One Massachusetts credit union is pledging to donate one hundred percent of its National Credit Union Administration dividend from the closure of Temporary Corporate Credit Union Stabilization Fund to local charities and is encouraging other credit unions to do the same.
The National Credit Union Administration anticipates that it will pay a dividend between $600 million and $800 million in 2018 to credit unions.
Members First Credit Union (Marlborough, MA) stated that giving this unexpected windfall to local charities to address critical needs in its community is the best use of these funds.
However, I disagree. This is a classic example of a principal-agent problem.
It appears that credit union management (agent) may be putting its interest ahead of its members (principal).
Rather than giving these funds to charities, the credit union should return these funds to its members.
Let the members determine how they want to allocate these funds. Members may share these funds with charitable organizations; but they could also save it or even spend these funds.
I firmly believe that the credit union members know what is the best use of these funds.
Read the Members First Credit Union press release.
Showing posts with label Donations. Show all posts
Showing posts with label Donations. Show all posts
Wednesday, January 3, 2018
Friday, March 18, 2016
Credit Union Buys Naming Rights to School District's Sports Complex
The Pottsville Area school board agreed to rename one of its sports complexes after it received a donation from CACL Federal Credit Union (Pottsville, PA).
In the deal, CACL will give the school district $150,000 over an 11-year period. The school district will use the funds to replace two scoreboards at the Pottsville Area 16th Street Fields.
In return, the school board will rename the 16th Street Baseball/Softball Complex as CACL Complex.
The agreement will promote the credit union throughout the school district, including a table at two home high school football games.
In addition, the agreement will provide CACL with the opportunity to present a proposal to the school district with regard to the banking opportunities provided the credit union.
CACL representatives will also be given an opportunity to talk to students at Pottsville Area High School about financial literacy.
Read the story.
In the deal, CACL will give the school district $150,000 over an 11-year period. The school district will use the funds to replace two scoreboards at the Pottsville Area 16th Street Fields.
In return, the school board will rename the 16th Street Baseball/Softball Complex as CACL Complex.
The agreement will promote the credit union throughout the school district, including a table at two home high school football games.
In addition, the agreement will provide CACL with the opportunity to present a proposal to the school district with regard to the banking opportunities provided the credit union.
CACL representatives will also be given an opportunity to talk to students at Pottsville Area High School about financial literacy.
Read the story.
Tuesday, January 5, 2016
CFE FCU to Donate $1.5 Million for New Downtown Campus
CFE Federal Credit Union (Lake Mary, FL) has pledged $1.5 million for the construction of an academic building that will be the centerpiece of a new downtown campus for the University of Central Florida.
Pending approval, the new downtown campus is scheduled to open in the fall of 2018 and will be shared with Valencia College.
Read the story.
Pending approval, the new downtown campus is scheduled to open in the fall of 2018 and will be shared with Valencia College.
Read the story.
Subscribe to:
Posts (Atom)
