November 13, 2023

Final rule for charitable accounts on NCUA agenda

NCUA logoThe NCUA Board meets Thursday and is set to issue a final rule related to charitable donation accounts (CDAs). NAFCU, the Defense Credit Union Council (DCUC), the Veterans of Foreign Wars (VFW), and TruStage last year raised the issue with the agency to expand the definition of a “qualified charity” to include 501(c)(19) veterans’ organizations.

The NCUA’s current definition of a “qualified charity” is limited to 501(c)(3) organizations. NAFCU and the other groups advocated for the change, noting it “will increase the resources available to help veterans in need and further strengthen the credit union industry’s ties to veterans, military servicemembers, and their families.”

In addition to the final rule, the board will receive a quarterly update on the Share Insurance Fund during its open meeting, set to begin at 10 a.m. Eastern.

Following the board meeting, the agency will hold a public hearing on its proposed 2024-2025 budget at 2 p.m. Eastern. The agency has proposed a $394.5 million budget for 2024, an increase of 9.5 percent from 2023. Additionally, the NCUA proposed a budget of $433.6 million for 2025, an increase of 9.9 percent from the 2024 proposed budget.

NAFCU President and CEO Dan Berger urged the agency to “rein in unnecessary spending” and practice the same fiscal responsibility as credit unions.

NAFCU will monitor both the open board meeting and public budget hearing and provide credit unions with updates afterward.