The Isla Vista Food Cooperative raised its 2025 fundraising goal to $880,000, board members announced at a July 16 board of directors meeting. The new goal is a 76% increase from its previous goal of $500,000.
The Co-op’s I.V. location’s produce sales have declined, which is due in part to a cooler breakdown. Nexus file photo
The I.V. Food Co-op, a community-owned grocery store, has served Isla Vista for over five decades. For the past two years, it has faced financial hardships due to decreased sales and revenue, which have put it at risk of closure. These financial hardships have stopped the Co-op from returning to full operational strength.
The Co-op has raised $26,000 in July and a total of $118,000 year to date from GoFundMe and private donors. Board Treasurer Neal Singh said that this was a result of the fundraising team’s efforts, which have included contacting donors and individuals with fundraising expertise.
“While fundraising has been instrumental to allowing [the Co-op] to continue, it’s been necessary but not sufficient,” Singh said.
According to Singh, the Co-op’s total revenue has declined by 6% since June 2024. Additionally, the I.V. location has seen an 18% decrease in sales, which was attributed in part to issues with store equipment.
“We’re selling a lot less produce out of the I.V. store,” Singh said. “We’ve had a produce cooler breakdown and that plays a role in the mindset of our customers and where they feel they can reliably procure produce.”
Singh also mentioned internal management issues and supply chain disruptions as factors contributing to the decline in sales and revenue. As a result of this decline, the Co-op reported an operating loss of approximately $31,000 in June.
Singh cited donations as the primary source of funding that has kept the Co-op’s I.V. and downtown Santa Barbara locations open.
Singh emphasized that one of the Co-op’s main goals is to utilize donor funds to form a business plan, which would allow it to return to full operational strength with the objective to deliver returns.
“We don’t have enough in the bank to make money; we have vendor bills and arrears,” Singh said. “Our business model is unsustainable right now, so this cash will allow us to float the operation while we, in a timely fashion, finalize a business plan.”
Beyond fundraising, reducing costs has been a top priority to alleviate the Co-op’s financial predicament, including having board members serving in management, which Singh stated was not ideal.
“It’s not a sustainable model to have board members and owners serving in a management capacity and not getting compensated for it,” Singh said.
Board of Directors President Lisa Oglesby, who currently is serving as the Co-op’s general manager, stated that the total fundraising goal of $880,000 will be used for operational costs, debt repayment and would “strengthen and support the Co-op” in the long term.
Singh emphasized that the Co-op is facing an “uncertain business environment” due to “compounding threats,” which include tariffs and climate risks.
“These are threats to our Co-op and the larger food system and community, but they’re also opportunities for our co-op to lean into what our community needs,” Singh said. “In light of all the threats that exist [and] which our food system faces, we’re asking, ‘What can the Co-op do?’ and ‘What can it become?’ So this is the beginning of how we develop a plan to meet the challenges of our time.”
