The National Credit Union Foundation (NCUF) and MEMBERS Trust Company, FSB have entered into a strategic alliance to expand options for credit unions to make charitable contributions to the Foundation through the Community Investment Fund (CIF). CIF is a way for credit unions to participate in and support the programs and services that NCUF and the state credit union foundations (SCUFs) provide.
With the goal of creating comprehensive giving options correlated to investment goals and risk, the alliance will give credit unions new alternatives which include an insured CD Custodian Account and a Part 703 compliant Investment Trust.
“Working with MEMBERS Trust Company is a natural fit for CIF and credit unions,” said Bucky Sebastian, NCUF Executive Director. “The alliance with MEMBERS Trust Company will also contribute to the long-term strategy of building a reliable and sustainable funding base to support our mission of promoting consumer financial independence.”
“We are excited to work with NCUF and credit unions on these new CIF options,” said Tom Walker, CEO of MEMBERS Trust Company. “More choices mean more flexibility for credit unions to make an investment and help support credit union development initiatives in their community, in their state and across America.”
NCUF and MEMBERS Trust Company are also finalizing details for another CIF option in the form of a Charitable Lead Trust. With this type of trust, NCUF will receive income payments for a fixed period of time after which the assets and any excess earnings over the annual income payments would be returned to the credit union unless a the term is renewed. The investments, as with the standard Charitable Lead Trust created for U.S. Foundations, would be allocated with bonds and equity securities.
For more information and/or to invest in CIF with MEMBERS Trust Company, contact Jason Ritzenthaler, CFA, CTFA, VP, Trust & Investments at MEMBERS Trust Company at 888-727-9191, Ext. 705 or Jason.Ritzenthaler@memberstrust.com.
How Does CIF Work?
Celebrating its 12th year, the Community Investment Fund gives credit unions the ability to leverage their investments to support innovative credit union programs. Credit Unions invest in a Community Investment Fund account (through a corporate credit union, MEMBERS Trust Company, or National Cooperative Bank). What happens then? Each quarter, half of the CIF dividends are returned to investing credit unions. Half of the CIF dividends are donated to NCUF. NCUF grants half of its NCUF dividend to each investing credit union’s state foundation or league. NCUF uses the remaining portion of the CIF dividend to support its national programs including:
To learn more about CIF, credit unions can contact their state credit union foundation, league or NCUF’s Resource Development & Donor Relations Director Josie Collins at firstname.lastname@example.org or at 800-356-9655, ext. 4397.
About MEMBERS Trust Company (memberstrust.com):
MEMBERS Trust Company, FSB is a special purpose savings bank chartered by the Office of Thrift Supervision and owned and managed by America's Credit Unions. The company was initially formed in 1987 by Suncoast Schools FCU and has $675 million in assets under management.
About the National Credit Union Foundation (ncuf.coop):
The National Credit Union Foundation is the US credit union movement’s primary national philanthropic program provider, fundraiser and grant-maker.
NCUF is funded primarily by investments in the award-winning Community Investment Fund (CIF) and by generous Supporters led by the Credit Union National Association, CUNA Mutual Group, Harland Clarke, CO-OP Financial Services, STAR, California & Nevada Credit Union Leagues, Card Services for Credit Unions, and Visa. All NCUF donors provide support that empowers NCUF and state credit union foundations to make a real impact in the credit union community.
NCUF continues to earn the Better Business Bureau seal of approval as an “Accredited Charity” for meeting all 20 BBB Wise Giving Alliance Standards for national charities.