Frequently Asked Questions
Michiana Area Currency is a nonprofit association of Michiana residents who have volunteered to help build a community currency for our region. We began meeting and researching this idea in 2006 and have stepped up our efforts in response to the growing economic crisis. We will officially launch the new local currency soon!
Why Local Currency?
Local Currency is money issued by a community to add wealth to the local economy, to support locally owned businesses, and to enhance economic sustainability and social justice. By choosing to earn MACs, your business is reinforcing a decision to be part of a mutually supportive community that includes business owners and employees; clients, customers and vendors. Your business directly connects to customers who care about their community. By choosing to spend MACs, you are making a conscious commitment to support the local businesses that keep the many unique towns and cities of Michiana vibrant, interesting, and beautiful places to live.
Is it Legal?
Absolutely. Local Currency is an entirely legal means to supplement the use of federal currency. Bills must not resemble US dollars and can supplement, but not replace, employee wages minimum wage must be paid in US dollars). Local currency you earn is considered taxable income.
How can I spend my MACs?
Think of all the ways you spend cash or credit in Michiana, and look for the MACs logo and our directory around town. What can you buy? Food from restaurants, farmers' markets and groceries; watercolors, sculptures and prints; locally crafted beer and wine; admission to local events; hand crafted furniture; books; CDs; and all sorts of services from massage to electrical work, landscaping to law. Don't forget garage sales, flea markets, donations to local charities and (ask first!) tips for your favorite service people. ANYONE can accept and spend MACs - they can even become part of your regular pay.
Has this been done before?
Yes. There are currently thousands of Local Currency programs throughout the US and the world. Also, Local Currencies are an important part of our local and national heritage; hundreds of cities, used a form of Local Currency during the depression as a way to make sure that a scarcity of cash didn't stop hardworking folks from exchanging goods and services. Any business that relies on tourist dollars knows that winter in Michiana can feel like a depression, because US dollars work their way out of the community and don't return until summer.
How does my business handle MACs?
First, decide at what level you would like to accept MACs. A storefront that imports crafts from around the world may choose less (10 to 50% or so). A home-based business selling cherry pies or mowing lawns should choose more. Many folks accept 100%! Remember, there are still plenty of US dollars going around. Second, use the cash spaces in your register to hold US dollars on top, MACs below. MACs should be treated like cash for most purposes but cannot be deposited in banks. MACs are for spending, not saving - that's how we can keep our local economy moving!
What if I don't own a business or work for a non-locally owned business?
Don't worry - you can still become a supporting member, and receive MACs to spend. You can buy MACs for US dollars at our exchange and other locations - our first directory will be published soon! You can accept MACs as change or as a stipend for volunteer work. Local non-profits will soon be able to apply for grants of MACs.
Who manages MACs?
The issuance of MACs is managed by the Board of Directors of the Michiana Area Currency Initiative (MAC). We believe in fostering a local economy that is fair, compassionate and lively, and in honoring the skills, abilities, creations and produce of our neighbors. We are working to ensure that MACs are as EASY to use for as many people as possible.
Additional FAQ's for Business Participants:
How do I get “MACs”?
Join the Network: For a small membership fee, local businesses can become partners in our community currency network. Just tell us what goods or services you will offer in exchange for community currency. You will get your own supply of MACs to spend, a sign to post in your store indicating that you accept MACs, and a listing in our community currency network directory. Your business may also be profiled in the network’s regular newsletter and will receive discounted advertising space there.
Agree to accept MACs as payment for your services or goods.
Businesses can apply for a MACs loan, which can be used to hire local contractors or pay local suppliers and may be paid back in MACs.
Nonprofit groups can apply for a MACs grant.
How do I spend “MACs”?
It’s easy! You can visit our web site or see our printed directory for a listing of vendors, contractors and individuals who accept MACs.
Some employees may accept MACs as a portion of their pay.
Make a tax-deductible donation of your extra MACs to local community groups so they can put them to use in the community.
Use MACs yourself to hire baby sitters, do home repairs, or buy ice cream. The people you hire may become your customers!
What are the benefits of a local currency? Why not just spend dollars?
You can expand your customer base by bringing in customers during slow times, offering specials on slow-moving goods, and bringing in dollar-poor customers who otherwise could not afford to use your services.
Our Network directory, newsletter, and web listings enhance visibility.
Win customer loyalty by showing your commitment to our community.
Unlike “real” dollars, MACs stay in the South Bend area, expanding the local economy and helping grow local businesses.
Is this legal? What are the tax ramifications?
Local currencies are completely legal, as long as they don’t resemble U.S. currency and as long as Uncle Sam gets his cut of all taxable transactions.
Wages paid in MACs paid as “fringe benefits” are not subject to withholding and may be tax exempt (IRS Reg. [1322.01 § 1.132-1])
How do you prevent counterfeiting?
We will print the currency on high quality tinted paper, with color overlays. Serial numbers are stamped deep and can be felt, thermal ink prevents copying.
Any questions? Ideas? Concerns? Email us at info@michianacurrency.org.