Does Your Credit Union Act Like a Business?
How many times have you heard that credit unions are a not-for-profit movement and exist for the benefit of members? This, of course, is a true statement. However, can a credit union thrive and actually provide those benefits if it does not act like a real business and strive for some level of profit or return?
I know the argument that a credit union must stay under the radar of federal and state tax regulation. But what happens if the bottom line is negative? What happens to member benefits if there is not enough left over at the end of the year to increase benefits going forward?