Editing Rochdale Principles (section)

==== Limitations on member compensation and appropriate use of surpluses ====
The second part of the principle deals with how members are compensated for funds invested in a co-operative, and how surpluses should be used. Unlike for-profit [[corporations]], co-operatives are a form of [[social enterprise]]. Given this, there are at least three purposes for which surplus funds can be used, or distributed, by a co-operative.<ref name="icastatement1995" />
* "Members usually receive limited compensation, if any, on capital subscribed as a condition of membership."
* "Developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible;" in other words, the surplus can be reinvested in the co-operative.
* "Benefiting members in proportion to their transactions with the co-operative;" for example, a [[consumers' co-operative]] may decide to pay [[dividend]]s based on purchases (or a 'divvi').
* "Supporting other activities approved by the membership."