The research aimed at learning the effect of capital contribution, decision making, development of institution/koperasi syariah (Islamic cooperative) towards the participation of members, and how big the members’ participation affect the financial performance of Islamic cooperative. The research is beneficial for Islamic cooperative in evaluating the effect of members’ participation towards the financial performance through discussions between members so that it can increase the development of financial performance. The research used quantitative method with SEM-PLS as the analysis tool. Each indicator was measured using Likert scale. The object of the analysis was Islamic cooperative in five areas in Daerah Istimewa Yogyakarta (Special Region of Yogyakarta). The samples were selected using purposive sampling. The data were collected through questionnaires distributed to the members of Islamic cooperative and retrieved from the financial report 2016 – 2017 of each of the Islamic cooperative analyzed. The research result indicates that the capital contribution does not affect the members’ participation. Meanwhile, the decision making and the development of institution affect the members’ participation. The members’ participation and the indicator of decision making and development of institution has negative effect towards the financial performance of Islamic cooperative.