determined in any manner that the Board determines to be fair and equitable, in consideration of both the amount of time worked towards Ampled and by the value of contribution.