...contact Josie Collins, Director of Resource Development & Donor Relations at 800.356.9655 x4397
Investing in Your Community Through Credit Unions
What is the Community Investment Fund?
NEW! Charitable Lead Trust CIF Option Offered from NCUF & MEMBERS Trust Company
In an alliance with MEMBERS Trust Company, FSB, the National Credit Union Foundation (NCUF) has expanded its Community Investment Fund (CIF) options to include a Charitable Lead Trust, commonly used by foundations across the country. CIF is a way for credit unions to participate in and support the programs and grants that NCUF and the state credit union foundations (SCUFs) provide.
With the new Charitable Lead Trust option, NCUF will receive annual payments calculated as a percentage of the market value of the assets held in the trust for a three- to five-year period. Unless donor credit union elects to renew the trust at the end of this payout period, the remaining assets in the trust will be returned to the credit union.
Community Investment Fund Supports National & State Initiatives
The Community Investment Fund (CIF) is the National Credit Union Foundation's primary funding mechanism for national and state programs benefiting credit unions and their members.
There are three partnership programs:
CIF with National Cooperative Bank(NCB)
Visit www.cifwithncb.coop to learn more and to invest.
MEMBERS Trust Company offers three investment options: 1) Charitable Lead Trust - NCUF will receive annual payments calculated as a percentage of the market value of the assets held in the trust for a three- to five-year period. Unless donor credit union elects to renew the trust at the end of this payout period, the remaining assets in the trust will be returned to the credit union. Click for more information
2) CIF Investment Trust – a conservatively managed 703 permissible funds portfolio. The minimum recommended investment is $500,000. 3) CIF CD investment - fully FDIC insured up to $50,000,000. The minimum recommended investment is $250,000. How is it insured up to $50 million? MEMBERS Trust Company is a participant in the CDARS network. When CUs make a CD investment with MEMBERS Trust Company, they earn one rate and receive one statement, but their deposit is split among enough participating banks to ensure the full interest and principal is below the $250k FDIC limit. There is sufficient liquidity and participation in the program to offer full FDIC coverage up to $50 Million.
CIF with Corporate One Click here to learn more and to invest (for Ohio & New Jersey CUs).
Traditional CIF with Corporate Credit Union Network
Contact your corporate to make an investment or a designated corporate such as Corporate One.
IMPORTANT UPDATE: As of October 2010, only 90-day investments can be made in the traditional CIF. Credit unions who want to make new CD investments are encouraged to invest in CIF with NCB or CIF with MEMBERS Trust Company to support our critical programs and grants. Also, note that credit unions in Ohio can invest with Corporate One.
Current 2-Year CD traditional CIF investments are guaranteed by NCUA’s Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP). Credit unions who still want to support their state foundations and the National Credit Union Foundation but want to withdraw their money out of traditional CIF can do so but will have to pay an interest penalty.
DESIGNATED FUNDS:
National Credit Union Foundation & State Foundations (General Fund)
Investors in CIF donate half of the dividend to the National Credit Union Foundation. NCUF in turn dedicates half of its portion to national programs:
• REAL Solutions®, empowering credit unions to offer new services that are proving effective in serving consumers who are struggling to save or build assets;
• Credit Union Development Education, promoting cooperative principles and credit union philosophy to make a positive impact in communities around the world;
• Financial Education Grants, encouraging credit union innovations that can be replicated by credit unions nationwide to serve emerging markets;
• CUAid.coop, supporting the nationwide disaster relief system to raise donations to provide relief to credit union employees and members.
• Educate credit union employees and volunteers; • Educate credit union members and potential members; • Support new credit unions, small credit unions, or community development credit unions; • Extend credit union services to their full fields of membership; • Fund affordable housing projects; • Enhance league projects with similar missions; • Build a statewide credit union disaster relief reserve.
For this unique way of distributing charitable donations, the Traditional CIF with the corporate credit unions earned the Association of Fundraising Professionals’ Award for Excellence in Fundraising.
Credit unions can participate in this donor-designated fund by contacting their corporate credit union to direct an investment in the Traditional CIF. Print the Commitment Form.
Credit unions can participate in this donor-designated fund with NCB. Go online to CIF with NCB.
Callahan Legacy Fund
In 2009, following the death of Ed Callahan, the Callahan Fund’s namesake, NCUF’s board of directors voted to replace the fund with the Callahan Legacy Fund. The board appointed a committee to assist in determining the financial education project this fund will support. Currently, the fund supports the PBS series Biz Kid$. Credit unions can elect to have the half of the NCUF dividends shared as followed:
1. 50% national program and 50% to state foundation 2. 75% national program and 25% to state foundation 3. 100% national program and 0% to state foundation.
Credit unions can participate in this donor-designated fund only with NCB. Go online to CIF with NCB.
International Development Fund Supports Initiatives Abroad
The National Credit Union Foundation (NCUF) and the World Council of Credit Unions, Inc. (WOCCU) established the International Development Fund (IDF) as a donor-designated fund through the Community Investment Fund (CIF).
The IDF is a unique investment option for those interested in supporting international credit union development. As with all CIF investments, interest generated by the IDF will be split between the investing credit union, NCUF, and the investor's state credit union foundation or league. NCUF’s portion of the return will be directed into the IDF for international credit union development through WOCCU.
Funds raised by the IDF will help educate credit union employees and volunteers; conduct internship programs and exchange visits of international credit union leaders; build international credit union partnerships and provide public education initiatives related to consumer finance. Funding also will assist with IRnet (International Remittance Network) installations of member credit unions outside of the United States.
When credit unions designate the International Development Fund the donated dividend is disbursed as 42.5% directly to the particular fund, 42.5% to the credit union’s state foundation or league and 15% to NCUF to support its programs and services.
Credit unions can participate in this donor-designated fund by contacting their corporate credit union to direct an investment in the Traditional CIF. Print the Commitment Form.
Credit unions can participate in this donor-designated fund with NCB. Go online to CIF with NCB.
Pete Crear Fund Helps AACUC Deliver on its Promise
The National Credit Union Foundation (NCUF) and the African-American Credit Union Coalition (AACUC) established the Pete Crear Fund (PCF) as another donor-designated fund through the Community Investment Fund (CIF). The PCF will directly support AACUC initiatives to expand and sustain credit union development programs through financial education, minority internships, and small credit union assistance.
When credit unions designate the Pete Crear Fund the donated dividend is disbursed as 42.5% directly to the particular fund, 42.5% to the credit union’s state foundation or league and 15% to NCUF to support its programs and services.
Credit unions can participate in this donor-designated fund by contacting their corporate credit union to direct an investment in the Traditional CIF. Print the Commitment Form.
Credit unions can participate in this donor-designated fund with NCB. Go online to CIF with NCB.
Credit Union Development Education Fund Supports DE Training Program
The National Credit Union Foundation (NCUF) established the Credit Union Development Education (DE) Fund as another donor-designated fund through the Community Investment Fund (CIF). This fund will directly support:
Annual training programs focusing on credit union philosophy, cooperative principles, and credit union development
Aid international credit union and small credit union staff so they may attend development education programs
Strengthen cooperative social responsibillity within the credit union movement.
When credit unions designate the Credit Union Development Education Fund the donated dividend is disbursed as 42.5% directly to the particular fund, 42.5% to the credit union’s state foundation or league and 15% to NCUF. NCUF’s portion of the return will be directed into the Credit Union Development Education Fund.
Credit unions can participate in this donor-designated fund by contacting their corporate credit union to direct an investment in the Traditional CIF. Print the Commitment Form.
Credit unions can participate in this donor-designated fund with NCB. Go online to CIF with NCB.
Disclaimer - NCB and the corporate credit union system have an agreement with NCUF to provide you with the CIF Investor Program mechanism for contributing a portion of your earnings (interest) from your deposits in those institutions. NCUF is not legally affiliated with NCB or the corporate credit union system and is not a party to the agreement between you and those entities related to the CIF Investor Program. NCUF makes no representations or warranties regarding NCB or the corporate credit unions and is not responsible for monitoring their operations.
Investors in CIF donate half of the dividend to the National Credit Union Foundation. NCUF in turn dedicates half of its portion to national programs: