Phil Kenkel
Bill Fitzwater Cooperative Chair
Sometimes we over complicate things. Cooperative have three choices as to how to retain funds: qualified revolving equity, nonqualified revolving equity and unallocated retained earnings. That choice has nothing to do with the decision on the amount of cash retained. The board should first decide how much cash the cooperative needs. After making that decision, they can decide which method of retaining funds will be most beneficial to the member. When analyzing the choices …