Recently the telephone COOP that I was a part of sold and they refunded the capital credits. They issued a 1099 MISC. Is this actual income since it was a non profit COOP?

of course;
the IRS could care less if the Form 1099-MISC comes from a non-profit organization, a for-profit biz.. They want you toreport the income on Sch C. There are NO special reporting requirements