Advocacy Corner is a new quarterly update that will help connect the dots between decisions made in Washington, D.C., and the work Coast Central does every day across our tri-county service areas. This article will highlight key legislative and regulatory issues affecting credit unions and explain why they matter to our members, our communities, and our cooperative mission.
Why Washington, D.C., Matters to Coast Central and our Members, Community
What happens in Washington, D.C., may seem far removed from our 11 Member Services Branches, but decisions made by lawmakers can have a direct impact on credit unions, Coast Central members, and the communities we serve.
One of the most important issues facing credit unions today is the ongoing debate surrounding our federal tax-exempt status.
The Credit Union Difference
Unlike banks, credit unions are not-for-profit financial cooperatives owned by their members. We don’t answer to outside shareholders. Instead, earnings are reinvested into better products, competitive rates, technology, financial education, and community support.
Congress recognized this unique structure nearly 90 years ago by granting credit unions a federal tax exemption, a benefit designed to help us fulfill our mission of serving members.
Why It Matters
Banking industry groups continue to advocate for changes to the credit union tax exemption, arguing that credit unions have become too large or successful to receive special treatment.
What often gets overlooked is that our cooperative structure hasn’t changed. Every dollar Coast Central earns is reinvested back into our members and communities.
If the credit union tax exemption were eliminated, the impact could include:
• Higher operating costs
• Increased pressure on rates and fees
• Reduced resources for technology and member services
• Less funding for scholarships, grants, sponsorships, and other community programs
Simply put, dollars that currently stay local could instead be sent to Washington.
The Local Impact
Each year, Coast Central invests more than $700,000 in our communities through grants, scholarships, sponsorships, financial education; in addition to our over 8000 hours of volunteer efforts.
Our ability to make these investments is strengthened by the cooperative model that allows us to put members and community first.
Staying Informed
Remember: advocacy isn’t about politics, it’s about helping lawmakers understand the value credit unions provide to the people and communities they serve.
Through this quarterly Advocacy Corner, we’ll keep you informed about legislative and regulatory issues that may impact Coast Central, our members, and the communities we call home.
Together, we can be stronger advocates for the credit union difference.