Church

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Church Credit Union Relations

• Dan Morrisey
• Treasurer/Manager/CEO
• Queen of Peace Arlington
• Federal Credit Union
• Arlington, Virginia
• Assets 1 Million

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NFCDCU Faith Based Credit Union Conference

• San Francisco, California
• June 2005

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Note

• This Presentation Reflects My Perspective,
  Experiences and Observations Relating to Faith
  Based Credit Unions. They May or May Not Be
  Relevant or Correct for Others. Each Credit Union
  and Faith Community Must Find Their Own Solutions.

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Conflict in a Christian Faith Community? From the
Book of Acts

• They devoted themselves to the teaching of the
  apostles and to the communal life, to the
  breaking of the bread and to the prayers. Awe
  came upon everyone, and many wonders and signs
  were done through the apostles. All who believed
  were together and had all things in common They
  would sell their property and possessions and
  divide them among all according to each one's
  need. Every day they devoted themselves to
  meeting together in the temple area and to
  breaking bread in their homes. They ate their
  meals with exultation and sincerity of heart,
  praising god and enjoying favor with all the
  people. And every day the lord added to their
  number those who were being saved.

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Right!!

• As Most of Us Know, the Realities of Todays
  Faith Communities Are a Little Different!

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In the Early Communities, Conflicts Arose Between
the Spiritual and the Physical

• At that time, as the number of disciples
  continued to grow, the Hellenists complained
  against the Hebrews because their widows were
  being neglected in the daily distribution Acts
  61

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Why Is There Conflict Between the Pastor/Church
and Credit Union?

• Money and Power (Control)
• Lack of knowledge and understanding of the nature
  and requirements of a credit union

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History of Credit Unions

• Alphonse Desjardins founded the first credit
  union in North America in Quebec, Canada in 1900
  based on Catholic Social teaching
• The first credit union in the United States was
  started in 1909 in Manchester, New Hampshire at a
  French speaking Catholic parish

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What the Late Pope John Paul II Said About Credit
Unions

• VATICAN (CWNews.com) June 26, 1998 -- In an
  address to a group of Italian bankers, Pope John
  Paul II today encouraged workers to pool their
  resources into credit unions and cooperative
  banks-- a form of financial organization which he
  called "economic democracy."

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Credit Union Philosophy

• Not for profit
• Not for charity
• BUT for SERVICE.

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Lack of Understanding

• Sometimes, a pastor does not understand the
  nature and requirements of the operation of a
  credit union.
• Sometimes the credit union board does not
  understand its own nature and requirements.

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On the Other Hand,

• At times, the church pastor does understand the
  nature and requirements, but still does not want
  to operate within them.
• A key to dealing with the issue of
  understanding is to determine which is the
  problem.

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With Friends Like This

• This problem comes about when somebody knows just
  enough about credit unions to be dangerous. They
  approach the pastor and convince him/her that
  they are an expert at something related to the
  credit union, and can work magic .
• Then, the credit union figures out that person
  actually know nothing and reject their ideas.

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Then

• The credit union is the bad guy, not taking
  this guys advice, refusing an offer to help,
  etc.
• The credit union officials who know the most are
  least regarded..
• A prophet is not without honor except in his own
  country, among his own relatives,and in his own
  house. Mark 64.

15
Education of the Pastor

• This is a continuing and never ending process!
• There is no perfect solution
• Keep working on the problem
• Look for creative solutions

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Example of Pastor Education

• In the mid-1990s, a new pastor came in. He did
  not have any idea about credit unions at all (but
  was willing to learn).
• A larger credit union gave us the funds to send
  him to the Federations faith based credit union
  conference in Nashville, TN.
• He then saw what faith based credit unions around
  the country are all about!

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Establish Communications

• With the leadership of the church
• With the majority of the membership
• With key players (perhaps the parish
  secretary!)
• NEVER assume that your message will be remembered
  for long

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Insist That the Credit Union IS a Parish
Ministry

• Try to base credit union policies and actions on
  principles consistent with the church (to the
  extent possible)
• Look for every opportunity to look like, act like
  and be a church/parish ministry
• Communicate with, work with, help, ask for help
  from other ministries

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A BIG Difference Is That the Credit Union Has
MONEY

• Make donations to church functions, such as
  anniversary program, scholarship fund, building
  fund, etc.
• Get publicity (positive) for the church, such as
  regulators, politicians, newspaper articles, etc.
• Get acknowledgement of what you do, in bulletins,
  letters, etc. (Even if you have to write it
  yourself).

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More Ideas ..

• Have promotional items, such as calendars
  (pocket, school year or church based).
• Offer to assist in church activities - religious
  education, outreach, etc.
• Keep going the idea of the credit union being a
  ministry.

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Educate! Educate! Educate!

• The process never ends.
• Have a diverse board, representing many parish
  constituencies.
• Show the credit union is strong but not a
  threat.
• Build a backup plan, just in case relations
  go bad.
• Carry maximum bond, liability and other insurance
  to minimize impact on the church.

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Some Specific Sources of Conflict

• Church membership or longevity gives a right to
  a credit union loan
• Church/pastor believes the credit union should be
  a charity
• The credit union is likened to the money
  changers in the temple
• How could you possibly repo a church members
  car?

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Troublesome Scripture?

• Moneychangers in the temple Jesus was
  condemning them because they were cheating the
  people not that moneychanging was inherently
  evil.
• Do not keep a mans coat pledged on loan.
• Do not lend and charge interest --even the
  pagans do that!!

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IF Conflict Arises, Remember

• Blessed are you when people hate you, and when
  they exclude and insult you, and denounce your
  name as evil on account of the Son of Man.
  Rejoice and leap for joy on that day! Behold,
  your reward will be great in heaven. For their
  ancestors treated the prophets in the same way.
  Luke 622-23

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Examples of Denominational Differences

• In the Catholic Church, in most cases, the
  Diocesan Bishop and Diocese own and control
  (legally) all the property and assets of every
  parish. Therefore, a pastor can NOT legally
  commit to things like a lease to the credit
  union for a period of time.

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Examples of Denominational Differences

• Baptist Churches are completely independent at
  the parish level (no Bishops, no Pope!)
• Baptists have committees for everything!
• There are many, many flavors of Baptists (for
  example both Jerry Falwell and Jessee Jackson are
  Baptist ministers!)

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Differences Between the Credit Union and Other
Ministries

• If there arises an issue with the choir, or the
  preaching, or most other church functions or
  ministries, the world does not end. If the chief
  soloist, for example, gets angry and doesnt show
  up for a few weeks, when he/she comes back,
  things could just pick up where they left off.

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But ...

• With the credit union, if you dont make
  deposits, take loan payments, balance the
  electronic funds transfers or update the records
  for a few weeks (or months!), this can be a BIG
  problem.

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Another Difference

• A credit union, to be successful, must act to
  make changes in a reasonable time, and can NOT
  endlessly discuss and debate everything. Some
  churches tend to take years (sometimes decades!)
  to make some of the most trivial decisions.

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When Making Decisions or Changes Drags on ...

• When we did turn and proceed into the desert on
  the Red Sea road, as the LORD had commanded me,
  we circled around the highlands of Seir for a
  long time. Finally, the LORD said to me, You
  have wandered round these highlands long enough
  turn and go north. Deuteronomy 21-3

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Or the King James Version...

• Then we turned, and took our journey into the
  wilderness by way of the Red sea, as the LORD
  spake unto me and we compassed mount Seir many
  days. And the LORD spake unto me, saying Ye have
  compassed this mountain long enough turn you
  northward. Deuteronomy 21-3

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Ye Have Compassed This Mountain Long Enough Turn
You Northward.

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How Often Do We Get Into Analysis Paralysis?

• We can NOT operate the credit union the way it
  was operated 10, 20, 30, 40 or 50 years ago!
• We MUST be willing to adopt different ways of
  doing things.
• If we do not make changes, the credit union will
  no longer exist - it is happening every month
  that a small or church credit union goes away,
  through liquidation or merger.

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It CAN Happen to YOU!!

• Those of You Here in Previous Years, Look Around
  the Room, Look at the Attendance List -- Some
  Folks Are Missing - Perhaps They Were Not Willing
  or Able to Change

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Do You Want to Be One of the Missing Next Time?

• When You Go Back to Your Church, Your Pastor,
  Your Credit Union - Think About What You May Need
  to Do or Change!

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We Want You Back Next Time!!

• Questions?
• Discussion?
• Anything else?
• Thank you