Credit Union Philosophy

In 1935, when credit unions were helping Americans through the Great Depression, the treasurer of a Midwestern credit union said that credit unions were "not for profit, not for charity, but for service," and that philosophy holds true today.

Credit unions continue to look out for their members' interests and provide a level of service that is not generally available at other financial institutions. Whether it's providing a loan to help a member cover unexpected medical bills, giving financial counseling to a member whose company closed its doors, or simply offering a better deal on a used car loan, credit unions make a difference for their members and the communities they serve.

The National Cooperative Business Association developed seven cooperative principles, which were adopted in 1995 by the International Cooperative Alliance. The principles are a modified version of the original Rochdale Principles, which were named after the first successful co-op, started in Rochdale, England in the 1840s.

The CUNA Cooperative Alliances Committee expanded on the seven principles in order to more directly reflect credit unions' structure and characteristics, including fields of membership, emphasis on member education, and desire to serve members from all walks of life, including people of modest means.

"We feel tailoring the NCBA principles in this way will draw more credit unions to them-and help them better understand the roots and values we share with other co-ops," said William Herring, chairman of the CUNA Cooperative Alliances Committee and CEO of Cincinnati Central CU Inc.