Vol. 20, No. 2, July 2004
Why Credit Unions Are Tax Exempt
You may not realize this, but your credit union doesn’t pay federal and the credit union from economic
(corporate) income tax. Some bankers and their trade associations shifts. Again, not-for-profit credit
are asking legislators to tax credit unions. The truth is, a tax hike on unions aren’t like banks, which have
credit unions is a tax hike on all American consumers. Here are just a profits aplenty.
few reasons why credit unions are tax exempt:
All taxpayers have legitimate concerns
➤ Credit unions are not-for-profit, democratic, financial
about the federal and state budget
cooperatives, owned by their members.
deficits. Credit unions and members
➤ Credit unions’ boards of directors serve as unpaid volunteers,
already participate in reducing those shortfalls. You pay taxes on
elected by members.
dividends your credit union accounts earn. Credit unions are not-for-
➤ Credit unions return all excess income to members, in the form of
profit, democratic, financial cooperatives that serve members. As long
higher deposit rates, lower loan rates, lower fees and increased
as that’s true, they’re earning their tax status.
convenience. Credit unions don’t need to create profits to pay
stockholders, as do banks. The amounts banks pay stockholders
dwarf their tax bills: Over the past five years, they’ve paid almost New Area Code 951 Coming
$76 billion more to stockholders than in taxes.
Effective July 17, 2004, parts of Riverside and San Bernardino
All taxpayers, whether members or not, benefit from the presence of Counties will have a new area code. The current 909 Area Code will
credit unions in the marketplace. Credit union competition helps keep be split generally along the San Bernardino/Riverside County line,
bank and savings and loan prices lower. If credit unions paid income resulting in a northern section, which keeps the 909 Area Code, and
tax, the contribution to state and federal treasuries would not make a southern section, to which the new 951 Area Code applies. Service
one penny difference in the taxes you pay as an individual. But the Plus Credit Union will receive the new Area Code 951. Area Codes
effect such taxes would have on how much you pay for credit union will be changed based on a telephone number’s current prefix. If the
loans for cars, education, and houses, or the dividends you earn on telephone number on your member account will be affected, we will
credit union savings, would be significant. automatically convert it to the new Area Code. For more information,
or to determine if you will be affected by this change, you can go to
Credit unions, if taxed, also would have to take the money from funds www.verizon.com/areacodes.
otherwise dedicated to reserves – the cushion protecting all members
Important Information Office Hours Thanks to Our Volunteer Leaders
9:00 a.m. - 4:00 p.m. (Monday through Thursday) Board of Directors
Phone: 909-680-1998 9:00 a.m. - 6:00 p.m. (Friday and UCR Payday) Susan Marshburn, Chair
Fax: 909-680-1999 D.L. “Les” Martin, Vice Chair
Credit Union Holiday
Paula Southard, Secretary
Service Plus CU will be closed the following Federal
Internet Account Access/Website: Gabe Nwandu, Treasurer
www.servicepluscu.org Kevin Ferguson
Labor Day Fernand “Mac” McGinnis
Monday, September 6, 2004 Wendy Shipley
Remember that although our office is closed, you can Supervisory Committee
Outside 909 area: 800-424-2055
still access your accounts online at servicepluscu.org. Rob Lennox, Chair
Anytime Lender: 800-428-3521
Valerie Nichols, Secretary
Real Estate Loans: 800-574-4556 Lucky Numbers Yvonne Rios
VISA Lost or Stolen: This newsletter has two hidden member numbers. If you Karen Tolbert
Business Hours: 909-680-1998 find your member number, please call, email or write Debbie Van Zanten
After Hours: 800-991-4965 the credit union by July 30, 2004. The winners will
receive $20 deposited to their savings account. You’re Invited to a FREE Home Seminar
Auto Expert: 909-680-1998 ext.132
Can’t find your number? You have a second Wednesday, August 25, 2004 – Noon
CO-OP Network ATMs: 888-SITE-COOP Saturday, September 18, 2004 – 9:00 a.m.
chance to win! Log onto servicepluscu.org and check
for your member number. Good luck! Please RSVP – 909.680.1998, ext. 111
Are You Moving?
Don’t Forget to Write!
If you have a new address, telephone number or email address, let
Service Plus CU know about it. We want to be sure you continue to receive
statements and other timely information relative to your credit union
accounts. You can communicate your changes to us in person when
you visit the branch; by letter; by notating the change on the back of
your account statement and forwarding it to the credit union; or by email
within Internet Account Access. To protect the security of your account, changes requested by telephone
Your share savings in this Credit Union are insured will not be accepted. 88930
up to $100,000 by NCUA, a U.S. Government
Agency, and up to $250,000 by ASI, a private
insurer, for a total up to $350,000... the highest
combination of federal and private share
Election Results Financial Aid 101: A checklist for college
Service Plus CU announced election results for the 2004 Board of You’ve applied to several colleges. You’ve got a stack of acceptance
Directors at the April 27, 2204 Annual Meeting. 174470 letters. We’ll help you decide which is the best deal.
Susan Marshburn continues as Board Chair. Incumbent members
re-elected are D.L. “Les” Martin, Paula Southard and A college education can pay off big-time in the long run. But getting that
Kevin Ferguson. Fernand “Mac” McGinnis was appointed to the diploma can easily run into tens of thousands of dollars. So most families
board to fill the position recently vacated by Warren Lehndorfer. pin their hopes on two little words: financial aid.
In the same election, Rob Lennox, Valerie Nichols, and According to the National Center for Education Statistics, about half of all
Karen Tolbert were re-elected to the Supervisory Committee. undergraduates receive some combination of scholarships, grants, work-
Yvonne Rios was appointed to the committee to fill the position study earnings and loans.
recently vacated by Judy Conn.
It’s important to sort through your options carefully, paying close attention to
details such as renewability guidelines and repayment requirements. That way
you’ll know exactly what to expect during – and after – your
Forgot Your undergraduate years.
Online Password? Here is a checklist that can help you compare different offers:
It’s Saturday morning, and you School # 1 School # 2 School # 3
want to check your account Total annual costs (tuition, room
balance – problem is, you’ve and board, travel expenses)
forgotten your password to Total financial aid offer
Internet Account Access, and you can’t call the credit union Annual grants
until Monday. You’re out of luck, right? Wrong! The “Forgotten
Subsidized loans (no payments due
Password Retrieval” feature of IAA will get you back online until after graduation)
in just seconds. Just answer a few questions (like your favorite
restaurant or your pet’s name) to confirm your identity and
you’re in! Using the Forgotten Password Retrieval feature
allows you to successfully access your account, even if you’ve
Additional money needed
forgotten the password - anytime, day or night. To establish
the feature for your account, go to servicepluscu.org, and
login to Internet Account Access. Go to “User Options” and
choose “Forgotten Password Setup.” You’ll be prompted to
set up your personal identity questions, and you’re done. Do it Youth Do Make a
today – before you need them! Difference!
Thank you to all parents and kids that visited
the credit union during “Youth Make A
My Credit Union Story Difference Week.” Lots of balloons, toys
from the treasure chest, and lollipops were
A few years ago, when Service Plus CU member Charlotte enjoyed by all! Congratulations to the winner (Left to right) Alexis Ingram, age 8; Alysha Ingram, age 12; and
Brandon Ingram, age 14, enjoy the activities during Youth Make A
Shifflet's husband died suddenly, she didn't know what of our coloring contest, Alisha Vernon, age 11. Difference Week
to do. "Of course, it was a traumatic time, and I didn't Alisha won $25 cash for her color-by-number entry. Runner-up prizes were
know if I was coming or going," says Charlotte. She and also awarded for these outstanding entries: Isaiah Haywood, age 8;
her husband, Terry, had been members of the credit union
Kalikonani Dailey, age 6; and Keanuhea Dailey, age 8. $25 was also awarded to
for over 9 years. "The staff helped me with our accounts
Issa Pineda, for correctly guessing the correct dollar amount in the coin jar. A
and told me not to worry." But worry she did when the
new account was opened for Issa with his prize money. Congratulations to all!
funeral home director refused to start the memorial
service until he had been paid in full. "I was counting on
the life insurance money to pay the bill, and since it had
only been three days since he passed away, I hadn't
received the money yet. I didn't know what to do." In the Community
Then Charlotte remembered the credit union. "I knew they In May, Service Plus CU member
would help me." A loan was arranged over the phone, Natasha Escoto, 8, her brother Alex, 10,
right from the funeral home lobby. and mom Renee, partnered with the credit
union to kick-off the “Sneaker Sales
"Charlotte was a valued member, and we had to do
Program,” sponsored by the Juvenile
something to help. Even though her family member ended
up helping out in the end, we were there for her when Diabetes Research Foundation (JDRF). (Left to right) Rhonda Kindle, Business Development Officer; Member
Renee Escoto, Natasha Escoto, age 8; and Alex Escoto, age 10,
she needed us, and I'm proud of that," says Tina Warrell, Credit union members generously gave kick-off the JDRF Sneaker Sales Program.
Service Plus CU Loan Services Officer. to the JDRF through the sales of paper sneakers and direct donations.
Charlotte agrees. “The credit union has always and Service Plus CU was a sponsor of the 2nd Annual Miniature Golf Tournament
continues to be such a blessing to me and to my family. at Castle Park, benefiting the Riverside Child Abuse Prevention Center. Staff
I am always thankful for the kind and courteous manner in and their families joined others for a day of golf while raising money for the center.
which I have been treated. I could go on and on regarding
all of the wonderful services the credit union has provided Service Plus CU was an event sponsor, as the Assistance League of Riverside
me, and I appreciate it so much,” said Charlotte. "I will hosted their “Food, Film and Fun 2004” event in University Village on
never forget the gesture the credit union made. I'm proud April 30th. Attendees enjoyed food tasting, a movie and silent auction.
to be a member of Service Plus Credit Union." Event proceeds will benefit the Assistance League programs, Operation
School Bell, Bear Pals, and SAT Study Guides.
If Service Plus CU has helped you or made a difference
in your life, please share your credit union story with us. Service Plus CU also donated money to the Raincross Exchange Club’s
Call 909-680-1998.106 or email it to “Quarters for Kids” program. The money will be used to purchase toys
firstname.lastname@example.org. for needy children.