Local service and concern for community can mean many things for a credit union, including affordable and appropriate financial products and services for members, as well as community leadership, collaboration, stewardship and charitable giving. As not-for-profit financial institutions, a credit union's main focus is on the financial lives of its members. When thinking about your credit union's philanthropic efforts, think about the connection and the link to your members' and community members' financial lives.

Need an example? 1st Financial Federal Credit Union in St. Louis lives and breathes the concern for community principle. The credit union centers everything it does on improving the financial lives of those in its community.

The philanthropic work that 1st Financial does in its community is focused on three areas: Job training, education and sustainable housing. The credit union ensures that its community giving is strategically aligned with its mission as an organization, and as a result the credit union is seeing higher ROI. For example, the credit union successfully brought down the average age of its membership and increased loan volume, loan yield, capital and product per household.

“We used to see philanthropy as a way to just support local non-profits. We focus now on philanthropy as what we believe is cutting checks to ourselves, and what that means is we are investing more in ways to provide financial access to people … providing really impactful and valuable products, services and programs to people who desperately need them,” Laura Woods, vice president of marketing and community presence for 1st Financial, said.

One of the amazing things the credit union has done through its community giving was providing all kindergarteners enrolling in St. Louis public schools and charter schools with a savings account for post-secondary education. Through a partnership with the Treasurer's Office, a $50 deposit is made into each of the incoming kindergartners' accounts each year; they also receive financial incentives for attendance, financial education participation and adding funds to their account. The credit union has created members for life and is helping improve the financial futures of the next generation, which is a win-win! The Foundation is a supporter of children's savings accounts and actually funded a grant in 2014 with CFED to look at the opportunities for credit unions in this area. 1st Financial is a great example of how this opportunity is working. You can learn more about 1st Financial and its community giving in a recent episode of “Murmurings,” a Foundation podcast at ncuf.coop/podcasts.

Philanthropic giving is an example of the “secret sauce” that so many credit unions do day in and day out. Changing the framework for how we think about community giving not only positions your credit union as a philanthropic leader in the community, but it yields a high ROI. Check out the Foundation's Philanthropy Toolkit at ncuf.coop/resources for more information on how creating strategic partnerships in the community helps highlight part of that secret credit union sauce that makes a positive difference in so many people's financial lives.

Gigi Hyland is executive director for the National Credit Union Foundation. She can be reached at 202-824-6282 or [email protected].