| | The Community Investment Fund provides funds for national and state level development initiatives and a stable source of funding for Foundation grantmaking and endowment growth. |
 | | Participating credit unions invest a suggested amount (see Suggested Investment Level below) into a special account at a participating corporate credit union. The corporate credit union reinvests those funds into a designated account at US Central, designed specifically for the CIF. A portion of the dividend is paid monthly to the National Credit Union Foundation to support state and national development initiatives. NCUF splits their dividends with the state foundation or league based on a pro rata share. The remaining dividend earned on the account is paid to participating credit unions. |
| Participating credit unions should review the terms provided by their corporate credit union for specific details and terms of the accounts.
The following terms reflect the general parameters for the accounts that have been established under the CIF program. |
| The account is structured as a 90-day notice account. Once funds are placed in the account, a participating credit union must give 90 days notice before withdrawals can be made. This variable rate account is re-priced monthly and is intended to pay a total dividend comparable to short-term investments with a maturity of 60 to 120 days. Distribution: A variable monthly dividend with be split 50/50 between the credit union and the National Credit Union Foundation, with a maximum cap of 2% to the NCUF. Half of NCUF's portion is returned, pro-rata to the state of investor origin. |
Fixed Rate Certificate of Deposit (3 Yr & 5 yr Terms) |
| The account is structured as a fixed rate certificate of deposit, with maturity established at the time of issuance of either three or five years. Once funds are placed in the account, a participating credit union is expected to keep the funds in the account through maturity. This fixed rate account is designed to pay a total aggregate dividend rate comparable with a comparable fixed rate term investment. This new option enables credit unions to more precisely determine the extent of their investment in the CIF program.
Distribution: 50/50 split between the credit union and the National Credit Union Foundation, with a maximum cap of 2% to the NCUF. Half of NCUF's portion is returned, pro-rata to the state of investor origin. |
Suggested Investment Level |
| Regardless of asset size, the suggested level of investment is 1/10 of 1 percent of assets or $1 million. Three levels of recognition have been identified:
Chairman’s Club: Investments of ¼ of 1% of assets, or $2+ million.
Leadership Circle: Investments of 1/10 of 1% of assets, or $1 million.
Investor Circle: Investments of less than 1/10 of 1% of assets. |
| A portion of the dividend (up to 2%) is paid to the National Credit Union Foundation to support state and national credit union development initiatives. The portion of the dividend credited to the CIF will be utilized as follows:
- 50% to national development initiatives through the Foundation's general fund or Callahan Fund
- 50% to states for local development initiatives
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| Funds distributed from the CIF can be used for:
- International Partnerships;
- Education of credit union and league employees and volunteers;
- Public education initiatives related to credit unions;
- Projects and programs that support new, small or community development credit unions; and
- Programs or projects that extend credit union services to the full range of membership with emphasis on the unserved or underserved.
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