BUFFALO, N.Y.—A new community development credit union is making plans to open its doors in this city, and it is using crowdfunding to get started.
The money being raised will go to hire a consultant to help the group organizing Good Neighbors FCU to secure grants for the proposed CU, Buffalo Business First reported.
Good Neighbors hopes to raise $7,500 between now and mid-October, according to lead organizer Emma Smalley, who told the publication the campaign has so far pulled in $1,574 in donations – 21% of its goal.
“This is our first step on the fundraising side of things,” said Smalley told the publication. Smalley works as the chief financial officer at the $45-million Lancaster-Depew FCU in Depew, N.Y. “We’ve been laying the groundwork with planning and now we’re really moving into the funding phase.”
The money raised through crowdfunding will pay for the cost to hire Chicago-based FUND Consulting LLC, a 15-year-old firm that works with nonprofit and government clients. Smalley said the consultant is being brought on board to help organizers secure a $150,000 grant that will pay for various equipment and staffing needs, including a professional fundraiser to help Good Neighbors raise the $300,000 it needs to cover startup expenses.
No target date has been set for the opening of Good Neighbors. Buffalo Business First reported that $2.5 million has been pledged in deposits, mostly from other local credit unions that would open certificates of deposit at Good Neighbors.