A nonprofit service cooperative is a type of financial organization that is structured as a cooperative and operates on a nonprofit basis. It is owned and governed by its members, who are typically customers or users of the organization's services, rather than by external shareholders.
The purpose of a nonprofit service cooperative is to provide financial services and products to its members at affordable rates, while also promoting financial literacy and community development. Some examples of financial services that may be offered by a nonprofit service cooperative include savings and checking accounts, loans, and other financial products.
Unlike traditional for-profit financial institutions, the primary goal of a nonprofit service cooperative is not to generate profits for external shareholders, but to provide a valuable service to its members and to support the community it serves.
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