Presenting: Board Orientation
Your
Credit Union
Date of Orientation
Location of Orientation
Section 1
Overview of the
Credit Union
Movement
Overview of the Credit Union Movement
Nonprofit Financial Institutions
in a For-Profit Industry
Member-Owned
• Financial cooperatives organized to help
members achieve their financial goals (not make
a profit for shareholders)
A Proud Tradition
• “Not for profit, not for charity, but for service”
Governance
• Board of directors elected by members, not
shareholders
Overview of the Credit Union Movement
History of Credit Unions
• Founded in Europe in 1800s as “people’s banks”
• First formed in North America as an alternative to
loan sharks for working-class people
• Credit unions chartered to serve narrowly defined
fields of membership (workplace, profession or
trade, community, association, church)
• Federal Credit Union Act became law in 1934
• National Credit Union Administration created to
1970 to charter and supervise federal credit
unions
Overview of the Credit Union Movement
History of Credit Unions (cont.)
Credit unions were founded to “make the system
work better for more people. … The founders of
credit unionism … stressed participation by all
members. The goal, then, was economic
democracy through self-help.”
--J. Carroll Moody and Gilbert C. Fite, The Credit Union
Movement: Origins and Development, 1850-1970
Overview of the Credit Union Movement
Credit Unions Today
• Many serve wider fields of membership through
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select employer groups (SEGs) and community
charters
Consolidation means fewer, but financially
stronger, credit unions
Full-service financial institutions
Committed to “people helping people” through
financial education and member advocacy
Heavily regulated to protect members’ assets and
organizational safety and soundness
Section 2
About the
Credit Union
About the Credit Union
Mission
Your mission statement here.
About the Credit Union
Vision
Your vision statement here.
About the Credit Union
(Sample)
History (Example)
1950: Founded by employees of XYZ Paper Mill.
1955: Served 600 workers; staffed by volunteers.
1967: Opened office at mill; hired first manager.
1982: Merged with credit union serving nearby mill to form
Mill Valley Federal Credit Union.
1996: 4 branches in operation, serving 7,000 mill workers
and their families in three-county area.
2005: Obtained community charter, $38 million in assets,
serving 6,800 members, 15 full-time and 4 part-time staff, 5
branches (including one worksite and one in-store)
(Sample)
About the Credit Union
Products and Services
Full-Service Financial Institution
• Share savings and certificates
• Share draft accounts with direct deposit
• Debit, credit and ATM cards
• New and used auto loans
• Home equity loans
• Mortgages in partnership with Mortgage Pros, Inc.
• Special accounts for children and teens
About the Organization
(Sample)
Helping Members Achieve Their
Financial Goals
Convenient Access
• 5 branches and ATM access through network
• Online account access and bill-pay
• Automated phone service
Commitment to Education
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Financial literacy programs in local schools
Home-buyer education workshops
Financial counseling
Referrals to investment counseling for retirement
planning
About the Credit Union
By the Numbers
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Current number of members
Assets
Current number of employees
Key financial indicators, ratios and trends (perhaps
presented in comparison to industry average)
About the Credit Union
(Sample)
Strategic Goals
Develop branch-based member recruitment.
• Train and incent branch managers to lead recruitment
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efforts of prospective members within a 5-mile radius
Open 25 new share draft accounts per month at each
branch
Recruit five new SEGs within each branch territory
Position credit union as member-friendly
mortgage alternative.
• Provide referral packets to area real estate offices
• Offer home-buyer workshops to SEG groups
• Partner with local community groups to promote
affordable mortgage to first-time home buyers
About the Organization
(Sample)
Strategic Goals, cont.
Increase membership in 18-34 age group.
• Launch “noon-hour branches” at three high schools, staffed by
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students and offered in conjunction with financial literacy curriculum.
Package free share draft accounts with debit cards and no-fee ATM
access and low-cost computer/book loans to college students
Introduce low-cost used car loans with low down payment
requirements for first-time car buyers
Streamline operations to offer best possible rates.
• Assess potential of check imaging to reduce processing costs.
• Introduce incentives to steer members to e-statements and online
account access.
About the Credit Union
(Sample)
Structure
Credit Union Staff
(revise chart to include CU titles)
Jane Hill
Chief Executive Officer
Tom Brown
Chief Financial Officer
Pat Olsen
Director of Development
John Wong
Programs Director
Rebecca Sanchez
Literacy Education Manager
Joan Lancaster
Facilities Manager
Stephanie Wright
Volunteer Services Manager
Sandra Smith
Outreach Coordinator
(Sample)
About the Credit Union
Community Partnerships
Sponsors, SEGs
• 75 SEGs and counting
• Branch on XYZ campus
• Homebuyer education program offered through
Mill Valley Community Association
Support for Local Schools and
Community Groups
• Sponsor financial literacy programs in local
schools
• Cosponsor annual Run to Save the River
Section 3
About
the Board
(Sample)
Board Structure
Board Officers
• Frank Navaro, board chair
• Stella Jarvis, vice chair
• Gretta Smith, treasurer
• Jeffrey Marx, secretary
About the Board
About the Board
(Sample)
Board Structure
Committees
• Executive committee, Stella Jarvis, chair
• Governance committee, Jan Johnson, chair
• Executive compensation committee, Charlie
Preston, chair
About the Board
(Sample)
Board Structure
Task Forces
• Annual membership meeting, Jeffrey Marx, chair
• Community/new member outreach, Gretta Smith,
chair
About the Board
(Sample)
Board Operations
Board Composition and Recruitment
• 9 directors
• Three-year terms
• Three consecutive term maximum service
• Governance committee leads recruitment and
nominating process
About the Board
(Sample)
Board Consultants
• Legal counsel, Peter Nunez, Esq.
• Auditor, Valerie Lourdes, CPA
• Strategic planning facilitator, Sylvia Grant
About the Board
(Sample)
Reading List
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Bylaws
Board policies
Board biographies
Prior year’s annual audit
Budget
Annual report
Strategic plan
About the Board
(Sample)
Board Calendar
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Board meetings / dates
Annual membership meeting / dates
Chief executive performance evaluation / date
Annual strategic planning retreat / date
Annual audit / date
Section 4
Board
Roles and
Responsibilities
Board Roles and Responsibilities
Board Function
Organizational Governance
• Authority
• Accountability
Board Roles and Responsibilities
Key Roles of the Board
Set Organizational Direction
Provide Oversight
Ensure Safety and Soundness
Board Roles and Responsibilities
Board Role
Set Organizational Direction
Responsibilities:
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Participate in regular strategic planning
Determine organization’s mission
Set the vision for the future
Establish organizational values
Set major goals and develop strategies
Approve operational or annual plans
Board Roles and Responsibilities
Board Role
Ensure Necessary Resources
Responsibilities:
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Hire capable executive leadership
Ensure adequate financial resources
Promote positive public image
Ensure the presence of a capable and responsible
board
Board Roles and Responsibilities
Board Role
Provide Oversight
Responsibilities:
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Oversee financial management
Minimize exposure to risk
Measure progress on strategic plan
Monitor and evaluate programs and services
Provide legal and moral oversight
Evaluate the chief executive (annually)
Evaluate itself (every two to three years)
Board Roles and Responsibilities
Individual Director
Responsibilities
Act in Accordance with Legal Standards
Duty of Care
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Stay informed and ask questions
Duty of Loyalty
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Show undivided allegiance to credit union’s welfare
Duty of Obedience
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Stay faithful to the credit union’s mission
Board Roles and Responsibilities
Individual Director
Responsibilities
• Participate in the governance of the organization
• Work on committees and task forces
• Volunteer services to the credit union outside of
board work
• Serve as ambassador to the member community