Good Morning and greetings from Washington, DC! This week, DakCU’s 13th annual fall legislative and regulatory Hike the Hill is taking place in conjunction with America’s Credit Unions Congressional Caucus. It’s a beautiful morning here in our nation’s capital and a perfect day for advocacy as Dakota credit union professionals gather for our annual event. ![]() Our timing to meet and educate our lawmakers on the credit union difference couldn’t be more critical as the Senate Committee on Finance will be holding a hearing later this week titled, “The 2025 Tax Policy Debate and Tax Avoidance Strategies” that will include witnesses that have been strongly opposed to the credit union tax exemption. Defending the Credit Union Tax Exemption: A Vital Public Policy The Senate Committee on Finance hearing, slated for September 12, is expected to bring forward yet another challenge to the federal tax exemption for credit unions, this time from the Tax Foundation’s president, Daniel Bunn. The argument against this long-standing exemption, recently echoed on CNBC, claims that credit unions have evolved into “commercial banks masquerading as nonprofits” and should therefore be taxed accordingly. However, this claim overlooks key distinctions between credit unions and for-profit financial institutions, as well as the significant public benefits that credit unions provide. Primarily, credit unions remain member-owned, cooperative organizations, operating on a not-for-profit basis. Unlike commercial banks, whose primary goal is maximizing profits for shareholders, credit unions are driven by the mission of serving their members. This structure ensures that financial benefits are passed directly to consumers, particularly those in low and middle income communities, who are often underserved by traditional banks. The credit union tax exemption is not simply a relic of a bygone era. It remains a crucial tool for fostering competition in the financial services sector, especially in rural and underserved areas where large banks may not be as active. Eliminating the tax exemption would not only reduce the competitive pressure on commercial banks but also harm millions of Americans who rely on credit unions for affordable financial services. Moreover, credit unions consistently reinvest earnings into their communities through financial education programs, small business loans, and community development projects—initiatives that contribute to local economic growth. The credit union tax exemption is good public policy because it supports a business model that benefits consumers, promotes competition, and strengthens communities. To suggest otherwise is to misunderstand the critical role credit unions play in the financial ecosystem. Nearly every day, our congressional leaders and lawmakers are blasted with thousands of phone calls, letters and emails from constituents and special interest groups who are clamoring for their attention and time. It’s extremely hard to break through all that noise. We have learned that lawmakers take notice of personal one-on-one contact and that’s where our Hike the Hill efforts come in and directly help us successfully build and enhance our personal relationships with our representatives. Since 2014, the Dakota Credit Union Association has successfully implemented this grassroots approach to democracy. More importantly, many of our elected officials are paying attention. For those of you who have participated in a “Hike,” either on one of our fall visits or during the Governmental Affairs Conference (GAC), you know firsthand that these visits have been instrumental in educating and persuading lawmakers and key staff members to support many of our credit union issues. This concept not only works with our congressional leaders, but it is also an effective approach that our Dakota credit union advocates use with our regulators as well. Many of our participants come prepared with personal stories and instances that describe how certain rules and regulations harm consumers and are directly preventing credit unions from serving their members. I invite you to follow our exclusive Hike the Hill Memo reports from our Dakota Credit Union Association advocacy team this week. Also, please follow our social media posts on Facebook and LinkedIn and share with staff, volunteers, members, and friends. To continue to be effective credit union advocates and stand out among all the clutter of other competing special interests in DC, we all need to stay engaged! Three Dakota CUs receive NCUA grants. Last week, NCUA announced their 2024 grant round recipients and three Dakota credit unions were listed: Minuteman FCU; Railway CU; and University FCU. Community Development Revolving Loan Fund (CDRLF) grants can provide the seed money needed for credit unions serving low-income members and under-resourced communities to grow small ideas into big initiatives! I applaud these credit unions for having the vision and taking the steps to apply. We are happy to give you the Memo “heads up” when these grant rounds open, and we encourage you to consider applying for next year’s round! Find additional information about CDRLF grants on the NCUA website and check out the full story in today’s Memo to find out what these credit unions have planned for their financial awards! On a positive note! Bluestone Federal Credit Union has come up with a creative way for members to turn their unused Relationship Reward Points into a boost for community charity! Through the month of September, the credit union has partnered with three organizations: Habitat for Humanity of Greater Sioux Falls; Sioux Falls Area Humane Society; and Feeding South Dakota. Members can choose which will receive the points – and the credit union is going to match the donations, up to the first $5,000! Kudos to Jeff Jorgensen and crew on this creative way to engage your members and do a great service to your community at the same time. Well done! Congratulations to First Community! This month, Prairie Business magazine released their “2024 Best Places to Work” list after receiving more than 1,700 nominations from across the region. Among those that made the “50 Best” list: First Community Credit Union (FCCU) of Jamestown, North Dakota. Congratulations once again to Steve Schmitz and crew on this recognition! The winners are all featured in the September issue of Prairie Business, which you can see here. Last Chance to register for New Ideas. One final reminder: This Friday, September 13, is the last day to sign up for the New Ideas Conference taking place September 24 – 25 in Bismarck/Mandan. Don’t miss this chance to reinvigorate and be inspired with key takeaways you can implement at your organization immediately! The sessions are appropriate for everyone from entry level to top management. For just $379 per person, you will receive the latest information you need to propel your credit union towards even greater success. I hope to see many of you there! Have a great week, DakCU President/CEO
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