Credit Unions & taxes….

how exactly do they "make" money ? There are zero shareholders... it's a pool of money shifted around to benefit each other, the community, and provide lots of local jobs...it's the ultimate organizational model

On the 990 form they file with the IRS, there is a line that reads “revenue less expenses”. You mean profit?

Just looked one up online and it said they had $2.8 million “revenue less expenses” & didn’t pay a dime in taxes.

I don’t exactly call that paying their fair share.

Or that we should pay taxes on unrealized gains?

Credit Unions disperse profits to the members as dividends. The members then pay income tax on the amount received.

Look into NFL non profit status if you want something to get bothered by.

quote:

---

That income gets dumped into lower rates on loans and higher rates in CDs.

---

Income? You mean revenue in excess of expenses? Credit unions “don’t make a profit”. Remember?

i was surprised when i got an email from my credit union pushing back against biden, or at least saying they will.

What’s funny is that credit unions don’t even pay worth a shite. You think they would being tax free but every time I’m approached by one they are a good 20% off market rate for salary/position. I don’t get it.

quote:

---

What’s funny is that credit unions don’t even pay worth a shite. You think they would being tax free but every time I’m approached by one they are a good 20% off market rate for salary/position. I don’t get it.

---

Well, it's their members' money, they have a responsibility to do more with less. They are a not-for-profit, the benefits of working at a CU usually balance out the lower salaries from the folks I talk to.

quote:

---

Well, it's their members' money, they have a responsibility to do more with less. They are a not-for-profit, the benefits of working at a CU usually balance out the lower salaries from the folks I talk to.

---

I get it but here’s the issue - prior to 10 years ago CU’s weren’t doing business lending or commercial real estate lending. It was all car loans and mortgages.

Now you’re seeing CU’s band together doing $10mm plus real estate deals. Most don’t have the expertise to be sniffing these kind of deals as they just don’t have the talent under their roof’s. They try hiring said talent to do this type of stuff but they won’t pay so they can’t attract the right people. Very general statement btw.

What I’m interested to see is what happens during a CRE correction. CU’s didn’t start doing CRE deals until after the 08-10 crash so they’ve been riding the tide for all this time now without a correction to expose their weaker underwriting skills. I’ve competed against CU’s on some deals and I just scratch my head wondering who in the hell would ever consider approving the structure they were putting out there. Some of it was just insane.

Great reply, I'm going to seek some colleagues opinions on that point. Only thing I will add is I'm actually seeing a trend of CUs paying real market value for folks now as the CU grows and has more Kreg profits. :)

Starting to catch up to the big banks since the model is better....