Capital Credits

First things first, what exactly are capital credits? Think of capital credits as your share of the cooperative’s profits. When you become a member of our cooperative, you’re not just a customer, you’re an owner too!

It’s important to note that not all customers of a telecommunications cooperative are members. Generally speaking, members are customers who live in an area designated by the FCC as the cooperative’s “serving area.” But the great news is that non-members still benefit from the cooperative model because they receive cooperative-grade services they would not otherwise have.

Keeping that in mind, every time a cooperative member pays their bill for Telecommunications services, a portion of that payment (based on their usage) goes towards covering the cooperative’s operating expenses. But here’s the cool part: any excess revenue, after those expenses are covered, is allocated back to the members in the form of capital credits.

Now, you might be wondering, “Why doesn’t the cooperative just give me a cash refund?” Well, that’s where the cooperative’s business model comes into play. Cooperatives are owned and governed by their members, and they operate on a not-for-profit basis. Instead of distributing profits to shareholders like a traditional corporation, cooperatives reinvest those profits back into the cooperative to improve services and infrastructure.

So, when you receive capital credits, it’s a sign that Endeavor Communications is financially healthy and that your membership is contributing to its success. Plus, it’s a tangible benefit of being part of a cooperative!

Again, you might be wondering, “What happens to my capital credits once they’re allocated?” Well, they’re typically held by the cooperative for a certain period of time, known as the “allocation period”. During this time, Endeavor uses your capital credits to invest in infrastructure, maintain reliable services, and fund other important projects. Then, after the allocation period ends, Endeavor’s board of directors decides when and how to retire or return the capital credits to the members.

In summary, capital credits are your share of Endeavor’s profits, which are allocated back to you as a member-owner. They demonstrate Endeavor’s financial health and commitment to the well-being of its members. For further questions, please contact our main office at 1-800-922-6677, or view the Frequently Asked Question section below.