...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! North Carolina SECU Invests $25 million in NCUF Charitable Lead Trust
State Employees’ Credit Union’s Board of Directors recently approved an investment not only to financially benefit its members, but also to benefit the National Credit Union Foundation (NCUF) and Carolinas Credit Union Foundation (CCUF). The not-for-profit cooperative is investing $25 million in a Charitable Lead Trust created by Members® Trust Company. The Trust will generate an approximate annual contribution of $125,000 each for NCUF and CCUF.
Charitable Lead Trusts are commonly used by donors to make charitable contributions, allowing the opportunity for donors to customize charitable gifts and investment plans. Under the terms of the NCUF Charitable Trust, MEMBERS Trust Company, FSB will act as the trustee and asset manager. Since 1987, MEMBERS Trust Company, FSB has been cooperatively owned and managed by Credit Unions across the United States, including State Employees’ Credit Union (SECU) as an owner. The investment in the NCUF Charitable Lead Trust was a nice fit for SECU, as two senior officials with the Credit Union serve the partner organizations. Mark Twisdale, Executive Director of SECU Foundation and SECU’s SVP of Human Resources serves as a NCUF Board member, and Bill Umphlett, SVP of Financial Advisory Services, currently serves the MEMBERS Trust Company Board.
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.
CIF with Alloya Click here to learn more and to invest. Eligibility – Capitalized members of Alloya Corporate FCU, 50-state availability Low Minimum – $1,000 to participate Income – Earn interest at market rates as you support CIF efforts
CIF with Catalyst Click here to learn more and to invest. Eligibility – Catalyst membership required Minimum investment - $10,000 Products - Catalyst certificate of deposit (strictly a CIF investment product) that features maturity options of six months, 12 months or 18 months. Other investment products include a 90-day notice account. Fixed rates based upon term, amount, and market conditions at time of purchase.
CIF with Volunteer Corporate Click here to learn more and to invest.
National Credit Union Foundation & State Foundations (General Fund)
Investors in CIF donate half of the dividend to the National Credit Union Foundation. NCUF in turn dedicates half of its portion to national programs:
• REAL Solutions®, empowering credit unions to offer new services that are proving effective in serving consumers who are struggling to save or build assets;
• Biz Kid$, an Emmy award winning national financial literacy initiative that teaches kids about money and business;
• 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.
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.
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 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.
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.