PEX Finances Update
I am both surprised daily—and not at all surprised—by the generosity of our community. It has been amazing to watch people care for each other and for PEX within these tiny blue walls.
It’s hard to believe that two years ago I was pulling together budgeting numbers and making projections for a project that we weren’t yet sure what it would even become. Expenses are the easy part. It’s fairly straightforward to anticipate utilities, supplies, and operating fees. We’ve managed to keep those expenses extremely low, largely thanks to the frugality of our Stewards and the generosity of our community bringing us toilet paper when we need it and art supplies when we request them.
Income, though? Income is hard. How do you even guess how a community might show up for a vision unlike most other businesses? A model we’re still very much developing, even two years into “doing stuff.” Still, I had to put pen to paper—er, numbers into Excel cells—and make some guesses. I made conservative ones. As it turns out, we’ve already exceeded my $18,000 income projection for 2025. In fact, we’ve regularly been receiving income amounts I originally anticipated for our third year of operation, 2026.
As I write this, in 2025 to date, we’ve averaged about $800 in net profit each month (income minus expenses), steadily growing our money pot for exciting things to come. Nearly 90% of that income is contributed directly by you. It comes from all of you who toss a few bucks into the donation jar, or give $10 a month on Patreon, or sneak a hundred-dollar bill across the counter (yes, you, we see you). Your dollar goes very, very far here at PEX, and that’s why I wanted to share some numbers with you all.
Our first year in operation was 2024. We had a full year of expenses but only started accepting income after filing our business with the state, roughly six months into the year. Because of that, 2024 was a loss for us. As a Limited Cooperative Association, we aren’t tax-exempt like a nonprofit. Instead, our Stewards claim any profit or loss on our individual income reporting, similar to a multi-stakeholder LLC. So for 2024, the Stewards carried that loss.
I had projected that maybe we’d break even in year two and start thinking about profit in year three. You all proved me wrong. 2025 will likely end with about $8,000 in net profit for PEX.
Which raises the question: what happens when there is profit in a not-for-profit business model?
First, we finally treated ourselves to a couple of sturdy canopies and tables, replacing equipment that was fully in disrepair. Even after those purchases, we’re still looking at roughly that $8,000 profit mark. As a cooperative association, we’re bound to invest profit back into the success of the coop or the community at large. Our bylaws outline a goal to invest up to 50% back into the coop through our Cooperative Development Fund and up to 25% into our Community Giving Fund. These first two are indivisible funds and can never be distributed to our member-owners (Stewards). The remaining 25% can be allocated to Stewards based on patronage hours (volunteer hours) as equity sharing. More on that in a moment.
Our current board (Quibs, Chase, Jeanne, and Mary), with input from all Stewards, will decide how to allocate profit within that 50/25/25 framework outlined in our bylaws, or if a deviation from this goal is warranted. For example, as we focus on building cash to move into a larger space, it might make sense to place 100% of profits into the Cooperative Development Fund this year. Or, because Stewards absorbed a loss last year, it may be appropriate to allocate more toward Steward equity to offset that loss and bring our capital accounts into positive numbers for 2025.
Even if the board allocates a portion to Stewards, that doesn’t automatically mean checks get cut. That allocation first adjusts our individual equity accounts. A second board vote is required to distribute funds, providing another layer of protection to ensure cash flow remains healthy. It’s possible that the board could decide those funds should stay in equity accounts to help offset an anticipated loss next year or simply because we don’t want to weaken our cash assets at this time.
Our bylaws give the Board of Directors the option to allocate up to 25% of our profit to Stewards if they deem it reasonable to do so. Our founding members felt it was important to leave this option open as a potential token of appreciation for the work put into PEX’s success. After all, Stewards are both a critical part of future growth and very much a part of our community at large. In an ideal world, we’d make enough profit to all be paid workers with fair wages, but we’re not ready for the added complexity of payroll, employees, and liabilities that come with that. Reaching that level of income would also require selling harder and charging for activities, something that doesn’t sit well with our desire to keep participation accessible and opt-in at your own comfort level.
Profit is complicated in this model, intentionally so. The structure is designed to prevent misuse and support long-term sustainability of the co-op and the community. To date, no Steward has received a payment from PEX. We haven't been in a position to even consider it. As 2025 comes to a close as a profitable year, the board will weigh these decisions carefully and choose how to allocate funds for the greatest success of the co-op.
If you have questions or thoughts about any of this, talk to a Steward. And as Treasurer, I’m always happy to dig into the financial details with anyone who wants to learn more.
- Mary, PEX Treasurer
In a snapshot, here’s where we stand year to date.
