We're All Politicos Now

All CUs, regardless of size, must participate in setting their political course, or the bankers will do it for them.

IF WE FAIL TO FIGHT now, credit unions won't be available to the next generation.

Shelley Clarke, president/CEO of Goldenwest Credit Union, Ogden, Utah, believes that's a real possibility in today's political environment.

"I can't imagine a world where my children wouldn't be able to use a credit union," says Clarke, a member of the Credit Union National Association's (CUNA) Governmental Affairs Committee. That's part of what drives her to be active on the political front.

Everyone knows the banking lobby is ramping up efforts to end credit unions' tax-exempt status again, as it has periodically since the 1940s. What's new, according to Clarke, is that credit unions no longer can leave political work solely to the leagues and lobbyists.

Many would agree that bankers' political efforts have become so sophisticated and so well-funded that it will take all credit unions in a united effort-an army of sorts -to defeat opponents at the state capitals and in Washington, D.C.

Further, says Clarke, a unified political effort must be proactive rather than mustered occasionally to fend off attacks.

"For decades, we've been busy doing our business, serving our members as we should," says Clarke. "Meanwhile, the bankers were busy trying to get legislators over on their side. All credit unions, small and large alike, have to wake up and participate in setting our political course, or the bankers will do it for us."

Answering the call

How can credit union executives, with far too much on their plates already, become political activists? Those who have done it would say the answer lies in careful planning and wise use of resources, of which there are plenty.

But first you need a commitment at the top, says Jonathon Storment, director of internal audit at FAA Credit Union, Oklahoma City. An advocate for credit union political activism, he served as a delegate at last year's Republican National Convention in New York (CU Mag 10/04, p. 44).

"Our CEO, Steve Rasmussen, sets the tone," says Storment. "He's politically active, keeps the board informed on credit union issues, and encourages me and others here to be active."

The next step is to make a plan with the help of other executives and the board. It should make political activities integral to credit union operations through mechanisms such as a governmental affairs committee. As part of the plan, training at all levels should include components on political involvement, says Clarke.

For implementing their plans, executives can get help from leagues and from CUNA through programs such as the Political & Legislative Action Network (PLAN) (cuna.org). Project Differentiation-one element of PLAN-assists credit unions in distinguishing themselves from banks, using core values of the credit union movement through a statement of commitment to members.

Credit unions can use this in several ways, says Bruce Fou Ike, president/ CEO of American Heritage Federal Credit Union in Philadelphia and chairman of the Pennsylvania Credit Union Association's government affairs committee. "We use it first to educate staff," he says, "so they can explain the credit union difference and demonstrate that we really care about our members."

The statement of commitment also introduces staff to political involvement. It can be a talking point with legislators.

Other PLAN tools such as Hike the Hill and Project Zip Code are useful for informing legislators about the numbers and importance of credit union members in their districts, says Storment. And other proven strategies also are available to credit union political workers.

Strategies for involvement

An obvious but effective move is to invite candidates and legislators to receptions at credit unions as part of annual board dinners, annual meetings, or other special events. In the 2004 senatorial campaign in Oklahoma, credit unions generally were supporting Democrat Brad Carson over Republican Tom Coburn, assuming Carson would make the better credit union champion.

Storment wanted to educate Coburn about credit unions and to hear his side of the story. He arranged for FAA Credit Union representatives to meet with Coburn and his advisers to discuss the issues. It turned out to be a wise move. Coburn is now an Oldahoma senator.

Another important investment of time and energy, says Foulke, is to visit legislators regularly. He has developed good relationships with his Pennsylvania senators and representatives by making systematically planned office visits.

Foulke's goal is to convince his legislators that supporting credit unions can gain them votes. More credit union members are vested in and satisfied with their credit unions than bank customers are with their banks, surveys show (CU Mag 11/04, p. 19). Thus, credit union members more likely will support candidates supporting their credit unions.

Inviting candidates and representatives to credit union-sponsored golf tournaments works well for Clarke. A round of golf provides plenty of time within a pleasant context to discuss credit union issues with a legislator.

It's important to let politicians know you appreciate their time and attention, says Foulke. After politicians visit your credit union, put their pictures in your newsletter and add their names to your mailing list. It's a way to say thanks and help out at the same time.

Credit union political strategies can and should involve employees and members. Clarke encourages her staff to participate in door-to-door campaigns of their choice. And American Heritage Federal has mobilized its members through petition drives and letter-writing campaigns.

Clarke is enthused about the member advocate program at Goldenwest. Advocates write letters, make phone calls, and educate legislators on political issues. Of the credit unions 55,000 members, 1,000 are advocates. Clarke hopes to raise that number to 5,000.

Maybe the best overall strategy, according to Foulke, is to be as involved and as visible as possible, all the time, throughout your community. Attend or send representatives to community events, and talk with candidates and legislators wherever you find them. Let the politicians know that your credit union and its members make up an important part of their constituency.

If they had it to do over again ...

These busy executives have no regrets about their political involvement. When asked to recount the most important lessons they've learned, none hesitate.

Storment says it's much easier than you think to work with politicians. You just have to ask them what they need.

It's helpful to converse with the legislator about other issues you care about in addition to credit union issues, Storment says. He has used his concerns about fiscal conservatism to launch conversations with politicos. He stresses that it's critical for credit unions to support employees and members who are enthusiastic about political involvement.

Foulke, too, found that working with politicians and their key aides was easier than he had guessed. "So long as you can show that your credit union is helping people, they're very receptive."

Clarke re-emphasizes the need for credit unions to be unified and energetic in the political arena. The key to survival, she says, is to make clear to politicians the credit union difference-the core values that make credit unions unique.

"No one else can tell that story better than we can."

Copyright Credit Union National Association, Inc. Mar 2005
Provided by ProQuest Information and Learning Company. All rights Reserved