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May 17, 2017

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Charitable Donation Account (CDA)

Innovation From Members Trust Company

Expanded Investments Power to Do Well By Doing Good

NCUA’s new Charitable Donation Accounts grants a federal credit union expanded investment powers if the primary purpose of the investment is fund charitable contributions. To meet the primary purpose standard, a minimum of 51% of the Total Return must be distributed to a 501(c)(3) charitable entity. The underlying strategy for the investment is to pay for charitable contributions from investment earnings and to generate a net return in excess of a credit union’s bond portfolio.

Members Trust Company, An Investment Leader With Charitable Donation Account

Members Trust Company created the first hybrid investment-Charitable Lead Trust – to fund charitable contributions in 2011 to support the National Credit Union Foundation. The Charitable Lead Trust investment provided the genesis for the Charitable Donation Account and remains valid in some states for state chartered credit unions. Today, we are the largest investment manager for CDAs, with over $160 million under management . Utilizing our ETF Portfolio Advantage® portfolios, we will customize a separate investment account to meet your particular goals and risk tolerance.

ALM Advantage of a Charitable Donation Account

 

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