Dar Es Salaam, Tanz - SNHU Academic Archive - Southern New ...

108(d) 'Education fund' of 10 % should b e se t fo r member s training . The accumulatededucation reserve fund up to 31 st December 2003 was Tshs. 239,272,724/=, includedin revenu e reserve . Apar t from accumulatin g suc h a bi g amount , ther e ar e n otrainings conducted and no education scheme available so far.Dividends pai d t o member s ar e obtaine d a s a residu e afte r al l reserves hav e bee nallocated and they ar e of two types; The first part i s dividends from shares where allmembers are paid a fixed sum per share owned and on the second part members are paid1% of their minimum saving deposits balance at each quarter.Most financial cooperative s societie s allocat e par t o f their reserve d fund s t o incomegenerating investments. This is an effort to spread the risk of lending only to members,while generating more income than would be realized by leaving the money in a simpleaccount. Suc h investments als o provide accessibl e fund s i f the cas h reserve s o f thesociety begi n to ru n low . Les s often, societie s wil l inves t in businesses o r incomegenerating projects , whic h they directly own and manage. Eve n les s frequently, somesocieties invest in privately owned businesses or other speculative activities.Capital investment up to 31 st December 2003 was Tshs. 773,608,035/= and it refers tofunds se t asid e from ne t surplu s afte r ever y on e yea r declare d dividends . Membersagreed to set aside their declared dividends after every one year to boost their capacity toinvest in their investment buildings. The sum mentioned above represents dividends for