Last month I got a call from Rein Whitt-Prichette, an Albuquerque artist. He heard about this thing called a credit union and needed information on how to start one. His vision is to have the First National Artists & Craftsmen financial cooperative. This would encompass everything from jewelers to actors to cabinetmakers to weavers. He asked if he had the right place and person.
I work at a trade association for credit unions. I’ve been in the movement for 30 years. I’ve never chartered a credit union. But, he had the right place and person. Our particular trade association was formed in 1955. Twenty years earlier Father E.J. McCarthy formed the first of many credit unions in our state. At the peak (1967) there were 141 credit unions here. Today there are 51.
I googled “How to Start a Credit Union.” The NCUA.gov page was very resourceful. I killed about 2 1/2 trees printing out the instructions and three-hold punched them into a nice big notebook. I even made a snappy cover page “How to Start a Credit Union.”
Then I met with Rein. He’s a man with a wonderful smile, and thoughtful eyes – he also looked to be on the verge of homelessness. Rein is not a hobby artist. Art is his life’s work – his job.
I googled Rein. He has pieces in the Albuquerque Art Museum. He illustrated a first edition book for the Franklin Mint. He’s an expert serigrapher. And this economy has kicked his ass. It’s hard to say how old he is, but I would venture to guess late 50s early 60s.
Rein is not pursuing this for his own interests. He has a simple list of goals:
- For artists and craftsmen to be recognized as business owners – not hobbyists. A bank, for instance, will make a loan to a peach farmer for next year’s crops – but not to an artist.
- For artists and craftsmen to have a place where they do not get charged $25.00 to receive a wire transfer (payment for a piece) and get charged $2.00 to make an ATM withdrawal.
- For someone to see beyond credit score (Rein does not have one – at all) and recognize the booms and busts that the art world experiences.
Before meeting with Rein I was prepared to refer him to one of our community chartered credit unions. And not in anyway to offend these open fields of membership but, let’s be perfectly honest – the chances that they will lend Rein money – no credit score and the only collateral is his art – zero.
So how about taking in the artists as a SEG with a select employer group credit union? That’s possible – but unlike the law firm, or the retail outlet or daycare centers we’re used to scooping up – artists don’t have paycheck stubs.
Then it hit me. There’s nothing to preclude them from starting a financial cooperative the good old-fashioned way. Or, as I like to call it “shoebox on a shoestring.”
Show of hands if your credit union started this way. Chances are, if you were chartered in the 1930’s your hand has to go up.
It was after the Great Depression. Credit Unions were growing at break neck speed. People with a common bond (and we are NOT talking lives works worships in a five county area) would pledge a portion of their pay to be held in a shoebox in a drawer. A ledger kept track of their shares. A credit committee, or a jury of their peers was formed. Loans were granted based on character, capacity, and collateral. Credit scores did no exist. Losses were minimal because of the shame of non-repayment. Early credit unions were like borrowing money from your friends and co-workers – only a little less awkward.
The average credit union in the 1930’s had 187 members. Many of those credit unions are still around today – over $1 billion in assets.
The billion dollar credit union of today is largely serving the steadily employed, A+ credit, low-risk, middle market member. Banks take care of the elite, high wealth population, and payday lenders are thriving with the underserved.
In this economy the middle class is shrinking – so are the number of credit unions. Sure, many offer payday alternative loans and courtesy pay products with less than loan shark level fees. But who’s taking care of the little guy? Who’s looking out for Rein?
My new year’s resolution is to find a way to pool the resources of the art community in New Mexico. Tourists come to the Land of Enchantment for the arts (and the green chile cheeseburger). An investment in the art community is good for our entire state. We can’t afford to lose the art of Rein.
I’ll keep you posted on this journey…
11 comments
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December 31, 2010 at 9:37 am
Kelley Parks
Happy New Year, Denise. I can’t think of a better new year’s resolution. Your post made me think of one of my favorite quotes “The greatest use of life is to spend it for something that outlasts it.” Thanks for the reminder. Cheers!
– Kelley
December 31, 2010 at 9:44 am
Denise Wymore
Thanks for the quote Kelley – that’s exactly why Rein is pushing so hard for this. It’s not for him – it’s for his discipline (art) that it may live on.
Cheers and Happy New Year!
December 31, 2010 at 3:17 pm
Matt Vance
Thanks for sharing this Denise. I look forward to learning more about yours and Rein’s journey. I can tell you now it’s not going to be an easy one but at least it’ll be one with purpose. This is the exact story/person CU’s need to be looking out for.
This exact story and your drive to complete it is why I’m so excited to have you getting your hands dirty again at the CU level. It may not be starting a credit union for Rein but it will be finding a home at a CU for Rein and other artists like him.
Cheers.
January 2, 2011 at 3:40 pm
Susan Epperson
Denise, I’m going to kill some trees, print this post a few times and hide it throughout my stuff. I want it to pop up and surprise me when I need to see it again.
In business jargon, what you’re doing is called “values-based leadership.” In my world, it’s called “putting good energy out into the world.” And from my short visit to NM several years ago, that state seems to be a place that cultivates good energy. I mean heck…the universe already connected you and Rein. I think the stars are aligning for you.
And I bet Matt is right, it’s not going to be easy. Big deal. Easy, schmeazy. The adventure itself will be worth all the effort.
Go Team Rein!
January 3, 2011 at 5:50 am
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January 3, 2011 at 7:33 am
sara stern
Community Credit Union has always been a friend to the artist community. We have a local Brevard Cultural Alliance that represents numerous artists. Our CEO was on their board for many years. CCU gives them a $100 just for becoming a member of our cooperative, AND we display their art on our walls through the Art in Public Places Program. The art refreshes our walls each quarter. We blog about the artists on our Facebook page and we allow members to finance art through our signature loan program. We also participated with a team in the BCA Sand Sculpture contest held in famous Cocoa Beach with international artist participating. Just some ideas to add to your thought process for how credit unions can help their local art community.
January 3, 2011 at 8:07 am
Dee Edie
Denise,
How wonderfully exciting to be starting a new credit union! In this day and age of merging credit unions to gain some worthy purpose it seems, it is comforting and refreshing to see the need for a startup. God bless you and Rein on your journey.
January 3, 2011 at 8:51 am
MB
I had the opportunity to meet Rein too. I was struck by his vision of what he wanted for fellow artists and how much it matched the ideal vision/philosophy/mission of credit unions as I have learned them since becoming part of Credit Union Land. People helping people. A financial cooperative. A financial institution that looks at the individual, not just numbers and stats.
Rein is a credit union purist, and he didn’t even know it. On a small scale, he set up a cooperative with his students, helping all of them to buy some special equipment they needed.
Having lived in New Mexico for more than 35 years and knowing the extent of the artists and craftspeople community in the state, I think this credit union has great potential. And we’re not just talking about people who paint pictures. Look at the booming film and TV industry in our state. The list of ‘artists and craftsmen’ covers a huge range from the visual artists, to filmmakers, to musicians, to actors.
Places like Santa Fe, Old Town Albuquerque, Taos, Mountainair and Las Vegas (New Mexico, that is, where I lived for 20 years) all have booming art communities and businesses based on the arts. New Mexico has been home to countless artists in many disciplines, from the amateur to the famous.
I think Rein’s idea’s time has come. I wish him success.
January 7, 2011 at 12:10 pm
Aaron
There’s supposed to be a kick-off gathering this Tuesday the 11th, but I don’t know when or where. Please let me know, I would like to attend.
January 7, 2011 at 1:44 pm
Denise Wymore
Hi Aaron,
There is a gathering on the 11th at 7:00pm
Cell Theatre
700 1st St. NW
Albuquerque, NM
January 12, 2011 at 6:19 am
Matt Davis
Using the credit union model to solve problems for people no one else is solving? That’s certifiably Desjardinsian…err Wymoreian…err it’s freaking awesome. I too believe that things happen for a reason, and am glad you paid attention enough to answer the call.
As always, let me know if I can help in any way.