Credit Unions...For People, Not Profit

What is a Credit Union?

A credit union is a cooperative financial institution, owned and controlled by those who deposit their money in the credit union. These people are members, similar to customers and they have something in common. They may work together, attend the same church or live in a certain area. As credit unions are not-for-profit, they exist solely to help their members achieve their financial dreams, providing low rates on loans and higher rates on investments accounts.

Credit Unions Are Different

It is important to truly understand how credit unions are unique and different, and why we remain a necessary and extremely popular financial alternative for more than 550,000 Kansans.

• Not-for-profit.

Credit unions are not-for-profit financial cooperatives. We exist to serve our members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.

• Taxation.

Credit unions do pay taxes – payroll taxes, sales taxes, and property taxes. Credit unions are exempt from State corporate and Federal income taxes.

• Ownership.

Credit unions are economic democracy. Each credit union member has equal ownership and one vote -- regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner.

• Volunteer Boards.

Each credit union is governed by a board of directors, elected by and from the credit union’s membership. Board members serve voluntarily.

• Membership Eligibility.

By current state statute, credit unions cannot serve the general public. People qualify for credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.

• Financial Education for Members.

Credit unions assist members to become better-educated consumers of financial services. For example, Kansas credit unions partner with the Kansas State Treasurer’s Office to bring MoneySmart Camp to middle school students across the state. MoneySmart is a day camp designed to encourage healthy money management among youth.

• Social Purpose. People Helping People.

Credit unions exist to help people, not make a profit. Our goal is to serve all of our members well, including those of modest means – every member counts. Our members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes – just ask us.