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Well, don't know how you sized-up CUNA-vs-NAFCU yesterday in what they "had to say about themselves"; but let me try a few observations:
1) NAFCU's pitch was clear, concise, focused - made the key points, did it on one page.
2) CUNA's "togetherness song" was at best "tone deaf" and without a doubt "off key".
3) NAFCU has a mission - advocacy, education, compliance - period.
4) CUNA also has a mission -"refresh" themselves,
advocacy, and unite and challenge you and me!?! [Say what?]
5) NAFCU has the "why words" covered - "your bottom-line, Board of your peers, responsive, growing with us".
6) CUNA is still using someone's old campaign speech "with B.S. words" - "bold leadership, ambitious vision, take-no-prisioners strategy, best-in-class value, reignite the spirit, fearlessness, entrepreneurship, legacy". Unfortunately, there is little substance to be found amidst the yada!
To me "someone's" got a problem;
how did you read it?
But let's move on and revisit that always crucial question of price. Here's a quick rehash of the "cost of doing business" comparison...
Most folks think that one of the key decision points for credit unions in the NAFCU/CUNA debate will be the cost of dues.
Pretty natural assumption that a financial cooperative like a credit union would monitor costs closely for both efficiency and fiduciary purposes - right? Sure! No CU CEO is going to argue that "price is no object"! [At least not if they want to keep their job!]
So, NAFCU has provided credit unions with an on-line dues calculator for easy reference (see here).
Let's pick a few random credit unions and calculate the difference in NAFCU/CUNA dues [based on their 3/31/2015 call report] - OK?
Thought a good "random group" might be the CUNA Board executive committee members' very own credit unions. Those folks are: Susan Streifel (Woodstone CU - WA), Rod Staaz (SECU-MD), Maurice Smith (Local Gov't - NC), and Brett Martinez (Redwood-CA).
Here are the numbers:
1) Woodstone - (11,542 members / $98 million assets)
CUNA: $3,343 NAFCU: $6,375
2) SECU-MD - (232,472 memb. / $2.921 bill. assets)
CUNA: $86,324 NAFCU: $34,808
3) Local Govt - (258,226 memb. / $1.519 bill. assets)
CUNA: $61,363 NAFCU: $25,098
4) Redwood - (201,422 memb. / $2.583 bill. assets)
CUNA: $75,841 NAFCU: $32,733
Couple of observations:
A) Guess we can see why we need more women in leadership - Ms. Streifel knows a bargain when she sees it!
B) What is the value proposition "the guys" see in paying $30/40/$50,000 more for representation by CUNA?
Two key points:
1) The NAFCU advantage on price does not generally apply for credit unions with less than $150 million in assets (depending on the number of members in the CU) - for "non-mega" credit unions, NAFCU/CUNA dues appear to be similar, with CUNA often less.
2) Don't forget that those favoring CUNA must add the cost of local state league dues into the comparison in some fashion. League dues are extra! - over and above the dues paid to CUNA - and joining a league is mandatory. Credit unions are not allowed to choose....
Talk tomorrow ... got to CUT out for now!
1) The NAFCU advantage on price does not generally apply for credit unions with less than $150 million in assets (depending on the number of members in the CU) - for "non-mega" credit unions, NAFCU/CUNA dues appear to be similar, with CUNA often less.
2) Don't forget that those favoring CUNA must add the cost of local state league dues into the comparison in some fashion. League dues are extra! - over and above the dues paid to CUNA - and joining a league is mandatory. Credit unions are not allowed to choose....
Talk tomorrow ... got to CUT out for now!
6 comments:
I had no idea CUNA was that more expensive, and based on your math, it doesn't include our state league dues. Even Ms Streifel is paying more since our credit union must be a member of both CUNA and our league. How can credit unions under $150million in assets even afford to pay their CUNA and league dues???? If you are larger than $150million in assets why would a CEO (as you say Jim: who wants to keep his or her job) pay dues that high? We will have to have a discussion on this large cost variance.
Jimbolinski, you raise many good points in your arguement but the real story will be how many credit unions will still write the biggest check without any concern for their members? And are these the same credit unions who say they take issue with the NCUA budget because they are looking out for their members? Do you see something amiss here?
Our league just announced recently that it's raising our dues for 2016 and our president claims most of the other leagues are also increasing their dues next year. The question I have is the "mothership" going to raise their dues too? We have yet to hear from CUNA.
Anybody know where to find a published list of league dues by state?
What's the secret?
How about a list of league CEO salaries. Not that's a real secret!
Well are we making any progress? Got a few rounds to go...
Noted the last comment about salaries, which is always touchy, touchy!!
But for those who would like to know, you can look up the financials and top 5 or so paid officers of any non-profit at www.guidestar.com... it's free for the basic look-up (which is all you need if you're just snooping!)... just enter your email and select a password.
When you get access enter the name of the non-profit (all the leagues, CUNA, and NAFCU are non-profits!) and when it comes up, click on Form 990... this is the non-profits annual tax return... if you'll scroll down through the form you'll come to the part where the salaries and benefits at listed. Works for any trade association, charity, or most any non-profit in your community.
It also works for all state-chartered credit unions but not for federal credit unions who are exempt from reporting which is one of those state/federal charter questions which we might ask NAFCU to opine on....Why shouldn't the fed-charters be required to publish like everybody else?? (Like I said touchy,touchy!!!)
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