Phase I: Fundraising for Initial Organizing Operations
Successful proposal and organizing of the credit union will entail engaging the support of a diverse array of interested parties. Such parties will include policymakers, decision-makers, financial sponsors, and business leaders; also the engagement of individual constituent members of non-profits and residents of communities – the potential membership.
Engaging and maintaining relationships with these varied audiences will benefit from various outreach tools, including a website, a CRM to memorialize partnerships and relationships, design software to create media & documents, and a budget to accommodate the future print & digital survey distribution costs.
Estimated Total Cost of Organizing the LGBTQ Credit Union: $90,000-238,000
- Full-Time LGBTQ Credit Union Organizer (1-3 years): $65,000-195,000
- Surveying & Outreach costs: $25,000-43,000
- Fixed Costs: $16,000, including:
- Paper Survey Production & Distribution
- Print & Media Advertising
- Operations & Equity Fundraising Costs
- Annual Costs: $9,000/yr, including:
- Website, hosting, email
- (Co-working) Office & Meeting Space
- CRM Platform
- Survey Platform & Analytics
- Fixed Costs: $16,000, including:
Funding for organizing the credit union is anticipated to be achieved through one, or a combination of, the following:
- A one-time grant funding organizing and materials for 1-3 years (three years being the maximum time NCUA estimates the process to require).
- Additional grants, as needed, to cover marketing & outreach costs or additional salary for the organizer’s role.
- Pledged “in-kind” support from coalition partners in the form of office space, marketing collateral, marketing production & distribution costs, health benefits, or other resources which would reduce or eliminate organizing costs.
- Donated community support from interested individuals and businesses.
Join the Movement for Fair Financial Services:
If you are a grantmaking or philanthropic concern interested in making a contribution to support our organizing effort to create ground-breaking financial services to improve the economic well-being of LGBTQ communities, please email us by clicking the button below.
If you are a donor interested in making a contribution to support our organizing effort, you can donate using the button below. Unfortunately, this time contributions to the organizing effort for the LGBTQ Credit Union are not tax deductible, though we hope this will change soon.
Phase II: Equity & Operations Fundraising
We are not currently seeking funding to support credit union operations or for equity at this time. Only after the proposal and acceptance of the PFCU by the NCUA and the delivery of a membership survey, but not before, will it become possible to adequately scope the size of the potential membership of the credit union, and produce the data needed to understand how much operating and equity funding is needed.
Like all businesses, the LGBTQ credit union will have to purchase facilities, computers, and equipment for its operations. In addition to these costs for doing business, it is customary for financial institutions to hold a certain amount of liquid cash reserves which can meet depositors needs and reduce financial risk (equity).
At banks, equity is supplied by investors and lenders–but because a credit union is a nonprofit, all the funds for its equity will be donated by philanthropists, grant-makers, and even by individuals.
You can learn more about the organizing and fundraising steps in our full proposal: