Spring Grove Communications is a Cooperative - You are an Owner
Why do Cooperatives Matter?
Spring Grove Communications is a cooperative which means it is owned by the people we serve. Instead of focusing on maximizing profits for outside investors, cooperatives are focused on meeting the needs of their members and strengthening the communities where they operate.
Some key reasons cooperatives matter include:
Local Ownership – Members have a voice in how the cooperative is run through democratic governance and elected boards.
Community Investment – Revenues are reinvested locally through infrastructure improvements, community support, and economic development initiatives.
Member Benefits – Profits are returned to members through patronage dividends, improved services, or lower costs.
Long-Term Focus – Cooperatives make decisions based on what is best for members and communities over the long term rather than quarterly earnings.
Reliable Service – Many cooperatives provide essential services, such as telecommunications, electricity, and agriculture, to rural areas that might otherwise be underserved.
Local Jobs and Expertise – Cooperatives employ local people who understand the community and are invested in its success.
At their core, cooperatives embody the principle of people helping people. They combine the strength of local ownership with a commitment to service, ensuring that decisions are made with members and communities—not distant shareholders—in mind.
In a cooperative, you're more than a customer—you're an owner.
Cooperative Questions & Answers
All subscribers of Spring Grove Communications services are member-owners of the cooperative. Income from our operations is used to defray costs incurred while providing quality services and support. Once these costs and reinvestments in the cooperative are met the SGC board of directors allocates the remaining money to the member-owners in the form of “Capital Credits”. The amount varies from year to year at the discretion of the board. These Capital Credits payments help make our services an even better value.
What are Capital Credits?
Spring Grove Communications is a cooperative. When you signed up for service with us, you established your equity interest in the association. In other words, you became a part owner of Spring Grove Communications. As a nonprofit organization, Spring Grove Communications seeks to provide members with the highest quality service at the most affordable rates. At the end of each fiscal year, Spring Grove Communications allocates margins to each member on a prorated basis according to the total amount paid for services. These allocations are known as patronage dividends. Upon approval of the Board of Directors, these allocations are refunded to our members through patronage distributions.
What is a Patronage Allocation?
Patronage allocation is the term applied to the act of determining each member’s share of the margin and the notification to the member of what their individual allocation for the year is.
What is a Distribution?
Actual payments, called distributions, are made at the discretion of the Board of Directors.
Why are Patronage Allocations not paid-out when allocated?
Net margins are a source of working capital provided by the members and are used by the co-op for any proper purpose such as facility/plant upgrades and payment of debt.
Do I need to contact the cooperative each year to see if any distribution has been declared?
Current customers of the cooperative (those who currently get their local phone service through the cooperative) will automatically get any distributions declared mailed to them at their billing address.
What services do I receive patronage dividends for?
Patronage dividends are based on a percentage of local phone, long distance, broadband internet, and SGC-TV.
Are payments of patronage dividends taxable?
If the cost of the service was not taken as a deduction on your tax return when the service was received, the return of the excess paid for the service (patronage dividend payments) is not taxable income. However, most businesses claim telephone service provided to the business as a business expense and therefore would have to claim patronage dividends as income. The cooperative cannot advise its members on tax issues. You should check with your tax advisor.
You are automatically a member-owner of the Cooperative when you sign up for and use the services we offer. Another great benefit of membership is the ability to be involved in the decision making process of Spring Grove Communications. You can attend the annual meeting held each year in March. You will have an opportunity to pose questions to the board of directors or, if you really want to get involved, put your name in the ring for a chance to be elected to the board.