Alliance customers receive $8 million in capital credits
Alliance customers will receive $8 million in capital credits this April 2020. So if you were an Alliance cooperative customer between 2007 and 2018, you will receive a portion of the $8 million that is being paid out this year!
When Alliance does well financially, we share that success with our customers. Often Alliance’s good fortune comes from our successful business partnerships, business expansions, or the sale or expansion of assets acquired over the years, not just your personal bill. In other words, you benefit from the other things we do outside of providing you with Internet, cable TV and phone services!
Alliance is a customer-owned communications cooperative. At the end of each year, Alliance determines whether there is excess revenue called margins. Alliance then allocates the margins to our customer-owners based on their purchases during the year.
- If your capital credits amount is higher than $20, you will receive a check in the mail around April 9, 2020.
- If your amount is $20 or less, you will receive a credit on your April 2020 bill.
The dollar amount you receive depends on how long you’ve been a customer and the number of services you’ve purchased.
By contrast, investor-owned providers like Century Link, Midco, Verizon or AT&T don’t share their financial successes with their customers. Instead, they give their profits to outside investors or shareholders who almost never live in your community. Usually, they don’t even live in your same state.
You make the Alliance cooperative stronger, and that makes your community stronger. By putting money back into the pockets of our members, we’re keeping money in our local communities.
We hope you enjoy your Alliance services and yearly capital credits check. They are ALL YOURS. We look forward to sharing our continued success with you in the future. Stick around and see what Alliance has in store for you going forward.
Frequently Asked Questions About Capital Credits
How do I contact Alliance Communications with my capital credits questions?
If you don’t find the answer you need in the questions below, you can reach the Alliance Communications capital credits department by dialing 311 from any phone with Alliance service or (605) 594-3000 from your cell phone. You also can send a message to accounting@alliance.coop. In your correspondence, include your name, current address, phone number and, if possible, your member number. We will reply as quickly as possible.
Why am I receiving a capital credits check, and is it okay to cash it?
Capital credits are one of the many benefits of being an Alliance Communications Cooperative member-owner. The check is yours to cash and spend as you wish!
When you have Alliance as your communications provider, you are part owner of the cooperative. Every time you pay your communications bill, you are investing in the equity of the cooperative. These equity investments are known as capital credits, which are invested back into the company and eventually returned to members.
You also benefit from the other things we do outside of providing you with Internet, cable TV and phone services! Revenue we earn from our successful business partnerships, business expansions, or the sale or expansion of assets acquired over the years are included in your capital credits.
Are there reasons why I would not receive a capital credits payout?
1. Members who have a bad debt with Alliance won’t receive the capital credits allocated to them. In this case, Alliance Communications would deduct what is owed to the cooperative and the rest of the capital credits, if any, would be issued at the current refund schedule.
2. If you didn’t receive service from Alliance Communications Cooperative between 2007–2018, you won’t receive a capital credits check or bill credit.
3. If you live outside of Alliance’s cooperative service territory, you won’t receive capital credits. Alliance serves approximately 1,200 customers who are not cooperative members. These customers are part of a wholly-owned commercial subsidiary that Alliance owns, and commercial companies do not pay capital credits. Additionally, Alliance is still recovering the costs of constructing the new fiber-optic networks for these 1,200 customers.
What do I do if I receive a capital credits check over $600.00?
If your check exceeds $600.00 AND you have deducted your Alliance bill on a personal or business tax return, please notify us by completing and mailing a W-9 to our office. This will help our office determine whether we need to issue a 1099MISC for 2020. If you need assistance, please contact your tax advisor. A W-9 can be found online at the IRS website: https://www.irs.gov/pub/irspdf/fw9.pdf. Please return your completed and signed W-9 to Alliance Communications, PO Box 349, Garretson, SD 57030.
How do I become eligible to receive capital credits?
As either a current member or a former cooperative member, you are eligible to receive capital credits. Capital credits will be issued to the member whose name the account is in.
Why aren’t the allocations paid out all at one time?
Alliance needs to maintain adequate cash flow and collateral to show stability to obtain loans. If the business showed no margin/profit, Alliance would be unstable and unable to build, improve or maintain its communication network.
What do I need to do if I move to keep receiving capital credit checks?
To receive your capital credits checks once you leave our service, it is important to keep us informed of your current address. Many checks go unclaimed each year because we are unable to locate previous members.
How do I find out if I have any unclaimed capital credits checks?
If you think you may have any unclaimed capital credits checks, please contact our capital credits department by dialing 311 from any phone with Alliance service or (605) 594-3000 from your cell phone. You also can send a message to accounting@alliance.coop. In your correspondence, include your name, current address, phone number and, if possible, your member number. We will reply as quickly as possible.
What happens if a member passes away?
The capital credits can be paid out in full at that time. We ask that the personal representative or executor of the estate contact our office so that we can mail the appropriate paperwork to them. If there is no personal representative or executor, we ask that the spouse or another family member contact our capital credits department by dialing 311 from any phone with Alliance service or (605) 594-3000 from your cell phone. You also can send a message to accounting@alliance.coop. In your correspondence, include your name, current address, phone number and, if possible, the member number. We will reply as quickly as possible
How are the capital credits handled if members of a joint account get divorced?
You need to address the joint account’s capital credits in your divorce decree. Then provide Alliance with a copy of the divorce decree.
What happens if I owned a business that earned capital credits and the business no longer exists?
We need to know the business’s classification. For example, was the business a sole proprietorship, partnership, corporation or a limited liability company (LLC)? If you do not know the answer, you will need to contact the person who prepares your annual tax return to find out. Then after you know the classification, you can contact Alliance and we will mail the appropriate paperwork to you.
Do I have to report the allocations or capital credits checks as income?
The best advice we can give you is to contact your tax preparer. He or she is the expert.