May 26, 2023

NCUA proposes NAFCU-sought charitable donation change

NCUAThe NCUA Board met yesterday and unanimously approved a NAFCU-sought proposed rule to amend NCUA regulations to include 501(c)(19) veteran’s organization in the definition of “qualified charity.” NAFCU, the Defense Credit Union Council (DCUC), and other organizations last year called for the NCUA to expand the definition, and NAFCU and DCUC sent a letter ahead of the meeting reiterating the need for the change to allow federal credit unions to better support military members and veterans.

The proposed rule would permit federal credit unions to make charitable contributions to 501(c)(19) veterans’ organizations through charitable donation accounts. It also requests feedback on additional 501(c) organizations that should be a “qualified charity.”

The NCUA Board also received its quarterly briefing on the Share Insurance Fund (SIF). According to agency staff, the SIF saw its assets grow $600 million to a total of $21 billion during the first quarter. The equity ratio is projected to drop from its current level of 1.3 percent to 1.25 percent at the end of June, which is a normal trend in the second quarter.

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