New Charitable Trust Formed
Credit unions now have a new way to support consumer financial efforts in their own state and nationally.
The National Credit Union Foundation has established a charitable lead trust as an expansion of options from the existing Community Investment Fund. It allows the NCUF to receive annual payments for three to five years based on a percentage of the market value of the assets held in the trust.
The funds are used to support programs and grants provided by the NCUF and state credit union foundations, and after that three- to five-year period is up, remaining assets are returned to the credit union.
“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,” said Bucky Sebastian, executive director of the NCUF in Madison, Wis.
The first investors in the new trust option are the $1.5 billion GTE Federal Credit Union in Tampa, Fla., and the $9.7 billion BECU in Tukwila, Wash., the NCUF said.
They account for $15 million of the $30 million currently invested in three CIF options offered by MEMBERS Trust Co. in a strategic alliance with the NCUF.
“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,” said GTE FCU President/CEO Joe Brancucci.
“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 BECU President/CEO Gary Oakland, who also currently is chairman of the NCUF.
The Community Investment Fund is now in its 12th year of operation.