The New York Credit Union Association board of directors unanimously decided Friday to give its credit unions the choice to join the association without requiring CUNA membership in 2016.
“As I shared with you previously, close to 80% of New York credit union leaders who responded to our membership survey supported choice in membership,” Bill Mellin, president/CEO of the New York association, said in an email letter to credit union members. “Today's action by the association board demonstrates a commitment to being responsive to our members and a move forward for this organization.”
The New York association became the fifth league to permit choice and its decision comes after the CUNA board of directors decided Thursday to modernize its bylaws to allow membership choice.
An intense, industry-wide debate began after the CUNA board voted to maintain its longstanding dual membership requirement in September despite a final recommendation from the CUNA System Structure and Governance Task Force to offer credit unions membership choice in CUNA and/or a league.
Following CUNA's decision, the boards for the Michigan Credit Union League, the League of Southeastern Credit Unions, the Ohio Credit Union League and the Carolinas Credit Union League voted to allow their credit union members to join their organizations without requiring them to join CUNA beginning in 2016.
Proponents of membership choice argued it creates accountability for both CUNA and state trade associations, allowing both organizations to improve the manner in which they produce results for their members. That accountability, in turn, also can increase membership engagement and advocacy on both state and federal levels, they said.
The Georgia Credit Union League and the California and Nevada Credit Union Leagues are also considering whether to allow membership choice.
Leagues that have publicly supported maintaining CUNA's dual membership requirement included the Utah Credit Union Association, the Wisconsin Credit Union League, the Cornerstone Credit Union League, the Mountain West Credit Union Association, the Northwest Credit Union Association, the Maine Credit Union League, the Credit Union Association of New Mexico and the Credit Union Association of the Dakotas.
Leagues that favor keeping dual membership argued a united front among state leagues, credit unions and CUNA is critical to support advocacy initiatives that will protect and advance the interests of the credit union movement.
The controversy stemming from the choice versus dual membership battle led CUNA President/CEO Jim Nussle and the CUNA board to reconsider the decision to keep the dual membership requirement.
After meeting Thursday, the CUNA board announced it would modernize its bylaws to accommodate membership choice and other matters.
The board also acknowledged there are new and growing expectations from credit union members, members of CUNA and the leagues, as well as demands for more direct accountability between credit unions and CUNA.
“Many forces of change have accelerated our decision-making cycle and increased the urgency to act,” Nussle said in a four-minute video explaining the board's decision. “Credit unions appropriately demand more value and options in how they affiliate with their associations.”
The CUNA board tasked its Corporate Governance Committee to modernize CUNA's bylaws, which will require approval from association members to be enacted.
“I want to recognize the CUNA board for their leadership in initiating the process to modernize their membership requirements,” Mellin said. “I also commend the association board for their leadership and the approach they took in responding to our members and working with CUNA to modernize membership requirements.”
The New York association board also reaffirmed its commitment to working with CUNA and others to position credit unions as the best financial partners for Americans, Mellin said.
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