FAQ:
General Questions
Business Questions
Charitable Orgnaization Questions
What is the Community Credit Network?
The Community Credit Network is a local business loyalty program, fund raising tool for non-profits, and commercial barter exchange rolled into one.
What are Community Credits (CCs)?
CCs are merchant credits that can be spent at participating businesses, at par with the dollar, as a percentage of the sale price. For example, a restaurant accepting 50% CCs would collect $10 in normal money and CCs10 on a $20 meal.
Where do CCs come from?
Businesses issue them when they make substantial donations to community organizations of their choice. Their Community Credit Network account is debited and the organizations' accounts are credited. Businesses commit to redeeming the CCs they issue.
Who benefits from the Community Credit Network?
Non-profits benefit by having CCs to spend at participating businesses, and when supporters buy CCs from them for USD$. Businesses benefit by attracting the loyalty of local customers, and by gaining access to the CW business-to-business exchange network. Individuals benefit by being able to support their favorite charities without losing any of their buying power.
Who profits from this system?
No one owns the CW system itself. The revenue stream of the CW system is used only to develop and maintain the program.
What about taxes?
Taxes are collected and paid in USD$ on the total amount of the sale, including the CC portion. The IRS has a 1099B form that is used to report all transactions in the CW account.
How is the program funded?
Participating businesses pay Community Prosper a registration fee in CCs. They also pay for the smart card equipment in CCs. The CW program exchanges the CCs for USD$ with its supporters.
What does a business do with the CCs earned through sales?
They can spend them with other businesses, pay staff bonuses / benefits, or donate them.
How are CCs issued?
When a business registers and makes CC donations to organizations and projects of their choice, a CC account is opened and debited the amount of the donation plus any fees and equipment charges. The non-profit and administration accounts are credited correspondingly.
How is this account administered?
Just like a regular bank account, any transactions cleared through the accounting service is credited and debited accordingly. Statements can be downloaded and printed at any time. Accounts can be managed through a website by the owner of the account, just like online banking.
How much can a business issue?
The CC donation level is based on the capacity of the business to redeem them, usually around cc1000 per full time worker (or equivalent). A five-person business would donate cc5000 to community organizations and projects of their choice.
How much does it cost?
Businesses pay a one-time registration fee of cc100 per FTE (about %10 of the total donation), and they pay a one-time fee of cc300 for the smart card point-of-sale device.
What is the obligation?
A business has met its obligation to the program when it has redeemed the amount it has issued, although we recommend that businesses spend the CCs they earn, keeping them in circulation. A business must also accept CCs at the rate it advertises. A business accepting 50% in CCs would take cc10 + $10 for a $20 sale.
Are taxes collected on the whole amount of the sale?
Yes, the IRS requires taxes be paid on the full amount of the sale just as if CCS was cash.
CHARITABLE ORGANIZATION QUESTIONS: (back to top)
How does a non-profit get CCS?
When businesses donate to them and they accept the donations by registering for an account at www.communityprosper.com.
How can a non-profit use CCS?
A non-profit can spend CCs at any participating business, pay for unpaid staff time, reward volunteers, or exchange them for USD$ with supporters.
How does an organization join the program?
By completing a charitable organization registration form online. A CC account is opened with a null balance until CC donations are posted to the account.
What does it cost non-profits to participate?
All costs are covered by the participating businesses - there are no fees to community groups.
