The National Credit Union Foundation, Columbus Ohio-based Corporate One, and the Ohio Credit Union Foundation announced Wednesday a restructuring of a program to fund the Community Investment Fund.
These steps were taken to provide credit unions that had been making CIF investments through U.S. Central a place to put their money as that conserved corporate edges closer to extinction.
“Corporate One is fantastic. They brought the idea to us,” said Christopher Morris, director of communications at the National Credit Union Foundation in Washington, D.C.
“You won’t see banks doing this,” added Morris. “The CIF is a way to support the community and the movement.”
Proceeds from CIF investments will be used for financial education, professional development, community outreach, and disaster relief initiatives in Ohio and across the country, said Morris.
Under this new program, a credit union is not required to be a Corporate One member to invest in CIF products through it.
How the program works, as explained in the press statement, is this way: “To participate in the Corporate One CIF Option, credit unions invest in a security that is held in a separate free safekeeping account. As interest is paid on the security, a share of the interest is returned to investing credit unions, with the remaining share being paid to the NCUF, half of which is then granted to the OCUF. NCUF uses the remaining portion of the CIF interest to support its national programs.”