New federal laws and regulations are changing the structure and face of the financial services industry. In this time of accelerating change, it is important to truly understand how credit unions are unique and different, and why we remain a necessary and extremely popular financial alternative for 78 million Americans. We exist to serve our members, not to make a profit. 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.
Credit unions do pay taxes - payroll taxes, sales taxes, and property taxes.
Congress exempts credit unions from federal income taxes. Credit unions are economic democracy. At a credit union, every customer is both a member and an owner. Volunteer Boards . Each credit union is governed by a board of directors, elected by and from the credit union's membership.