All Consumers Benefit from the Credit Union Not-for-Profit Structure

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In some ways, credits unions are similar to banks. We offer financial services and products emphasizing quality, service and value and our employees have extensive experience helping people chart a smart financial future.

But make no mistake: Credit unions are unique from all other financial service providers, including banks. We’re not-for-profit.

Our primary motivation isn’t money — it’s helping our member-owners improve their financial well-being. We don’t have investors. We don’t issue stock. We’re financial cooperatives that operate under principles ensure that all of our members’ interests are our top priority.

Because credit unions are not-for-profit member-owned financial cooperatives, we’re exempt from federal income tax. Every dollar earned beyond those we need to cover operational expenses – or socked away in reserves to cover ups and downs of the economy – is handed back to our members in the form of better rates and lower fees and a variety of other member benefits

Our not-for-profit status also allows us to look beyond the bottom line. Credit unions invest time and resources in financial services and products that we think will be genuinely beneficial to our members – focusing on their needs, not on generating massive returns. Our community financial education and literacy programs represent perfect examples of this ethic.

But if credit unions were forced to pay taxes, as not-for-profit entities, members like you would shoulder the burden of those new taxes. ProFed would be forced to make up the difference by charging higher rates on loans, paying less on savings – and implementing new fees. Even non-members would suffer, as conventional banks would face less competitive pressure from credit unions to keep their prices and fees low.

We value our status as a not-for profit-profit financial cooperative, and we hope you appreciate and value it as well. It’s important that our elected officials understand the benefits of credit unions’ non-profit status, too.

On Wednesday, October 2, from 2-3 p.m. Eastern Time, you can take part in a social media rally with credit unions and members from all across America. Tweet your representatives and let your voice be heard for your credit union. Use the hashtag #DontTaxMyCU to reach your senator or representative on Twitter.

@SenDanCoats I support my #CreditUnion #DontTaxMyCU
@SenDonnelly I support my #CreditUnion #DontTaxMyCU
@RepStutzman I support my #CreditUnion #DontTaxMyCU

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