Small Farmers Agricultural Cooperatives Ltd. (SFACLs) are member-driven, community-based institutions characterized by a unique three-tiered organizational structure that ensures active member participation in decision-making processes.

SFACL is an organization focused on enhancing the lives of its members, who are predominantly impoverished farmers residing in rural Nepal. These farmers depend largely on subsistence agriculture to sustain their families. 

Three-Tiered Organizational Structure (A complete democratic and inclusive structure) 

• Small Farmer Member Groups  : Each group consists of 5 to 12 cooperative members.
• Inter-Groups :Formed by combining two or more Small Farmer Member Groups.
• SFACLs (Institutional Level): The Board of Directors, elected from inter-group representatives based on ward-level clustering, serves as the highest governing body in the organizational hierarchy.)

Major Characteristics

1. Provides a one-stop service platform for savings, credit, insurance, and remittances.
2. Ensures inclusive participation for all, regardless of caste, gender, or occupation.
3. Operates as an agro-based institution adhering to cooperative principles.
4. Promotes social mobilization and community development to improve the quality of life for marginalized groups.
5. Maintains low administrative costs and emphasizes efficient business planning and execution.
6. Supports the replication of SFACLs in neighboring communities, expanding its reach and impact.