Are We A Movement, or Are We Just "Tax-Advantaged"?

“Fed Reserve Chairman Bernanke made a comment before the Senate the other day and said “Credit Unions are tax-advantaged”.  While this statement is true, it didn’t sit well with me either. Our focus should be educating members on what we DO WITH our profits.  We pay higher dividends and lower rates and fees DUE TO THE FACT that we are a credit union.  Banks could very well do the same thing, but they choose to pay their STOCKHOLDERS, not their customers.”  ~Nathan Wuerch, admitted CU Junkie

The other day, I was emailing back and forth with my former boss, Nathan Wuerch. During the exchange, he wrote me back the paragraph above, which really got me thinking about why credit unions are “tax-advantaged”. 

As an employee of a credit union, the biggest difference I experience - between credit unions and banks - is culture.  The ideals of helping those of modest means and educating members to better serve themselves financially, is the kind of thing that keeps me going.

The key to credit union success though, is implementing programs, products, and services that encompass their fundamental values. Without strong cultural values, credit unions run the risk of becoming nothing more than “tax-advantaged” banks. Expanding on that concept I have created the following equation:

Principles + Values + Right Attitude = Culture

Culture + Positive Actions + Cooperation = Movement

While we may never be able to fully convince every single non-member of the credit union difference, we can certainly make sure those who visit a branch know that difference the second they walk in the door. Leaders should not lose sight of this as they struggle with the myriad issues their particular institution faces.

The point I’m trying to make is - in the midst of the nation’s economic recovery, our own corporate crisis, the fight to expand MBL, shrinking budgets, and a host of other issues facing credit unions - this is a defining moment for us. We can’t lose sight of the ideals, principles, and behaviors which have made credit unions a movement all along. It’s the people before profits that enabled any tax-advantages we have today, and it’s our continued efforts in helping others, that will ensure it stays that way in the future.