FAQ's

Most commonly asked question about the network!

 

Frequently Asked Questions

In this section, you will find answers to the following questions:

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1. What are NDG barter 'bucks' and how do they work?

NDG bucks is the name we give to the credits you earn when you sell products or spend time helping another member of the NDG Barter Network. NDG bucks are a currency that turns your time working and creating into buying power. One credit, or NDG buck, is equal to one federal dollar.

NDG bucks are passed from one member to another when a barter transaction takes place. They are entries on a central accounting system; they are created each time two members sign each others' Transactions Receipts showing a transaction has occurred and authorizing the central office to transfer credits (NDG bucks) from the receiver's account into the provider's account. (NDG bucks only exist as account entries on the central account system. They never leave the system and have no value outside of it; they can, however, be used along with cash.)

When you phone the central office and register your credits earned, the office staff will verify with the receiver that everything is O.K., and make the transfer of credits on the central accounting system. A regular quarterly account statement is sent to you to show how many credits you have earned and spent since the last statement.

2. Who can join?

Any community minded individual, group or business may join the NDG Barter Network provided they support our philosophy, and act with a spirit of respect and cooperation towards all other members within the system. A diversity of ages, cultures, backgrounds and skills allows NDG Barter Network to celebrate the richness and abundance within our community. NDG Barter Network recognizes that: All people have valuable skills and talents to offer; neither age nor mobility need exclude anyone. Building families, neighbourhood and community is real work that deserves recognition and reward. Two-way helping is stronger than one-way giving There are enough resources in our community to meet the needs of everyone Social and economic networks built on trust and cooperation provide essential support for families and communities. This kind or exchanging of services and goods is not new - it has traditionally occurred within families and communities through the ages. All the NDG Barter Network does is to provide a new structure for cooperative exchanges, one that provides wider options for individuals, organizations and businesses to get their needs met. This is done by creating networks of cooperative relationships which, in turn, build stronger healthier communities.

3. Who else is involved in barter networks?

Across North America (and in 53 different countries) people are turning to bartering - the exchange of services and goods - as a complementary economic strategy. Establishing a barter system enables communities to make greater use of their resource of human talents, and distribute services and goods more equitably. There are over 250 of these complementary economic systems in England, and millions of dollars in barter trades take place in the U.S. every year. Japan is experimenting with 16 different models of community currency in an attempt to assist people left out of the increasingly more technological national economy. In Canada, there are exchange systems in most major cities and in many small communities. In Montreal, barter systems already in existence include Project Genesis' barter system, BECS, Centre des Femmes d'Ici et d'Ailleurs as well as several others. We will be working out ways to link our network to other local barter systems. Tom Kennedy is setting up a national Directory of members and the services/products they offer - this will allow members to use their credits in different cities across Canada.

4. What do NDG Barter Network members do?

To give you an idea of the possibilities, here is a sampling of the kinds of services and goods NDG Barter Network members can exchange -

• Escorting people on errands and appointments
• Shopping or doing errands for people
• Doing simple housework, minor home repairs or gardening
• Giving time off to people caring for relatives
• Telephoning - for companionship, membership lists, advertising, language practice
• Assisting in letter writing, dealing with agencies, etc.
• Languages - translation, conversation
• Tutoring and teaching - homework, music, arts, fitness, computers
• Counseling people in need
• Food - meal preparation, cooking, baked goods
• Rentals of tools and equipment
• Minor auto and bike repairs
• Beauty products and services - hair styling, colouring, cosmetics.
• Gift items, household items, handmade items
• Recycled sports equipment, children's items etc.
• Space - storage, garage, for activities
• Professional services - accounting, computer
• Teaching/supervising others who whish to learn what you know
• Workshops on any subject members wish to learn about.

The possibilities are endless.

5. How much does it cost to join and what do I get?

When you join NDG Barter Network and pay a membership fee of $15-$35 for individuals and $35-$100 for organizations or businesses. you get:

1. A barter dollar computer account to keep track of you non-cash trading.
2. A credit of 45 NDG bucks for going through the application procedure and orientation session.
3. An automatic 250 interest-free credit limit.
4. An NDG Barter Network Membership package.
5. An identification card - for security purposes.
6. Transaction Records and Transaction Receipts for recording your NDG bucks earned and spent, as well as instructions for the use of these and other forms.
7. A classified Directory of everything offered on the system.

6. What do I need to be a successful NDG Barter Network member?

Enthusiasm, respect for differences, willingness to work with others cooperatively to build a stronger, healthier community. And, of course, a little of your time to do transactions and attend potluck meetings and trade events.

7. How do I set up a transaction?

Transactions are made through the central office. Following the Transaction Record as a guide, the Receiver gives information concerning the service or product needed to the staff person who, in turn, finds another member willing to do the transaction. Once someone is found to do the transaction, the Receiver is given the phone number of the Provider so the details can be worked out.

8. How should I set my prices?

NDG Barter Network members are free to set their own prices within the following guidelines.

• 1 NDG buck is equal to $1.00 federal cash. There is a minimum wage of 12 NDG bucks per hour.
• Work done for the NDG Barter Network (including participation at events) is rewarded at the rate of 15 NDG bucks per hour.
• Transactions done with systems outside the country are valued at 13 NDG bucks per hour (equivalent to $13 federal dollars).

The general rule is: supplies in cash; labour and profit in NDG bucks. Set prices however you like, but be sure to cover any cash expenditures you will have to make (such as supplies or taxes) with the cash portion of the payment. Experience in other systems has shown that selling your products and services largely in NDG bucks will make your offers more attractive and accessible to other members. And remember that NDG bucks stay in NDG, and will always come back to benefit you and your community.

9. Do NDG Barter Network members get compensated for travel expenses and other possible expenses?

The cost of gasoline and other expenses is payable at the time the trade is made. Don't forget to discuss these costs when setting up the transaction. The central office will advise you on how to proceed.

10. How will bartering affect me if I am on welfare?

Trading in NDG bucks will increase your opportunities to use your skills and, in turn, this will allow you to get more of the things that you need.  You will increase your spending power, because you can use barter credits earned to 'buy' from other members within the NDG Barter Network system.  You may also combine a small amount of cash with the credits you earn, if this is agreed upon at the time the transaction is set up.

Remember, there are many other barter systems both in Montreal and across North America with many members who are welfare recipients.  Barter credits do not affect people's welfare cheques.  The NDG Barter Network keeps a record of your barter credits earned, but it is not necessary to report these credits to the welfare department.  On the other hand, like any other cash you earn during the month, cash earned from bartering must be declared as monthly earnings.  This is your entirely your responsibility; only credits are recorded on the NDG Barter Network accounting system.

11. What if I don't need all the barter credits(NDG bucks) I make?

If you don't need all the credits you earn, you can save them up, donate them to someone you know, or give them back to the central bank so that the people who run the project can make sure that individual members with the greatest need get all the help they require.  Donations can also be made to member organizations.

12. Is it okay if lots of NDG bucks don't get spent?

Positive balance?  Buy something!

Remember, the more you use NDG bucks, the more you and others benefit.  Credit or prizes may be awarded at membership potluck meetings to those who have SPENT the most NDG bucks since the previous meeting.

13. What about quality? How can I be sure that the work done is done well?

When you join the NDG Barter Network, you are asked for two references.  Being part of the barter community further provides ways to check up on the work of members. Part of the strength of the barter network is that we work cooperatively; people are not encouraged to be members of the NDG Barter Network unless their intentions are to build supportive relationships, help each other, and strengthen the barter community.  Remember, there is no better way to get work or sell products than by word-or-mouth and a good reputation.

14 What about security?

Being a part of the barter community ensures that people are connected and community-minded.  At the time of registration, two references are required, and an ID card is given to each member; this card is shown when members first meet to do a transaction.  Furthermore, the more people participate in bartering, the more they build social networks and, as knowledge of each other grow, people can make informed decisions about who they are most comfortable working with.   The central office is also there to ensure that proper behaviour is maintained at all times.  Members are asked to do evaluations of both the goods and services received, as well as the NDG Barter Network program as a whole.  In some cases, it may be possible to send an escort, a third party, to help supervise a particular transaction.

15. What about liability? What if a service provider is injured on the job? What if the service provider injures the person being helped? What if damage is done to property in the course of a transaction?

Members who are working at their regular occupations will automatically be covered by the required insurance; however, when non-business members enter into transactions with each other, the same rules apply as when you ask your friend or family member to help you out. Upon joining the NDG Barter Network, members are given careful instructions on proper precautions and respect for their trading partners. A Waiver of Liability form may also be signed before any bartering takes place.

16.What about taxes? Will people be taxed on the trades they make through NDG Barter Network?

It is important to be clear that the NDG Barter Network is not a tax evasion scheme like "under the table' barter or cash-only trading.  We feel that paying taxes as required by the tax laws is part of our social responsibility; this project is about building a stronger, healthier community and helping each other - paying taxes is one of the ways people can do that.

We see NDG Barter Network as a complementary economy and a social system which can provide access to unused resources, give people opportunities to work, build skills and try out new ideas. It can even put cash in people's pockets.  It is a way to assist and build bridges to the formal economy.

It is a completely above board method of trade;  responsibility for collecting or paying taxes, or reporting income information, rests with the individual members, and not the NDG Barter Network.  NDG Barter Network has no obligation or liability to report to the taxation authorities or to collect taxes on behalf of its members.

According to Revenue Canada, income generated is taxable if it is earned as part of your usual profession, (eg. If you own a plumbing business and replace a toilet as part of a barter transaction, taxes must be paid.  If, on the other hand, you are a teacher and replace a toilet for someone, this is not part of your normal profession and so the barter credits are not taxable.) All taxes on NDG Barter Network trades done in the course of your regular business are payable in federal cash only.  Hence, members need to charge sufficient federal dollars on taxable transactions to cover taxes and overhead.

Barter income received for work that is not a primary source of income is not taxable.  For instance, used items that you sell to other people are usually not considered as taxable income.  However, for Revenue Canada, it comes down to "intent" - if you purchase items with the intent of reselling them to make a profit, the profit is considered taxable income.  Another exception arises when you sell an item for a profit with a value of more than $1000.  for example, if you purchase an antique for $1000, then sell it for $1500., the $500 profit should be reported as a capital gain.

Regarding PST and GST, any transactions that would otherwise involve these taxes must include GST and PST on the full value of the items traded.  Because this applies only to9 individuals and businesses that are required to collect these taxes, many transactions in a barter system have no sales taxes.  For example, a bike selling for $5o federal dollars and 50 NDG bucks in the local bike shop would cost an additional $15 tax (PST and GST) payment.  When  your neighbour makes a one-time sale of a bike to you for $100. (say $25 cash and 75 NDG bucks) no PST or GST needs to be paid.

NDG Barter Network can refer members to people experienced in paying taxes on barter transactions.

A copy of the Revenue Canada Income Tax Act - 'Interpretation' concerning Barter transactions follows: