Let’s make this happen!
To get this new community organizing credit union open we need to raise, through donations, our start-up and operating expenses for the first few years.
We are partnering with Cooperative Development Services (CDS) to raise the money for these expenses through their 501(c)(3), the Cooperative Development Fund of CDS. See below for more details.
How to give online
Our donation form below is embedded here from the CDS GiveMN page, so you will need to take an extra step:
In the “Tribute or Memorial Dedication” box (on the second step of the form), you will need to write Riverwest.
This ensures that CDS knows the donation is for our effort in the 53212 zip code, and not for another worthy project. After you have made your donation, please complete this for form (click here) and send it to the address below – or contact us and we will get one to you.
After you donate . . .
Your donation may appear on your card statement as “K Give MN”.
How to donate by check or money order
We would gladly accept checks, money orders, or other forms of payment for donations. However you donate, make sure to complete this form. Make all checks or money orders to “Cooperative Development Fund of CDS,” then contact us or send any letters to:
New Economy Credit Union Organizing Committee
P.O. Box 72093
Milwaukee, WI 53212
The credit union needs to raise donations to support its initial operation before it becomes profitable, and other start-up costs. Many new businesses will seek investment money from Wall Street fatcats to support their initial operation. With Wall Street investment comes Wall Street control. Our credit union will be owned by the people of the 53212 ZIP Code, not Wall Street.
After the credit union opens, it will begin making loans, and generating income from interest on the loans. The credit union will be a self-sustaining business at that point. We will have expenses on day one, but no income – that’s why we need to raise money.
Our partnership with Cooperative Development Services
The Riverwest and Harambee Credit Union Organizing Committee is partnering with Cooperative Development Services (CDS) of Saint Paul, Minnesota, to raise the money to meet our operational and start-up needs. We are doing this through their non-profit charity, the Cooperative Development Fund of CDS.
The Cooperative Development Fund of CDS is a 501(c)(3) charity, and your donation is tax-deductible. The address of the Cooperative Development Fund of CDS is 145 University Avenue West, Suite 450, St. Paul, MN 55103, and their EIN is 39-1540529. CDS is helping our community out tremendously, so make sure to check out their website here to see all the good work they do!
The credit union has over $525,000 pledged for initial deposits, but that will not be used for start-up or operating costs. The credit union will need operational money for things like rent, wages, internet, association dues, and the general cost of operating a business. We also have costs before we open: conducting a market survey, printing materials, and other costs. The credit union will be in the best financial position by receiving donated money for its start-up, although we can get some start-up money from what are called Secondary Capital Deposits, where a special account is created to allow the credit union to use those deposits for operations. These deposits are initially counted on the credit union’s books as equity, not as a liability. For more information on Secondary Capital, see NCUA regulations here and here. Donated money, however, will put us in the best position possible, because that is money we do not have to pay back.
Once the credit union becomes profitable, it will be able to operate independently without donations. The Committee will be seeking donations of supplies, materials, and money. The Committee will also be seeking money from foundations, organizations, credit unions and other co-ops, too!