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					                  Presenting: Board Orientation



Your
Credit Union
Date of Orientation
Location of Orientation
              Section 1



Overview of the
Credit Union
 Movement
                Overview of the Credit Union Movement

Nonprofit Financial Institutions
in a For-Profit Industry
  Member-Owned
    • Financial cooperatives organized to help
        members achieve their financial goals (not make
        a profit for shareholders)
  A Proud Tradition
     • “Not for profit, not for charity, but for service”
  Governance
     • Board of directors elected by members, not
        shareholders
             Overview of the Credit Union Movement

History of Credit Unions
    • Founded in Europe in 1800s as “people’s banks”
    • First formed in North America as an alternative to
      loan sharks for working-class people
    • Credit unions chartered to serve narrowly defined
      fields of membership (workplace, profession or
      trade, community, association, church)
    • Federal Credit Union Act became law in 1934
    • National Credit Union Administration created to
      1970 to charter and supervise federal credit
      unions
                Overview of the Credit Union Movement

History of Credit Unions (cont.)
    Credit unions were founded to “make the system
      work better for more people. … The founders of
      credit unionism … stressed participation by all
      members. The goal, then, was economic
      democracy through self-help.”
    --J. Carroll Moody and Gilbert C. Fite, The Credit Union
       Movement: Origins and Development, 1850-1970
               Overview of the Credit Union Movement

Credit Unions Today
    • Many serve wider fields of membership through
        select employer groups (SEGs) and community
        charters
    •   Consolidation means fewer, but financially
        stronger, credit unions
    •   Full-service financial institutions
    •   Committed to “people helping people” through
        financial education and member advocacy
    •   Heavily regulated to protect members’ assets and
        organizational safety and soundness
               Section 2



About the
Credit Union
                       About the Credit Union

Mission
   Your mission statement here.
                        About the Credit Union

Vision
   Your vision statement here.
(Sample)                                     About the Credit Union

 History (Example)
           1950: Founded by employees of XYZ Paper Mill.
           1955: Served 600 workers; staffed by volunteers.
           1967: Opened office at mill; hired first manager.
           1982: Merged with credit union serving nearby mill to form
             Mill Valley Federal Credit Union.
           1996: 4 branches in operation, serving 7,000 mill workers
             and their families in three-county area.
           2005: Obtained community charter, $38 million in assets,
             serving 6,800 members, 15 full-time and 4 part-time staff, 5
             branches (including one worksite and one in-store)
(Sample)                               About the Credit Union

 Products and Services
      Full-Service Financial Institution
         • Share savings and certificates
         • Share draft accounts with direct deposit
         • Debit, credit and ATM cards
         • New and used auto loans
         • Home equity loans
         • Mortgages in partnership with Mortgage Pros, Inc.
         • Special accounts for children and teens
(Sample)                                      About the Organization

 Helping Members Achieve Their
  Financial Goals
      Convenient Access
           • 5 branches and ATM access through network
           • Online account access and bill-pay
           • Automated phone service
      Commitment to Education
           •   Financial literacy programs in local schools
           •   Home-buyer education workshops
           •   Financial counseling
           •   Referrals to investment counseling for retirement
               planning
                                           About the Credit Union


By the Numbers
•   Current number of members
•   Assets
•   Current number of employees
•   Key financial indicators, ratios and trends (perhaps
    presented in comparison to industry average)
(Sample)                                      About the Credit Union

 Strategic Goals
      Develop branch-based member recruitment.
           • Train and incent branch managers to lead recruitment
               efforts of prospective members within a 5-mile radius
           •   Open 25 new share draft accounts per month at each
               branch
           •   Recruit five new SEGs within each branch territory
      Position credit union as member-friendly
        mortgage alternative.
           • Provide referral packets to area real estate offices
           • Offer home-buyer workshops to SEG groups
           • Partner with local community groups to promote
               affordable mortgage to first-time home buyers
(Sample)                                           About the Organization

 Strategic Goals, cont.
     Increase membership in 18-34 age group.
           • Launch “noon-hour branches” at three high schools, staffed by
               students and offered in conjunction with financial literacy curriculum.
           •   Package free share draft accounts with debit cards and no-fee ATM
               access and low-cost computer/book loans to college students
           •   Introduce low-cost used car loans with low down payment
               requirements for first-time car buyers
      Streamline operations to offer best possible rates.
           • Assess potential of check imaging to reduce processing costs.
           • Introduce incentives to steer members to e-statements and online
               account access.
(Sample)                                                                        About the Credit Union

 Structure
      Credit Union Staff
      (revise chart to include CU titles)
                                                     Jane Hill
                                               Chief Executive Officer


                Tom Brown                                   John Wong                     Joan Lancaster
            Chief Financial Officer                      Programs Director               Facilities Manager


                  Pat Olsen                Rebecca Sanchez              Stephanie Wright
           Director of Development    Literacy Education Manager    Volunteer Services Manager


                                                                            Sandra Smith
                                                                         Outreach Coordinator
(Sample)                               About the Credit Union

 Community Partnerships
      Sponsors, SEGs
        • 75 SEGs and counting
        • Branch on XYZ campus
        • Homebuyer education program offered through
            Mill Valley Community Association
      Support for Local Schools and
       Community Groups
        • Sponsor financial literacy programs in local
             schools
           • Cosponsor annual Run to Save the River
            Section 3



About
the Board
(Sample)                              About the Board

 Board Structure
      Board Officers
        • Frank Navaro, board chair
        • Stella Jarvis, vice chair
        • Gretta Smith, treasurer
        • Jeffrey Marx, secretary
(Sample)                                    About the Board

 Board Structure
      Committees
        • Executive committee, Stella Jarvis, chair
        • Governance committee, Jan Johnson, chair
        • Executive compensation committee, Charlie
           Preston, chair
(Sample)                                    About the Board

 Board Structure
      Task Forces
        • Annual membership meeting, Jeffrey Marx, chair
        • Community/new member outreach, Gretta Smith,
           chair
(Sample)                                  About the Board

 Board Operations
      Board Composition and Recruitment
        • 9 directors
        • Three-year terms
        • Three consecutive term maximum service
        • Governance committee leads recruitment and
           nominating process
(Sample)                                           About the Board

 Board Consultants
           • Legal counsel, Peter Nunez, Esq.
           • Auditor, Valerie Lourdes, CPA
           • Strategic planning facilitator, Sylvia Grant
(Sample)                                   About the Board

 Reading List
           •   Bylaws
           •   Board policies
           •   Board biographies
           •   Prior year’s annual audit
           •   Budget
           •   Annual report
           •   Strategic plan
(Sample)                                          About the Board

 Board Calendar
           •   Board meetings / dates
           •   Annual membership meeting / dates
           •   Chief executive performance evaluation / date
           •   Annual strategic planning retreat / date
           •   Annual audit / date
                   Section 4


Board
Roles and
Responsibilities
               Board Roles and Responsibilities

Board Function
  Organizational Governance
    • Authority
    • Accountability
                Board Roles and Responsibilities

Key Roles of the Board
  Set Organizational Direction
  Provide Oversight
  Ensure Safety and Soundness
                         Board Roles and Responsibilities

Board Role
  Set Organizational Direction
    Responsibilities:
        ▪   Participate in regular strategic planning
        ▪   Determine organization’s mission
        ▪   Set the vision for the future
        ▪   Establish organizational values
        ▪   Set major goals and develop strategies
        ▪   Approve operational or annual plans
                        Board Roles and Responsibilities

Board Role
  Ensure Necessary Resources
    Responsibilities:
        ▪   Hire capable executive leadership
        ▪   Ensure adequate financial resources
        ▪   Promote positive public image
        ▪   Ensure the presence of a capable and responsible
            board
                        Board Roles and Responsibilities

Board Role
  Provide Oversight
    Responsibilities:
        ▪   Oversee financial management
        ▪   Minimize exposure to risk
        ▪   Measure progress on strategic plan
        ▪   Monitor and evaluate programs and services
        ▪   Provide legal and moral oversight
        ▪   Evaluate the chief executive (annually)
        ▪   Evaluate itself (every two to three years)
                          Board Roles and Responsibilities

Individual Director
Responsibilities
  Act in Accordance with Legal Standards
    Duty of Care
        ▪   Stay informed and ask questions
    Duty of Loyalty
        ▪   Show undivided allegiance to credit union’s welfare
    Duty of Obedience
        ▪   Stay faithful to the credit union’s mission
                      Board Roles and Responsibilities

Individual Director
Responsibilities
    • Participate in the governance of the organization
    • Work on committees and task forces
    • Volunteer services to the credit union outside of
      board work
    • Serve as ambassador to the member community

				
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