Capital Credits Process
It begins when a member purchases services from Endeavor Communications.
Each year, after expenses are paid, Endeavor Communications calculates margins.
These margins are used to pay down debt, invest in network and improvement projects and allocate to members as capital credits based on patronage.
If financial conditions allow, Endeavor Communications retires capital credits to members.
Capital Credits Explained
Because the telecommunications industry requires lots of capital, and because Endeavor Communications is a non-profit organization that returns its profits to its members, we look for every possible avenue to keep the costs of new equipment, services, and other investments as low as possible.
By using what are called “Capital Credits” to finance new products and services, Endeavor is able to avoid finance charges and other costs that ultimately affect the member’s cost. Capital Credits are essentially the profits that will be paid to our members once the Board of Directors has determined that it is economically feasible to do so.
Your April billing statement each year contains important information regarding your capital credits account. If you had service with Endeavor Communications in the previous year, look for the special message which indicates the amount being allocated to your capital credits account. This amount is not cash sitting in an account; it is simply a statement of your equity in Endeavor Communications during the previous year. Capital credits are disbursed/retired to members at the Board’s discretion and as the financial condition of the cooperative allows.
Frequently Asked Questions
Each month when you pay your bill, you are paying into a member-owned cooperative. Being a nonprofit company, we give back our profits to the members. Capital credit returns are based on the profit for the year and using the percentage you paid into the cooperative, in order to calculate each member’s share.
When income exceeds expenses in any given year, margins are allocated to each member’s capital credit account according to their usage; this is called capital credit allocation. Capital credits are periodically retired/returned to members when the Board determines that it will not jeopardize the financial condition of the cooperative to do so.
Endeavor has retired capital credits through the year 2003. When considering a retirement, the Board analyzes the financial health of the Cooperative and makes a decision accordingly. We are not able to give an exact timeframe.
Banking policies prevent us from accepting endorsed capital credit checks as a form of payment on your account.
No. You may cash these at a financial institution.
Capital credits are paid based off the total amount allocated within the year being paid out vs the
dollar amount the Board of Directors approves to retire (be paid out.) The amount is based off
looking at the fiscal standing of the Cooperative and keeping in line with industry standards.
Annually the Board of Directors evaluates the financial position of the Cooperative and determines whether to pay back capital credits. Then the board determines what years, if any, will receive a capital credit refund that year.
Capital credits are paid based off the total amount allocated within the year being paid out vs the dollar amount the Board of Directors approves to be paid out. The amount is based off looking at the fiscal standing of the Cooperative and keeping in line with industry standards.
Capital credits are based off a dollar amount the Board of Directors allocates each year based off the fiscal standing of the Cooperative. This dollar amount is then spread across the members who had services in the year being allocated and is based off the services the member subscribed to within that year: calling features, long distance, internet, television, etc.
Your allocation/check is based off the services you subscribed to during the year being allocated/paid.
We send checks to the last known address of former co-op members. Do not open the check; please mark “Return to Sender” on the envelope and put it back in the mail.
No; you should return the check to Endeavor Communications. Please request an estate packet to complete at which time we will close the account and reissue you a check.
Yes; your bank will most likely require both signatures.
Capital credits are paid out in arrears. While it is possible that we have not paid out profits for a year, it’s far more likely that payments just have not been distributed yet.
- If a check was mailed and we receive the check back in our office with a forwarding address, we will mail it to the forwarding address.
- If it comes back marked undeliverable, you will need to complete the unclaimed capital credit process.
- If the check is not received back in our office, we can put a stop payment fee on the check and re-issue a check minus the fee for the stop payment. If you do not want us to put a stop payment on the check, you can wait until the check expires which will be 6 months from the issue date. At that time, the process for unclaimed capital credits would need to be completed.
- If a check was not mailed because your address was marked undeliverable, please complete the process for unclaimed capital credits.
As always if you need some help, just call us at 1-800-922-6677.
Check with your tax advisor they are the experts.
Checks may be cashed within 120 days.
You will have 30 days after the list of unclaimed is published on the website, to fill out the necessary paperwork. After the 30 days, all unclaimed from 2 years prior are transferred out of unclaimed. Call us and we’ll be glad to help.
Keep your address current with us, so we can forward payments to you when capital credits are retired in the future. Please call us at 800-922-6677 to update your information.