August 01, 2023

NAFCU, trades offer support for NCUA proposal on charitable donation accounts

NCUANAFCU, along with the Defense Credit Union Council (DCUC), the Veterans of Foreign Wars (VFW), and TruStage, wrote to the NCUA Monday in response to the agency’s proposed rulemaking regarding charitable donation accounts (CDAs). The rule would amend NCUA regulations to include 501(c)(19) veteran’s organization in the definition of “qualified charity.” 

“Allowing credit unions to use investments held in a CDA to fund contributions to 501(c)(19) veterans’ organizations 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,” wrote the organizations.

In addition, the groups suggested the board should eliminate or clarify the use of the term "war veteran" in the regulation, “if the intention is to broaden the definition to encompass all 501(c)(19) organizations.”

The rule was proposed during the NCUA Board’s May meeting. The group last year called for the NCUA to expand the definition, and NAFCU and DCUC sent a letter ahead of the May meeting reiterating the need for the change to allow federal credit unions to better support military members and veterans.

NAFCU will continue to remain engaged with the NCUA on credit union priorities.