LAS VEGAS – Delegates of the California Credit Union League on Wednesday approved an assessment on member CUs for continuing a public advocacy program – albeit a stripped-down version.
The Nevada and California CU Leagues held their Annual Meeting and Convention here this week. At the NCUL’s business meeting Monday afternoon, delegates unanimously approved the program. At the California League’s business meeting yesterday, 4,382 votes were cast on the dues schedule and public advocacy assessment, with 4,256 for and 126 against.
For several years, the two leagues have approved a public advocacy assessment that is a mandatory payment on top of league dues. At the 2008 meeting in San Francisco, the assessment for the public advocacy program was slashed by 83% from 2007 in response to worsening economic conditions. The proposed assessment for 2010 was reduced again. CUs with $5 million or less in assets will not pay; those at $5 million to $15 million will be assessed a flat fee of $25; the fee increases to $50 for those with $15 million to $42 million in assets. Credit unions at $42 million and more will pay 0.0000047 times their assets, plus 0.047 times their number of members.
The public advocacy program was initiated in 2005 to reach out to both politicians and consumers to educate and build support. Focus group research had identified three primary hurdles: people don’t understand credit unions or don’t think they are pertinent to them, and/or they don’t think they can join. Early versions of the program included radio spots encouraging non-members to join a CU, and some of the funds were used toward grassroots political efforts. Spending on the 2010 version of the public advocacy campaign has been reduced to $1 million from $6 million, and from paid media to earned media. “We needed that savings for credit unions this year, but we also need to keep up the message,” said Bill Cheney, president and CEO of the two leagues. “We need to offer credit union industry leaders as spokespeople on important economic issues on radio and television.”
