For more than a century, credit unions have provided a community-based, cooperative alternative to for-profit banks. While that legacy remains strong, today it’s under pressure.
America’s Credit Unions’ “Don’t Tax My Credit Union” campaign is not just about defending credit unions’ tax status. It's a call to action to protect the future of people-focused financial services.
Cornerstone League stands with hundreds of thousands of credit union champions urging every credit union leader, staff member, and member-owner to engage. Because the consequences wouldn’t just affect credit union operations—they'd harm millions of Americans who rely on credit unions for trusted, affordable financial services.
Why credit unions are tax-exempt
Credit unions don't receive tax exemptions because of size or political favor—they earn it through their structure and mission. As not-for-profit, member-owned financial cooperatives, credit unions reinvest earnings into better rates, lower fees, and stronger community service. Their governance is democratic, their mission is purpose driven, and their operations fill a vital role in financial inclusion.
Yet, banking industry lobbyists persist in challenging that exemption, arguing that modern credit unions are too similar to banks. That argument ignores the reality: credit unions continue to serve underserved communities, working families, and local entrepreneurs in ways that banks do not.
What happens when credit unions are taxed? Look abroad for the answer
We don't need to speculate. We can look to other countries for real-world consequences.
Australia: A cooperative model undermined
In 1994, Australia eliminated the tax exemption for its credit unions to create a “level playing field” with banks. The result? An 80% decline in the number of credit unions due to forced consolidations and conversions to mutual banks.
In 2013, Michael S. Edwards, the then-vice president of advocacy and general counsel for the World Council of Credit Unions, told the Credit Union Times, “Australia is working from a unified rule book that sees no difference between credit unions and banks, and many of the larger credit unions now refer to themselves as banks. Supporters call it a level playing field, but the taxation burden seems to be hurting small credit unions.”
As smaller credit unions folded, access to affordable services in rural and underserved communities shrank.
Poland: A short-lived tax exemption
Initially granted tax-exempt status in the early 1990s, Polish credit unions saw that benefit revoked just two years later. Today, they’re taxed at 19% corporate income tax plus 23% Value-Added Tax (VAT).
Rafal Matusiak, president of Poland’s National Association of Cooperative Savings and Credit Unions and WOCCU board director, said at the 2025 GAC:
“Many years ago, we had a tax exemption, but now the Polish credit unions pay taxes based on the same rules and regulations as our banks.”
The result? A steep decline from 400 credit unions to just 53.
Uganda: Advocacy on the rise
I recently returned from a week in Uganda, where SACCOs (Savings and Credit Cooperative Organizations) are preparing for the expiration of their 10-year tax reprieve. The advocacy efforts there are intensifying, as these institutions know firsthand what’s at stake.
I was invited by ACCOSCA (African Confederation of Cooperative Savings and Credit Associations) to share best practices in advocacy. The parallels between their movement and ours are striking. Cooperatives worldwide are rallying to protect their tax-exempt status because they understand how vital it is to survival and mission.
After seeing their fight up close, I returned to the U.S. more energized than ever to continue the domestic battle—because protecting credit unions here strengthens our global cooperative movement.
What's at stake in the U.S.
Here at home, more than 140 million members rely on credit unions. Our not-for-profit model returns an estimated $19 billion in annual financial benefits to members through better rates and lower fees. Credit unions support small businesses, offer financial literacy programs in schools, and provide vital access to credit.
If Congress revokes credit unions’ tax exemption:
- Loan rates and fees will increase
- Small credit unions may close
- Rural and underserved communities will lose access
- Consumer choice and financial equity will shrink
Edwards once warned, “What happened to the savings and loan industry is what would happen to credit unions. Without the corresponding broad investment powers of for-profit institutions, we would get crushed.”
We cannot allow that to happen.
The time to act is now
“Don’t Tax My Credit Union” is more than a slogan. It’s a line in the sand. Every credit union leader, employee, and member must take ownership of this fight:
- Activate your membership: Encourage members to visit donttaxmycreditunion.org to contact their representatives. Use in-branch signage, emails, and digital banners to drive engagement.
- Join a fly-in or legislative meeting: There is no substitute for personal engagement. Lawmakers remember stories, not statistics.
- Collaborate: Meet with local officials. Write op-eds. Host community events. Build coalitions with other cooperatives, nonprofits, and advocacy groups.
- Tell your story: Share real-world examples of member impact. Did you help someone avoid payday lending? Help a teen open their first savings account? Those are the stories that change minds—and votes.
This is our moment
The idea that taxing credit unions will “level the playing field” is deeply flawed. The result would be a mass exodus of cooperative values from our financial system—and the erosion of trust and equity in communities that need us most.
From Uganda to Poland, Australia to here at home, the story is clear: when credit unions are taxed, they don’t just change—they vanish. And we cannot let that happen.
Now is the time to raise our voices, share our stories, and make it undeniably clear to lawmakers: Don’t Tax My Credit Union.
