What is a Faith-Based Credit Union?

A faith-based credit union is one whose founding, governance, or membership is derived from a religious institution(s). Generally, religious institutions or religious organizations establish these credit unions. Characteristically these credit unions have:

• smaller memberships and assets
• offer a limited number services, mainly savings and loan products
• are open for business only a few hours a week, usually one or two weekday nights and after church services on Sundays
• operated with all-volunteer leadership and staffs for decades

There are, however, more than a dozen faith-based credit unions with assets of more than $50 million. Certain of these larger credit unions serve scores of local churches, far-flung dioceses, multiple parishes or even churches spread over entire regions of the country.

National Federation of Community Development Credit Union
Faith-Based Program Overview

The Federation's Faith-Based Credit Union Program has operated since 1990. The program coordinates training, technical assistance and capital services to faith-based credit unions and organizing groups. It continues to be one of the few programs in the credit union movement that provides services that address the specific needs of small, religious-affiliated institutions. Currently, our faith-based credit unions comprise close to half of the Federation's national membership; serving tens of thousands of residents nationally and controlling millions of dollars in aggregate assets from urban and rural low-income communities throughout the United States

Faith-Based Credit Unions provide low-income communities with access to a range of financial products and services including:

• borrowing for a first home
• starting a small business
• financing a college education or needed job training

This is in contrast to the community-based pawnshops, payday lenders, rent to own and check casing facilities, which exploit low-income communities across the nation.

Faith-Based Credit Unions also help rebuild communities one loan at a time and give people back their dignity and control of their lives. As a consequence, many are beginning to be recognized by their peers and others in the industry as vital institutions in the community development movement. They have accomplished much for credit union members and their families around the country from educating members on the financial system, to increasing net worth and building wealth-generating opportunities, to rotating and controlling dollars that flow throughout the church and broader community to improve the quality of life.

It is fitting that they continue to be at the forefront of efforts to minister in holistic ways to the community. In all, faith-based credit unions make up about one-third of the total credit union population nationwide. Faith-based credit unions represent the best traditions of people helping others in low-income communities as they return the church to the real meaning of community.

The 6th Annual Faith-Based Credit Union conference will be held in San Francisco, CA on June 8-9, just prior to the National Federation of Community Development Credit Union's 31st Annual Meeting (June 10-11). For more information on both conferences go to http://www.natfed.org/i4a/pages/index.cfm?pageid=796.