In terms of American history, the credit union is younger than the car. It may be hard to believe, but the first credit union in the United States opened for business just a little over a hundred years ago: St. Mary’s Cooperative Credit Association opened in Manchester, New Hampshire in 1908—fifteen years after Frank and Charles Duryea produced the first gas-powered automobile in the U.S., and a full 127 years after the earliest commercial bank was established in the United States.
What took us so long?
Joining a credit union is a no-brainer for anyone interested in strengthening the local economy and giving back to the community. Unlike banks, which are privately held, credit unions are member-owned. Thus the individuals who reap the benefits of credit union growth are same people who own and invest in it: community members.
It’s no surprise, then, that credit unions are active members of their local communities. After all, the former literally could not exist without the latter. As institutions born out of a desire to help others, credit unions embody an unadulterated “people-first” attitude. Fellow nonprofits, as well as businesses looking to make a difference and give back to their communities needn’t look further for a model for doing good.
Read on to learn some of the ways credit unions give back to their communities, and what any philanthropic or cause-minded organization can learn from them.
Small Business Micro-loans and Investments
Not every borrower is wealthy enough to qualify for a traditional bank loan. Fortunately for those businesses and individuals, not every financial institution is a traditional bank. Many credit unions and cooperatives, such as those who participate in Virginia’s Reality Check initiative, specialize in microcredit, which offers capital to businesses and individuals without the resources, history, or collateral to take on a quintuple-digit loan. Microcredit usually ranges from $200 to several thousand dollars, and benefits those looking to jumpstart a fledgling business venture or seeking relief from personal financial pressures.
Credit union members can take part in cycling money through their communities by opening accounts and CDs, giving credit unions more funds to loan to those who need them most. Account holders see the benefits of investing immediately, not only in the interest they gain on accounts, but in the growth and prosperity the money fosters in the neighborhood.
Charity Drives and Relief Efforts
Credit unions’ impact cannot be measured in loans and investments alone. Many credit unions, such as Credit Union 1 of Alaska, contribute to local nonprofits through donations and publicity campaigns. Food, toy, and clothing drives are also common at credit unions—not just during the Holidays, but year-round.
During a crisis, credit unions are often among the first to respond with community aid, whether the people in need live next door or on the other side of the world. When Hurricane Sandy devastated much of the Northeast in late 2012, California-based Patelco Credit Union raised over $10,000 in Red Cross relief for victims of the storm.
Financial Training and Education Outreach
Credit unions, like banks, share a commitment to nurturing the next generation of smart leaders, investors, and consumers. Through student loans and grants to educational institutions, credit unions provide kids and young adults with opportunities that would otherwise be unavailable to them.
Beyond direct monetary contribution, however, some credit unions also offer and/or sponsor classes on topics ranging from financial literacy to mortgage refinance. Many credit unions take part in the learning process as well, by regularly sending staff to attend seminars, conferences, and certification programs on better lending, compliance, and risk management practices.
Employee Volunteers
An organization’s employees are its greatest asset, as well as its greatest resource for good, and this is especially true for credit unions. Because of their proximity to the community, credit union employees are especially sensitive to their members’ and neighbors’ needs. Volunteerism, in all of its forms, is common among credit union staff. Advantis Credit Union, for instance, has won Portland Business Journal’s Philanthropy Award for three years in a row, and for good reason: Philanthropy and volunteerism defines its organizational mission, as well as the values and goals of its employees.
As the world grows closer through social media, credit unions are primed to broaden their communities and leverage their giving power for social good. Our apps, designed for community member engagement, are easy, cost-effective, and powerful ways to create giving campaigns that work—for credit unions, banks, businesses, or organizations of any size.
All financial organizations serve different purposes and client bases, and each has a different and unique opportunity to make the world a better place. If you’re looking for a place to start, however, take a note from credit union philosophy; Make “doing good” an organizational principle and everyone will benefit: employees, clients, and community members.
It may be younger than the car, but the credit union is one institution we can all be proud to call our own.
