The President's Perspective
Greetings and Happy Monday!
It’s Time for us all to Take Action!
As we have been reporting over that last couple of weeks, the U.S. House is considering a proposal that would require credit unions and other financial institutions to report to the Internal Revenue Service (IRS) how much money has gone into and out of accounts holding more than $600.
We strongly believe that this proposal, which is meant to offset the cost of critical infrastructure spending, would create major problems for consumers, for credit unions, and the federal government. For consumers, this represents an unprecedented invasion of privacy. For financial institutions, it’s an enormous reporting requirement that could jeopardize service to underserved communities. While financial institutions report taxable activity on the IRS Form 1099-INT, this proposal would have depositories reporting nontaxable activity, including the gross amount flowing into and out of accounts. They plan to use this information to try to identify unreported taxable income. More importantly, we have significant concerns regarding the government’s ability to keep this information safe, because some of the systems the IRS uses for data storage are more than three decades old.
We need to work together to keep this from becoming law. In addition to representing a significant new compliance burden for credit unions, this proposal would put credit unions and banks in the position of perpetrating an unprecedented invasion of privacy. We encourage all of our Dakota credit unions to share the Action Alert message with staff, volunteers, and your credit union members as this directly impacts everyone’s day-to-day activities and privacy.
If you are a MAP subscriber (Member Activation Program) you can access talking points and other tools via the Member Activation Program (MAP) community. Or, you can directly access our Voter Voice grass roots alert center right now and tell your representatives to oppose this provision.
Credit Union Women’s Leadership Alliance a Terrific New Resource!
Did you know that here in the Dakotas, 59% of our CEOs are women – and a majority of those are CEOs of smaller credit unions? We all know that we are stronger when we work together and support each other, and with that in mind, I want to share a new resource to support women-led credit unions under $300M in assets.
The Credit Union Women’s Leadership Alliance (CUWLA) empowers women leaders of smaller credit unions by providing a support system where they can share best practices, offer opportunities for mentorship and peer coaching, and better support the communities they serve. If you’re a woman CEO of a smaller credit union, check out this link for details on getting connected. And, if you are a larger credit union or organization that serves credit unions, check out how you can become a founding donor to support the development of meaningful programs and initiatives to support CUWLA’s mission to support women CEOs of smaller credit unions.
Awareness Campaign Continues to Gain Momentum and Increase Consumer Consideration.
It’s hard to believe it has been almost three years since we launched the digital awareness consideration campaign here in the Dakotas. Nearly 70 percent of our affiliated members pledged annual support to this effort! As a movement, credit unions nationwide have funded the program, which has been consistently gaining momentum – and to date has delivered over 3 billion impressions and 1 billion video views promoting the credit union difference. But we can’t stop now; we should continue to build on the momentum going forward to attract even more consumers to our movement and industry. Each credit union has a part to play, and I hope those who have supported the campaign will continue to do so, and those who have declined to contribute will reconsider the benefits of this campaign.
Congratulations to Coteau Valley FCU
NCUA recently announced the recipients of their 2021 Community Development Revolving Loan Fund (CDRLF) grants, and I was very pleased to see that Coteau Valley FCU (Sisseton, SD) was awarded a grant under the Digital Services & Cybersecurity initiative to enhance their mobile and online banking features. The NCUA’s Office of Credit Union Resources and Expansion administers CDRLF grant funding to provide grants to credit unions serving low-income communities. This is essentially free money, and I encourage all credit unions, especially those serving low-income communities, to consider applying next year. For more information, click here.
Fall Networking and Educational Events are Full Steam Ahead
The need to meet in person has been evident among Dakota credit union leaders this past year. So, we are hitting the ground running with a full slate of credit union educational activities and leadership events over the next several months.
It’s not too late to join in with other small credit union leaders in North and South Dakota for the Small Credit Union Roundtable next Tuesday, September 21st at Buffalo Ridge Resort in Gary, SD. Small credit unions face more challenges than ever before in today’s lightening pace of change, so we have lined up Tom Sakash, CUNA’s Small Credit Union Initiatives Manager, as well as Jim Kasch, founder of Canidae Consulting to help direct and facilitate dialogue. There is no charge to participate in this event. Click here to register.
Also, we are now just three weeks away from our final in-person event of the year as the New Ideas Conference is locked and loaded for October 4-6 in in historic Deadwood, South Dakota. We have a terrific fall event planned, with Lorraine Ranalli – famous storyteller, author, and public speaker as our emcee and facilitator. Fair warning: this event has limited capacity and does fill up fast, so be sure to reserve your spot now!
No Legal Counsel? No Worries – Check out our Attorney’s conference for non-Attorneys!
The Dakota Credit Union Association is partnering with six other Midwest leagues in offering a collaborative program to help credit unions handle pressing legal and compliance risks. We are calling the legal series the “Attorney’s Conference for Non-Attorneys,” and each session is just $25! With such a nominal fee, this really is another “benefits of membership” deal – and we hope you take advantage of the opportunity. These webinars are designated for CEOs and managers that must deal with legal issues and don’t have in-house counsel, and therefore do not have access to the type of information provided at events like CUNA’s Attorney Conference. We believe that this information, along with risk mitigation strategies, will help protect credit unions from liability and from having outside legal expenses. Get complete details here and be sure to register for each individual session.
Hike the Hill Meetings Tomorrow and Wednesday!
One final reminder about our important Hike the Hill meetings that start tomorrow, September 14th at 9:15 a.m. with NCUA Chairman Todd M. Harper; 12:00 p.m. with representatives from the Consumer Financial Protection Bureau; and 2:00 p.m. with NCUA Vice Chairman Kyle S. Hauptman. You should have received your links for each meeting by now, but if not contact Amy Kleinschmit. The last of these advocacy meetings will take place at 9:00 a.m. on Wednesday, September 15, with NCUA board member Rodney Hood. See you there!
Have a great week,
Dakota Credit Union Association
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