Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Charitable Donation Proposal Tweaks Could Improve Participation: CUNA
ALEXANDRIA, Va. (10/22/13)--While the National Credit Union Administration's proposed creation of hybrid charitable and investment vehicles "will allow federal credit unions to do well by doing good," the Credit Union National Association Monday recommended a few changes that could improve the proposal. The changes would "facilitate credit union participation without raising safety and soundness concerns," CUNA said in a comment letter to the agency.
 
The NCUA plan, introduced at the agency's September open board meeting, would limit total investment in charitable donation accounts (CDAs) to 3% of the credit union's net worth for the duration of the accounts. A minimum of 51% of the total return from such an account would have to be distributed to one or more qualified charities. Distributions could be made to qualified charities no less frequently than every five years.
 
These CDAs will allow federal credit unions to make investments that are otherwise prohibited, provided that the proceeds are primarily for charitable purposes. This would facilitate a federal credit union's charitable activities by allowing investments that could generate a higher return, CUNA wrote.
 
Changes recommended in the CUNA comment letter include:
  • Making the limitations on a federal credit union's aggregate contributions to CDAs more flexible by specifying the net worth limitation be measured at the time of purchase or placement of the investment in the CDA and at the time of any subsequent additional investment and raising it from 3% to 5% of net worth;
  • Making CDA disbursements on an annual basis;
  • Allowing corporate credit union to take part in CDAs;
  • Eliminating U.S. Securities and Exchange Commission registration requirements for Office of the Comptroller of the Currency-supervised entities that manage CDAs for federal credit unions. Such a change would prevent redundant regulatory oversight; and
  • Allowing credit unions to recover their costs so that these do not impact the total investment return.
For the full CUNA comment letter, use the resource link.
Other Resources

CUNA Comment Letters
RSS print
News Now LiveWire
Access to Affordable Mortgages Act passed by Hse Fin Serv. 31-23.CUNA says bill gives CUs reg relief & incr. access to mortg credit.
38 minutes ago
Bill sponsor said will support amndmt to incl. NCUA in the study & delay the agency's risk-based capital plan b4 full House vote. 2of2
46 minutes ago
Bill directing banking agencies to study appropriate capital requirmnts for mrtg servicing assets for nonsystemic banks clears committee1of2
49 minutes ago
The .@FinancialCmte passed #HR4042 and #HR5148 this morning. Both are reg. relief bills and have the strong support of @CUNA
51 minutes ago
FHFA today announced it's extending comment deadline for guarantee fees Fannie, Freddie charge lenders to Sept. 8.
17 hours ago