We are pleased to bring this update on the American Nonprofits Federal Credit Union from Pamela Davis, President of American Nonprofits:
American Nonprofits and Nonprofits Insurance Alliance Group have been cooperating to determine how best to improve access to operating credit for 501(c)(3) community-based nonprofit organizations. During 2012, we evaluated various options. During 2013, we investigated the feasibility of creating American Nonprofits Federal Credit Union (ANFCU) (proposed). We accomplished several steps toward creating ANFCU including:
- Received preliminary field of membership approval from the federal agency National Credit Union Administration (NCUA) to include 501(c)(3) nonprofits, their employees, volunteers and stakeholders
- Conducted an extensive survey of likely members and received evidence of strong likely support
- Developed a business plan for the start-up and first 4 years of operation
- At a meeting in late summer, interested nonprofit sector and credit union leaders expressed strong interest in, and enthusiasm for, ANFCU. Nevertheless, based on many conversations with potential funders and others with knowledge of the sector, it has become clear to us that there is not yet sufficient vision to fund the minimum of $10.5 million necessary to start and capitalize ANFCU at this time.
Toward that end, we plan to continue to move this initiative forward during 2014 with a three-pronged initiative:
- Using 990 data and/or other proprietary data, modify a commercial loan scoring model for use evaluating the creditworthiness of nonprofits
- Develop lending programs for community-based nonprofits in collaboration with one or more credit unions to test demand
- Create a loan fund for Nonprofits' Insurance Alliance of California members for loans outside of standard financial institution guidelines, to test assumptions of scoring model
The Nonprofits Insurance Alliance Group has engaged a consultant to move forward with Item #1 and also to evaluate the feasibility of developing programs related to Items #2 and #3. Nonprofits Insurance Alliance Group intends to fund these initiatives as benefits for its members. However, they intend to work cooperatively with American Nonprofits to share information and learning with the greater goal always in sight of creating American Nonprofits Federal Credit Union.
We appreciate your continuing interest and support of this important work! If you are inclined to support this work through American Nonprofits, we hope you will make a donation!
Pamela Davis is volunteer President of American Nonprofits. She is also the founder and CEO of the Nonprofits Insurance Alliance Group (NIA Group), a national social enterprise that has grown to insure more than 10,000 nonprofits and hold $300 million in assets -- and gives a divendend most years back to their nonprofit customers. A nonprofit entrepreneur with an amazing track record, we are proud to count Pamela among the founders of Blue Avocado.