Some basic answers to questions about RhineBucks
compiled by Bob Miglino (Leonardo's Italian Market & FOCUS Publications, Inc.)
E-mail Bob at BobM@foocus.com.

What are RhineBucks?

RhineBucks are a local currency designed for use in the village and town of Rhinebeck. They are issued by RhineBucks, Inc., (what will be) a non-profit corporation working in collaboration with local businesses and service providers located within the geographical boundaries of the Village and Town of Rhinebeck.

The purpose of a local currency is simple. It functions on a local scale, building the local economy by maximizing circulation of trade within the village and town of Rhinebeck, NY. The currency distinguishes the local businesses and service providers that accept the currency from those that do not, building stronger relationships and a greater affinity between the local businesses/service-providers and the local citizens of the village and town of Rhinebeck NY. The people who choose to use the currency make a conscious commitment to buy local first. By doing so, they are taking personal responsibility for the health and well-being of their local community by strengthening the local economy. RhineBucks therefore, is a great way for citizens of a community to support their community.

RhineBucks, of course, does not replace federal currency. Their use simply helps strengthen the local economy by favoring locally owned businesses and service-providers. It also promotes local jobs while reducing the local area's dependence on an unpredictable global economy. Imagine a lesser number of local residents doing business out of the area. Imagine less monies being spent at large national chain-stores miles from Rhinebeck that have no roots in the community; companies who then send money taken in, to headquarters' out of the region or even out of the state; to stockholders or corporate coffers that have no connection to the local area or its people.

How are RhineBucks placed in circulation?

RhineBucks are placed in circulation when citizens exchange federal dollars for RhineBucks at any of the "RhineBucks Exchange Centers" (locations to be determined). The exchange rate will be ninety cents per RhineBuck. For example, 9 federal dollars will yield ten RhineBucks and so on. In this manner, an incentive exists for local citizens to purchase and use RhineBucks. Businesses and service providers then accept RhineBucks dollar for dollar. RhineBucks would be printed in 1, 5, 10, 20, and 50 denominations of RhineBucks. Change is made in RhineBucks to the extent possible.

Federal dollars remain on deposit at the Rhinebuck Exchange Center "bank" (location to be determined) to redeem at a ten percent discount. 100 RhineBucks, for example, would be exchanged for ninety federal dollars.

How does the 10% discount work? Where does that 10% go?

The ten percent discount is part of the exchange rate, not a discount given at the point-of-sale. That 10% doesn't "go" anywhere - no one person or business makes a percentage on RhineBucks transactions. To explain more clearly, let's follow 100 RhineBucks through a common transaction:

Let's say, one evening, you decide to go out for dinner. You go to a Rhinebuck Exchange Center to purchase RhineBucks to spend at a local restaurant that accepts RhineBucks. You go to the Exchange Center with 90 federal dollars and exchange them for 100 RhineBucks. You go to dinner, and the total cost comes to $100. The restaurant accepts RhineBucks in full, so you pay entirely in RhineBucks. You walk out of the restaurant knowing that you just spent 90 federal dollars on a $100 meal - a ten percent discount for you. You also have the satisfaction of knowing that you supported your local community by supporting one of its local businesses. The restaurant owner also benefited because you ate locally at his/her establishment rather than going out of the area for your dinner. A win-win-win situation for all.

Let's continue with our example.

The owner of the restaurant now has 100 RhineBucks. He/she can either keep the RhineBucks to use themselves in Rhinebeck (preferred) or, because they may need more federal dollars to pay, say, the electric bill, (because, for example, Central Hudson perhaps doesn't accept RhineBucks) the restaurant owner goes to the exchange center and exchanges his RhineBucks back for federal dollars. When he does this, he receives federal dollars back at the rate of 90 federal dollars per 100 RhineBucks or 90 cents on a dollar. THIS IS THE POINT WHERE THE BUSINESS OWNER HAS, IN EFECT, PROVIDED A 10% DISCOUNT TO THE CITIZEN.

The business owner, however, should certainly NOT look upon this as a loss. Quite the contrary - It is the intent of the program to have more business transactions taking place locally as a result of the RhineBucks program. The resultant increase in business volume, then, more than makes up for the 10% "extended" when RhineBucks are exchanged for federal dollars. Of course, the merchant himself can preserve the full value of his own RhineBucks "taken in", by utilizing them to the greatest extent possible for him and/or his business in the local community. This, of course, is the most cost-effective thing to do with one's RhineBucks and it further promotes the program as a whole, (although it is recognized that not everything can be paid for with RhineBucks.)

RhineBucks Accepted Here!

Citizens with RhineBucks in hand will look for the "RhineBucks Accepted Here" sign in store windows or can browse the RhineBucks Directory, an on-line directory of local businesses and service providers that accept RhineBucks. Those businesses and service-providers listed will likely see an increase in business as a result of being listed and as a result of their accepting RhineBucks. Again, RhineBucks are accepted at face value for goods and services - 10 RhineBucks for a $10 purchase. Every business listed in the RhineBucks Directory and displaying the RhineBucks sign commits to taking full payment for its goods or services in RhineBucks. Change for purchases made in RhineBucks will always be made in RhineBucks to the extent possible. For example, let's say a person comes into a store that accepts RhineBucks and makes a $9.70 total purchase handing a $10 RhineBuck note to the merchant. Since there are no coins in the RhineBuck system, the merchant returns 30 cents in U.S. coins to the customer. In a case where the purchase totaled $8.70 the merchant would return a $1 RhineBuck note and 30 cents in U.S. coins to the customer.

What do I have to do to accept RhineBucks as payment?

Any business or individual may accept RhineBucks as payment and then spend them as they choose. You are not required to sign up with RhineBucks, Inc. to trade in RhineBucks! However, we strongly advise that you do sign up for a number of reasons. First, you'll receive materials that will help you trade in RhineBucks, including brochures, information, stickers, and other promotional materials; second, you'll receive updates and newsletters, which will keep you informed of the latest RhineBucks developments. Thirdly, and perhaps, most importantly, you'll receive a "listing" in the RhineBucks Online Directory and in any future print or display advertisements etc. that feature a list of RhineBuck-accepting businesses and service providers. There are four different listing options that companies can purchase in the directory. Please realize that this directory, along with other fund raising endeavors, is the principal method of raising start-up and operational funding for the expenses associated with the RhineBucks project. RhineBucks, Inc. is a not-for-profit corporation utilizing volunteers for all aspects of its operations. No person or entity realizes any finacial gain, salary or other form of remuneration as a result of their participation and/or work conducted on behalf of RhineBucks, Inc.

How do RhineBucks benefit the local economy?

Everyone benefits from using RhineBucks. Consumers benefit from receiving a 10% discount on purchases. Businesses benefit from increased patronage. Even local non-profit organizations such as the Girl Scouts or the Little League for example, can benefit by purchasing RhineBucks at the 10% discount rate and then selling them at full face value to their supporters. All of this promotes, supports and builds the local community. RhineBucks are about building community while building the local economy.

What are the other benefits that RhineBucks bring to our local community?

Local currencies can play a vital role in the development of stable, diversified regional economies, giving definition and identity to regions, encouraging face-to-face transactions between neighbors, and helping to revitalize local cultures. A local currency is not simply an economic tool; it is also a cultural tool.

At this juncture how can I express my interest and support?

As a start, we'd appreciate it if you would visit the new RhineBucks website located at www.RhineBucks.org. While visiting, please sign the "I'm Interested List". Doing so will add your name and e-mail address to our database of businesses and service providers who we will keep up-to-date as to the progress of this project. We will also inform everyone of all the meetings taking place as we form a board of directors that will make the decisions that form the basis of the RhineBucks program. All are welcome to attend these meetings and we highly encourage everyone to do so.

Another way you can help at this point is to keep an open mind about the program, discuss it with your colleagues, friends and families and learn as much about how the program works as you can.

Who is the core group working on this project, at least at this point in its formation?

Dutchess County Legislator Joel Tyner first brought this program to the attention of some local business people in early 2008 as another way to increase local business. Although there was some interest, a follow-up meeting did not materialize. In early November 2008, legislator Tyner contacted Robert Miglino, owner of 2 businesses in Rhinebeck, (FOCUS Publications, Inc. and Leonardo's Italian Market & Café), as well as Meg Crawford, owner of Twin Ponds Nursery, Roberta Schiff, a local resident who does not have a local business per se, but is interested in programs that further the goal of supporting and strengthening the local community and Maureen Gates, owner of Sharp Images Photography in Rhinebeck. These five have brought others to their meetings and there is now a groundswell of support and interest amongst the community. The next meeting is scheduled for March 16th at 7pm at Leonardo's Italian Cafe, 51 East Market Street in the Village of Rhinebeck.

No board of directors has been assembled as of yet, nor any monies collected or spent. This RhineBucks web-site has been established to begin the process of disseminating information and communicating progress made to date as well as to announce future meetings of the group. This website has been established out of funds ($500) donated by Robert Miglino as "seed money" for the project. Robert also provides his place of business (Leonardo's Café) for the groups' meetings.

Are any members of this core group or anyone else profiting or being paid for the work they are doing on this project?

At this juncture, no member of the core group organizing this project, nor anyone else is profiting or being paid for the work they are doing on behalf of the project. Everyone is volunteering their time to organize and bring this project to fruition.

Interested in what you've read so far?

Then, please click on the "I'm Interested" link above to join the list of those who want to be kept informed about this project and if you can, please attend the next meeting on March 16th at 7pm at Leonardo's Cafe.

Regards,
Bob Miglino
BobM@foocus.com