Wishing you a wonderful
A recent financial analysis of small credit unions yielded some alarming earnings statistics. Of the 344 credit unions under $20 million in assets, 131 or 38% have had negative earnings for at least 24 months. Fortunately, the majority of SCUNet credit unions had wisely grown their net worth position in contemplation of an economic downturn. But how long can you continue this Net Worth depletion before it is too late to set a new course?
Reducing expenses is a good first step. But, I suggest, that along with expense reduction, you must also review some core aspects of the credit union. Can your current field of membership deliver the growth requirements necessary to return to profitability? Do you provide the menu of services required by the membership? Are you adequately marketing to eligible primary and family members?
If you have not asked yourself these questions and more, I suggest you take advantage of the resources offered from your Association and SCUNet.
Whatever you do...just do something. For more information on credit union alternatives and options for success, contact me, Rick Myxter at 800.932.0661, ext. 5214 or at firstname.lastname@example.org.
Collaboration Corner Honor Roll
SCUNet wishes to acknowledge the Wyoming Valley and Scranton Chapters small credit union collaborative efforts.
Are you part of a formal or informal credit union alliance? We would like to hear from you and share your successes in subsequent issues of SCUNet News. Please send your information to email@example.com.
CU PolicyPro Tip of the Month
Internet Gambling seems to be a policy that many examiners are asking for. CU PolicyPro does not have a stand-alone Internet Gambling policy. They have, however, incorporated the appropriate language in various policies. You can refer the examiner to the ones that are applicable to your credit union.
For personal assistance on the use, policy availability and applications of CU PolicyPro, please contact Elaine Royer, PCUA Compliance & Operations Officer by email at firstname.lastname@example.org or by phone at 800.932.0661,
Q: We want to reduce our expenses and realize that postage is going up again. Is it permissible for us to include the members 1099INT statement in the same envelope as their periodic statement?
A: Yes, according to the IRS, a 1099 INT statement must contain either the official IRS 1099 INT form (or an acceptable substitute) and can also include the following enclosures.
No additional enclosures, such as advertising, promotional material, or a quarterly or annual report are permitted. Even a sentence or two on the year-end statement describing new services offered by the credit union is not permitted. However, logos are permitted on the envelope and any non-tax enclosures.
What’s more, with the 100% guarantee, if you are not fully satisfied, you’ll receive a full tuition refund or credit.
FREE Disaster Recovery Tools
Hurricane Irene. Tropical Storm Lee. "Snowtober." It seems like every time you turn on the TV, another impending disaster is bearing down on the Northeast. And according to meteorologists, a long winter is in store.
To help businesses prepare, plan and recover from disaster, Agility Recovery, one of the nation's leading disaster recovery and business continuity providers, has compiled several free disaster preparation checklists.
For more than 20 years, businesses have relied on Agility to plan for and recover from the unthinkable. We are proud to say that we have successfully responded to over 800 disaster events this year alone.
If you have any questions about Agility Recovery call 866.364.9696.
Foundation Grants Available!
Credit unions with assets of $20 million and less can qualify for grants to support programs such as Financial Literacy, Technology, Strategic Planning, Marketing, and Education.
NCUA Streamlines Process
In an effort to encourage more low-income credit unions to apply for loans and grants from the Community Development Revolving Loan Fund, the Board has issued a final rule (Part 705) to greatly streamline the operating requirements and improve the funds administrative flexibility.