The overarching benefit of cooperatives is its ability to create local economic growth (i.e. employment and investment opportunities) under a collaborative leadership model while more evenly distributing the wealth produced among its members. A cooperative can participate in the economy in a variety of ways not available to nonprofits such as holding assets, accruing debt, and investing profits.
Other benefits include a less complex business model to implement and become an investor, meeting specific needs of a neighbourhood, local ownership, limited liability (you are liable only for the amount you’ve invested and not debt or other liability), and less taxation depending on where the cooperative is located.
Sanjay Pinto, fellow at the Worker Institute at Cornell and fellow at the Rutgers School of Management and Labor Relations, explains the research on the benefits and challenges of cooperative work arrangements.