Economic forecasts predict a tough year ahead for charities, with individual donors struggling to maintain financial contributions. As nonprofits grow more reliant on corporate sponsorships, credit unions are uniquely positioned to step up (and thrive while they’re at it)—not only by supporting these organizations but by simultaneously strengthening their community connections, membership base, and even their business accounts.
Urgency means opportunity
Predictions for 2025 highlight financial strain on individual donors, whose contributions make up the largest share of U.S. charitable giving. Nonprofits will need to rely more heavily on corporate sponsorships to fill the gap. For credit unions, this creates both a responsibility and an opportunity: your nonprofit partners need you more than ever, and by supporting them, you also nurture relationships with their donor bases and potentially, the nonprofits themselves.
Strategies for growth through nonprofit relationships
1. Collaborate on mission-aligned programs
In a year when nonprofit budgets are stretched, collaborative programs are invaluable. Credit unions offer more than financial support by helping nonprofits achieve their goals in creative ways:
- Fund-matching campaigns: Amplify fundraising efforts with matching contributions, increasing donor engagement and credit union visibility.
- Integrated services: Provide in-kind services, like financial planning workshops or technology support, that directly benefit the nonprofit’s mission.
Collaborative initiatives not only support nonprofits but also open doors to business accounts.
2. Empower and inform your members
Your current members are already invested in many causes. Use this shared connection to strengthen loyalty and encourage them to become your advocates:
- Tell impact stories: Share narratives that highlight how credit union support has made a tangible difference.
- Provide tools: Giving back is important to your credit union and your members. You can be a hero to the membership by providing opportunities, tools, and resources for more effective and informed giving. This is a valuable piece of financial literacy!
- Showcase alignment: Make it easy for members to see how their values align with your credit union’s mission and actions.
When members see their values reflected in your actions, they naturally become advocates, sparking organic membership growth.
3. Target nonprofit donor audiences
Nonprofits maintain close relationships with their donor networks, making these audiences valuable connections, primed for credit union outreach. To effectively engage these donors:
- Collaborate on messaging: Partner with nonprofits to craft co-branded messages that highlight the credit union’s role in supporting the cause.
- Create donor incentives: Offer benefits for donors who become members, such as donation matching or deeper sponsorship.
- Utilize nonprofit channels: Leverage nonprofit newsletters, events, and social media to reach donor audiences directly. Don’t forget the councils of nonprofits! Banks are taking advantage of this broad reach, but most local and regional councils are lacking in credit union relationships.
By aligning with nonprofit donors, you build trust and expand your reach for memberization.
4. Don’t ignore the nonprofit’s banking needs!
Nonprofits often manage high-volume accounts for operational costs, grants, and donations. By offering services tailored to their needs—like low-cost treasury management, flexible lending options, and expert financial guidance—credit unions can position themselves as the ideal financial partner for nonprofits.
Strong relationships with nonprofit leadership increase your visibility and generate referrals, creating a ripple effect of growth.
In data reported to CU Social Good, credit unions were shown to be responsible for millions of dollars of giving in 2024, and the coming year brings new opportunities for credit unions to showcase their mission-driven ethos in action. The challenges of 2025 will demand creativity, compassion, and collaboration. By investing in strategic, reciprocal relationships with nonprofits, credit unions can deepen their community impact while attracting values-aligned members and business accounts.
