About Credit Unions
7 Cooperative Principles of Credit Unions
1. Voluntary Membership
Credit unions are cooperative organizations, offering financial products and services to people willing to be involved in how their money is handled; wanting to have a say in their financial futures; and wishing to work with people truly on their side.
Credit unions operate as not-for-profit institutions directed by experienced, volunteer Board of Directors (they get no pay for their work!). Each credit union finds its members from clearly defined fields of membership.
2. Democratic Member Control
Credit unions are democratically run organizations, owned by their members – “one member, one vote” - with equal opportunity for participation in setting policies and making decisions.
3. Members’ Economic Participation
Members are the owners. As such they contribute directly to the capital growth of the credit union. In return, members derive benefits through transactions with little or no fees attached; through better loans and better service; through their involvement in and focus on the cooperative and the greater community rather than on the amount of their capital invested; and they gain the major benefits that only credit union membership brings - peace of mind.
4. Autonomy and Independence
Credit unions are autonomous, self-help organizations. If the credit union enters into agreements with other organizations, raises capital from external sources, or decides to fundraise for a local charity, it is done so based on terms that ensure mutual benefit to all members and all parties involved.
5. Education, Training and Information
Credit unions believe strongly in continued education and training for members, managers and employees so they can contribute effectively to the support and development of the credit union movement. Credit unions also place particular importance on educational opportunities for their volunteer directors and the general public – especially our nation’s youth. Credit unions provide a continuous flow of educational materials and programs to raise the financial awareness of our youth – in order to create a more stable, educated future for our country.
6. Cooperation Among Cooperatives
Credit unions serve their members most effectively and strengthen the credit union movement best by working together on many levels through local, state, regional, national, and international structures. This ensures consistency of products and services, a shared knowledge base, and a continued cooperative spirit.
7. Concern for Community
While focusing on member needs, credit unions work for the betterment and support of all of our local communities, particularly those with people of modest means. Credit unions don’t believe in excluding good people, simply because of their economic status.
These seven principles are founded in the credit union industry philosophy of “people helping people” and can be seen at work at any credit union at any time. These principles are what keep the movement growing and the spirit of cooperation strong. It is a philosophy shared by almost 100 million credit union members nationwide.
Are these the principles you want your family associated with?