The 6th Principle of Co-operation recognizes that co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, regional, national and international structures. And yet, credit unions and other co-ops rarely take advantage of opportunities to work together across sectors to grow our businesses, benefit our members, and influence policy makers. Presentation by Erbin Crowell, Neighboring Food Co-op Association Executive Director, and Jon Reske, VP of Marketing at UMASS Five College Federal Credit Union.

1. Cross-­‐Sector
Collaboration
&
The
Co-­‐operative
Decade
American Association of Credit Union Leagues
Summer Meeting // Thursday, 1st Aug 2013 // Boston, MA
INTERNATIONAL CO-OPERATIVE ALLIANCE
BLUEPRINT FOR
A CO-OPERATIVE
DECADE
JANUARY 2013

2. Our
Opportunity
The 6th Principle of Co-operation
recognizes that co-operatives serve
their members most effectively and
strengthen the co-operative movement
by working together through local, national,
regional and international structures…

3. Our
Challenge
…and yet, credit unions and other
co-ops rarely take advantage of opportunities
to work together across sectors to
grow our businesses, benefit our
members, and influence
policy makers.

4. Core
Questions
1. Why collaborate across sectors?
2. What are the challenges and
opportunities for collaboration?
3. How can we take advantage of the
momentum of the Year of Co-ops and
the Co-operative Decade?
4. Is regional cross sector collaboration an
opportunity for Credit Union Leagues?

5. Outline
1. Our Context & Opportunity
2. A Credit Union’s Perspective
3. Food Co-ops’ Perspective
4. Challenges & Opportunities
5. Small Group Dialog

6. Our
Context
&
Opportunity
• Crisis of our economic system
• Unemployment & inequality
• Diminished democracy
• Corporate influence
• Instability & change
• Hunger for alternatives
 Local, democratic, values based, sustainable, etc.

7. Co-­‐operative
Principles
• Voluntary & Open Membership
• Democratic Member Control
• Member Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Collaboration among Co-operatives
• Concern for Community

8. Co-­‐operative
Values
• Self-Help
• Self-
Responsibility
• Democracy
• Equality
• Equity
• Solidarity
• Honesty
• Openness
• Social
responsibility
• Caring for others

9. A
Flexible
Model
• Credit Unions
• Food co-ops
• Agricultural & fishery co-ops
• Insurance co-ops
• Industrial & service co-ops
• Energy & utilities
• Housing co-ops
• Artisan co-ops

10. 2012:
International
Year
of
Co-­‐ops
Co-ops “in their various forms, promote
the fullest possible participation in the
economic and social development of all
people...”
United Nations Resolution 64/136
December 2009

11. A Flexible Model
• Credit Unions
• Food co-ops
• Agricultural & fishery co-ops
• Insurance co-ops
• Industrial & service co-ops
• Energy & utilities
• Housing co-ops
• Artisan co-ops

12. Co-­‐ops
Build
a
Better
World
“Co-operatives are a reminder to the
international community that it is possible to
pursue both economic viability and social
responsibility.”
UN Secretary-General Ban Ki-moon

13. International
Year
of
Co-­‐ops
UN Goals for the Year:
• Increase public awareness about co-ops.
• Promote formation and growth of co-ops.
• Encourage government policies, laws and
regulations conducive to the formation, growth
and stability of co-ops.

14. Co-­‐ops
Are
Successful
• Scale
• Competitive
• Resilient
• Innovative
• Relevant
Ontario Co-op Association // ontario.coop

15. Co-­‐ops
Have
Impact
• 1 billion co-op members worldwide*
• 100 million employees worldwide**
• 29,000 co-ops in the U.S.
• U.S. co-ops hold $3.1 trillion in assets
• 1 in 3 Americans are members
* More than directly own stock in publicly traded corporations
** More than employed by multinational corporations.

16. A
Co-­‐operative
Decade?
“The real opportunity is turning the
International Year of Co-operatives into a
Co-operative Decade, with the goal of the
co-operative being the fastest-growing
model of enterprise by 2020.”
Charles Gould, Secretary General
International Co-operative Alliance
www.ica.coop/en/blueprint
INTERNATIONAL CO-OPERATIVE ALLIANCEBLUEPRINT FOR
A CO-OPERATIVE
DECADEJANUARY 2013

17. • Environmental degradation
• Unstable financial sector
• Global governance gap
• Disenfranchised younger generation
• Loss of trust in political & economic
organizations
Global
Challenges…
INTERNATIONAL CO-OPERATIVE ALLIANCE
BLUEPRINT FOR
A CO-OPERATIVE
DECADEJANUARY 2013

18. Co-ops are a Better Business Model
because…
• Participation through ownership,
• Economic, social and environmental
sustainability,
• Places people at the heart
of economics.
…Co-­‐operative
Solutions
INTERNATIONAL CO-OPERATIVE ALLIANCE
BLUEPRINT FOR
A CO-OPERATIVE
DECADEJANUARY 2013

19. • Elevate participation to a new level
• Co-operatives as builders of sustainability
• Build the co-operative message & identity
(positioning)
• Legal frameworks for co-operative growth
• Reliable co-operative capital that also
guarantees member control
Strategy
for
a
Co-­‐operative
Decade
INTERNATIONAL CO-OPERATIVE ALLIANCE
BLUEPRINT FOR
A CO-OPERATIVE
DECADEJANUARY 2013

20. Strategy
for
a
Co-­‐operative
Decade
Sustainable
Business
Legal
Framework
Co-op
Capital
Member
Participation
Co-operative
Identity

21. The UMassFive
“Co-op” Brand
A Credit Union Perspective

22. To Co-op or not to Co-op
UMassFive
has
always
supported
the
co-­‐operative
movement
and
has
positioned
itself
as
a
non-­‐
pro9it
9inancial
co-­‐operative
established
to
serve
it’s
member-­‐owners
Over
the
past
15-­‐20
years
the
credit
union
has
actively
tried
to
position
itself
as
such
in
the
marketplace.

23. What our members said…

24. Main Financial Institution (MFI)
 About
65%
of
respondents
have
their
primary
checking
account
at
UMassFive.
 Among
those
who
do
not
use
UMassFive
MFI,
four
banks
were
identi9ied
by
more
than
5%
as
their
MFI:
 Bank
of
America
 Florence
Savings
Bank
(FSB)
 TD
Bank
 Easthampton
Savings
Bank
(ESB)
Us e
UMas s F ive
as
MF I:
Yes
65%
No
33%
Don't
know
/
refused
2%

25. Credit Union vs. Bank
 Overall,
the
9indings
indicate
that
UMassFive
members
feel
having
an
account
at
UMassFive
is
signi%icantly
different
from
having
an
account
at
a
bank.
 Speci9ically,
75%
of
UMassFive
members
said
it
is
signi9icantly
different,
and
only
17%
said
it
is
not.
 In
addition,
8%
were
unable
to
answer
the
question.
Yes
75%
No
17%
Don't
know
8%

26. Non-profit Financial Cooperative
 Overall,
UMassFive
members
feel
they
have
at
least
some
understanding
of
what
a
non-­pro<it
<inancial
cooperative
is.
Speci9ically,
52%
of
members
feel
they
know
fully
what
this
statement
means,
and
43%
feel
they
know
somewhat
what
it
means.
4%
did
not
understand
the
statement.
 Overall,
when
provided
with
a
description
of
a
non-­pro<it
<inancial
cooperative,
members
indicate
that
this
has
a
highly
positive
impact
on
their
image
of
UMassFive,
with
82%
saying
it
has
a
very
positive
impact
and
15%
saying
it
has
a
somewhat
positive
impact.
Don't
understand
statement
4%
S omewhat
understand
statement
43%
Fully
understand
statement
52%
Don't
know
0%
Negative
0%
No
impact
4%
S omewhat
positive
15%
Very
positive
82%

27. Member Owner
 The
majority
of
UMassFive
members
knew
that
by
having
an
account
at
the
credit
union
they
were
owners.
Speci9ically,
63%
of
members
knew
this,
and
37%
did
not.
 Overall,
members
feel
being
an
owner
has
a
positive
impact
on
their
experience
with
UMassFive,
with
43%
saying
it
has
a
very
positive
impact
and
35%
saying
it
has
a
somewhat
positive
impact.
Aware
Was
Owner:
No,
was
not
aware
37%
Yes,
was
aware
63%
Impact
of
Owners hip:
Don't
know
2%
Negative
0%
No
impact
19% S omewhat
positive
35%
Very
positive
43%

28. Member Advocacy
 Most
UMassFive
members
do
perceive
of
staff
as
member
advocates
with
their
best
interests
at
heart.
 We
then
asked
members
how
valuable
this
is
to
them
as
members.
 Most
members
feel
that
having
UMassFive
staff
as
member
advocates
is
valuable,
with
67%
saying
it
is
very
valuable
and
most
of
the
remainder
(23%)
saying
it
is
somewhat
valuable.
S hare
Perception
of
S taff:
Y es
71%
No
7%
Don't
know
22%
How
Valuable
to
Members:
Very
valuable
67%
S omewhat
valuable
23%
Not
valuable
2%
Don't
know
7%
Respondents
read
the
following:
“UMassFive
strives
for
its
staff
to
be
member
advocates,
offering
advice
and
guidance
that
is
in
the
best
interest
of
members
regardless
of
the
impact
it
has
on
the
credit
union.”
We
then
asked
respondents
if
they
share
this
perception
of
UMassFive
staff.

29. College
students
are
likely
to
keep
their
accounts
at
UMassFive
after
they
graduate.
Speci9ically,
57%
said
they
are
very
likely
and
24%
said
they
are
somewhat
likely
to
keep
those
accounts.

30. Co-ops make for Good SEG’s
Retail
Deposit
Balance
Average
River
Valley
Co-­‐op
Market:
$21,995
General
Membership:
$14,337
Retail
Loan
Balance
Average
River
Valley
Co-­‐op
Market:
$23,076
General
Membership:
$22,498

31. Co-ops make for Good SEG’s
Percent
of
Households
with
Retail
Loans
River
Valley
Co-­‐op
Market:
43.7%
General:
43.1%
Single
Service
River
Valley
Co-­‐op
Market:
9.3%
General:
21.5%

32. A
Food
Co-­‐op
Perspective
A food co-op is a
co-operatively
owned grocery
store, owned and
governed by its
members.

33. Food
Co-­‐ops
&
Innovation
• Community ownership
• Healthy foods
• Organic industry
• Fair trade
• Local economies

34. Food
Co-­‐ops
&
Local
Economies
• Democratic ownership & control
• Focus on meeting needs before profit
• Develop local skills & assets
• Ability to assemble limited member resources
• Address challenge of business succession
• Low business failure rate & are long-lived
• Difficult to move or buy-out
• Separate community wealth from markets
• Mobilize member loyalty…

35. Co-­‐ops
&
Credit
Unions
Build More stable, participatory,
resilient and productive local
economies.

36. Neighboring
Food
Co-­‐op
Association
“Our vision is of a thriving regional
economy, rooted in a healthy, just and
sustainable food system and a vibrant
community of co-operative enterprise.”

37. Neighboring
Food
Co-­‐op
Association
• Regional 2nd Level Co-op
(similar to a CU league)
• 35 Co-ops & Start-Ups
• 80,000 memberships
• 1,500 employees
• $29 million in wages
• $200+ million revenue
• $30 million in local
purchases
http://nfca.coop/members

38. Co-­‐ops
&
CUs
in
the
Northeast
New England & New York
• 8,860 co-ops
• 9.5 million members
• Employ 55,000 people
• $2 billion in wages
• $100 billion in assets
• $14 billion in revenue
http://reic.uwcc.wisc.edu/
http://nfca.coop/co-opeconomy

39. Cross
Sector
Collaboration
• Cross-Sector
Collaboration: Promoting
Co-operative Difference
• New England Farmers
Union: Food Policy & Co-
op Advocacy
• Producer & Worker Co-
ops: Sourcing & Education
• Valley Co-op Business
Association: A Model for
Cross Sector Collaboration

41. Value
Added
• Members see themselves as part of
something bigger
• Partners that “get it”
• Peer professional support
• Access to shared resources
• Legitimacy as business model
• Influence policy & advocacy
• Educational institutions

42. Challenges
&
Opportunities
• Education
 Limited understanding of history & impact of our movement.
• Philosophy
 Do we have confidence in our model and movement?
• Expectations
 We have high standards for each other.
• Mainstream business influence
 We are encouraged to think like individual businesses.
• Development models
 Focus on isolated businesses, not development of systems.
• Sector & Industry Silos
 We rarely act together as a movement or system.

43. Co-­‐operative
“Silos”
Producer
Co-ops
Food
Co-ops
Credit
Unions
Worker
Co-ops
Energy &
Utilities
OtherCo-
ops
Cross Sector Collaboration

44. • Vocational school in 1956
• 256 co-ops & subsidiaries
• $20 billion in Sales (‘11)
• 84,000 employees (‘11)
• Largest domestic grocery
• Cross sector: Industry,
financial, agriculture,
education, tech, etc.
• Integrated credit union
Mondragón,
Spain

45. • 4 million people
• 8,000 co-ops
• 30-40% of GDP
• 2/3 are members of co-ops
• Vibrant local traditions and
food culture
• Strong sectors combined with
an integrated, cross sector
movement
• Integrated credit unions
Emilia
Romagna,
Italy

46. Shared
Characteristics
• Strong co-operative identity
 Co-ops & credit unions as community assets
• Development guided by co-ops
 Emphasis on co-op to co-op business
• Integrated Financial Sector
 Capital for growth and development
• Regional cross-sector associations
 Supported by sector based organizations

47. Bridging
Sector
Divides
• Shared history
• Common values & principles
• Basic business model
• Collective economic impact
• Cross sector business
• New models for collaboration
• A common message

48. A
Common
Message
Co-ops & Credit Unions…
• …put people before profit,
• …are democratic,
• …are rooted in community,
• …are innovative,
• …are successful,
• …are resilient, and
• …build a better world.

49. Toward
the
Decade
of
Co-­‐ops
• Seeing the co-op landscape
 Opening the dialog with other sectors
• Focus on shared identity & impact
 Values, principles, history, structure, impact
• Start with those that “get it”…
 …and others will follow
• Immediate opportunities for collaboration
 Educate members, marketing, engage policy makers
• Collaboration as economic driver
 Innovation, business development, growth

50. Why
Bother?
• Access markets & committed members
• Share capital & resources
• Raise the profile of co-ops & credit unions
• Influence policies and legislation
affecting co-ops & credit unions
• Engage educational institutions
• Grow our co-ops & credit unions

51. Some
Questions
for
You
• Do you buy it? Does cross sector
collaboration benefit credit unions
and their members? Why or why
not?

52. Some
Questions
for
You
• Strategically, what is the most
compelling opportunity for cross
sector collaboration?

53. Some
Questions
for
You
• How can credit union leagues take
a leadership role in cross sector
collaboration and add value for their
members?

54. Contact
Erbin Crowell
Neighboring Food Co-op Association
erbin@nfca.coop
www.nfca.coop/iyc
Jon Reske
UMASSFive College Federal Credit Union
jreske@umassfive.org
www.umassfive.org