DCUC and NAFCU Send Joint Letter to NCUA: Proposed Expansion of “Qualified Charities” Regulation Part 721.3 Charitable Donation Accounts
WASHINGTON, DC – The Defense Credit Union Council (DCUC) and The National Association of Federally-Insured Credit Unions (NAFCU) sent a joint letter on Wednesday, May 24, to The Honorable Todd M. Harper, Chairman; The Honorable Kyle S. Hauptman, Vice Chairman; and The Honorable Rodney E. Hood, Board Member, of the National Credit Union Administration (NCUA) asking the Board to amend Part 721.3 Charitable Donation Accounts by expanding the definition of “qualified charity” to include 501(c)(19) veterans’ organizations.
This past November, DCUC and NAFCU, along with the Veterans of Foreign Wars (VFW) and TruStage (formerly CUNA Mutual Group), sent a similar letter to the NCUA urging them to exercise their authority by expanding the rule. In the November letter, these organizations stated their concern with the narrow definition of "qualified charity" as it not only restricts defense credit unions’ ability to contribute to veterans' organizations but also limits other credit unions from best serving their members connected to the military. Currently, only 501(c)(3) organizations are eligible for donations from Charitable Donation Accounts.
DCUC and NAFCU’s joint letter sent this week further emphasized the financial challenges many veterans currently face:
With millions of veterans facing unmet needs, including disabilities, mental health challenges, and high suicide rates, there is a pressing need to support veterans' organizations. Expanding the definition of "qualified charity" would enable FCUs to donate to 501(c)(19) organizations through CDAs, providing substantial support to the veterans' community and making a meaningful difference in their mission.
The NCUA Board met on Thursday, May 25, to review the proposal where it received a unanimous vote of approval with a 60-day period allowing other qualified charities to provide their comments should they wish to be included.
“On behalf of our member credit unions and those who serve our Nation’s veterans, we are very pleased to see approval for this proposal. DCUC will continue to engage with our members and industry partners to provide comments during the next 60 days,” said DCUC President/CEO Anthony Hernandez. “Expansion of this rule will help strengthen our roles within our communities as we include more of those who support our military and veterans.”
DCUC would like to thank NAFCU for their assistance in drafting several joint letters pertaining to this proposal and their consistent advocacy efforts, along with TruStage, the National Credit Union Foundation (NCUF), VFW, and CUNA.
For more information on how DCUC advocates for credit unions dedicated to serving our Nation’s military and veterans, visit DCUC.org/Advocacy.