The Credit Union Cooperative Principles

Credit union members often talk about the “credit union difference.” Many fundamental differences make credit unions a unique and preferred choice for members. We believe in people over profit, and that impacts the way we do business. From our overall structure to the smallest detail, the credit union philosophy and the Cooperative Principles that we adhere to set us apart from other financial institutions.

The traditional seven Cooperative Principles were adopted by the International Cooperative Alliance in 1995 and continue to be the standardized set of principles used by all co-ops.

These are the Cooperative Principles:

1. Voluntary Membership—Credit unions are voluntary, cooperative organizations that offer services to people willing to accept the responsibilities and benefits of membership without gender, social, racial, political, or religious discrimination. We operate as not-for-profit institutions with volunteer boards of directors. Members are drawn from defined fields of membership.
2. Democratic Member Control—Credit unions are democratic organizations owned and controlled by their members. One member equals one vote, with equal opportunity for participation in setting policies and making decisions.
3. Members’ Economic Participation—Members are the owners. They contribute to and democratically control the credit union’s capital. Credit unions typically offer better rates, fees, and services than for-profit financial institutions, so members recognize benefits in proportion to their financial transactions and general usage.
4. Autonomy and Independence—Credit unions are autonomous, self-help organizations controlled by their members.
5. Education, Training, and Information—Credit unions provide education and training for members, elected representatives, managers, and employees so they can contribute effectively to the cooperative. Credit unions place particular importance on educational opportunities for their volunteer directors and financial education for their members.
6. Cooperation Among Cooperatives—Credit unions serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national, and international structures.
7. Concern for Community—While focusing on member needs, credit unions work for the sustainable development of communities, including people of modest means, through policies developed and accepted by their members.

If you would like to chat more about the Cooperative Principles, please talk with one of our staff – we would love to talk more!