Tuesday, September 2, 2014

Donate $5 and You Can Join This CU

Connexus Credit Union (Wassau, WI) is another credit union using an association to qualify anyone for credit union membership.

In this case, the association, the Connexus Association, appears to be an extension of the credit union.

A one-time $5 donation to the Connexus Association allows a person to join the credit union. A five-dollar donation seems to be an abuse of the common bond requirement.

On the credit union's website, it states:

"The Connexus Association was organized exclusively for charitable and educational purposes to provide funding to designated organizations that qualify as exempt under section 501(c)(3) of the Internal Revenue Service."
The credit union points out that the Connexus Association has provided over $150,000 in financial support to various organizations.

But outside of giving money to groups, this association does not appear to do anything else.

It seems to me that the primary purpose of this association is to be a conduit to qualify people for credit union membership, who otherwise would be ineligible to join the credit union.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.