New Charitable Lead Trust CIF Option Offered from NCUF & MEMBERS Trust Company
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Madison, Wis. – 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.
Ø Click here for a detailed FAQ on the new Charitable Lead Trust CIF Option
“The Community Investment Fund has always been a simple way to make a big impact,” said Bucky Sebastian, NCUF Executive Director. “Through the Charitable Lead Trust option, credit unions now have a new and innovative instrument to support their state development programs as well as our mission of promoting consumer financial independence across the country.”
NCUF and MEMBERS Trust Company already have their first investors in the new Charitable Lead Trust option: GTE Federal Credit Union in Tampa, Fl. and BECU in Seattle, Wash.
“The new investment product is optimal because it allows us to match an investment strategy with a long term objective of supporting the worthwhile charitable giving to NCUF, while retaining control over the assets through the renewal option,” noted Joe Brancucci, President/CEO of GTE FCU.
“The Charitable Lead Trust option is an easy way to support NCUF’s critical financial education initiatives and I encourage more credit unions to take advantage of it,” said Gary Oakland, President/CEO of BECU and Chairman of NCUF.
Earlier this year, NCUF & MEMBERS Trust first entered into a strategic alliance to offer two new CIF options – an insured CD Custodian Account and a Part 703 compliant Investment Trust. Both options are still available with $15 million currently invested from credit unions. Overall, there is $30 million currently invested in the three MEMBERS Trust Company CIF options, which includes $15 million invested by BECU and GTE FCU in the new Charitable Lead Trust option. To learn more about CIF options with MEMBERS Trust Company, visit www.memberstrust.com/cif/.
How Does CIF Work?
Celebrating its 12th year, the Community Investment Fund gives credit unions the ability to leverage their investments to support innovative credit union programs. Credit Unions invest in a Community Investment Fund account (through a designated corporate credit union, MEMBERS Trust Company, or National Cooperative Bank). What happens then? Each quarter, half of the CIF dividends are returned to investing credit unions. Half of the CIF dividends are donated to NCUF. NCUF grants half of its NCUF dividend to each investing credit union’s state foundation or league. NCUF uses the remaining portion of the CIF dividend to support its national programs including:
2. Biz Kid$
3. Credit Union Development Education
In July, NCUF released a YouTube video on how CIF works and is available here.
To learn more about CIF or to invest, credit unions can contact their state credit union foundation, league or NCUF’s Resource Development & Donor Relations Director Josie Collins at email@example.com 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 over $900 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. Through NCUF grants and programs, credit unions provide widespread financial education, create greater access to affordable financial services, and empower more consumers to save, build assets, and own homes.
NCUF is funded primarily by investments in the award-winning Community Investment Fund (CIF) and by generous Corporate Supporters led by the Credit Union National Association and CUNA Mutual. All NCUF donors provide support that empowers NCUF and state credit union foundations to make a real impact in the credit union community.
The National Credit Union Foundation is a 501(c)(3) tax-exempt charitable organization. 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.