Is a Minnesota 308B cooperative a nonprofit?
Chapter 308B does not label cooperatives nonprofit or for-profit; its patron and nonpatron financial rights and patronage allocations are what set it apart, and tax status is a separate question.
The word "nonprofit" does not appear in the text of chapter 308B that we ingest. A 308B cooperative can allocate profits and losses and make distributions between patron interests and other interests, subject to the percentage floors in the chapter P1, § 308B.721; § 308B.601, subd. 3.
[OPINION] A more accurate shorthand than "nonprofit" is "member-owned business": it runs on a cooperative plan, and the statute contemplates sharing net income and distributions with members. Whether a given cooperative is treated as nonprofit for any other purpose (tax, grants, local licensing) is a separate question we did not verify.
Federal tax status is separate and not automatic; see Is a Minnesota cooperative tax-exempt?. For how local governments can treat cooperatives, see What a 308B cooperative is, for city and county staff.
Statute sections referenced
- § 308B.005 DEFINITIONS.
- § 308B.601 MEMBERSHIP INTERESTS.
- § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.
Related
Sources
- P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)
- G4 Instructions for Form 1120-C (2025), U.S. Income Tax Return for Cooperative Associations, Internal Revenue Service. irs.gov (primary; accessed October 15, 2026)