Numerica Credit Union with $1.3 billion in assets recently bought the naming rights to the Performing Arts Center of Wenatchee at the Stanley Civic Center.
The credit union will pay $500,000 over 10 years for the naming rights.
The agreement will change the theatre’s name to the Numerica Performing Arts Center.
While buying the naming rights to a theatre may enhance the credit union's brand presence, it is not the intended purpose of the credit union tax exemption.
This is just another reason for ending the credit union industry's preferential tax treatment.
Read the announcement.
Some of us in the credit union world take the position that because we don't pay federal income taxes we should plow some of that savings back into our communities. We fund over $100,000 in education scholarships, support the performing arts in our community with over $75,000 annually and donate another $50,000-$75,000 for local charities. If we get taxed in the future those amounts might get reduced somewhat but we'll continue to do good works in the community. By the way, when I discuss these activities with members they are very supportive and appreciate the fact that we are supporting their community.
ReplyDeletegood for you. the community banks do also and while paying taxes.
DeleteI'm curious, do you have the same issue with credit unions spending money on websites, radio/television spots or billboards?
ReplyDeleteKeith, I'm curious how you feel about credit union marketing as it pertains to websites, billboards, television/radio spots. Are you of the opinion that credit unions should not be allowed to market? If not, I question who better to determine the marketing medium than the credit union.
ReplyDeleteCredit unions have the right to market themselves. I just think buying naming rights to arenas are a poor use of their preferential tax treatment.
ReplyDeleteHow would you feel if the Red Cross bought the naming rights to an arena? Would that be the proper use of the organization's tax exemption?
Comparing a credit union's tax exemption to the Red Cross' is a bit of a stretch, but to your point; no I wouldn't have a problem with the Red Cross buying the naming rights to an area, if it's in their best interest. Do you have an issue with the Red Cross paying their CEO a $65K signing bonus and an annual salary of more than $500K? Is that also a poor use of their preferential tax treatment, or a good business decision?
ReplyDeleteThere have been scandals associated with tax exempt organizations paying excessive salaries to their CEOs.
ReplyDeleteThere are scandals in BOTH tax exempt and non tax exempt entities; there's no disputing that. The question you failed to answer was whether or not you have an issue with the Red Cross paying their CEO a $65K signing bonus and an annual salary of more than $500K, and whether or not that is also a poor use of their preferential tax treatment or a good business decision.
DeleteRed Cross is substantially similar in mission since origination and does not compete for "business" credit unions of size are banks now for the most part and want all the bank "stuff" wout taxes.
ReplyDelete