The Michigan Credit Union League (MCUL) and its wholly owned, for-profit subsidiary, CUcorp, both exist to help credit unions grow, thrive and meet the needs of their members. The fact that MCUL and CUcorp are separate entities reflects existing tax laws and the need to account for tax-exempt transactions separately from taxable transactions.
MCUL/CUcorp financial statements are prepared on a consolidated basis reflecting the manner in which credit unions are actually served by their League. The charts and financial information below consolidate the financial activities of both MCUL and CUcorp.
(1) For 2003 membership fees are net of 40 percent membership dues reduction. For 2004, and as a result of strong stock market conditions, an 80 percent membership dues reduction was given to credit unions which reduced MCUL’s membership dues to $419,000.
(2) MCUL’s net loss of $1,973,000 is attributed to unrealized losses on the MCUL’s stock portfolio.
(3) As a result of strong stock market conditions, MCUL’s net gain of $3,473,000 includes realized and unrealized gains on investments of $4,320,000.
(4) MCUL’s loss of $1,492,000 included a one-time dues reduction of 80 percent, a donation of $750,000 to the newly formed Michigan Credit Union Foundation research fund and $280,000 in special initiatives such as small credit union support, chapter support, cooperative advertising and on-line learning programs.
(5) MCUL’s planned loss for 2005 of $2,481,000 includes membership dues reduction of 24 percent or $500,000, an initiative for cooperative advertising of $1,000,000 and $192,000 in special initiatives such as on-line learning, small credit union support and credit union business service programs.
(6) MCUL’s net gain for 2006 of $247,000 includes permanent membership dues reduction of 40 percent, an initiative for cooperative advertising of $300,000 and $178,928 in special initiatives such as on-line learning and smaller credit union support. In 2007, the MCUL Board of Directors elected to put an additional $900,000 into the cooperative advertising initiative.