Charitable Donation Accounts

Support Great Causes and Strong Returns

The National Credit Union Administration and most states allow credit unions to invest up to 5% of their net worth in investments that are not ordinarily permitted, provided these funds are used for charitable giving to 501(c)3 nonprofit organizations.

Depending on the investment product and amount, assets in a Charitable Donation Account (CDA) can provide significantly higher yields compared to traditional credit union investments.

With a CDA, Your Credit Union Can:

  • Use excess liquidity to support worthwhile causes while helping your bottom line.

  • Fund charitable gifts through investment returns rather than operating income.

  • Increase goodwill and brand awareness in
    your community.

  • Maintain your current charitable giving at a lower cost or help increase giving at no additional cost.

CDA Asset: $5 million. Earnings: 4% Return = $200,000. 51% of Earnings Donated to Charity $102,000. 49% of Earnings Retained by Credit Union $98,000. Yield: 1.96%

Example CDA Investment

Consider this example in which $5 million is invested through a CDA. By meeting the NCUA requirement to donate 51% of earnings in a five-year period, you can maximize your charitable giving while realizing a better return.


Hypothetical example for illustration only.
Actual returns may vary.

Create a Community Impact Fund

Want to maximize your impact? Put your Charitable Donation Account to work through our partnership with The Community Impact Fund. You can use the earnings from your credit union’s CDA to establish a Community Impact Fund (CIF) to offer interest-free Impact Loans for your members, employees and neighbors who may be experiencing financial hardship.

With a 0% interest Impact Loan, borrowers can:

  • Cover short-term expenses like housing, food and medical bills.

  • Avoid turning to payday loans and other high-cost financing, which can trap borrowers in a cycle of debt.

  • Use a portion of their loan payments to build a personal emergency savings fund.

Using your CDA to offer an Impact Loan program is a great way to strengthen your bottom line while promoting financial security in your community. Talk to us to learn more about this innovative approach to charitable giving.

It All Starts With a Conversation

Together, we will discuss your needs and compare your options. Then, we will provide a no-strings-attached proposal based on your specifications.