Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Gift cards as meeting incentive NCUA says yes but...
ALEXANDRIA, Va. (12/16/10)—In a legal opinion released this week, the National Credit Union Administration (NCUA) advised a federal credit union that sought to increase participation at its yearly meeting by giving $25 gift cards to members in attendance. According to the letter, the credit union believed that the gift card giveaways could increase meeting participation at a lower cost than similar giveaways such as free meals. The NCUA found that the gift card giveaway meets a federal credit union’s incidental powers authority, which holds that certain activities are permissible when it is “convenient or useful” to the performance of one of the credit union’s express powers. However, the NCUA said, “while the use of a gift card incentive is generally permissible under a federal credit union's incidental powers authority, a gift card incentive may be objectionable on safety and soundness or corporate waste grounds. “Any incentive offered by a federal credit union to increase participation at its annual meeting must be reasonable,” the NCUA added. The incentive should not be used to influence the outcome of a vote, if there is a vote held during the meeting, the NCUA added. The NCUA cited another credit union’s use of a prize raffle as evidence that the gift card giveaway would be permissible, However, the NCUA added, while the final cost of the raffle was determined in advance, the cost of the gift card giveaway may be less predictable. Specifically, the credit union cannot predict how many members will end up attending the annual meeting. In light of this potential cost variability, it is up to the credit union’s examiner and the NCUA’s regional director “to determine if the proposed $25 gift card incentive is objectionable on safety and soundness or corporate waste grounds,” the NCUA said. For the full letter, use the resource link.
Other Resources

RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
37 minutes ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
5 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
5 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
7 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
7 hours ago