Capital Credits Frequently Asked Questions


What are capital credits?

Let’s examine capital credits and why they matter to you as a member of the Endeavor Communications cooperative.

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.



What is the difference between capital credit allocation and retirement/disbursement? 

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.

I just started service. How long will it be before I get a check? 

Endeavor has retired capital credits through the years 2004. 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.

Can capital credits be applied toward my Endeavor Communications bill?

Banking policies prevent us from accepting endorsed capital credit checks as a form of payment on your account.

I received a check in the mail, but it’s in the name of a former resident. What should I do?  

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.

If the check is in my spouse’s name and he/she is deceased, can I sign it?

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.

If there are two names on my check and one is my ex-spouse, do both people have to endorse the check? 

Yes; your bank will most likely require both signatures. Endeavor issues the check in the names of the persons listed on the account for the year being paid out. We cannot re-issue the check into only one person’s name as this is a civil matter that would have needed to be dealt with at the time of divorce/separation.             

If there are two names on my check, do both people have to endorse the check?  

Yes; your bank will most likely require both signatures.

I normally receive a capital credit check but have not received it yet.

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.

What do I need to do?

  • 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.

Do I have to claim capital credits as income on my tax returns?  

Check with your tax advisor they are the experts.

How long do members have to cash their checks?

Checks may be cashed within 180 days.

How can I be sure to get capital credit statements or retirements if I move out of Endeavor Communications service area? 

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 1-800-922-6677 to update your information.

My name was on the website for unclaimed capital credits.  What do I need to do?

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 1-800-922-6677.

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