By Michelle Skinner, Communications Director

October is National Co-op Month, a month dedicated to raising awareness about our favorite business model that offers a trusted and proven way to do business and build communities — especially in Montana.

First of all, you may wonder why we’re celebrating National Co-op Month. Well, here’s a fun fact that you may not know. Credit unions are financial cooperatives. That’s right! They share all of the cooperative principles with your local electric or grocery co-op. That means big benefits for you as a member. Here’s more about what it means to be part of a co-op.

What Even Is a Co-op?

The International Cooperative Alliance defines a cooperative — or co-op — as “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.”

In other words, a co-op buys or sells products or services, but unlike other businesses, it’s owned by its members and doesn’t have to answer to outside stockholders. This lets them focus on the communities they serve and make decisions based on people rather than profit. It’s part of the credit union motto: People over profit.

Now that we have that covered, let’s dive into some common benefits of joining a financial co-op, AKA a credit union.

Membership is Ownership

At a credit union, you’re not just a customer; you’re a member. What’s the difference? As a member, you get to use your credit union’s services — like lower fees and higher rates on your savings and checking accounts — and you also get a say in how your credit union operates. Like all co-ops, credit unions are governed by a board of directors elected from the membership, by the membership. One member equals one vote, and everyone has an equal opportunity to participate in setting policies and making decisions. You can shape your credit union’s future just by getting involved.

Member and Community-focused

One of the unique perks of co-ops is that they are not-for-profit, meaning that they are created to serve their members, not outside investors. Since they are not focused on earning money for their stockholders (like for-profit financial institutions), credit unions can reinvest any profits they make back into their members and the communities they serve.

When it comes to members, this might mean lower rates on loans and higher rates on savings. But it might also mean more affordable fees and having access to free financial counseling or the option of skipping a payment without penalty.

When it comes to their communities, credit unions are all about service. From organizing volunteer efforts and donating funds back into the community to providing education and training opportunities for the people within their service area, credit unions find unique ways to support community organizations and make an impact locally.

Welcome One and All

Co-ops are for all people willing to accept the responsibilities and benefits of membership. No matter your race, gender, income, religion, or political views, you are welcome at your local credit union.

The Bottom Line

As you can tell, being a part of a co-op network can have many different benefits, but at its core, these networks are in place to uphold the value of “people over profit.” Their purpose is to give the people who live, work, and recreate in these communities a say in how their financial (and other) institutions serve their community. Happy National Co-op Month!