Capital credits checks to arrive mid-April

Watch your mailbox for money from Alliance

At Alliance, our cooperative thrives because of the exceptional people like you who make up our communities. When Alliance performs well financially, we share our success with our customer-owners.

That’s why Alliance’s cooperative customers will receive capital credits paid out this year. You will receive a payout if you had special allocations on your account from 2001, 2003, 2004 or 2005 or if you were a cooperative customer in 2010-2019.

  • If your amount is higher than $20, you will receive a check in the mail around the middle of April.
  • If your amount is $20 or less, you will receive a credit on your April 2021 bill.

Often times, our good fortune comes from 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 things we do outside of providing you with internet, cable TV, and phone services.

Since Alliance is a customer-owned communications cooperative, we allocate margins to our customer-owners based on their purchases during the year. 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 CenturyLink, Midco, or Verizon give their profits to outside investors, shareholders, or an ownership group, not customers. Meanwhile, we’re keeping money in our local communities by putting money back into the pockets of our members. That’s why Alliance is truly all yours.

Frequently Asked Questions

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?

Your capital credits check is yours to cash and spend as you wish! Capital credits are one of the many benefits of being an Alliance Communications Cooperative member-owner.

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 we invest back into the company and eventually return 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.

Why did I receive more than one check?

If you make any changes to an account’s ownership, Alliance must create a new membership account. The member will continue receiving checks for both the old and new membership accounts until we retire all patronage amounts in those accounts. An example would be John Doe adds his wife Susan to the account. For a period of time, John will get checks for John Doe and for John and Susan Doe until Alliance pays out all capital credits under the old membership.

How are the capital credits handled if members of a joint account get divorced or separate?

If a membership is in the name of Jim AND Jane Doe and they are divorced or no longer together, Alliance cannot change the AND to OR. If it is a divorce situation, the capital credits need to be addressed in the divorce decree. Then Alliance needs a copy of the decree to know how to split the capital credits. Without a divorce decree that addresses capital credits payments, both account owners must sign the check in order for it to be cashed.

What do I do if I receive a check that’s more than $600?

If your check exceeds $600 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 2021. If you need assistance, please contact your tax advisor. A W-9 can be found online at the IRS website: irs.gov/pub/irs-pdf/fw9.pdf. Please include your member number on the W-9. Your member number can be found on the check and/or check stub. 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 communications network.

Is there any reason that I would not receive a capital credits refund?

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. You will only receive a payout if you had special allocations on your account from 2001, 2003, 2004 or 2005 or if you were a cooperative customer in 2010-2019.

3. If you live outside of Alliance’s cooperative service territory, you won’t receive capital credits. Alliance serves approximately 1,300 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 1,300 customers.

Alliance Service Area Map with cooperative and non-cooperative areas

What should I do if I move so I can 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 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 your 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. Dial 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.

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.