r/cooperatives • u/AutoModerator • 27d ago

Monthly /r/Cooperatives beginner question thread

This thread is part of an attempt by the moderators to create a series of monthly repeating posts to help aggregate certain kinds of content into single threads.

If you have any basic questions about Cooperatives, feel free to ask them here. Please also remember to visit this thread even if you consider yourself a cooperative veteran so that you can help others!

Note that this thread will be posted on the first and will run throughout the month.

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u/justswimming221 23d ago

So if I’m just learning about cooperatives I can ask a question here and maybe get an actual answer instead of “this has been asked several times before, do your research”? I’ll give it a try…

I’ve been very disappointed by the corporate culture of the USA, and believe that cooperatives may be a good way out. But I don’t know enough about them yet.

There are two cooperatives that I’m in the baby steps of considering. First is a local-only newspaper, since my community doesn’t have one. I did a short run of a magazine with some success, but we didn’t have the manpower to sell the ads to make revenue and ended up folding. Looking to try again, but without the possibility of owners (even if it’s me) selling out, which happened to our last paper - then it disappeared.

The other is an art cooperative, though I’m not sure if a cooperative is the right fit. It would almost be more like a non-profit organization supporting the arts? I want to support local artists in various ways, helping match performers with venues, visual artists with businesses willing to showcase them, organize showcases, and possibly include a community orchestra/band/choir.

Sadly, I’m so new that I’m not sure what questions to ask. How about this: if I started a music teacher cooperative in the US, then:

  • Each teacher would be an equal owner, right?
  • How does payment work - would they have to direct payment to the organization and be paid from it, or would they pay dues?
  • If they pay dues, how is this different from a 501(c)6?
  • If lesson rates were unified, would this run afoul of anti-trust price-fixing regulations?

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u/iwandoherty 20d ago

I'll answer about the music teacher co-operative. Each teacher would be an equal owner but how the business model worked would depend on the latter. Are you thinking of a co-op of freelance/self employed teachers or a co-operative that employs teachers itself?

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u/justswimming221 20d ago

I’m considering both options, but leaning towards having teachers be employees. I think that would allow us to be more involved if we want to, such as setting fees, having substitutes, and handling payments.

The more research I do, the more confused I get between cooperatives, guilds, unions, and collectives. I know that the Music Teacher National Association got into trouble for things like discussing hourly rates, billing policies and procedures, etc, and that makes me wary of doing anything other than an everyone-is-an-employee-owner model, but would that work? If all the local music teachers joined (which I doubt but is possible as there’s not many to begin with), would we get in trouble for being a monopoly?

Thanks for replying. I appreciate your input and wisdom.

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u/iwandoherty 19d ago

I think a lawyer would have to advise on legal issues but I don't see why a local teacher co-operative would ever get in trouble for that. What nation is this?

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u/Happy-Menu-6623 16d ago

what states are best for registering a multi-stakeholder co-op with support to scale?