By Frank J. Diekmann
What if?
What if credit unions, instead of pushing back on one senator’s request that CUs justify their tax exemption, leaned in? And with vigor!
As CUToday.info reported, Sen. Orrin Hatch (R-UT) sent a letter to the IRS asking that federal credit unions file annual returns that ensure they are complying with the reasons Congress granted the tax exemption.
NAFCU called the Hatch request “tired rhetoric,” and CUNA was equally critical, with both groups raising a legitimate point about additional red tape courtesy of the federal government.
But what if…
What if every credit union in the U.S. embraced Hatch’s request and filled out a one-page electronic form that showed just how much they returned to their individual members, the membership overall and their communities? Take that, senator, and the banks that have your ear.
Don’t say it can’t be done—some credit unions such as Dupaco CU in Iowa and Firefly CU in Minnesota and others, produce an annual “Member Value Report” that in addition to the dry old financials that have long comprised annual report spreadsheets, also show how each member is better off financially by being a member of the credit union.
And for those smaller CUs that say they lack the resources and data to show the specific value they provide their members, surely the trade groups could come together with a vendor or two and provide a solution. Or perhaps one of Filene’s i3 groups could tackle it. Or one of PSCU’s Knockout competition teams. Or a group of Crashers. Or you.
Instead of fighting Hatch—who in his last year in office seems to be setting himself up nicely for a board seat with a Utah bank–credit unions ought to be creating their own version of IRS Form 990, then proudly publishing the results and boldly responding, “Thanks for the challenge, Senator, here you go. And thanks for helping us to make clear the credit union advantage.”
In his letter to the IRS, Hatch said the CU tax exemption is currently valued at approximately $2.5 billion and that he believes it is necessary to ensure credit unions continue to fulfill their “intended vision.”
But what if…
What if instead of objecting to Hatch’s request and giving the impression credit unions are just another special interest group with something to hide, why the heck not respond by showing credit unions are a group with an interest in something special—making their members’ financial lives better?
This wouldn’t just be beneficial to the credit union community, it would benefit individual CUs that perhaps aren’t delivering all the value they should be. Let’s make sure every CU’s members get to see these one-page statements, and let’s allow those members to put their boards on notice that they expect better.
Remember, it wasn’t that long ago that a Catholic priest and some low-paid factory workers in the U.S. who had no access to financial services got together and asked, “What if we did it ourselves?”
What if…
Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.info.