The NCUA board approved a final rule expanding the definition of “qualified charity” credit unions can contribute to using a Charitable Donation Account (CDA). CUNA engaged with NCUA for more than a year on the need for such a rule, and fully supported it as proposed in comments filed in July.
“This final rule means many worthy tax-exempt organizations that serve veterans can now receive support from credit unions,” said Alexander Monterrubio, CUNA deputy chief advocacy officer for regulatory affairs. “We appreciate NCUA responding to our engagement on the need for this rule, which was based on direct feedback from our member credit unions—this is a great example of collaboration between the industry and agency that results in better outcomes for consumers.”
Specifically, the final rule will add “war veterans’ organizations” under section 501(c)(19) of the Internal Revenue Code (IRC) to the definition of a “qualified charity” that a federal credit union may contribute to using a CDA.
The board also heard an update on the National Credit Union Share Insurance Fund for the quarter ending Sept. 30.
The fund ended the quarter with a net income of $59 million, and a net position of $21 million through Sept. 30. NCUA staff projects the equity ratio to remain at 1.27% on Dec. 31, 2023.