The board elects officers from its own membership and appoints a supervisory committee. The credit union's net earnings from loan operations or other sources, except that portion of gross income set aside in a reserve account for loan losses, may be distributed to the members in the form of dividends. The board of directors of each federal credit union has wide latitude in determining the credit union's dividend rate and terms. Credit unions do not require outside financial support so there is no direct cost to a sponsor, including any employer whose employees organize a credit union. Many employers, however, find credit unions so beneficial in maintaining employee morale and well-being that they gladly provide space on the premises to serve as a credit union office.
Employers often allow employees to direct-deposit their paychecks into a credit union account.
Credit unions pioneered this convenient innovation. Experience shows this simplifies deposit operations and encourages more employees to use credit union services. Many employers permit employees time to conduct credit union business, especially during the first few months of its operation. The personnel office and the credit union can be mutually helpful in assisting employees to help themselves and in make the credit union an effective employee service organization. In fact, educating members to maintain responsible financial affairs is the third basic function of credit unions - the other functions are to promote thrift and provide credit.