5 Things You Should Know About the American Nonprofits Federal Credit Union
Those of you who were with me at the joint YNPN/CompassPoint Nonprofit Day back in August probably came out of the day feeling energized by all of the discussions about innovations that will help to create a more effective and impactful sector – everything from new models of multigenerational leadership to rethinking the way that we make decisions on the personal and organizational levels.
However, one of the most exciting innovations that struck me was the announcement of the pending launch of the American Nonprofits Federal Credit Union (ANFCU) - a federal credit union specifically for the non-profit sector. So I made a note to follow up on this initiative and learn more about what it would look like, what it would mean for the sector, and what it might mean for YNPNers in particular.
So I recently had the chance to talk with Pamela Davis, the President of American Nonprofits, and Charlie Wilcox, the organizer of the American Nonprofits Federal Credit Union. Here’s what they had to say about this new effort:
Dan Blakemore (YNPN National Board): Okay, first things first - how does a credit union work?
Charlie Wilcox: A credit union is a cooperative business equally owned by the members, 1 share per member and each member is able to vote on the organization’s activities. The members elect a board of directors who have fiduciary responsibility for the organization. The credit union is able to offer lower cost financial services for the membership. Any profits are either distributed back to the members as dividends or used to support additional growth.
DB: So what will ANFCU mean specifically for the non-profit sector?
Pamela Davis: The credit union will provide a more efficient banking model for the sector, as it is typically more difficult for non-profit organizations to secure credit due to a lack of understanding of how these groups function. ANFCU will also seek to raise awareness about our sector and how our financial models function.
DB: I’m sure lots of folks will be excited to hear that. So what’s the timeline for the credit union’s development?
PD: By the end of 2013, we expect to have ANFCU up and running and serving members.
DB: Great! In the meantime, how can YNPN members and their employers support this effort?
CW: YNPN members can complete this survey that is the next step in the process to make the credit union a reality.
PD: We’re also looking for volunteers who have skills in data analysis and communications. Additionally, we are in the process of raising $10.5 million in seed funding and are always interested in making connections with prospective funders.
DB: Those sound like really great opportunities for input and engagement. Anything else YNPN members know about this effort?
CW: We see the Nonprofits Insurance Alliance Group as a successful model that proves the viability of non-profit groups creating their own financial institutions. Pamela has been a big part of NIA Group’s success over the last 23 years, so it is great to have her taking part in the ANFCU project.
PD: ANFCU will provide the means for the non-profit sector to support itself in a substantive and strategic way by leveraging our cumulative financial resources.
YNPN is proud to support the ongoing effort to create a federal credit union specifically for the non-profit sector, the American Nonprofits Federal Credit Union (ANFCU). For more information on this effort, click here and feel free to leave any comments or questions for Charlie or Pamela in the section below. They’d love to hear from you!