How are the profits shared in a cooperative?

In a cooperative, profits are typically shared among members based on their level of participation or contribution to the cooperative, rather than on the amount of capital they invested. This can be done through a patronage dividend system, where profits are distributed proportionately according to each member's use of the cooperative's services or products. Additionally, some cooperatives may allocate a portion of the profits to reserve funds or reinvest in the business to support growth and sustainability. This model emphasizes the cooperative principle of member equity and participation.