Also known as a Capital Campaign, a Community Investment Campaign is an effort by the Butte Food Co-Op to raise a significant amount of money in a specified period of time to fund a one-time need. In our case, funding our community-owned grocery store, the Butte Food Co-Op.

As a cooperative, the Butte Food Co-Op can raise money directly from its member-owners through preferred shares and donations. Food Co-Ops usually look first to their member-owners to provide a strong base of funding, which is then combined with grants, loans, and other financing. For the Butte Food Co-Op, about 46% of the total project cost will be funded by owners.

Owner investment reduces the amount of high-cost bank debt needed to open the store, which lowers financial risk and strengthens the Co-Op’s balance sheet. Strong owner participation also helps the Co-Op qualify for grants and mission-aligned loans that often require local matching funds.

If commercial loans are needed to close funding gaps, owner investment shows lenders that the Co-Op has a committed customer base, which increases confidence in the project. Owner capital is also more flexible than traditional financing, allowing the Co-Op to respond more effectively as the project moves forward.

Community investment puts Cooperative Principle #3 (Member Economic Participation) into practice. Members contribute fairly to the capital of the Co-Op and help build a financially stable, locally owned grocery store designed to serve Butte for the long term.

The total project cost is $5.4 million, covering site acquisition, buildout, inventory, staffing, equipment and working capital. Our capital campaign aims to raise $2.5 million through preferred shares, with the remainder from grants, loans and member equity. Preferred shares are projected to make up the largest single source of project funding.

Becoming an owner is the first step to financially supporting the Co-op. As a Co-op owner, your ownership share(s) come with benefits including future patronage dividends and voting rights within our democratic organization. One Owner = One Vote. By becoming an owner, you funded outreach and start-up costs and a small percentage of the funds needed to open our store. The second step in financially supporting the co-op is participation in our Community Investment Campaign.

Funds raised from co-op owners will be combined with funds from the other sources to move the project forward. This includes pre-construction, construction, hiring a GM and staffing, equipment, stocking the store and working capital. Below is a graph of how the money is estimated to be spent.

If the campaign falls short, the Board of Directors will carefully review our progress and determine the Co-Op’s next steps. This could include adjusting the project timeline, scaling certain elements, or addressing added costs such as extended pre-opening expenses or increased equipment prices. While all business ventures carry risk, opening a grocery store without sufficient capital increases that risk and can affect long-term success.

To help manage this risk, our Offering Memorandum outlines specific conditions that must be met before the project can move forward. Preferred share investments may be held in restricted accounts until those conditions are satisfied. If the required conditions are not met by the close of the offering period (which will remain open until [INSERT DATE]), funds held in a restricted account will be returned to investors without interest as described in the Offering Memorandum.

To date, the Co-Op has already secured $351,500 in pre-campaign funding through member-owner equity, preferred shares, donations, and grants, and has identified multiple additional grant and loan opportunities. If adjustments are needed, the Board will make decisions that prioritize financial sustainability and position the Co-Op for long-term success.

Answer coming soon.

We need all the help we can get for our Community Investment Campaign. To volunteer, fill out the volunteer interest form here:
‍https://forms.gle/uiTwkVa5f63ovndm7
‍Someone from our team will be in touch with you about next steps.

y investing in the Community Investment Campaign, you have the opportunity to earn a potential return on your investment while keeping your money working locally. Your investment helps improve quality of life in our community, supports local farmers and producers, and strengthens Butte’s local economy. Instead of sending dollars to distant markets, your investment is put to work close to home, helping turn a community-owned grocery store into a tangible, lasting asset for Butte.

Only Montana residents who are member-owners of the Butte Food Co-Op may purchase preferred shares up to $10,000. Each investor must review our Offering Memorandum (aka Prospectus) and sign our subscription document.

Preferred shares are non-voting investments available exclusively to Co-Op member-owners who are Montana residents. They are a Co-Op-friendly way to support the Community Investment Campaign and should be considered a long-term investment, typically 15 years or more.

Preferred shares may be eligible to earn annual dividends based on the Co-Op’s financial performance and at the discretion of the Board of Directors. As with most stock investments, there is risk involved, and returns are not guaranteed.

The minimum preferred share purchase is $500. Investors may purchase additional shares up to regulatory limits. Preferred shares are non-voting and do not affect your one-member-one-vote rights.

Preferred shares may be eligible to earn annual dividends; however, like most investments, they carry risk and returns are not guaranteed. The Board of Directors sets the dividend rate each year based on the Co-Op’s profitability and financial stability. Dividends may be lower than the target rate (or zero) depending on performance. Any dividends that are paid will be declared solely at the discretion of the Board.

Preferred shares cannot be sold to third parties except as permitted under the Securities Act of 1933 and the Securities Act of Montana. The preferred shares may only be redeemed by the Co-Op with approval from the Board of Directors. The Co-Op does not plan to redeem preferred shares until it becomes profitable and the Board determines that redemption is financially appropriate. This typically occurs many years in the future (often 15 years or more from the date of investment) and is not guaranteed.

A joint subscriber can be designated on the investment agreements. The surviving subscriber will assume the investment upon the death of the primary subscriber. We encourage you to keep the paperwork associated with your investment with your other important financial documents and to consult your estate planning advisor.

Email us at INSERT EMAIL ADDRESS FOR CAMPAIGN HERE or call us at INSERT CO-OP PHONE NUMBER HERE to get started. More details on investment options are available in our CIC Offering Memorandum which is available on request to Montana-residents only by emailing us at buttefoodcoop@gmail.com.

Because the Butte Food Co-Op is organized as a cooperative under Montana law, and not as a nonprofit, we are not able to offer tax deductions for donations made directly to the Co-Op. Donations made through our fiscal sponsor are eligible for tax deductions. However, the Co-Op does incur administrative fees to use a fiscal sponsor. Donations made directly to the Co-Op are not tax-deductible, but they are the most beneficial to the project, as they are not subject to fees and can be applied in full to advancing the Co-Op.

Any person or business that wants to support the Co-Op’s development can make a tax-deductible donation in any amount, regardless of their state residency or Co-Op ownership status, when made through our fiscal sponsor. If a tax-deduction is not a priority for a donor, they can make a donation directly to the Co-Op.

Tax-deductible donations of any amount can easily be made through our fiscal sponsor, INSERT FISCAL SPONSOR HERE. Donations are accepted via card, check, or cash. Here’s how to donate:

• Online: Visit INSERT FISCAL SPONSOR HERE. Click INSERT INSTRUCTIONS HERE.
• By mail: Make checks payable to “INSERT ADDRESS WHERE WE WANT CHECKS MAILED HERE.
• In person: INSERT INFO HERE IF APPLICABLE.
• By mail: INSERT INFO HERE IF APPLICABLE.

Yes! In addition to preliminary studies done during early development, G2G Research Group, who has deep experience in conducting site location research in the retail and restaurant industries, a sales forecast analysis and market study was done in 2024 that confirmed the suitability for our specific site in Butte. Seven Roots, the leading Co-Op store planning group in the nation, assessed our site (among other site options) in Butte and found our site feasible for a Co-Op grocery store. Results from the market study were used in the financial pro forma projections. The business plan and project viability are continually reviewed by the board of directors as we move forward.

A successful community investment campaign raising $2.5 million from member-owners means we can begin construction in late spring or early summer of 2027,. fall 2026 with a target open date of late fall 2028. A successful campaign involves raising $1,000,000 to fund pre-construction expenses in the fall of 2026, followed by an early spring 2027 campaign to raise $1,500,000 to fund construction, equipment, stock and staff. When we’ve raised $2.5 million from member-owners and have secured the remaining funding necessary (grants, potential bank loans, etc.) we will be on track to start construction in late spring or early summer of 2027.

The Butte Food Co-Op will be a full-service grocery store, offering all the core departments shoppers expect, including fresh produce, bulk foods, dairy, meat, frozen foods, pantry staples, household items, wellness products, and healthy grab-and-go meals from a prepared foods and deli kitchen. Based on our market study and community input, the store will offer a mix of clean conventional and natural foods, with a strong emphasis on locally sourced products whenever possible. Product selection will reflect community needs and purchasing power, with options at a variety of price points to ensure accessibility for many types of households. The Butte Food Co-Op will be open to everyone…member-ownership is not required to shop. Our goal is to improve community health and well-being by expanding access to high-quality, affordable food for Butte and the surrounding area.

As a community-owned business, the Butte Food Co-Op prioritizes people, planet, and local economic impact, supporting local producers, keeping dollars local, and expanding access to fresh, healthy food for everyone. The Butte Food Co-Op will be community-owned, not corporately owned. That means decisions are made locally by member-owners, not distant shareholders, and profits are reinvested in the store, its workers, and the community.

The Co-Op prioritizes local and regional producers, keeping food dollars circulating in Southwest Montana and strengthening the local economy. It is committed to operating responsibly: paying fair wages, supporting sustainable practices, and balancing financial health with community well-being.

The Co-Op plans to recognize community investors in meaningful ways as the project moves forward. Investors may choose to remain anonymous.

Membership is one piece of the overall capital stack. While there is no single number that guarantees success, our planning assumptions anticipate 2,500 member-owners prior to opening.

Everyone will be welcome to shop at the Butte Food Co-Op. Membership is not required to shop, but member-owners receive voting rights and help guide the future of the store.

Membership shares are held by one individual for voting purposes. Shopping benefits may be shared within a household.

The store will be a full-service grocery offering fresh produce, bulk foods, dairy, meat, frozen foods, pantry staples, wellness items, and locally produced goods whenever possible. Product selection will reflect community needs and purchasing power.

Yes. The Butte Food Co-Op plans to accept SNAP/EBT to ensure access to healthy food for all members of our community.

No. There is no work or volunteer requirement to be a member-owner. Volunteer opportunities will be available for those who want to get involved.

The Board of Directors is elected by member-owners and is responsible for governance, long-term strategy, financial oversight, and hiring and supporting the General Manager. The Board does not manage day-to-day store operations.

Yes. Member-owners in good standing are eligible to run for the Board, subject to bylaws and election procedures.