Chip Filson
Dress rehearsal today. Concert on Saturday afternoon.
Selections from State Fair, Desert Song, Oklahoma, Carousel, and a Gershwin medley.
Another op’in, another show.
(https://youtu.be/M_VqNggkIIU)
My favorite is the title song from Oklahoma. A perfect way to inspire your day.
(https://www.youtube.com/watch?v=ZbrnXl2gO_k)
The MD/DC CU Foundation’s annual scholarship contest submissions were up 38% in 2023. They give first hand insight into how this coming generation thinks about their money management challenges.
Leigh Philibosian, Director of the Foundation said 146 videos, 55 essays and 19 photos were submitted. Each is a unique insight into the habits and thoughts of over 200 high school and college bound students.
An especially candid and insightful one-minute video about money management and peer pressure is from the high school senior’s entry below.
This is a member the credit union community should prize!
(https://www.youtube.com/watch?v=NkhzPmg1Y8I)
The current generation of students is attracted to business and social startups. Many major universities now offer competitions encouraging students to design and launch new business and non-profit ideas.
These efforts are so widespread that there are now multiple rankings of the leading programs at colleges and universities across the country. Here is one showing the top 20 competitions.
One of the leading forums is at George Washington University, here in DC. The results of its annual New Venture Competition were just announced.
In their 2023 contest, 417 participants spread across 161 teams participated. Judges awarded $357,200 in prizes, including $163,000 in cash to the winners.
Twelve finalists received a minimum of $5,000, across four tracks: Business Goods and Services, Social Innovation, Consumer Goods and Services and Healthcare and Life Sciences Tracks.
Participants represented nine of the 10 GW schools resulting in a diverse range of innovative startup solutions.
GW President Mark S. Wrighton commented on the outcome: “If this is an indication of the next generation of problem solvers, then we are all in good hands. It is extraordinarily impressive to hear about the diverse set of new businesses.”
The full profile of all winners in all five tracks and their ideas can be seen in this listing.
In April 2018 three GW freshman from different academic schools devoted much of their first year in college to this competition. They reached the finals and were awarded $10,000 to continue implementing their project.
Their new venture proposal was to charter a credit union for the GW students and community. I recorded their five minute “pitch” on my iPhone from the audience.
Their words provide the promise that every credit union offers including the need and importance of financial literacy, member ownership and direction, online delivery, better rates, and strengthening the community with a firm “run by students for students.” Their slides are in the background on stage.
https://www.youtube.com/watch?v=s_xCpDe9a3U
(https://www.youtube.com/watch?v=s_xCpDe9a3U)
Dozens of students volunteered their time to complete the charter application, the group raised over $100,000 in donated capital and recruited an experienced advisory board of credit union professionals and GW faculty.
NCUA has twice rejected hundreds of pages for the charter applications. The agency has requested updated market surveys, revised financials, and numerous other shortcomings, all the while hinting that more capital would be desirable.
Meanwhile the three freshman who devoted a significant part of their college career to this effort have graduated; however two still serve on the advisory board. New student volunteers have persevered to carry on the founders’ original concepts.
NCUA has not assisted but rather stalled this six- year effort.
This status occurs despite the words in the February 28 presentation by NCUA’s Vice Chairman, Kyle Hauptman at this year’s CUNA’s GAC conference:
Our society isn’t the best at getting people to save and invest. This is where credit unions come in, with financial literacy and savings programs that improve their members’ financial wellness.
Financial wellness can save relationships. Financial wellness is a great product that we only buy if we value it more than all the cool ways to spend money. Credit unions help people achieve financial wellness. . . Financial issues can be a dry topic, but it’s not about the money itself – it’s about living your best life.
My three personal priorities for my term are:
I’ve good news on all three fronts.
On the issue of de novos, we’ve revamped and streamlined the chartering process. We will be rolling out a provisional credit union charter that fixes the chicken & egg problem, whereby a potential credit union wants to get its initial capital from a CDFI but can’t get that capital until we’ve issued them a charter. Still, we wouldn’t issue the charter until that credit union has the capital.
I’m proud of these improvements – I think it’s a part of facilitating true financial inclusion. I love seeing announcements about new charters. . .
Except this streamline chartering process does not exist. When asked about this “improvement” and the “provisional credit union charter”, there is no response. That effort, like credit union chartering, is stillborn.
Instead of supporting the next generation’s startup energy and goals to serve their community via coops, the NCUA is teaching potential supporters about the age-old witticism, “I’m from the government and here to help you.”
Apparently even board members cannot accomplish their priorities. How can de novo credit unions overcome the bureaucratic obstacles that even NCUA’s leadership is unable to move forward?
New credit unions are an endangered species. The future of the coop system is at risk. Not because the billion dollar segment which manages 75% of assets will disappear.
Rather it is because this generation of student entrepreneurs is unable to overcome government impediments. The result is that these motivated, creative individuals will find their opportunities for the benefits presented in the “pitch” above through other creative organizations. I suspect they will be called FinTechs.
Last week I asked if credit unions today needed a prophet’s wisdom. I was motivated by one of C-Span programs which presents recordings of historical speeches by leaders at important moments in American history.
Hearing the original voices of leaders summoning their listeners to action still inspires today. The experience is both fruitful and edifying.
The reason is that the truths contained within these appeals transcend time. They are not merely words that endure in time, they are words that are beyond time. Their underlying truths do not change with circumstance, nor are they changed by it.
The actions called forth do not merely meet the challenge at a moment in time; they are the standard by which time itself is tested.
The paradox is that the timeless is always timely. If it is timeless and, if it’s always true, it is always relevant.
The 1980-1982 economic crisis was over. Interest rates and inflation were in back to single digits. Deregulation was well underway. Credit union growth and financial performance led all financial institutions.
The NCUA’s DC bureaucracy had been reorganized to reduce central office roles and put the six regional directors in positions of administrative leadership. The CLF had been capitalized in partnership with the corporate network so that every credit union had access.
There was a common commitment by the cooperative system to support expanding credit unions services to all Americans through new charters and increased FOM options on the 50th anniversary of the Federal Credit Union Act.
But there was one institutional innovation still needed to solidify an independent and sound cooperative system. This was the primary topic of Chairman Callahan’s 1984 GAC presentation.
He called on credit unions to “Finish the Job.” Here is a recording of that request which which is 12 minutes following CUNA President, Joe Cugini’s brief introduction.
https://www.youtube.com/watch?v=1UcXPyUMtic&list=PLfsu0zcct30-jB6oqaROWiXhaJ6xTBuLd&index=2
(https://www.youtube.com/watch?v=1UcXPyUMtic&list=PLfsu0zcct30-jB6oqaROWiXhaJ6xTBuLd&index=2)
The call was answered. Today the NCUSIF is still the example of insurance that has stood the test of time.
What were credit unions organized to do and to be?
Answering that never-ending question can be expressed as a vision or mission statement. Sometimes the answer is a labelled a “calling.” How does a coop know if it is fulfilling its destiny?
“The work of prophets is to warn, to warn people of the inevitable consequences of their foolish or immoral actions. It will be the end of the world as you know it, the prophets say, unless you rethink your current assumptions, values, and priorities, unless you become ready to change your way of life. Usually, the people don’t listen. “ (Adapted from Brian McLaren, “Weeping and Lamentation”)
April is Earth Month. Tomorrow is EarthDay. One of the most well known prophets of our planet’s future is profiled in this documentary.
(https://youtu.be/Mwk10YGPFiM)
Prophets warn us, but many times few listen; when the inevitable consequences come, that is how a movement can be reborn. Or else absorbed into the status quo.
Is there anyone with this gift in your credit union? In the movement? How would we recognize them? Or are they just seen as trouble-makers?
The culture of credit unions-locally founded, community centered, volunteer led by committed fans-mirrors the passion for baseball across America.
Recently I published the story of Day Air Credit Union’s support for the Dayton Dragons minor league franchise. The team has the longest running consecutive sellouts of any professional sports team in America.
Credit unions are involved in the sport across the country. From sponsorships of local Little Leagues to university teams to minor league affiliations up to PenFed’s support for the Washington Nationals, baseball and credit unions are natural allies.
Recently a baseball player at Springfield High (Illinois) where I graduated decades ago, wrote his thoughts on baseball’s lessons for life for the student newspaper, The Senator. The author, Seth Impson, seems an excellent player based on his self description.
His thoughts about the sport show why baseball is often called The Game of Life.
Anyone who knows me knows I live for the game of baseball. There’s nothing better than the smell of pine tar and the sound of a ball hitting the bat. Nothing better than feeling the wind in your face as you round third base. Nothing better than dirt and dust flying everywhere as you slide into home. But it is more than just a game; baseball has taught me a lot about life.
Too many times in life fear keeps us from trying something new or different. We let opportunities pass us by because we’re afraid we might fail. Then later we wish we would have gone for it. In baseball, if a pitch is close, you have to take a chance and swing. It’s the same way in life– it’s better to give something your best shot and risk failure than to stand there looking while the perfect opportunity flies by.
I had a lot of success pitching last year. I struck out 79 guys, walked 17 and only gave up 54 hits. But I threw 65 innings. I faced 264 batters. Do the math- the guys on the field behind me made plays and got 114 guys out. Over 100 times, a batter hit the pitch I threw to him and someone else on my team made a play. Only 16 of those 264 players scored runs against us. Without those guys on the field with me, my season would not have been anything special. In life, surround yourself with people who have your back and will make those plays when you most need them.
No, that’s not a mistake. I didn’t mean to say “practice makes perfect.” The fact is it doesn’t. No one can ever be perfect. There is always room for improvement. But if you put in the work, you will get better. Work each and every day to come further than you were the day before and bettering yourself. The goal of life is to make yourself a better person than you were the day before, baseball is the same way. You will see growth.
There are moments in a baseball game where you find yourself under intense pressure. When your team is down by one with a runner on third and two outs and you’re up to bat. When you are on the mound about to face the best hitter in the conference. Whatever it is, you can’t let the other guys know you’re stressed. You can’t let someone else get in your head. Take a deep breath and focus on the task you need to accomplish.
Baseball is a game of failure. In the MLB, a batting average of .300 or higher is considered good. That means a player gets a hit 3 out of every 10 tries. That also means 7 out of 10 times, that player gets out. On Tuesday I flew out, struck out and walked. I didn’t get a single hit. But the next day I hit two triples and a homerun.
In baseball, you will fail. Life is the same way. You just can’t let failure stop you from getting up and trying again, because the next day things might go your way and you’ll find yourself right where you want to be. This builds persistence and in every tough, successful person there are characteristics that sets them apart. Baseball brings out these certain things, builds them up and creates strong character.
Each year the Credit Union Foundation of Maryland and DC sponsors a contest to distribute $12,000 in scholarships for college and trade school bound students.
There are three categories of awards: ten $1,000 essay-based scholarships, one $1,000 video-based scholarship, and/or one $1,000 photo-based scholarship.
The topics for each category this year are:
This year’s essay topic: “In life, things can happen fast. “More than two-thirds of people in America are not financially healthy. How would you define financial health? Describe how your credit union has helped you understand how to manage your money.”
This year’s video topic: “To be financially literate, or financially healthy, is to know how to manage your money. Show one lesson you’ve learned from your credit union about managing your money.”
Photographers are asked to capture an original photograph that represents the credit union core value of “Cooperation”
The contest is marketed through the League’s member credit unions. The Foundation provides lobby posters, newsletter articles and access to all applications. The result: hundreds of submissions in all three categories received by April 15.
Now the fun begins. The foundation seeks over a hundred volunteers to review the submissions. I signed up. I was sent 19 one-minute videos and 10 essays to review and score. The foundation provides a scoring model for the evaluations. The progress is tracked automatically in a spread sheet for each volunteer reviewer.
I started with the 19 one-minute videos and reviewed all in a single sitting. Some were applicants sharing their personal stories. Others were more elaborate creations with one offering a “film” on the topic. Some acted out short skits. Several used animations to create their message.
What all had communicated was common sense money management suggestions or experiences. The submissions showed clear financial maturity. Following are three different approaches to the topic.
The first uses animation to communicate the lessons from a first-year college student.
(https://www.youtube.com/shorts/svZv-szOgCo)
A second video took a different tack and discussed just one topic: should a young person buy crypto or not?
(https://www.youtube.com/watch?v=_mrsj5AsZjI)
Another example by a high school student demonstrates the benefits of financial courses helping younger people understand the basics of money management. The word she uses for the result is empowerment.
(https://www.youtube.com/watch?v=gYkoreEXmHY)
While my sample of videos is a small portion of the hundreds submitted, these brief summaries show an awareness of financial skills that are well grounded. These minute videos are literate, smart and often creative messages on the basics of financial life.
The Foundation’s contest is much more impactful than just the $12,000 distributed to the winners. It provides hundred of personal snapshots of this generation’s awareness of financial responsibility.
These submissions rarely mentioned credit unions, but all of the applicants would have learned about the opportunity via a credit union.
For the hundreds of students continuing their post high school education, the volunteers reading the applications and the credit unions promoting the contest, this is a special cooperative effort. It highlights the Foundation’s mission of financial self-sufficiency.
The student, volunteer and institutional contributions meld into a financial quilt of financial learnings from the upcoming generation of credit union members.
My only thought: Can more credit unions individually or collectively create this learning opportunity. Perhaps the MD/DC Foundation might share their software and infrastructure that makes this seem so effortless.
I certainly learned much. It creates confidence in this new generation’s understanding of financial responsibility.
Cherry tree
Cupid keeps watch over his beauty.
Azalea
Cherokee Dogwood
Tulips
Plox with pansies, carnation and daffodils.
Redbud flowers growing on tree trunk.
Easter Lilly transplanted after church. 
On Monday April 10 U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced over $1.73 billion in grants to 603 Community Development Financial Institutions (CDFIs) across the country.
CDFI Equitable Recovery Program (CDFI ERP) grants are intended to strengthen the ability of CDFIs to help low- and moderate-income communities recover from the COVID-19 pandemic and invest in long-term prosperity.
The release said 203 credit unions received $590.3 million in awards. Peoples Advantage FCU in Petersburg, VA and four Puerto Rican Cooperativas were each awarded $6,197,097, the largest single amount to a credit union.
Also getting in on springtime action the NCUA on April 5, announced it would take applications in five categories to award a total of $3.5 million from its Community Development Revolving Loan Fund (CDRLF). Amounts will range from $5,000 for training to $50,000 “Underserved Outreach and MDI Capacity Building.”
I attended my first credit union 2023 annual meeting recently. No, I was not a member. However the credit union published its Zoom link. Anyone could follow along with the hundreds of members who attended in person.
The agenda was informative. The CEO and three senior staff made presentations-all specific updates on future projects. This formal meeting had apparently been preceded by an all-hands gathering soliciting open dialogue. Questions were asked from the members, but few spoke up.
It was a positive experience. Well organized. Direct communication that was respectful of the owners. The post-covid combination of in-person and virtual participation expands the opportunities for real member engagement and owner feedback.
But that is not every credit union’s plan.
Yesterday I received an email with the Notice of my credit union’s 2023 Annual Meeting. It opened with these words:
We are conducting the 2023 Annual meeting by Electronic Transmission as provided in Section 411 of the Amended and Restated Bylaws of the Credit Union effective April 28, 2017 (the “Bylaws”). The Annual Meeting will be hosted by video conference on April 28, 2023, at 5pm PT. Members can register by submitting an email request to annualmeeting@thecu.org. Questions will not be taken during the Annual Meeting, so please submit any questions that you have in advance along with your attendance request. Answers will be provided during the virtual meeting.
The Notice then listed the material that could be downloaded in advance, such as the 2022 Annual Report, prior minutes and concluded:
Please note that there is no new business to discuss. The only matter requiring a vote of the members in attendance is approval of the 2022 Annual Meeting minutes. The four Directors nominated will be approved by acclamation of the Board of Directors as provided by the Bylaws.
The Notice ended with a brief economic update from the CEO headed:
The CEO’s comments summarized important market events in 2022 and the outlook for the coming year. The message ends with these words:
Whatever 2023 brings, the credit union has the financial stability to continue supporting our members and helping them deal with whatever financial challenges come.
Next month I was invited to a smaller credit union’s annual meeting to make very brief remarks to members. To have an idea what might be appropriate I asked the CEO about the event.
It will be in the evening with dinner at the local Holiday Inn banquet room. All members invited. We will introduce new board members and go through the business. There will be a local speaker who works at a non-profit in the areas we serve. We hope you can give your thoughts about the future role our credit union can play in members’ lives and community. You have 15 minutes. Expected attendance of 100-150.
We discussed the idea of brief video interviews with members to ask about their credit union experiences. The CEO had done this at a prior credit union’s annual meeting with the question, if we were in a court of law, would anyone be willing to testify on the impact the credit union made on them? Member after member told their story.
That is now being planned for use in future member communications.
Prior to the event, the CEO asked if I could visit the credit union, see the local community and some of the organizations with which they partner. And have dinner with the Board. I jumped at the chance.
The CEO expects to retire next year. He has a transition plan underway and wants to affirm his belief in the credit union’s essential role and its vital future.
This is the kind of event that gets me excited. I can’t wait to see his team, the credit union’s activities and hear the member stories. A brief “Woodstock event” for the cooperative’s member-owners. And for me.
| The story below is by a local El Paso reporter. It portrays a special credit union that served its community for four decades. Its work mattered.
The coop system is more than current assets and member numbers. We are also the experiences and memories that we pass down. This example raises the challenge today, who will remember our story? The Forgotten Credit Union that Served Thousands of Unbanked El Pasoans By Christian Bentancourt. Published April 9, 2023 by El Paso Matters and Next City
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