CUNA supports NCUA expansion of CDA ‘qualified charity’ definition

CUNA supports NCUA’s proposed rule expanding the definition of “qualified charity” that a federal credit union may contribute to using a Charitable Donation Account (CDA) in comments on the proposal filed this week. CUNA has called for such an expansion since June 2022.

The proposal would add “war veterans’ organizations” (also referred to as “veterans’ organizations”) under section 501(c)(19) of the Internal Revenue Code (IRC)3 to the definition of a “qualified charity” that a FCU may contribute to using a CDA.

“We reached out to the NCUA last year to advocate for inclusion of ‘veterans’ organizations’ in the definition of ‘qualified charity’ for purposes of the CDA rule,” the letter reads. “Aside from our belief that veterans’ organizations are of such importance as to be worthy of inclusion in the ‘qualified charity’ definition, the impetus for our advocacy was direct feedback from our member credit unions.”

CUNA also expressed thanks to NCUA for its engagement and collaboration on the issue.

“We appreciate the NCUA pursuing this important rulemaking…collaboration on issues such as this, where the agency is responsive to suggested improvements by the industry, is an efficient and effective vehicle for achieving positive improvements to the NCUA’s rules and regulations,” the letter reads.