Red River Communications is a not-for-profit cooperative. Did you know that as a member of the Cooperative you’re also an owner? Our members help shape the Cooperative and share in its financial success.
Red River Communications is driven to provide high-quality products and services to its members. Red River Communications (like other cooperatives) stresses involvement in its communities by supporting local schools, businesses, and community events. This is the cooperative way.
Investor-owned companies (like publicly traded stock companies) are highly-incentivized to return profits to investors and stockholders. While cooperatives need profits to continue operations, the focus is on using these profits to enhance the services offered to our members.
Our primary goal is to provide services to our members. Sometimes revenues exceed expenses at year end, resulting in a positive operating margin. This margin is allocated to our members in the form of Capital Credits. Each year’s capital credit allocation is based upon a member’s purchase and/or use (also known as patronage) of Red River Communications services.
Our members receive an annual statement showing the current capital credit allocation along with all previous allocations. Allocation is the amount of capital credits that a member has earned based on the total amount of services purchased in relation to the total amount purchased by all cooperative members.
When our Cooperative’s financial condition permits, the Board of Directors may elect to retire (pay out) a portion of these capital credits. Our members receive this retirement in the form of a capital credits retirement check. Remember that the more services you purchase from your Cooperative, the bigger the capital credits check can be.
