Capital Credits

As a non-profit cooperative, our members collectively own GVTC and have several unique benefits. Capital credits are fundamental to the cooperative business model and are one of the unique benefits to our members. We want our members to have a good understanding of capital credits and our process for allocating and retiring them.

Because GVTC is a non-profit cooperative owned by its members, it doesn't technically earn profits. If revenues exceed expenses during the year, GVTC will earn "margins". Annually, margins are assigned to each member in proportion to the amount of GVTC communications services paid by the member. This pro rata amount of the margin is referred to as the member's "capital credits". This amount is not automatically refunded to each member. GVTC uses margins (i.e. capital credits) to fund the operating activities and minimize borrowing, with the intent of repaying this capital to the member in later years.