Credit unions have significantly deviated from their founding mandate and do not pass along a significant percentage of their tax subsidy to their members, ICBA said in a new white paper.
Released as part of ICBA's new "Wake Up" campaign
, the "Do They Know They're Tax Exempt?" white paper finds that credit unions neither primarily serve individuals of modest means nor restrict their activities to the specific communities that they are mandated to serve.
Further, the paper finds that credit unions withhold 21 to 33 cents of every dollar in tax subsidies they receive. In 2018, that amounted to between $500 million and $900 million in taxpayer dollars not directed toward credit union members.
The white paper was released this week as part of ICBA's nationwide campaign calling on policymakers and the public to “Wake Up” to the risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation’s credit unions.
More information on the campaign, including a grassroots alert and customizable resources for community bankers, are available on ICBA's "Wake Up" action center
View the White Paper