RED BANK, N.J. - With the federal credit union tax exemption back under national scrutiny, The Curchin Group is urging New Jersey credit unions to treat strong governance, transparency, and fraud prevention as their most effective protection, not only in operational terms but in the political debate over the exemption itself.

The exemption survived the budget reconciliation bill signed into law on July 4, 2026, a result credit union advocates credited to a nationwide grassroots campaign. But the issue has remained in the spotlight. Community banking groups renewed their opposition after another out-of-state credit union acquired a tax-paying community bank, and a widely reported embezzlement scandal at a federal credit union, where a former chief executive allegedly diverted roughly ninety-five million dollars, has fueled calls for credit unions to file the same public disclosure returns as most other tax-exempt organizations.

"The headline is that the exemption held, but the real story is that the terms of the debate have changed," said Carolyn Giunco Kvalo, CPA/CGMA, CFE, Managing Partner of The Curchin Group. "The argument against credit unions is shifting from tax policy to accountability. That is actually an area credit unions control. The institutions that can demonstrate rigorous oversight and clean examinations are the ones best positioned, both operationally and politically."

The firm notes that the accountability argument, more than the tax argument, is the one individual credit unions can directly influence. Every credit union governs its own internal controls, supervisory committee oversight, board education, and fraud prevention, and those are precisely the areas opponents are now spotlighting.

The Curchin Group recommends that credit unions focus on several priorities in the current environment:

Strengthening supervisory committee examinations and internal control reviews

Treating fraud prevention as a strategic priority, including segregation of duties and independent review

Investing in ongoing board and volunteer education on financial reporting and emerging fraud risks

Preparing to demonstrate transparency, whether or not new disclosure requirements become law

Approaching mergers and growth with the regulatory and reputational climate in mind

The Curchin Group has served New Jersey credit unions for decades and has been recognized as Associate Member of the Year by the National Association of Credit Union Supervisory and Auditing Committees. The firm's credit union practice provides audits, supervisory committee examinations, internal control and internal audit support, board and volunteer training, forensic accounting and fraud investigation, bond claim assistance, and merger support with valuation services, and works with the National Credit Union Administration on examinations, mergers, and fraud matters.

"Our message to credit unions is simple," Kvalo added. "Run so well that your accountability is never in question. That protects your members, and it protects the exemption that lets you serve them."

For more on what the renewed scrutiny means for the industry, read Curchin's companion analysis: The Credit Union Tax Exemption Is Under Renewed Scrutiny. Credit unions seeking guidance on governance, examinations, or fraud prevention can reach The Curchin Group at (732) 747-0500 or info@curchin.com.

About The Curchin Group

The Curchin Group is a certified public accounting and advisory firm based in Red Bank, New Jersey, serving the region for more than 60 years. The firm provides audit, tax, and advisory services to credit unions, family businesses, healthcare organizations, nonprofits, and small businesses, with specialized practices in forensic accounting, business valuation, estate planning, and succession planning. Learn more at https://www.curchin.com.

Email: ppfister@curchin.com

Media Contact

Name
The Curchin Group, LLC
Contact name
Peter Pfister
Contact phone
(732) 747-0500
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200 Schulz Drive, Suite 400
City
Red Bank
State
NJ
Zip
07701
Country
United States
Url
https://www.curchin.com/