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NAFCU, others ask NCUA to facilitate donations to veterans' organizations
NAFCU joined with the Defense Credit Union Council (DCUC), the Veterans of Foreign Wars (VFW), and CUNA Mutual Group to request that the NCUA amend the definition of “qualified charity” in part 721.3 of the agency’s regulations to include 501(c)(19) veterans’ organizations.
In the letter sent Tuesday, the organizations stated that although federal credit unions (FCUs) are allowed to fund a Charitable Donation Account (CDA), NCUA regulations only allow credit unions to donate to “a charitable organization or other non-profit entity recognized as exempt from taxation under section 501(c)(3) of the Internal Revenue Code.” However, the groups noted that the NCUA has authority to expand the definition of “qualified charity.”
“These organizations work to meet an unmet need for men and women who served our country, but there is always more that they can be doing,” the organizations wrote. “Every dollar counts in the fight to properly support our servicemembers and bake sales and charity raffles will not suffice. By expanding the definition of ‘qualified charity’ the NCUA can open these veterans’ organizations to donations from CDAs and can make a meaningful difference in their mission.”
Additionally, the organizations explained that it is highly likely “every credit union in the country has at least one member who is connected to the military in some way. These credit unions too are prevented from helping veterans’ organizations due to an unnecessarily narrow definition within a regulation.”
By expanding the “qualified charity” definition, credit unions will be able to partner with 501(c)(19) organizations to help veterans deal with crises such as mental health issues, homelessness, and disabilities.
Read the full letter. NAFCU President and CEO Dan Berger and DCUC President and CEO Anthony Hernandez continue to raise awareness among lawmakers and regulators about the importance of providing veterans and military members with financial services, including access to credit, small business lending, and more.