Chip Filson
Weather in the 70’s over the weekend caused the flowering trees to peak early this year.
Below are a star and loebner magnolias with a large cherry tree in the background. Circled by daffodils.
Star magnolia up close.
Loebner surrounded by colorful friends.
A spring camellia in bloom.
Spring warms the soul, recovers hidden beauty and brings hope to life.
According to the December 2023 Lane Report, a Kentucky Business Journal, there is change coming to the teaching of financial skills to students in the state:
Kentucky high schools maintain a C grade in a national report card on how well they teach personal finance, but by next year their grade may climb to a B.
Given a C in 2017, Kentucky maintains this grade in the updated 2023 National Report Card on State Efforts to Improve Financial Literacy in High Schools, issued by The Center for Financial Literacy at Champlain College in Burlington, Vt. . .
John Pelletier, director of the Center for Financial Literacy, says that by 2028, 23 states are projected to have an A grade. . .
“Kentucky requires high school students to take vocational instruction, which includes personal finance concepts,” says Pelletier. “The Class of 2024 will be required to take one or more courses or programs with financial literacy content, but implementation will be up to school districts.”
Pelletier says state policy makers are responding to families without financial safety nets during the pandemic, as well as to advocacy by educators, administrators, parents and students.
Prior to the passage of this bill in 2018, there was no specific financial literacy instruction requirement for high school graduation.
The Kentucky Department of Education now lists financial literacy resources on its website to assist schools implementing this requirement beginning in 2024.
At the recent GAC I spoke with a Kentucky credit union leader, a CEO for just ten years, who has put financial education at the center of the organization.
The credit union offers classes at local high schools, for military retirees and veterans, and for employees of groups the credit union serves.
The CEO has taught some of these classes. As a member and leader of the Kentucky league, the credit union community became advocates for this educational priority in Kentucky schools.
This financial education concern was but one of many initiatives this CEO shared about his short tenure. What impressed me was his focus on “connecting” with the many constituents the credit union reaches. He meets with the leaders of government and private organizations they serve, supports community and other credit unions in the state, and advocates for members’ financial well-being.
His efforts are an example of a generation changing event. His role is more than managing the financial trends of a credit union, but uplifting possibilities for all across the state.
What I didn’t realize was how difficult this education priority was until seeing this brief, five minute history of financial education in America. It shows how educational priorities have changed since the Eisenhower era’s focus on math and science. Today the emphasis on teaching financial life skills is one area of strong bipartisan support.
(https://www.youtube.com/watch?v=0uvurQcj0fs)
This is how one CEO has provided leadership far beyond his membership. Yet without his credit union’s example and the practice of what he was seeking, the effort might not have been as successful.
Now all Kentucky students, and their parents, have the prospect of a “B” or even an “A” in this most important understanding of financial responsibilities throughout life.
Ada Limón (United States Poet Laurette since 2022)
Arching under the night sky inky
with black expansiveness, we point
to the planets we know, we
pin quick wishes on stars. From earth,
we read the sky as if it is an unerring book
of the universe, expert and evident.
Still, there are mysteries below our sky:
the whale song, the songbird singing
its call in the bough of a wind-shaken tree.
We are creatures of constant awe,
curious at beauty, at leaf and blossom,
at grief and pleasure, sun and shadow.
And it is not darkness that unites us,
not the cold distance of space, but
the offering of water, each drop of rain,
each rivulet, each pulse, each vein.
O second moon, we, too, are made
of water, of vast and beckoning seas.
We, too, are made of wonders, of great
and ordinary loves, of small invisible worlds,
of a need to call out through the dark.
*One of the largest of Jupiter’s 90 moons.
(This poem is in the public domain.)
Nominated as best documentary for this year’s Oscar awards, The Barber of Little Rock is a must see for every credit union believer.
The film is the story of Arlo Washington’s personal commitment to bring financial services and hope to the black community of Little Rock, Arkansas.
The film produced by the New Yorker magazine is 35 minutes and can be watched online any time.
(https://www.youtube.com/watch?v=1amOPUn49aM)
Arlo is a barber who converts his basic role in the black community to one of broader service. This story is told in this Next City article The Black Barber Opened the First Credit Union In Arkansas Since 1996.
The film is Arlo’s first person account filled with dozens of examples of hardship. hope, and grant making through the CDFI he organized to make loans.
There are numerous examples of what it means “to be banking while black” and why there is little trust in the existing banking system. The film provides a brief history of black efforts for economic equality from the post civil war promise of “forty acres and a mule” to modern day red lining in Little Rock-a city divided by inequality and a highway.
The film even shows learning empathy in the “two minute drill” where two former incarcerated men learn to “see” each other’s hurts.
The film is a study in self-help. It shows the need and power of putting money back into the community. “A tree is known by the fruit it bears,” says Arlo. “If you have all the money and wealth you want, and don’t make an impact, what do you have?”
The film’s many residents assert multiple times that economic opportunity brings freedom. One says that if this (model) catches on, it will become a threat because people can see what they can do to be free. There will be no more excuses for economic injustice.
The film’s story of Arlo’s efforts ends before the credit union he chartered is up and running. There is a picture of the building and sign, but no recognition.
At December 2023, the credit union reported total assets of $4.4 million, loans of $326,410 and 445 members. It has capital of 11% or $482,000.
The film was released just two months ago and has been viewed 352,000 times with 433 comments posted afterwards.
The impact of this enterprising person’s example is extending far beyond the borders of Little Rock. It is a wakeup reminder for every existing credit union of the potential to change people’s lives and the trajectory of their community.
Viewing this current effort should be a catalyst for conversations in every credit union trying to make a difference in their members’ lives.
Tonight, I will attend a special meeting of the members of a coop in which I participate. The purpose is to approve a change in the bylaws prior to the Annual Meeting. The change will reduce the number of board members from 15 to 12.
The bylaws have not been updated in 20 years. All changes must be approved by the members. Some background for the change was sent in advance:
While there’s no fixed rule on the number of Directors a Board should have for a group like ours, what makes sense is to have a size that’s both large enough to bring sufficiently diverse viewpoints and skills to bear on accomplishing the work of developing, guiding, and managing the organization, and also small enough to function effectively.
Given that Board service is a three-year commitment, it has also become more difficult to find members willing to stand for election each year. Twelve members will still assure that the Board is flexible and diverse, and provide enough hands to do the work required, while not overtaxing our use of member volunteers.
All members are encouraged to attend.
Sound familiar? Recruiting volunteer directors is a challenge for many organizations. What is different from credit union practice is that this bylaw change is being discussed and voted on by members. One person, one vote, A special meeting notice sent 60 days in advance.
In almost all credit unions, bylaw changes are not voted on by members. This is the purview of the Board, which then submits changes for regulatory approval.
Members may not know of changes, even when it affects their fundamental role as owners in elections procedures or even the number of board members.
In a recent post I outlined how these non-public changes can go to the heart of member governance.
The two largest FCU’s quietly changed the required number of signatures for member nominations for the board. In both situations the change removed the 500-signature standard bylaw and replaced it with a percentage of members. For Navy this new signature requirement was 26,000 and for PenFed 5,800 based on their latest reported member counts.
Regional Director John Kutchey quoted in another context stated, the NCUA considers the right to participate in the director election process a fundamental, material right for members of a federally chartered credit union.
However, this fundamental change in these two federal credit unions was done without member involvement or any public discussion.
These behind the scenes reductions in member rights is how coop democracy dies, one small step at a time.
Without member governance, boards act like self-perpetuating trustees, subject only to their own sense of duty, versus accountability to member-owners.
Democratic practice is hard, requires patience and can be frustrating. But without it, the required annual board elections become a mere administrative re-appointment of self-selected nominees.
Governance is more than a democratic formality. It is fundamental to safe and sound oversight. By eliminating member involvement in these fundamental bylaw changes. NCUA is sowing seeds of future member discontent and failures of accountability.
As credit unions enter this season of annual meetings and board elections, it is doing so in a political environment in which both camps claim the future of democracy is at stake.
What better way to remind members of our fundamental democratic belief for how we work together in society, than in our own credit union’s political process?
This article is from a post, called The Counteroffensive, written by Tim Mak.
His blog “is a war correspondent’s open notebook, reporting live from Kyiv. Compelling human stories that illustrate what’s happening during the Russian invasion of Ukraine, and elsewhere on the frontlines for democracy. Published twice a week.”
This is a first person story of how Ukrainians are committed and innovative in their fight for freedom. This drone building example is akin to the victory gardens that Americans and British families grew in WW II. In this situation though, the home and war fronts are the same. This story documents one family’s all in effort.
Honey, theres a Ukrainian Drone in the Kitchen (by Tim Mak)
Violetta Oliinyk has spent much of her life making delicate pieces of art.
However, since the war started, she no longer perfects sophisticated jewelry.
Instead, Violetta now assembles drones for the Ukrainian army in her kitchen.
Violetta with some of her self-made drones.
At the beginning of this year, Ukraine’s Minister of Digital Transformation urged Ukrainians to assemble drones at home to create a decentralized network of drone manufacturing.
In some ways, Ukrainian home drone production resembles the victory gardens of the British WWII home front, when people were told to ‘Dig for Victory’, and grow vegetables in their backyards to help the war effort.
There are some differences, of course, including the technological complexity: first-person view (FPV) drones are advanced devices, equipped with an onboard camera which livestreams the view from the aircraft to a pilot.
Homemade FPVs have become another line in the long list of items that thousands of Ukrainians are producing at home: from hand-made chemical heating pads for foot warmth, to camouflaged sniper coats, to 3D-printed mine detectors.
Decentralized production has its upsides. It protects manufacturers from the effects of regular Russian airstrikes, and trains a generation of drone engineers, who have the potential to scale up production on their own. However, there’s a downside: it can’t compete with the efficiency, or the low cost, of industrial manufacturing.
For Ukraine, this ambitious endeavor seems to be the only way to domestically produce a million drones, a goal announced by President Zelenskyy. That means it could well be the only way to ensure the nation’s survival in the war with the prevailing Russian army.
Initially deployed as a reconnaissance tool, FPV drones were swiftly enhanced to carry grenades, which turned them into a mobile and guided weapon.
Having dedicated most of her 28 years to mastering a diverse range of skills, from stained glass production to jewelry, Violetta never imagined herself assembling kamikaze drones until war broke out in her country.
The news of the Russian invasion reached Violetta on her way back from a brief tourist trip to Europe, where she was seeking distraction from pervasive speculation about the looming war. Returning home amid the uncertainty of those initial days, Violetta faced another, personal challenge – her father and two brothers decided to join the Ukrainian army.
It wasn’t the first time she’d faced the realities of war. Her family previously fought against Russians following incursions in 2014. Violetta transformed her experience on awaiting their return from the battlefield into an art performance: ‘Brothers,’ held in Poland.
“I’ve always believed in the profound impact of art on viewers’ consciousness. However, I’ve been somewhat disappointed by art’s limited abilities to support the army… Assembling drones or making trench candles seems far more effective than holding exhibitions in art galleries,” Violetta told The Counteroffensive.
Drone manufacturing found Violetta unexpectedly. In November 2023, Violetta’s family on the frontlines sent her an order to purchase one – and meticulous research led her to the idea that making one herself was the quickest way to fulfill their wish.
Violetta assembling FPV drones at her jewelry workshop.
In autumn 2023, the Ukrainian social initiative Victory Drones cooperated with the drone manufacturing brand ‘Vyriy’ to launch the People’s FPV project, offering free drone assembly courses for civilians.
The course has gained over 17,000 participants, who can receive free feedback from lecturers and an opportunity to submit their self-made 7-inch FPV drones for testing. They’ve produced 350 drones as of the beginning of February.
For Violetta, the immersion into drone assembly took only one evening. She enrolled in the course to get access to its video lessons and list of materials, and meticulously watched the videos to identify missing details.
Those few hours marked the beginning of full-time work on drone assembly, during which Violetta has assembled 23 FPV and bomber drones, all successfully tested and deployed for combat missions on the frontlines.
Despite her background in the arts being instrumental in soldering, Violetta believes that drone assembly skills can be mastered by anyone who can handle a blowtorch, screwdriver, and a tweezer.
The average cost of a drone parts set ranges from $420 USD for an FPV, used for reconnaissance and kamikaze missions; to $530 USD for a reusable bomber drone, deployed for attacks.
Procuring parts remains a significant challenge. Due to inflated prices and high demand in wartime Ukraine, Violetta usually orders sets of components from Chinese marketplaces. But this comes with having to deal with month-long shipping, customs duties management, and the constant risk of receiving defective items or having the pre-paid orders canceled.
The assembly process takes several hours, after which Violetta uploads a pre-made computer file to install software. Then she conducts preliminary testing: examining motor functionality and temperature, and verifying radio and video transmission.
Subsequently, the drone leaves Violetta’s workshop — once dedicated to jewel-crafting — and undergoes final testing by drone pilots before deployment on combat missions.
Violetta is also a burgeoning drone pilot these days, learning from long periods testing FPVs. Having mastered the fundamentals of drone assembly, she now focuses on learning how to equip her products with thermal imagers and perfecting final flybys.
“There’s the constant risk of being hit by missiles, Shahids [Iranian-made kamikaze drones widely deployed by Russia], as well as sabotage threats,” she said. “If this production is dispersed enough that everyone assembles a drone in their own home, we are all relatively safe – as long as there is no large storage or centralized production.”
An unexpected ally in her family is helping with the project. Violetta’s 82-year-old grandfather, who aspired to join territorial defense troops early in the invasion but was rejected due to his age, fervently supports her initiative.
Having taught model aviation long before her birth, he assisted his granddaughter with drone assembly but had to quit because of poor eyesight. Instead, he has poured all of his energy into convincing the city council to allocate funds for purchasing drones for Ukrainian servicemen and even organized drone assembly training in a local school.
Violetta’s grandfather, assisting her volunteering efforts.
“You have to understand the responsibility that [drone assembly] implies. Your task is to assemble a drone that will fly and do its job. After all, it’s a very important item, not a decoration or a kind of construction set,” said Violetta, whose days now mainly consist of taking orders from soldiers, sending and receiving packages, and making drones in her kitchen.
And despite the fact that her tools now shape plastic rather than silver, she remains exactly who she used to be – a jeweler in wartime.
Before the organizational titans of today’s cooperative system were created, there were tens of thousands of credit unions chartered by ordinary men and women. Who believed in extraordinary possibilities.
A living example of this belief is Rincones Presbyterian Credit union, chartered on January 1, 1960. This founding predates the “origins” of most of today’s credit union leaders.
At yearend 2023, the credit union was $5.2 million in assets with 804 members. It has three employees with an average salary of $32,745. Last year their loan originations increased 15.7% to total $2.3 million, the majority for autos.
Rincones in Spanish means a “small secluded valley,” or literally a nook. Located in Chacon, an unincorporated area of New Mexico with an elevation of 8,166 feet, harsh winters have given the area the name “Little Alaska.”
Their vision and mission are printed on the sign marking their “head office.”
Would credit unions be even more successful if they followed the Trust of these founders?
After all, that is what we print on all of our coins and currency.
Over the weekend I was going through my parent’s personal records. During WW II they had written each other almost daily. The letters are in 15 large manila envelopes along with photos and official documents.
My dad was an inveterate record keeper. In his military file I saw this typed letter addressed to:
My Dear Mr. Filson: and dated December 4, 1946.
It reads in part:
I have addressed this letter to reach you after all the formalities of your separation from active service are completed. I have done so because, without formality but as clearly as I know how to say it, I want the Navy’s pride in you, which it is my privilege to express, to reach into your civil life and to remain with you always.
You have served in the greatest Navy in the world.
It crushed two enemy fleets at once receiving their surrenders only four months apart. . .
No other Navy at any time has done as much. For your part in these achievements you deserve to be proud as long as you live. The Nation which you served at a time of crisis will remember you with gratitude.
The best wishes of the Navy go with you into civilian life. Good luck!
Sincerely yours,
signed
James Forrestal (The Secretary of the Navy)
Ed was was confirmed as NCUA Chairman in October 1981. Prior to this we had worked together for four plus years when I was supervisor of the Credit Union Division for DFI in Illinois.
I would soon join Ed at NCUA in December. Nonetheless he took time to write.
The letter was addressed to Charles Filson at my Wilmette, Il home, dated November 17, 1981. It reads in part:
Chip:
I’m sitting here in the in the Albany, N.Y. airport for my flight. I’ll probably have many waits like this in the future. It gives me time to reflect.
The past few weeks have been wild. Now that the events are past, I’ve got time to think of all the good friends. The only really important thing is just that-friends.
You have been one of the best. . .
Thank you very much.
I’m looking forward to our future endeavors. We’ll have some exciting times.
E. F. Callahan
Signed Ed
Chairman
Neither of these exceptional leaders needed to write these messages of gratitude and thanks. But they knew the success of their organizations depended on others, not their individual capabilities.
Government service, whether chosen or drafted, is sometimes under appreciated. Or worse, captured by the political divisions now seeding distrust of any government calling.
These two individuals in very different spheres of influence and responsibility, illustrate in these personal gestures, what makes great leaders in any organization.
“. . .our results indicate a serious misalignment between the legislation that establishes the credit union mission (a tax exemption in exchange for meeting the credit and savings needs of consumers, especially those of modest means) and the actual performance of credit unions under that legislation.”
Brief extract from: Who Consumes the Credit Union Subsidies? (Queen’s Management School, Research Paper 2022/03 written May 10, 2022)
How would your credit union respond to this academic conclusion?
