SAN FRANCISCO-A new, national organization for non-profit groups is planning to charter its own credit union to provide credit and other forms of financing for an estimated 11,000 non-profits nationwide.
The group, American Nonprofits, has received a $100,000 grant from the Nonprofits Insurance Alliance Group and has already begun discussions with NCUA on a field of membership and other chartering requirements for what would be the American Nonprofits FCU.
The Nonprofits Insurance Alliance Group is made up of Nonprofits' Insurance Alliance of California and the Alliance of Nonprofits for Insurance.
Jan Masaoka, head of the California Association of Nonprofits, told The Chronicle of Philanthropy that when it comes to professional associations within the non-profit community,"there's a huge gap in the area of finance. There isn't a place to get nonprofit people together to talk about talk about finance and strategy." For that reason American Nonprofits was formed, which, in turn, has placed part of its focus on forming a credit union.
The group plans to survey its nonprofit membership after Labor Day to determine what kind of services and products are needed and to seek financial commitments for start-up deposits.
Similar Efforts Elsewhere
The fledgling credit union is among a handful of proposed charters in the works, including several being proposed by the Occupy movement, a project underway by the Lakota (Sioux) American Indians in South Dakota, a proposal by the Abundant Living Family Church in Rancho Cucamonga, Calif., and one by a green energy company in Allentown, Penn.
Meanwhile, numerous credit unions across the U.S. already serve non-profit organizations withing their individual market areas, including some launched as part of the International Year of the Cooperatives.