Bank, financial institution, mortgage lender, loan provider –these are just some of the names used to describe credit unions andwhat they mean to our members and those in the community.

Oftentimes, our staff and members don't realize the manyqualities of credit unions that set us apart from the other guys.While it's great to be seen as the financial institution in thecommunity, we want to be seen as more than that. We want ourcommunities to see credit unions as the financial partner ofchoice, the one that impacts not only the financial lives ofmembers, but makes a positive impact on the community. We aredifferent and we want the credit union difference to be seen andheard.

It's not that hard. There are nine credit union operatingprinciples that set credit unions apart from other financialinstitutions. Together, these nine ingredients form the “secretcredit union sauce” that you hear so much about.

Let's focus on one of those ingredients in the secret sauce –the credit union operating principle of concern for community. Thisprinciple provides that credit unions have a concern beyond theirmembership that extends to the community and forms the cornerstoneof credit unions' philanthropic endeavors.

Local service and concern for community can mean many things fora credit union, including affordable and appropriate financialproducts and services for members, as well as community leadership,collaboration, stewardship and charitable giving. As not-for-profitfinancial institutions, a credit union's main focus is on thefinancial lives of its members. When thinking about your creditunion's philanthropic efforts, think about the connection and thelink to your members' and community members' financial lives.

Need an example? 1st Financial Federal Credit Union in St. Louislives and breathes the concern for community principle. The creditunion centers everything it does on improving the financial livesof those in its community.

The philanthropic work that 1st Financial does in its communityis focused on three areas: Job training, education and sustainablehousing. The credit union ensures that its community giving isstrategically aligned with its mission as an organization, and as aresult the credit union is seeing higher ROI. For example, thecredit union successfully brought down the average age of itsmembership and increased loan volume, loan yield, capital andproduct per household.

“We used to see philanthropy as a way to just support localnon-profits. We focus now on philanthropy as what we believe iscutting checks to ourselves, and what that means is we areinvesting more in ways to provide financial access to people …providing really impactful and valuable products, services andprograms to people who desperately need them,” Laura Woods, vicepresident of marketing and community presence for 1st Financial,said.

One of the amazing things the credit union has done through itscommunity giving was providing all kindergarteners enrolling in St.Louis public schools and charter schools with a savings account for post-secondary education. Through apartnership with the Treasurer's Office, a $50 deposit is made intoeach of the incoming kindergartners' accounts each year; they alsoreceive financial incentives for attendance, financial educationparticipation and adding funds to their account. The credit unionhas created members for life and is helping improve the financialfutures of the next generation, which is a win-win! The Foundationis a supporter of children's savings accounts and actually funded agrant in 2014 with CFED to look at the opportunities for creditunions in this area. 1st Financial is a great example of how thisopportunity is working. You can learn more about 1st Financial andits community giving in a recent episode of “Murmurings,” aFoundation podcast at ncuf.coop/podcasts.

Philanthropic giving is an example of the “secret sauce” that somany credit unions do day in and day out. Changing the frameworkfor how we think about community giving not only positions yourcredit union as a philanthropic leader in the community, but ityields a high ROI. Check out the Foundation's Philanthropy Toolkit at ncuf.coop/resources for moreinformation on how creating strategic partnerships in the communityhelps highlight part of that secret credit union sauce that makes apositive difference in so many people's financial lives.

Gigi Hyland is executive director forthe National Credit Union Foundation. She can be reachedat 202-824-6282 or [email protected].