Unhoused and Unbanked

How Credit Unions Support the Unhoused and Unbanked

Credit unions are committed to fostering economic stability and prosperity in the communities they serve which includes supporting unhoused populations. Recognizing the barriers that prevent access to housing, financial services, and opportunities for growth, credit unions provide vital resources, financial education, and direct assistance to those in need. Credit unions take proactive steps to address these barriers and provide meaningful support for those experiencing homelessness and financial instability.

In recent years, many credit unions have focused their efforts on addressing the needs of the unhoused and unbanked populations—groups that face significant barriers to financial stability and economic growth. Through a combination of donations, grants, financial education, and partnerships with local organizations, credit unions are working to provide both immediate relief and long-term solutions for individuals experiencing homelessness.

What They Do To Help

Monetary Donations and Fundraising: Credit unions host donation drives, charity events, and fundraising campaigns to support local non-profit organizations that provide shelter, food, health care, and other essential services to homeless individuals. These are often raised through a credit unions’ member networks or directly contributed by the credit unions themselves. Whether it’s hosting a holiday fundraiser or organizing a community service day, credit unions leverage their resources and their community connections to generate impact.

Financial Education and Empowerment: Credit unions offer financial literacy programs and coaching that teach essential skills such as budgeting, saving, managing debt, and rebuilding credit. Through partnerships with local shelters and community organizations, credit unions provide workshops and one-on-one coaching sessions for unhoused individuals, helping them understand how to regain control of their financial lives and work towards stability.

Supporting Local Services and Job Placement Programs: Credit unions help unhoused individuals gain the skills, resources, and confidence to find and maintain long-term employment and housing. By working together with local organizations and individuals, credit unions are building stronger, more inclusive communities where everyone has the opportunity to thrive.

Why Credit Unions Are Well-Positioned to Help

Credit unions have always been rooted in community and member support. Unlike traditional banks, credit unions are not-for-profit organizations that prioritize the well-being of their members. This cooperative model allows credit unions to be more flexible and creative in their approach to solving social issues, including homelessness and financial exclusion. By leveraging their resources, expertise, and deep ties to local communities, credit unions are uniquely positioned to help bridge the gap for unhoused and unbanked individuals.

Success Stories

These success stories illustrate how credit unions are addressing homelessness by providing not only financial resources but also critical services, housing solutions, and community support. Through their collaborative efforts, credit unions are helping unhoused individuals rebuild their lives and contribute to stronger, more resilient communities.

• Winona Nava: 2023 Herb Wegner Memorial Award Winner – The National Credit Union Foundation: The Foundation’s Development Education (DE) program provides financial education and coaching sessions programs to homeless shelters, and providing income support and justice programs to other community locations.
• 2021 DE Day of Service Recap – The National Credit Union Foundation: GECU’s Development Educators participated in the sixth annual DE Day of Service by volunteering to put together health and wellness packages and deliver them to the Opportunity Center for the Homeless. Each care package included items essential for everyday health care.
• Seattle’s Newest Housing Hero: Credit Unions – Next City: Seattle’s unhoused population is steadily growing. To mitigate this the Washington State Department of Commerce projects that the state needs to add 1.1 million homes over the next 20 years, and more than half of them need to be affordable for low-income residents. With the support of multiple Washington Credit Unions, the Evergreen Impact Housing Fund will support the developments of low-income housing projects.
  
• Credit Unions Brighten the Lives of Kids & the Homeless – Credit Union Times: Hanscom Federal Credit Union presented a $10,000 cash raffle prize to benefit the Cooperative Credit Union Association’s Massachusetts Coalition for the Homeless Build a Bed Project.
• UW Credit Union Makes a Difference – The Road Home: UW Credit Union supports The Road Home, a non-profit organization serving unhoused individuals in the Madison, WI community. For several years, UW Credit Union has sponsored two major events: Families Moving Forward Celebration and our Homes for Families Breakfast. They also provided a $65,000 grant for case management and rental assistance. In addition, they have donated donated school supplies and backpacks for kids in the summer programs.
• Fighting homelessness: Credit unions in the community – American Banker: Montana’s Credit Unions banded together in support of the Montana Veterans Foundation at the Power Up conference. The efforts raised money to assist homeless veterans.
• Credit Unions Support the Arts, Food Banks & the Homeless – Credit Union Times: The SECU Foundation, the charitable arm of Raleigh, N.C.-based State Employees’ Credit Union, provided the Hospitality House of Northwest North Carolina with a $40,000 grant to help expand programs and services to help the homeless in Northwest North Carolina. Last year, the non-profit provided over 147,000 meals and approximately 40,000 nights of housing, counseling and critical services to those in need.