Dec. 14, 2007 at 1:57pm

A handup not a handout

Posted by Jamie Chase in Elections, Social Responsibility
No comments

I’m sure being named the “Mother of Credit Unions” had something to do with Herring chartering hundreds of financial cooperatives. To put that into perspective, only one new credit union was chartered in Washington state during the last 12 years. Moment of honesty - I idolize these women and get the same mushy, heartfelt pang thinking about their legacy that hits me when missing my grandma Jeanne. Grandma still volunteers in Zoar, Ohio, the historic cooperative village where I grew up. My desire to work for cooperatives likely comes from wanting to grow up to be like her.

Now with a little credit union indoctrination, I believe it is possible for any of us to make great contributions to the credit union system just like Maxwell and Herring. That opportunity is a reason to examine what we do and how we do it. To me, that’s what this blog is about.

When I attend the state and national Dora Maxwell and Louise Herring Awards, I’m always surprised by the awards we give for philosophy and social responsibility that demonstrate credit unions giving a handout rather than a handup. Is giving a handout a credit union best practice? Don’t get me wrong, my family makes donations to worthy organizations. My son uses his Moonjar to decide what money to spend, save and share. Our donations are a handout and certainly many of the nonprofits we donate to give people a worthy handup.

What confuses me is when our not-for-profit credit unions raise money for other not-for-profits, like hospital wings. Disclaimer: this is a philosophical question; I don’t think credit unions should stop their amazing relationships with hospitals. But it is a question we should examine since the mentality that credit unions are experts at giving working people financial empowerment is needed now more than ever.

Is it possible that not-for-profit hospitals should donate to credit unions to give people a handup? Reducing financial anxiety is a form of wellness. The opportunity to help more consumers live within their means and budget for emergency medical care would help not-for-profit hospitals better serve their communities.

So the question is: Does giving a local charity or not-for-profit a donation represent the credit union philosophy or is it juxtaposed to our philosophy? I’m not arguing against donations. I’m just saying that our form of social responsibility is about people helping people to help themselves. There are many great examples of credit unions acting philosophically and with social responsibility by helping members in career transitions and during layoffs.

Banks do a great job of caused-based marketing, making donations to deserving local nonprofits what are both good for the bank’s business growth and for CRA requirements. When we give our members’ money away, how does that embody the credit union philosophy? I’d love to hear your thoughts. There is no wrong answer. This movement is what we make it.

Comments (0)

Add your comment below