CUNA Mutual Group Foundation announces historic secondary capital investment through the Inclusiv Racial Equity Investment Fund
MADISON, WI (May 3, 2022) — Inclusiv and CUNA Mutual Group Foundation today announced the Foundation has committed to invest $1 million to build equity in credit unions led by and/or serving people of color through Inclusiv’s Racial Equity and Resilience Investment Fund (“the Fund”). The Foundation investment will facilitate secondary capital investments in minority designated and CDFI credit unions over the next decade.
This marks an important next chapter in the longtime collaboration between CUNA Mutual Group and Inclusiv. “Over the past two decades, CUNA Mutual Group has consistently supported the mission of Inclusiv promoting financial inclusion in underserved communities through credit unions,” says Cedric Ellis, Executive Vice President & Chief Enterprise Services Officer of CUNA Mutual Group and Chair of the Foundation Board. “With this investment, we will be aligning the investment strategy of the Foundation with the DEI goals of the company and build on the legacy of credit unions led by leaders of color.”
The long-time Inclusiv – CMG relationship deepened during the pandemic as the company forged a strategic partnership with Inclusiv providing targeted training, technical assistance, data analytics support to help credit unions orient their work and services toward low-income and communities of color. In the past two years, this collaboration has driven the number of certified CDFI credit unions to an all-time high of 476 institutions with a primary mission and predominant business activity targeting low-income and distressed areas. This has unleashed millions of dollars of credit union lending to people and communities previously excluded from the financial mainstream.
The Racial Equity Investment Fund, launched in 2020, deploys secondary capital to expand economic relief and to remove barriers to services for credit unions that are led by and/or serve communities of color. Secondary capital builds institutional net worth, enabling credit unions to leverage deposits and to increase lending to minority-owned businesses, homeowners, and consumers. Credit unions can expand their impact in providing access to capital and new financial opportunities to people who are traditionally underserved and underbanked.
“This investment from CMG Foundation is groundbreaking. Together we are growing the necessary capital to help credit unions address systemic inequity in financial service to low-income and communities of color,” says Cathie Mahon, Inclusiv’s President and CEO. “Secondary capital represents a huge opportunity for credit unions and their members in the years ahead. We believe this commitment from CMG Foundation will pave the way for more industry secondary capital investments enabling minority designated and CDFI credit unions to grow members, lend more deeply in their communities and grow the net worth for their institutions and the members and communities they serve.”
About CUNA Mutual Group
Built on the principle of “people helping people,” CUNA Mutual Group is a financially strong insurance, investment and financial services company that believes a brighter financial future should be accessible to everyone. Through our company culture, community engagement, and products and solutions, we are working to create a more equitable financial system that helps to improve the lives of those we serve and our society.
For more information, visit www.cunamutual.com.
At Inclusiv, we believe that true financial inclusion and empowerment is a fundamental right. We dedicate ourselves to closing the gaps and removing barriers to financial opportunities for people living in distressed and underserved communities. Inclusiv is a certified CDFI intermediary that transforms local progress into lasting national change. We provide capital, make connections, build capacity, develop innovative products and services and advocate for our member community development credit unions (CDCUs). Inclusiv members serve over 17 million residents of low-income urban, rural and reservation-based communities across the US and hold over $244 billion in community-controlled assets. Founded in 1974, Inclusiv is headquartered in New York, NY, with offices in Madison, WI, Atlanta, GA and Albuquerque, NM. For more information about Inclusiv visit us at Inclusiv.org
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Inclusiv was instrumental in establishing the CDFI Fund in 1994, is a permanent member of the national CDFI Coalition and is the CDFI and community finance authority for the credit union industry. Our member CDCUs represent over 10 million members in low-income communities across the US, representing the majority of all CDFI-certified credit unions. Today, CDFI certification is an essential credential for credit unions with a focus on financial inclusion. Inclusiv is the credit union industry’s best resource for learning more about certification and technical and financial assistance grants. For more information on our advocacy on behalf of CDFI credit unions, click here