Charitable Donation Accounts Rule Finalized: On-Site at NCUA
ALEXANDRIA, Va.—The NCUA Board approved a final rule on charitable donation accounts on Thursday during its monthly meeting.
The final rule limits CDA investments to 5% of a credit union’s assets. That amount was increased from 3%, which was in the proposed rule.
Also at NCUA on Thursday:
Corporate CAMEL Rule Amended
NCUA Approves Home-Based CU Rule
The approved final rule also requires credit unions to make charitable donations of at least 51% of net total return no less than every five years, and again when the account terminates.
NCUA staff received 26 comments on the rule, with 18 comments in support of the proposal. Most commenters recommended changes to the rule such as increasing the net worth cap.
NCUA Board Chairman Debbie Matz supported the final rule but stressed during the meeting that its primary purpose is not to prop up a credit union's income statement.
The rule takes effect immediately as opposed to the normal 30-day waiting period, said Rick Mayfield, senior capital markets specialist at the Office of Examination and Insurance. He stressed that the rule does not impose any regulatory burden.