Giving credit unions the upper hand with younger generations while supporting nonprofits
Generations of younger audiences are making it increasingly well-known that they care about the values and missions of the companies with which they choose to do business. The enduring mission of “people helping people” paired with the focus on giving back to the community makes local credit unions uniquely positioned to cater to this new audience, but the ever-growing digital landscape is proving that might not be enough to keep their attention.
The emergence of fintech solutions offers credit unions an opportunity to stand out to existing members and appeal to the interests of new generations of savers and investors, however, developing business in a digital space shouldn’t distract members from the core values and mission of their credit union.
A 2018 Forbes study showed that 70% of Millennials actively consider company values when purchasing from or partnering with a brand. Conversely, a recent study by social impact consultant DoSomething Strategic revealed that 67% of Gen Z teens and young adults have stopped purchasing (40%) or would consider doing so (27%) if a company stood for something or behaved in a way that didn’t align with their values.
In most online giving scenarios, nonprofits lose roughly 7% of each donation to credit card and platform fees. These fees mean the nonprofit misses out on thousands of dollars each year. A study published by Nonprofit Tech for Good in 2018 showed that 54% of donors prefer to give online with credit or debit cards. Out of the $290B that was donated in 2018, that means nearly $156B was donated online, resulting in roughly $10.9B being lost to service fees.
“...we strive to be net-givers by investing in the local communities we serve.”
A new fintech solution specifically designed for credit unions and their members, NetGiver is a charitable giving app that allows credit union members to make 100% fee-free donations to their favorite nonprofits directly from their checking accounts. Gone are the days of credit unions having to turn down requests for support from nonprofit organizations. Now, credit unions can encourage giving to all nonprofits by providing NetGiver to their membership, and their younger members are taking notice.
“At SPIRE, our core message is We Care,’” said SPIRE CEO and President Dan Stoltz, who was eager to adopt a tool that would engage the community and strengthen SPIRE’s charitable impact. “We also have a core action, which is ‘Give Back,’ and in order to live this action, we strive to be net-givers by investing in the local communities we serve.”
“It used to be that when you wrote a check to charity for $100, the charity would get the full $100,” said NetGiver Co-Founder Eric Berg. “But with over 80% of all transactions taking place with cards, a portion of each of those donations is lost to processing fees.” Seeing the opportunity for a better donation solution, the concept for NetGiver was born.
As generations of people continue to seek individuality, visibility, and a connection to community, there’s no better organization to further this impact than the credit unions whose mission it is to serve and enrich those communities as “people helping people.” And serving and enriching communities is exactly what active credit unions like SPIRE and Richfield-Bloomington Credit Unions are hoping to do. “Imagine all the money that could be raised and kept by the Children’s Miracle Network every year if all credit unions used this platform,” said Greg Worthen of RBCU.
As credit unions begin adopting this new app, they’re experiencing an increase in deposits and exploring opportunities to encourage new member acquisition within their communities. Not only that, but they’re also retaining existing members who see the new services that continue to align with their values. The community impact is felt as credit unions build stronger relationships with the nonprofits in their areas as they incorporate them into the NetGiver platform.
NetGiver is quickly gaining awareness within both the nonprofit and credit union industries as more credit unions look to offer the app to their members. To enroll as a nonprofit on the NetGiver platform, visit app.netgiverapp.com
NetGiver is available in both the Apple App Store and the Google Play Store and supported by participating credit unions.