By Stacy Augustine

Accountability is more than a checkbox. It’s a principle: a commitment to being in conversation with the people you serve. For credit unions working in community development, especially those with a CDFI designation, accountability means actively listening to and learning from your members. Not just because the CDFI certification requires it (which it does), but because it’s the right thing to do. 

And even further than that, being accountable to your members can be a valuable strategic advantage.

That’s why CDFIs and, in fact, all credit unions, should give advisory boards a closer look. It’s true that many CDFI credit unions in the process of re-certifying are finding that forming an advisory board is the most viable way to demonstrate accountability—in other words, that they represent their Target Markets. 

But here’s the benefit that comes from that: credit unions that embrace advisory boards as more than compliance tools get much more than certification. They get better insight, stronger partnerships, smarter products, and a deeper connection to their members.

Where to Start

Let’s start with what the CDFI Fund requires: every CDFI needs to demonstrate accountability to its certified Target Market(s). This accountability can be demonstrated through the credit union’s own board of directors. 

However, if the board doesn’t already meet the CDFI Fund’s standards for accountability, an advisory board can fill in to meet these requirements. For example, if the credit union’s Target Market is made up of low-income consumers and most of the credit union’s board of directors aren’t considered low-income, an advisory board that includes representatives from organizations that serve low-income consumers can fill in that gap. Examples might include employees who work at the United Way or Catholic Family Services.

Here’s the point: even if you’re not required to establish an advisory board—or aren’t even interested in CDFI certification—what better way to understand your members than to hear directly from them or organizations that serve them?

A Standing Focus Group

An advisory board is, at its best, a standing focus group. It’s a real-time barometer of your community’s needs. Want to know if your loan policies are working? If your marketing is connecting? If your services are truly reaching the people you aim to serve? Ask your advisory board. They’ll tell you. And they’ll tell you before the data shows up in your quarterly report.

But the value goes beyond feedback. Advisory boards are sounding boards for innovation. Thinking about launching a new loan product or financial education initiative? Run it past your advisory board. Its input can help you fine-tune design, spot unintended barriers, or identify opportunities you hadn’t considered. It’s like having a built-in community research and development team—one that’s aligned with your mission and invested in your success.

Advisory board members bring lived experience. That’s not something you can replicate with a survey. And you very well may find your next director among them. Serving on an advisory board is often a proving ground for future leadership. It gives community members a way to get involved, understand your mission, and contribute in meaningful ways. In turn, you build a pipeline of potential board members who are engaged, aligned, and already up to speed.

Time for Some Honesty

Let’s be honest: many credit union boards, especially those that began as with narrow SEGs, don’t always reflect their current membership. As fields of membership expand, advisory boards are a direct response to that reality. They ensure that governance doesn’t become disconnected from the community. They build trust. They make your mission visible.

That visibility matters. When members see people like them involved in leadership conversations, it changes how they see the credit union. It makes them more likely to engage, to borrow, to stay. Advisory board members often become some of your strongest advocates. They talk about your work. They bring people in. They build bridges between your institution and the communities you serve.

Tapping the Expertise

Another benefit is the community connections credit unions can strengthen in the course of recruiting advisory board members. We’ve seen credit unions tap into local nonprofits, small business owners, faith leaders, educators. These are the people who know what’s happening on the ground. They know which services are missing. They understand barriers to access. They know who’s not being served—and why. In short, they can make your credit union smarter.

They also make your credit union more agile. As market conditions change and community dynamics shift, your advisory board helps you stay ahead of the curve. Their observations, questions, and ideas can be the early signals that allow you to adapt before you fall behind. In an industry shaped by regulation, competition, and technology, that kind of agility is invaluable.

At CU Strategic Planning, our north star is unlocking opportunities for credit unions to change lives and communities. Advisory boards do exactly that. They translate community insight into strategic action. They keep you rooted in your mission. And they remind all of us why we do this work.

Becoming Stronger

If your credit union is navigating the new CDFI accountability standards, yes, you may need an advisory board. But more importantly, you and your members both deserve one. And your community will be stronger for it.

So don’t settle for compliance; aim for connection. Advisory boards are an opportunity. And if done well, they just might be the smartest investment your credit union makes this year.

Stacy Augustine is president of CU Strategic Planning. For info: www.custrategicplanning.com.