If you’re looking to be sure your money is being used in ways consistent with your values, credit unions are worth considering.
Credit unions originated in 19th-century Europe to serve working-class people who had limited access to banking services. Today, they operate globally, with over 85,000 credit unions serving more than 375 million members worldwide.
According to the Minnesota State Commerce Department, the purpose of a credit union is to promote thrift among its members and provide access to credit at legitimate interest rates. While this mission is important, it only scratches the surface. Credit unions are cooperatives—enterprises owned and operated for the benefit of those who use their services. They are considered a pure form of cooperative, operating mutually on both sides of the financial market. Licensed to serve all their members—both savers and borrowers—credit unions are member-owned, democratic, not-for-profit institutions that typically operate at the local level.
These qualities support environmental protection and help strengthen democratic engagement. Without shareholders demanding maximum returns, credit unions are not pressured to invest in harmful industries like pipelines, oil rigs, or large-scale mining operations. As a result, they rarely fund fossil fuel projects. Instead, their investments tend to focus on small businesses and community development initiatives. The returns on these investments benefit members directly, often generating symbiotic cycles of local economic growth.
In terms of democracy, change often begins at the grassroots level. Credit unions embody this principle: every member has a stake and a voice. With a transparent governance structure, members can track where their money goes and vote on the credit union’s priorities. Many even advocate for environmental initiatives within their institutions, promoting policies aligned with sustainability. This democratic approach has led some credit unions to adopt explicit sustainability charters—offering green loans (e.g., for solar panels or electric vehicles) or paperless banking options to reduce environmental waste. You can find information on local credit unions offering green loan programs here.
How to Join a Credit Union
If credit unions offer so many benefits, how does one become a member? Historically, membership was limited by specific eligibility criteria known as “field of membership” requirements. For example, the first credit union in Minnesota served only postal workers in Minneapolis—membership was based on occupation and location. Today, eligibility may still include:
- Employment at a particular company or agency
- Residence in a certain geographic area (city, county, region)
- Association with a church, labor union, or alumni group
- Family connection to an existing member
- Educational affiliation (school, college, or university)
However, many credit unions have broadened these criteria. Some allow anyone to join by first becoming a member of an affiliated organization—often a charitable group—for a small one-time fee (typically $5–$25). If you’re interested in a specific credit union, visit their website or contact them directly to learn about eligibility.
Conclusion
When it comes to aligning your money with your values, credit unions cannot be beat. That said, some community banks also uphold high ethical standards and community-focused missions. For example, Sunrise Banks is a Certified B Corporation in Minnesota with strong sustainability commitments. Considering this, it’s less about where you go than what you leave behind.
Soon, we will share information on how to “break up” with your current bank and transition to a more values-aligned financial institution. As with any breakup, the process can be messy—but ultimately rewarding. Until then, check out our Move Your Money webinars on socially responsible banking and investing.