Here’s some information about Credit Unions and their tax structure that we’re trying to protect so we can continue giving back to you, the member-owners of DFCU!
Credit Unions are exempt from Federal income tax because they are member-owned not for profit financial cooperatives and have a mission to promote thrift and provide access to credit for provident purposes to their members.
During the financial crisis Americans saw credit unions as a safe haven in the financial services sector. Credit unions continued to lend to consumers, homebuyers, and small businesses when other lenders were unable or unwilling to do so. Credit unions continue to serve all their members, including low-income consumers who are often neglected by traditional financial institutions or targeted by predatory lenders. CUNA estimates that consumers benefit about $8-10 billion annually because credit unions are tax-exempt.
Credit union members see this benefit in terms of lower rates on loans, lower fees on services, and higher returns on deposits. A tax on credit unions would be a tax increase for 102 million American credit union members. Members of Congress and each of us should recognize the unique role of credit unions in the financial services sector and be outspoken in support of the credit union tax status.