CCUL, Foundation, CUNA Mutual collaborate to pass rule on Charitable Donation Accounts
Thursday, March 28, 2019
The North Carolina Rules Review Commission (RRC) gave final approval March 21 to a rule enabling the creation of Charitable Donation Accounts. The rule gives state-chartered credit unions the same capability of federally chartered credit unions to support charitable purposes. The rule goes into effect April 1.
CCUL raised this issue with the North Carolina Credit Union Division (NCCUD) for a couple of years, during which NCCUD polled other state regulators about their programs. In January 2018, NCCUD’s administrator agreed to work with CCUL on negotiation and research which continued for a year. CCUL also reached out to the Carolinas Credit Union Foundation and CUNA Mutual, both of whom had interest in the rule and getting it done right. NCCUD took comments and input from all organizations and developed what is the final rule. The last step was to navigate the RRC’s process, which can take up to 18 months. Fortunately, because of the collaboration, there were no objections to the rule and the process took significantly less time.
“The Carolinas Foundation thanks the League for its engagement around this opportunity for state-charters in North Carolina,” said Carolinas Foundation President Lauren Whaley. “Charitable Donation Accounts offered by CUNA Mutual and other investors provide credit unions a funding vehicle to start a charitable-giving program or foundation in partnership with the Carolinas Foundation. Through collaboration, credit unions are able to make an impact in their communities with donations to local non-profits.”
Through the passage of S 337, SC Credit Union Act, in South Carolina last year, SC state-chartered credit unions are also able to create Charitable Donation Accounts.