The National Credit Union Foundation and MEMBERS Trust Co. have entered into a strategic alliance to expand options for credit unions to make charitable contributions to the foundation through the Community Investment Fund.
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, according to both firms.
NCUF and MEMBERS Trust said they 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 the term were renewed. The investments, as with the standard charitable lead trust created for U.S. foundations, would be allocated with bonds and equity securities.
“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.”