Comment period open for charitable donation accounts proposal
ALEXANDRIA, VA (June 1, 2023) — The 60-day comment period for stakeholders to submit comments on the NCUA’s proposed rule that would amend the charitable donation accounts section of the NCUA’s incidental powers regulation is now open. Comments must be received by July 31.
The NCUA Board, at its May 25 meeting, unanimously approved a proposed rule that would add “war veterans’ organizations” to the definition of a “qualified charity” that a federal credit union may contribute to using a charitable donation account. The Board approved the proposed rule noting the attributes of “veterans’ organizations” as defined by section 501(c)(19) of the Internal Revenue Code are aligned with the purposes of the current charitable donation account rule. A “qualified charity” is a section 501(c)(3) entity defined by the Internal Revenue Code and must be both a non-profit and be organized for a charitable purpose. The proposal also asks commenters if there are other groups, entities, or organizations the NCUA Board should consider adding to the definition of a “qualified charity” to inform potential future rulemaking in this area.
For more information or to submit a comment, go to https://www.regulations.gov/document/NCUA-2023-0043-0001.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
