Surpluses generated by co-operatives should be used, above all, to strengthen their capital. A minimum share of the annual surplus to be paid into the reserves should be set by the general assembly. This endowment is indivisible; it reinforces the sustainability of the co-operative economic model and strengthens the intrinsic value of a co-operative. As stated previously, this capital should be recognised by all public authorities, in all countries, as equity capital and not as debt.

Rather than making decisions about payments into reserves at the end of each accounting year when the results for the year are known, it is recommended that every co-operative develops a reserves policy, approved by members in general assembly. The reserve policy should set out what proportion of any annual surplus should be paid into the co-operative's indivisible reserves. Any change to the policy should also be subject to general assembly approval.