The Credit Union Difference - More Than You Think!

The Credit Union Difference 

Not for profit, not for charity, but for service  

Credit unions are not-for-profit financial cooperatives, owned by the people who save and borrow there. Every member has the right to vote on policies and for members of the credit union board.  The majority of credit union boards are made up of volunteer members.       

Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders.  Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.   

By current federal statute, credit unions cannot serve the general public.  People qualify for a credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.  

Our critics often claim that credit unions “don’t pay taxes.”  Credit unions do pay taxes – payroll taxes, sales taxes, and property taxes.  Congress exempts credit unions from federal income taxes.  The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998 in H.R. 1151, the Credit Union Membership Access Act, which states:  

Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means.
 

Our Credit Union  

Horizons Federal Credit Union has its headquarters facility at 120 Main Street, Binghamton, NY, and a branch office at 141 Washington Ave., Endicott, NY. It has over 11,000 members and $64 million in assets. Horizons FCU, formerly the U.S. Employees Federal Credit Union, was established in Binghamton in 1937 to allow postal employees to lend money to each other. Business was transacted on the workroom floor of the post office with employees helping each other in the true spirit of the credit union movement.  In the early years, only federal employees and members of their immediate families were allowed to join. Since that time the credit union has added smaller credit unions through the merger process.  

The name was changed to Horizons FCU in 1999 to better identify it with the community and the diverse group it served. In August 2000, Horizons FCU was granted a Community Charter, which allows any person who lives, works, worships or attends school in Broome County, NY, to join Horizons FCU.

Our credit union provides basic financial services including share drafts (checking), share accounts (savings), loans, mortgages, etc. But, we also do a lot more. Some of the unique services we offer include:    

 

Our Commitment to Serving Our Members — We Make the Difference  

Credit unions exist to help people, not make a profit. Our goal is to serve our entire membership well, including those of modest means. We also reach out to members or potential members who are un-served or underserved.   

Members at Horizons Federal Credit Union can open an account for $5. Right now we have over 2,800 members with account balances less than $10. All those members have access to the following full range of financial services.  

The Federal Reserve estimates the minimum profitable loan to be $2400.  Horizons made a number of these loans in the last two years.

We work with members who may have had difficulty in obtaining credit elsewhere. During the last two years, we have made mortgage loans to individuals who were turned down by other financial institutions.
 

Our Commitment to Financial Education & Literacy  

Promoting financial literacy has been a primary mission of credit unions since they were established.  Edward A. Filene, the father of the American credit union movement in 1908 said, “Credit unions are educational institutions.” Our intent is to teach people wise money management skills they can use to make their entire lives better.  

Horizons FCU is committed to member and consumer financial education. In addition we are committed to educating members and consumers alike about credit union uniqueness, philosophy and values.  

We mail a quarterly newsletter to every member that includes information on financial topics. The newsletter is also made available to anyone who visits our lobby or requests a copy.  We also have a bulletin board and 28 pocket display booth in our Headquarters Lobby that contains information on a variety of credit union and financial subjects.  

Credit Unions offer members budget and financial counseling as a routine matter. Horizons FCU also offers and/or participates in the following special programs that promote financial education and literacy:    

For six months, Horizons FCU has been contacting local High Schools in an effort to promote NEFE’s Financial Education Program.  Response has been slow, but we are continuing to pursue this worthwhile program.

 

Our Commitment to Good Governance and Diversity  

Credit unions exist to serve all members equally, with dignity, respect and consideration.  We strive to serve everyone who needs financial services within our membership and to be sensitive to the individual needs of the various cultures we serve.   

Horizons helps preserve credit union demographic principles, including demographic representation and volunteer participation in all credit union activities.  We recognize the value of demographic diversity in our staff and volunteers.  We strive to bring people of diverse backgrounds and experiences into leadership and other roles at our credit union.  

Horizons Federal Credit Union works to build and strengthen our unique credit union movement by providing financial and in-kind resources to others within the credit union community, and by actively advocating the credit union difference at all levels of government and in other appropriate public forums. In addition, Horizons Federal Credit Union participates in local, state and national cooperative activities as appropriate, and strives to build and strengthen relationships with other sectors of the national cooperative movement.  

Horizons FCU promotes its commitment to Good Governance and Diversity in the following ways:

   

Our Commitment to Community & the Credit Union Movement  

Credit unions don’t just exist to provide financial services—we provide financial services for the purpose of improving lives.  While our first responsibility is to our members, part of being a cooperative movement means looking beyond our walls to the larger community.  This philosophy leads us to support worthwhile charitable and social causes, and to work with other credit unions.    

Through direct financial support or other in-kind contributions to worthwhile local organizations, and by participating in public service activities, Horizons Federal Credit Union strives to be an active partner in our community. We recognize that practicing good Corporate Citizenship supports the Credit Union Philosophy of People Helping People; furthermore, it will help raise the overall level of social and economic well being of those in our community, help to strengthen ties within the community and better position us to reach out and serve - as only credit unions can to those people in greatest need of affordable financial services.

The following is a list of community organizations who have received financial or other in-kind support or sponsorship from Horizons FCU in the past year:  

 



120 Main Street, Binghamton, New York 13905
141 Washington Ave., Endicott, New York 13760
(607) 724-5876
info@horizonsfcu.com
www.horizonsfcu.com

                                                                                                                                                    

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