Community Investment Fund Provides Critical Programs
The National Credit Union Foundation (NCUF) is now seeking investments in the Community Investment Fund (CIF). An investment to this fund directly translates to the Foundation’s ability to provide critical programs and grants that promote and improve consumer financial independence through credit unions. This investment also helps support the development initiatives for state leagues/foundations.
Furthermore, for credit unions that can make investments of $250,000 to $500,000, the MEMBERS Trust Charitable Lead Trust investment option has phenomenal rates! Last week the rates were over 5%.
This is a BIG win/win/win!
There are six options for your investment in the CIF:
1. CIF with Alloya Corporate Federal Credit Union
2. CIF with Corporate One Federal Credit Union
3. CIF with MEMBERS Trust Company
4. CIF with National Cooperative Bank (NCB)
5. CIF with Catalyst Corporate Federal Credit Union
6. CIF with Volunteer Corporate
The following includes more information on these five investment options.
Alloya Corporate Federal Credit Union
1. Credit unions must be a capitalized Alloya member to participate in the CIF program through Alloya.
2. Complete an account agreement to designate:
a. Investment amount and type: term certificate or 90-day notice account.
b. Interest distribution percentage and CIF Fund option.
3. Minimum investment amount is $1,000.
4. Contact Member Services at 800 342-4328 for current rates or to place your CIF investment.
Corporate One Federal Credit Union
1. Open to all credit unions. No need to be a member of Corporate One and no capital is required.
2. Investment options include federally insured CDs or government-issued securities. Investments can range from $50,000 to $10 million. Once an investment is selected, the credit union chooses to have a percentage of the investment’s earnings go to the CIF as a contribution.
3. Corporate One CIF Option available to any state/regional foundation by signing a tri-party agreement with Corporate One and the NCUF.
4. Two easy steps for credit unions to invest:
a. The credit union determines how much it wants to contribute to the programs offered by both the NCUF and your state/regional credit union foundation.
b. The credit union contacts Corporate One FCU at 800 366-2677. Corporate One will work with the credit union to find an investment that meets their asset liability strategy and fits their contribution goal set in Step a. Corporate One investment officers will work with the credit union to complete any necessary paperwork, including the appropriate agreements.
5. For more information on the offering, contact Paul Hixon, VP Marketing at 866 692-6771 or email@example.com.
MEMBERS Trust Company
Three options for large investments:
1. NCUF Charitable Lead Trust (CLT). NCUF will receive annual payments calculated as a percentage of the market value of the assets held in the trust for a three- or five-year period. The CLT allows the donor credit union to better match their investment strategy to their charitable intent, while maintaining ownership of the assets. Designated as a Charitable Asset, the CLT allows for a conservatively managed portfolio of high quality fixed income and equity securities. The recommended minimum deposit is $500,000.
2. NCUF Charitable Investment Trust. MEMBERS Trust Company, as trustee, shall manage the assets in a trust according to the Federal Credit Union Act, Part 703 of NCUA Rules and Regulations and other applicable laws. The recommended minimum deposit is $500,000.
3. NCUF Federally Insured Account. This account is using the Certificate of Deposit Account Registry Service Program (CDARS) that allows credit unions to invest in federally insured CDs up to $50 million. The recommended minimum deposit is $250,000.
4. Contact Jason Ritzenthaler, CFA, CTFA at firstname.lastname@example.org or at 813 631-9191, ext. 705.
National Cooperative Bank (NCB)
1. NCB has a variety of products and terms which are fully insured up to $250,000.
2. The NCB allows the ability to donate from 50% to 100% of interest earned on the CIF account.
3. The participation is available online and is relatively simple to use.
4. The renewal is automatic unless the credit union selects otherwise.
5. There is no requirement to purchase stock.
6. This option is available to all credit unions.
7. Visit the website, www.cifwithncb.coop for details on products, rates and to participate.
Catalyst Corporate Credit Union
Two options are available:
Catalyst 6 ,12, and 18 month CIF share certificates and 90 day notice accounts
Credit unions must be a capitalized Catalyst member to participate.
50% of interest is donated to the CIF.
Investment Securities in safekeeping with Catalyst
Credit unions do not need to be a capitalized member but must have open brokerage and safekeeping accounts.
The credit union can choose the percentage of interest to donate to the CIF.
Investment options include fixed coupon agency securities.
Additional information is available at www.catalystcorp.org/cif.aspx or contact a Catalyst investment officer at 800-405-7067.
Volunteer Corporate Credit Union (VolCorp)
To participate, credit unions must own Perpetual Contributed Capital (PCC).
Minimum investment amount is $1,000.
The credit union can chose either 50% or 100% of interest to donate to the CIF.
Investment options include 6, 12 and 18 month CIF share certificates and Notice 90 accounts.
Agency securities options are available through VolCorp brokerage services.
Contact Investment sales at (800) 470-3444, ext. 2 or visit our website at www.volcorp.org/2_investments_CIF.asp