Bvcoop mod1

Birmingham
Village
Striving for a

Better Future

Happiness

HAPPINESS
Problem Free
Financial Stability

Business/ Investments

Business/ Investments

Savings

Loans

Philippine Population 2013

98,734,798
12th most Populated Country
1.38% of the World’s Population
The country's poverty incidence is at roughly 30%,
which means about a third of the nearly 100 million
Filipinos subsist on less than 100 Pesos a day.

The Philippines has been in a boom and bust cycle for several decades
now. We have failed to achieve the necessary GDP growths to bring us
to developed nation status relative to other East Asian nations.
8 percent growth of South Korea
in the last 50 years

Double-digit growth rates of China
in the last 20 years

Philippines:
2007 - 7.3 % growth.
Average of 3 to 5 % growth

Education Reform
Transparency in Government
Stop PATRONAGE POLITICS
Infrastructure Development
Priority Development
Environmental Protection

MORE IMPORTANTLY:
CHANGE THE WAY PEOPLE THINK ON
HOW THEY SHOULD LIVE!!!

Always
Remember

“We are BORN to be RICH
and HAPPY.
God CREATED us to praise
Him for His wonderful
Creations, not to CURSE
and BLAME for our

BEST

RESPONSIBLE MINDSET
Cause a breakthrough
Inspire others to take Action
Create a new Outlook
Explore Possibilities

VICTIM MINDSET

WORST

Resist/Complain/Blame
Look for Validation of Interpretations
Enroll others in Negativity
False Alignment/Sabotage

RESPONSIBLE MINDSET
Make it Happen

Things Happen
Because of YOU

Find Solutions
Embrace it!
Acknowledge Reality
Wait and Hope
“I Can’t”

Personal Excuses
Blame Others

VICTIM MINDSET

Things Happen To YOU

Business Essentials

Risk

Capital

Manage
ment

PROFIT

Sole Proprietor

Partnership

Corporation

Cooperative

Capital

RISK

Management

Sole Proprietor

PROFIT

Capital

RISK

Management

PROFIT

Cooperative

Corporation

Management Capital

RISK

Management

Capital

RISK

Minimum Investment

Active Participation

Limited Risk

Are my efforts enough?

THINK
THINK
ABOUT IT…
ABOUT IT…

Where will my
efforts end?
Is there
another WAY?
Can I afford my own
Business?
Why should I join a
cooperative?
Can me and my
family benefit from it?
How can this help build
my family’s future?

Resources

Needs

Limited
Limited
Limited

Limited
Limited

COMMON

Members:
Who use their services or
purchase their products.
Owners:
Who Benefit from their
owned Enterprise.

Promote the fullest possible participation
in the economic and social development of
all people.
A major economic force in developed
countries and a powerful business model in
developing ones.

The United Nations
estimated in 1994 that the
livelihood of nearly 1Billion
people, was made secure by
co-operative enterprise.
These
enterprises
continue to play significant
economic and social roles in
their communities.

160.8 million

75.8 million

7.29 million
97.6 million
40.6 million

In ASIA,
382.09 Million people are Coop members
The Philippines – one of the Lowest in Asia

We must together exploit this rare and
great opportunity to move our country
forward and upward. Let us set our
differences aside and focus on what we
have in common.
We are but one people,
have but one country
and one future, and
no more time to waste.

Ramon R. del Rosario Jr.
PHINMA

Pre-Membership Education Seminar

Cooperative History
The earliest form of Cooperative in Philippine History is
the Agricultural Marketing Cooperative formed by Dr. Jose Rizal
in Dapitan. It left no much record having assumed to have died
with his execution in 1896.
Rural Credit Act 2818
Cooperative Marketing Law
Commonwealth Act 116
Farmers Cooperative Marketing (FACOMA) 1947
Philippine Non-Agricultural Cooperative Law of 1957
Agrarian Reform Code RA 6389 of 1969
PD 27 and PD 175 (on Martial Law)
Cooperative Code of the Philippines RA 6938 of 1986 (Corazon Aquino)
Philippine Cooperative Code RA 9520 of 2009 (Gloria Arroyo)


What is a Cooperative?
A Cooperative is a group
of people with a Common Bond,
working together to achieve a
common goal. A Cooperative
strives to make the lives of each
member more progressive.

A cooperative is an autonomous and duly registered
association of persons, with a common bond of interest, who
have voluntarily joined together to achieve their social, economic
and cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their products
and services and accepting a fair share of the risks and benefits
of the undertaking in accordance with the universally accepted
cooperative principles.
RA 9520


Universally Accepted Cooperative Principles:
1. Voluntary and Open Membership –
open to all without discrimination.

2. Democratic Member Control –
equal voting rights. All members can
participate and are accountable.


3. Member Economic Participation –
members contribute to, & democratically
control the Capital of their Cooperative.

4. Autonomy and Independence –
self-sufficient, self-help, controlled by
all members in a democratic way.


5. Education, Training and Information –
provides necessary training to members;
to contribute effectively for their
development.

6. Cooperation among Cooperatives –
working together with Local,
National, Regional and
International.


7. Concern for Community – work together for the
sustainable development of their community.


Why do Cooperatives enjoy tax exemption?
Republic Act 9520 (Philippine Cooperative Code of 2008)

“It is the declared policy of the state to
foster the creation and growth of
cooperatives as a practical vehicle in
promoting self-reliance and harnessing people
power towards the attainment of economic
development and social justice.”
-It is for this reason that Cooperatives enjoy
Tax exemption privileges.

•Credit Cooperative : is one that promotes and undertakes
savings and lending services among its members.
•Consumer Cooperative : is one the primary purpose of which is
to procure and distribute commodities to members and nonmembers.
•Producers Cooperative : is one that undertakes joint
production whether agricultural or industrial.
•Marketing Cooperative : is one which engages in the supply of
production inputs to members and markets their products.
•Service Cooperative : is one which engages in medical and
dental
care, hospitalization, transportation, insurance, housing, labor, e
lectric light and power, communication, professional and other
services.
•Multi-Purpose Cooperative : combines two (2) or more of the
business activities of these different types of cooperatives.

•Advocacy Cooperative : is a primary cooperative which
promotes and advocates cooperativism among its members
and the public through socially-oriented projects, education
and training, research and communication, and other similar
activities to reach out to its intended beneficiaries.
•Agrarian Reform Cooperative : is one organized by
marginal farmers majority of which are agrarian reform
beneficiaries.
•Cooperative Bank : is one organized for the primary
purpose of providing a wide range of financial services to
cooperatives and their members.
•Dairy Cooperative : is one whose members are engaged in
the production of fresh milk which may be processed and/or
marketed as dairy products.
•Education Cooperative : is one organized for the primary
purpose of owning and operating licensed educational
institutions.

•Electric Cooperative : is one organized for the primary
purpose of undertaking power generation.
•Financial Service Cooperative : is one organized for the
primary purpose of engaging in savings and credit services
and other financial services.
•Fishermen Cooperative : is one organized by marginalized
fishermen in localities whose products are marketed either as
fresh or processed products.
•Health Services Cooperative : is one organized for the
primary purpose of providing medical, dental, and other
health services.
•Housing Cooperative : is one organized to assist or provide
access to housing for the benefit of its regular members who
actively participate in the savings program for housing. It is
co-owned and controlled by its members.

•Insurance Cooperative : is one engaged in the business of
insuring life and property of cooperatives and their members.
•Transport Cooperative : is one which includes land and sea
transportation, limited to small vessels, as defined or classified
under the Philippine maritime laws.
•Water Service Cooperative : is one organized to own,
operate and manage waters systems for the provision and
distribution of potable water for its members and their
households.
•Workers Cooperative : is one organized by workers,
including the self-employed, who are at the same time the
members and owners of the enterprise. Its principal purpose is
to provide employment and business opportunities to its
members .
•Other types of Cooperatives : as may be determined by the
Authority.


How to form a Cooperative:
1. Get Organized – minimum of 15 persons. Determine
Common problems/Basic needs. Categorize type of
Cooperative. Form initial dedicated Core Group of
People to get things moving:
- Organization and Paper works.
- Membership, Finance, Executive, Secretariat
Committees

2. Reserve Coop Name – Cooperative Name Reservation
Request Form. (CNRRF) To be submitted to
Cooperative Development Authority. (Reservation Fee)


3. Economic Survey – Statement describing the structure and
purposes of the proposed Cooperative.
- Area of Operation
- Size of Membership
- other data
4 . Cooperative By-laws – Rules and Regulations of the
Cooperative.


5. Articles of Cooperation – name, purpose, term of
existence, area of operation, names of the
Cooperators,
Common
Bond
of
Membership, Directors, Share Capital and Bond of
Accountable Officers.
6. Treasurer’s Affidavit – At least:
- 25% of Authorized Share Capital must be subscribed.
- 25% of Total Subscription must be paid.
- Paid-up Capital must not be less than PHP 15,000.00


7. Pre-membership Education Seminar –
Mandatory (RA 9520) From training provider.
With a Certificate of PMES.
8. Registration – 4 copies of each:
Economic Survey,
AOC,
By-laws,
Surety Bond of Accountable Officers,
Treasurer’s Affidavit,
Approved CNRRF,
Certificate of PMES.


Nature and Purpose of a Cooperative:
Cooperative as a Socio-Economic Enterprise:

“There are two sides of the same coin”

1. Association
of People

2. Enterprise

-not one or the other.



Association of People:
A cooperative is formed by
individuals seeking for solutions to
their economic needs.
These individuals realize that on their own, they cannot
satisfy these needs but by associating with others with the
same needs, they can fulfill the same by combining resources
and working together. Their means to do this is by putting up
a:



Business Enterprise:
That they themselves own
and patronize. This is why people
joining a cooperative who are called
members are also considered its
owners and users.

As in the coin, members have to fulfill their responsibility, both as
owners and as users.


Both Owners and Users dual Character of purpose:
Important in preserving the essence of the Organization.
When an Organization moves away from that essence, to that
extent; moves away from being a Cooperative.



It is equally important that
members identify closely with the
group; or they feel that they belong to
it.
The common bond of interest is
an important element of membership
in a cooperative.
Because people share the same
interest, by reason of occupation,
affiliation and other social factors that
bind them together can also identify
more easily with the same purpose.



As an Association of People, it has also a social purpose,
which is to improve the lives of its members.


Purpose of the Cooperative:

As a Business Enterprise, the cooperative has an economic
purpose, which is to meet and satisfy the economic needs of its
members.


Purpose of the Cooperative:
The Cooperative has to achieve
both purposes at the same time. Not
one or the other. Not one as a priority
over the other. When a cooperative
provides members with needed
products and services, it should also
ensure that these products and services
contribute to their well being and
ultimately, to the improvement to the
lives of the people and the community.


Success and Failure of a Cooperative:

Members are key to the success or failure
of the Cooperative.
-When they are not engaged as
owners, they will not develop a real sense
of Ownership. They will not feel
responsible and will be disinterested in
the affairs of the Cooperative.
-When they are treated as mere
clients, they will treat the Cooperative like
any other provider of goods and services,
patronizing the business only when it
suits them.


Success and Failure of a Cooperative:

Members are key to the success or failure
of the Cooperative.
-Without member
support, the Cooperative cannot
succeed. It becomes a profit
oriented enterprise, seeking its
own survival in the open market.
- It is therefore important
to understand the Cooperative
Philosophy from the perspective
of members.


Cooperative Philosophy:
“Help oneself through the Cooperative and through the
Cooperative help others.”
In other words, an individual who thinks of
joining of a Cooperative should first understand that
it is not a Charitable Institution or a Business
Organization that is there simply to lend money or
sell goods and services. It looks at him or her as a
person with real desire to help oneself. Not only to
meet one’s immediate economic needs, but also to
improve one’s life in the long run.
One joins the Cooperative precisely because
he or she has limited means and resources. It is these
little resources that a member invests with other
members to form the capital needed to run the
business they can all benefit from.


The Cooperative is an Association of People.
When members put money into the Cooperative.
-buying shares
-making deposits
-paying loans
-buying goods & services

They provide the Cooperative with the financial means to help
others as well. This consciousness must be real to members.
This is what Real Cooperation means: To join and work with others
for the good of one and all.


The meaning of the two sides of the coin:
1. Help oneself.
2. Help others through the process.

1. Financial Capital on Enterprise side –
in the form of shares, deposits and other forms of
borrowing.
2. Social Capital on Association side –
The people who are equally important.
“Social Capital are Networks, norms and trunks
that enable participants to act together more
effectively to pursue shared objectives.”



It can be measured by the amount of trust of its individuals.
It shapes the quality and quantity of society’s social interactions. It is
the weave that holds them together.


Social Capital:
In a Cooperative, it comes in the form of Group Identity, Shared
Values, Mutual Trust and Volunteerism.

(These are mostly seen in new Cooperatives, when they still have little Financial Capital.)


Most Cooperatives with little or no Social Capital or
diminished Social Capital while growing their Financial Capital will
most likely not succeed in the long run. Without this Social Capital, a
Cooperative will never prosper. Cooperatives like these are mostly
gone now or have otherwise failed to develop. Unfortunately, this
Social Capital gradually diminishes as Cooperatives grow their
Financial Capital. This is a mistake!
SOCIAL CAPITAL

=

BUSINESS


A cooperative must always remember its purpose:
It must strive to satisfy the needs of its members. It
also must improve the lives of its members. Not one over
the other.
Members also need to
play their role and responsibility
to help oneself and help others.
This is the way to preserve a
Cooperative’s Social Capital.

Advantages of Cooperatives:
1. Easy to form:
The formation of a cooperative society is very
simple as compared to the formation of any other
form of business organizations. Any 15 adults can
join together and form a cooperative. The procedure
involved in the registration of a cooperative is very
simple and easy. No legal formalities are required
for the formation of cooperative society.

2. No obstruction for membership:
Unless
and
otherwise
specifically
debarred, the membership of cooperative society is
open to everybody. Nobody is obstructed to join on
the basis of religion, caste, creed, sex and color etc.
A person can become a member of a society at any
time he likes and can leave the society when he does
not like to continue as member.

3. Limited liability:
In most cases, the liabilities of the members
of the cooperative is limited to the extent of capital
contributed by them. Hence, they are relieved from
the fear of attachment of their private property, in
case the coop suffers financial losses.

4. Service motive:
In a Cooperative, members are provided with
better goods and services at reasonable prices. The
society also provides financial help to its members.
It assists in setting up production units and
marketing of products and small businesses.

5. Democratic management:
The cooperative is managed by the elected
members from and among themselves. Every
member has equal rights through its single vote but
can take active part in the formulation of the
policies of the society. Thus all members are equally
important for the Organization.

6. Stability and continuity:
A cooperative cannot be dissolved by the
death insolvency, lunacy, permanent incapability of
the members. Therefore, it has stable life and
continues to exist for a longer period. It has a
separate legal existence. New members can join and
old members may quit but the coop continues to
function unless all members unanimously decided
to close the same.

7. Economic operations:
The operation carried on by the cooperative is
economical due to the eliminations of middlemen.
The services of middlemen are provided by the
members with minimum cost. In the case of
cooperatives, the recurring and non-recurring
expenses are very less, thereby minimizes selling
prices.

8. Surplus shared by the members:
The society sells goods to its members on a
nominal profit. In some cases, the coop sells goods
to outsiders. This profit is utilized for meeting the
day-to-day administration cost of the society. The
procedure for distribution of profit that some
portion of the surplus is spent for the welfare of the
members, some portion kept reserve whereas the
balance shared among the members as dividend on
the basis of this purchases.

9. State patronage:
Government provides special assistance to
cooperatives to enable them to achieve their
objectives successfully. Therefore, they are given
financial loans at lower rates. The government also
extends many type of subsidies to cooperatives
strengthening their financial stability and
sustainable growth in future.

Benefits of Joining:

1. Savings for the Future:
Being a member of a
Cooperative ensures that you
are able to save for your
retirement, and guarantees you
and your family a brighter
future.

2. Financial Education:
Bringing up a better way of thinking
financially. You will have a better outlook in the way
you think and see money. You and your family as
well shall look at finances in a better light than
before.

3. Access to Premium Goods and Services:

The Cooperative aims to provide
quality goods and services to improve the
lives of its members and community at
reasonable and affordable prices.

4. Provident and Economic Loans:
Being a member of a Cooperative entitles you
to savings, loans and other financial services for
your economic and personal needs whenever you
need them. As a member, you are given a priority
over other prospective clients.

5. Security and Stability:

As a co-owner with the responsibility to make
certain that the business operations are profitable
and protected, you are sure that your investments
are secure and growing in the right direction.


6. Training and Education:

You are entitled to improve your
skills
in
business
management,
organizational
administration and other forms of
education to make you a more useful and
better person and part of society.

7. Social Integrity:
As part and principle
of the cooperative, you are
not
only
improving
financially but also socially
and as part of the
community.

Your social network grows and you see yourself
not just a person striving to succeed, but a part of a
group with the same vision and purpose.


8. Higher Purpose:
Not only you improve economically
and socially, being part of a stable
Organization frees you up from the worry
of day to day necessities. You can now
develop yourself and align with your life’s
true purpose.

How to be a member:

Birmingham Village
Development Cooperative
1. Pre-membership Education Seminar (PMES):
What is a Cooperative?
What is it’s purpose?
What are the Principles?
How does it work and operate?
What are my benefits?
What are my responsibilities?

How to be a member:

Birmingham Village
2. Fill-up Application Form:
Members data –
Capital Subscription –
Savings Mobilization –

Your personal Information
Your Investment
Your Pledge to save regularly
for the Future.

How to be a member:

Birmingham Village
3. Pay a One Time Membership Fee:

PHP 100.00 (One Hundred Pesos)
Refundable once membership
is not approved.

How to be a member:

Birmingham Village
4. Make your investment:

PHP 500.00 (Five Hundred Pesos)
Equivalent to = Five (5) Shares

1 Share = 100.00 Pesos

How to be a member:

Birmingham Village
5. Pledge your Subscription:

Fifty (50) Shares = PHP 5,000.00
Your Subscription shall be the
amount of shares you undertake to
save for a certain period.

Members who have Fully paid their subscription (50
shares) shall be regarded as REGULAR MEMBERS.

How to be a member:

Birmingham Village
Regular Members
Completed 50 shares subscription.
Not delinquent in any payment.

Have the right to vote in General Assembly.
Have the right to vote in Regular and Special Elections.
Have the right to run as Board of Directors.

How to be a member:

Birmingham Village
Fifty (50) Shares = PHP 5,000.00
Savings Mobilization Program:
Minimum of PHP 100.00 per month
Can be upgraded at any time.
Can save more than your monthly
savings due.

How to be a member:

Birmingham Village
Every Fifty Shares Bought
PHP 5,000.00
Issuance of Certificate of Share Capital
-Proof of Investment
-Can be sold to the Coop or other members
at par value.
-Can be used as collateral.
-Guaranteed investment for the future.

How to be a member:

Birmingham Village
Once you completed your subscription, you can opt to
subscribe to any amount of shares by filling up a:

Share Subscription Investment Form
Or you can just continue saving monthly by payment
and filling up a

Savings Capital Deposit form
Maximum Savings = 2000 Shares = 200,000.00 Pesos

Duties and Responsibilities of a
member:
1. Pay the installment on capital stock subscription as it falls
due (as stated in the Capital Build-up Program) and
participate in the capital build-up of the cooperative;
Regular Savings ensures you a better
future.
It also guarantees the development of
the Cooperative’s Business.
More Opportunities, more livelihood,
more growth.

member:
2. Patronize regularly its business.
You are Part-Owner and Part User.
It is your responsibility to patronize the Cooperative’s Business
Ventures.

member:

3. Participate in its parliamentary affairs;

You own this business. You must have a concern about how it is
run and in what Direction it takes.
Remember: Social Capital is as important as Financial Capital for
a Coop to survive and grow.

4.Attend the membership meetings, regular or special;
Take part in the Cooperative’s businesses. Make your Vote count.

member:

5. Obey the rules and regulations
provided by The Philippine Cooperative
Code, this By-laws, the decisions of the
General assembly and the Board of
directors, policies and decisions that
may be promulgated by the
Cooperative Development Authority.

member:
6.Promote the aims and purposes of the cooperative, the
success of its business, the welfare of its members and
the cooperative movement as a whole.

It is
Your business
Your money
Your future on the line.
What happens to your investment, whether it grows or it
diminishes, is totally in your hands. Who would want
his/her business to go down?

How to save?

I do not know how to save!!!
I do not earn enough for me
to save!!!
I am afraid for the security of
my savings!

How to save?
Typical Personal Savings:

XSavings
Income – Expenses =

Superior Savings:

Income – Savings = Expenses
-Francisco Colayco, Founder of the Colayco Foundation
and KSK (Kalayaan sa Kakapusan), author of
“Pera Mo palaguin Mo”(Wealth Within your Reach)

Typical Savings:

Income = PHP XXXX.00
E

X

P

E

N

S

E

Remaining Amount

Almost always = 00000

Superior Savings:

Income = PHP XXXX.00
Subtract first the amount you
want to save!
Remaining Amount
E

X

P

E

N

S

E

Example: Five Hundred Pesos
(500) per Salary
What can you buy for PHP 500.00?
500 /15 days = 33 pesos per day…
PHP33 / day

PHP 500 / payday
One time Family meal at a mall.

One pack Cigarette.

One movie ticket + snacks.

One 1.5 L Softdrink

One time shopping for snacks
at the grocery.

One Regular Load

One buy one take one Burger & Drink.

500 a month???

Save for your future.
Pooling
Resources
for…

It’s just a matter of Outlook and the
way you see your Life and Finances.
(Improving the lives of it’s members….)

• Residents of Birmingham Village
Homeowners
Relatives
Boarders / Renters

• In Direct Relationship
Having business here
Close Friends

Share the Good news… Contribute to the dream
towards development.

Successful Cooperatives…
Tayabas Community Multi-Purpose
Cooperative
Quezon Province

February 1965 – 25 members/150 pesos.
Credit to Farmers…
NOW,
2 Branches
-Financial Services
-Banking Services
-Remittance Services
-ATM Services
-Agri-Trading Business
-Health Care Services/Pharmacies
-Transport Services
-Funeral Services

Saints Peter and Paul Multi-Purpose
Cooperative
HINUNANGAN, Southern Leyte

1968 – PHP 836.00, 36 Original members
Coconut Farmers =
contributed 25 coconuts each
NOW,
Total Assets = PHP 105 Million
Over 2,000 members
-Credit Cooperative
-2 Storey Hotel
-Rice Milling
-Quasi-Banking
-Health and Fitness Facility

Novaliches Development Cooperative
NOVADECI Quezon City
1970’s Slaughterhouse Forclosed by GOVT.
Susano Market Vendors (15 members)
PHP 7,000.00 initial Capital
Used their Homes as Offices (no money)
NOW,
-Owns many multi-storey Buildings Offices
-More than PHP 881 Million Assets (2007)
-PHP 180 Million Paid-up Capital (2007)
-Awardee as Best Coop by the LBP and CDA
many times.
-Financial, Health, Mutual Benefit, Loan,
Housing, Pharmacy, Educational Services
-Tree-planting, dental/medical missions
Livelihood Charity Projects etc.

There are 22,000+ registered coops in the
Philippines last 2012
Cabuyao Market Vendors Multi-Purpose Coop.
CAMAVEMCO
Cabuyao Natl. High School Personnel MPC
Cabuyao Upland Farmers Multi-Purpose Coop.
CUFAMPCO
Mamatid,Festival Mall Transport Coop
MAFESTCO
NXP Cabuyao Employees Multi-Purpose Coop.

Building and joining Cooperatives…

Shared Resources
Shared Risks
Shared Responsibilities
One Vision
One Goal
One Team
For our Community and Country’s
Success and Future.

Do you want to alleviate you and
your family’s life?
This?...

Or this !!!...

You always have a

Bvcoop mod1

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