Purpose of the study: Cooperative plays an essential role in the rural community. This research provides a thorough impact analysis of cooperative funding in the community. This research comprehensively assesses the contribution of cooperative funding to the North Sumatra community, Indonesia. Methodology: Using the Structural Equation Modeling (SEM) and controlled variable regression methods. The independent variables used in this study are Cooperative member main saving, Cooperative member compulsory saving, Cooperative member voluntary saving, and Bank lending. While the dependent variable used in this study is Cooperative capital adequacy. Main Findings: This research finds that cooperative member savings and bank lending play an essential role in the cooperative capital adequacy. Applications of this study: Furthermore, the study finding that bank lending is a relatively cheap source of capital to the cooperative. Novelty/Originality of this study: Also, the study also findings imply that (i) cooperative capital adequacy heavily depends on cooperative member savings, (ii) bank and cooperative are complements rather than competitors and (iii) four dimensions affecting cooperative capital adequacy are stronger in the simultaneous situation. According to findings implied that have three suggestions on the economic policy. First, advise a policy encouraging more participants in the cooperative. Second, advise another policy encouraging banks to do more collaboration with cooperatives. Third, advise that the policy should be integrated rather than stand-alone.