The contribution system to the central co-operative fund : an analysis

Abstract

The study evaluates the contribution system to the CCF in terms of its components and how it is perceived by those affected by it. Moreover, the study seeks alternatives to the current contribution system.

The objectives of the study were attained through 18 semi-structured interviews that enabled further participation. The findings were analysed through computer techniques that enabled a more detailed analysis to ensue.

It was found that the contribution system was not perceived as unfair. The respondents took the contribution system for granted, given that it is based on surplus as is the case with the use of profits for taxation in a company. Moreover, the study has shown that there is great resistance to any possible reform that may be proposed to the current system.

The study concludes that the set-up of the contribution system fails to address a number of weaknesses related to the use of surplus as the basis. Among these are the possible manipulation of surpluses and internal co-operative issues. Furthermore, the fact that the current system has failed to yield enough funding from the whole co-operative sector indicates that the system cannot thrive.

This study hopes to raise an awareness of the possible adverse effects if the current contribution system is not reassessed, including the risks involved if the co-operative movement continues to over-rely on too few co-operatives as a source of CCF funding. Recommendations include more inquiries by the Board and more disclosures of related party costs.