Community Give-Back, Philanthropy, and Credit Union Leadership
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As you know, a credit union's mission to serve its members includes giving back to the community. Our give-back can take many different forms. Some examples of community give-back that we engage in include:
Financial Education: We may offer financial education programs to the general public, such as budgeting, saving, and investing workshops. Through these programs, people can increase their financial literacy and become better financial decision-makers.
Philanthropy: We may donate money or resources to local charities and nonprofit organizations, or encourage or facilitate member giving. Supporting food banks, shelters, and other organizations that offer essential services to those in need can also fall under this category.
Volunteerism: Our employees may volunteer their time and expertise to local organizations and events. This may be taking part in neighborhood cleanup initiatives, volunteering on nonprofit boards, providing local students with mentoring, and so on.
Scholarships: We may offer scholarships to local students to help them pursue higher education. These scholarships can be awarded based on academic achievement, financial need, or other criteria.
Community Events: We may host or sponsor community events, such as fairs, festivals, or concerts. These events can help bring people together and promote a sense of community.
There are several compelling business reasons for us to assist our members in making charitable donations to the charity of their choice:
Community Development: We are locally based financial institutions that are run and owned by our members. We can contribute to economic development, support small businesses, and raise the standard of living for our members by actively participating in their communities.
Social Responsibility: We demonstrate our commitment to social responsibility and help build strong relationships with our members and the broader community by encouraging members to give to their favorite charities and nonprofit service organizations.
Member Engagement: Assisting members to give to their community organizations can increase member involvement with their communities, which benefits those organizations, the community at large, our credit union, and even members, by fulfilling their personal commitments to their community.
Brand Building: Community involvement can help our credit unions build their brand and increase their visibility in the local market. We can increase brand recognition and develop a positive reputation in the community by facilitating charitable giving in the community. If we offer matching programs, the benefits can be even greater.
Regulatory Expectations: Many regulators expect us to be involved in our communities. For example, the National Credit Union Administration (NCUA) encourages credit unions to be active in their communities as part of our mission to promote financial literacy, support underserved populations, and encourage community development. Offering a giving program demonstrates such involvement.
Member loyalty: Helping members support their chosen charities can help build loyalty and trust with the credit union. Members are more likely to stay with a financial institution that supports causes they care about.
Community engagement: Supporting charitable giving can help us build stronger relationships with our communities. This can lead to increased visibility and positive brand recognition.
Differentiation: By offering charitable giving services, we can differentiate ourselves from other financial institutions. This can be a key selling point for potential members who prioritize social responsibility.
Increased deposits: Offering charitable giving services can attract new members and increase deposits. Members who are committed to supporting their chosen charities may choose to deposit more money in our credit union accounts to support these efforts.
Tax benefits: We may be able to take advantage of tax benefits associated with charitable giving. We can potentially reduce our tax liabilities and increase our bottom line by providing charitable giving services.
Overall, helping members give to the charity of their choice can be a smart business move. We can strengthen our relationships with our members and communities, differentiate ourselves from competitors, and potentially increase deposits and reduce tax liabilities by encouraging social responsibility and community engagement.
Platforms such as NetGiver can help us facilitate member giving, and have the capability to provide matching campaigns should the we want to offer them. Credit unions make it possible for donors to give to any 501(c)(3) organization and know that 100% of their donations on the NetGiver platform go to the nonprofits they support.
It is important for our leaders to have the knowledge, skills, and experience to implement this kind of giving platform. It is not sufficient merely to bring this kind of solution into the organization. A change management process is needed so that the employees in the branches understand and can communicate the service and benefits we are providing to our members. The administrative back office needs to similarly understand the platform and service provided.
Our leaders should possess several behavioral competencies that can facilitate the implementation and the member charitable giving that results. Some important competencies include:
Emotional intelligence: Leaders who are empathetic can understand and connect with their members' values, interests, and passions. This can help us identify causes that are important to our members and tailor their charitable giving programs accordingly.
Communication: Effective communication skills are essential for our leaders to communicate the importance of philanthropy and charitable giving to our members, and to build strong relationships with community organizations. Communication within the credit union is equally important.
Strategic thinking: Our leaders who are skilled in strategic thinking can develop effective philanthropic initiatives and programs that align with the organization's mission and values while also meeting the needs of the community.
Collaboration: Collaboration skills are important for our leaders to work effectively with community organizations, identify opportunities for partnerships, and build strong relationships with all stakeholders.
Adaptability: Leaders who are adaptable and open to change can quickly respond to the evolving needs of the community and our members and adjust their charitable giving programs accordingly.
Change management: Leaders need the ability to effectively plan, execute, and monitor changes within the credit union. Change management involves identifying the need for change, communicating the change to stakeholders, developing a plan to implement the change, and tracking the progress of the change to ensure its success.
Our leaders who possess these behavioral competencies can facilitate member charitable giving by communicating the importance of philanthropy, developing effective programs, collaborating with community organizations, and responding to changing community needs. Our members, the community, and our credit unions all benefit.
By playing a key role in educating your members about the value of charitable giving you show them how giving back to your community is part of your financial strategy, too. To learn more, visit us at: NetGiver for Credit Unions — NetGiver | 100% Giving (netgiverapp.com)
Reach out now and schedule a conversation to learn more about giving with NetGiver for Credit Unions.