NCBA helps co-ops compete in time of change




he National Cooperative Business Association (NCBA) is a national membership organization representing cooperatives of all types and in all industries. Its members operate in areas including agricultural supply and marketing, childcare, energy, financial services, health care, housing, insurance, telecommunications, purchasing and shared services, and food distribution and retailing.

Through its education, co-op development, public policy and international development programs, NCBA helps co-ops compete in a changing economic and political environment. It also provides a strong, unified voice for co-ops on Capitol Hill.

Founded in 1916, the National Cooperative Business Association was known as the Cooperative League of the USA until 1985. It was the first national organization for cooperatives. Although NCBA’s name has changed over the years, its primary mission never has. For nearly 90 years it has been dedicated to developing, advancing and protecting cooperatives.

In the United States, NCBA has played a key role in creating many new self-help organizations to support the cooperative sector. It helped form North American Students of Cooperation in 1946, the National Association of Housing Cooperatives in 1950, Parent Cooperative Preschools International in 1960, Cooperative Business International in 1984, and both Cooperation Works! and the Cooperative Grocers Information Network in 1999. In the 1970s, NCBA lobbied Congress to create the federally chartered National Cooperative Bank.

In the 1990s, NCBA played a leading role in convincing Congress to establish the USDA’s Rural Cooperative Development Grants program as a new source of funding for cooperatives in rural areas. The program has since provided more than $35 million to a network of centers nationwide that help develop cooperatives that enhance farmers’ income and boost rural economies. Today, NCBA remains a strong advocate for increased funding for the program.

In 2000, NCBA brought co-ops to the cutting edge of technology by winning approval for a new top-level Internet domain exclusively for cooperatives. The new domain, .coop, joins .com and .org at the end of web and email addresses. The .coop registry, launched in January 2002, has registered more than 8,000 .coop Internet addresses.

Over the past half century, NCBA has also played a prominent role in making cooperatives a key component of international development policy. In 1944, it formed the Freedom Fund to help cooperatives recover in wartorn Europe. The following year, it played an integral role in creating the Cooperative for American Remittances to Europe, which provided economic relief to war-torn Europe. Today we all know this organization as CARE.

Since the 1950s, in partnership with the U.S. Agency for International Development, NCBA’s CLUSA International Program has managed more than 200 long-term international development projects in 53 countries.

Today, NCBA is using its development expertise to help troubled inner cities. Its new Urban Cooperative Development Initiative seeks to expand the role of cooperatives in creating economic opportunity in inner cities, both through self-help and legislative solutions.

As it looks to the future, NCBA continues to address the challenges facing cooperatives and to identify solutions that will help co-ops overcome those challenges. Its current agenda includes countering efforts to limit or repeal cooperative tax exemptions and studying the conversion of co-ops to other business structures. In addition, in recent months, NCBA has organized opposition to a ruling by a national accounting standards board that threatens to throw the balance sheets of thousands of co-ops into chaos by reclassifying member equity as debt.

With these and other issues in mind, in early 2004 the NCBA board approved formation of a Cooperative Tax and Finance Council that will focus on key cross-sector legal, financial and tax issues.

Contact information: website: www.ncba.coop; Phone: (202) 638-6222. Address: 1401 New York Ave. NW, Suite 1100, Washington, D.C. 20005. President and CEO: Paul Hazen; Board Chair: Ann Hoyt.

May/June Table of Contents