Charitable Donations Account Final Rule on NCUA Agenda
The charitable donations accounts final rule is on the agenda of the NCUA’s Dec. 12 board meeting released on Thursday.
The proposed rule would establish safeguards for charitable donation accounts including limiting CDA aggregate investments to 3% of the credit union’s net worth.
Under the rule, at least 51% of total return from an account must be distributed to one or more qualified charities. Distributions are required to be made no less than every five years.
“Earlier this year, officials from federal credit unions told us that our investment rule prevented them from investing in third-party trust accounts that help fund charitable causes or events,” NCUA Board Chairman Debbie Matz said in September. “Through my Regulatory Modernization Initiative, we worked to fix this unintended consequence.”
The agenda for the December meeting also includes technical amendments and the corporate credit union rating system final rule, parts 700, 701, and 704.
The 2014 oversight budget for the Temporary Corporate Credit Union Stabilization is also on the agenda.
The requirements for FCU examination sites proposed rule will be discussed at the meeting as well.