Golden 1 Commits $10M to Sacramento, Calif., Neighborhood

Golden 1 Credit Union will be investing $10 million over the next five to 10 years in a high-poverty neighborhood in the credit union’s home city of Sacramento, Calif.

Golden 1 is the nation’s sixth-largest credit union with $20.5 billion in assets and 1.1 million members as of June 30.

Golden 1 began as a credit union for state employees, but now has a field of membership open to anyone living in the state. However, the bulk of its members are in the Sacramento area, which is why it chose to help a community in the metro area.

A Golden 1 news release said its decision to invest in the predominately minority Del Paso Heights was the result of years of research and collaboration with community leaders and residents “to increase financial inclusion, generate equitable opportunities and create pathways to generational wealth for historically marginalized people and communities.”

Golden 1 President/CEO Donna Bland said the Del Paso Heights neighborhood had been underserved for decades.

“Credit unions were founded on the values of equality, equity and helping one another. Del Paso Heights is a part of our community,” Bland said.

“These are our neighbors, our friends, and the children here are our future,” she said. “Businesses and leaders have a responsibility to help the most vulnerable members of their community live a life where they can contribute and thrive in a meaningful way.”

The credit union developed its plan by working with a community advisory committee made up of local leaders and residents.

The committee’s goals include making the Del Paso Heights neighborhood attractive, expanding support services, ensuring financial stability and generational wealth building, economic revitalization, and creating greater educational and workforce opportunities for youth.

“Directly engaging with members of the Del Paso Heights community helped us identify the largest neighborhood needs and how our investment could make the biggest impact,” Bland said.

In the initial funding, the credit union will be distributing about $5 million over five years through grants of at least $1 million each to four community organizations:

• Greater Sacramento Urban League to support economic development.
• Mutual Assistance Network to support financial education and coaching support for youth and adults.
• Neighborhood Wellness Foundation to support targeted physical and mental health support to Grant Union High School students.
• Roberts Family Development Center to support education, mentoring and other services for youth, young adults and families.

Erica Taylor, Golden 1’s vice president of communications, said Thursday the four groups were chosen because they have strong track records of success meeting needs in the community.

“We want to expand their capacity to do more of what they’ve already been doing,” she said.

The credit union has budgeted for the remaining $5 million to be spent over the next five to 10 years, but will wait to see what emerges as the best opportunities to make a difference in the community.

While the first grants are to support existing programs, Taylor said the remaining funds might be used for new programs.

In addition to the $10 million commitment, the credit union said it plans to open a new Financial Resource Center later this year in Del Paso Heights.

Taylor said the credit union wanted to focus on a small community where the credit union could make a difference.

“We can help move the needle here,” Taylor said. “We don’t have to wait for a government program. We can just go.”