CUNA Mutual's Foundation to Devote $1 Million to Inclusiv's Racial Equity Investment Fund

A new funding effort announced Tuesday aims to build equity in credit unions that serve and/or are led by people of color. This joint effort came as the CUNA Mutual Group Foundation committed to investing $1 million to Inclusiv’s Racial Equity and Resilience Investment Fund over the next decade – which will focus on investing in CDFI and minority-designated credit unions.

The Foundation is the charitable arm of the Madison, Wis.-based CUNA Mutual Group.

“Over the past two decades, CUNA Mutual Group has consistently supported the mission of Inclusiv promoting financial inclusion in underserved communities through credit unions,” Cedric Ellis, EVP and chief enterprise services officer for CUNA Mutual Group and chair of the Foundation board, said. “With this investment, we will be aligning the investment strategy of the Foundation with the DEI goals of the company and build on the legacy of credit unions led by leaders of color.”

According to a statement released on Tuesday, the collaboration between Inclusiv and CUNA Mutual Group over the past two years has grown the number of certified CDFI credit unions to “an all-time high” of 476 institutions.

“This has unleashed millions of dollars of credit union lending to people and communities previously excluded from the financial mainstream,” the statement read.

Inclusiv’s Racial Equity Investment Fund was launched in 2020 and assists in deploying secondary capital “to expand economic relief and to remove barriers to services for credit unions that are led by and/or serve communities of color.”

The capital helps credit unions build net worth to leverage deposits and increase lending to minority consumers, as well as minority-owned businesses and homeowners.

Inclusive President/CEO Cathie Mahon said, “This investment from CMG Foundation is groundbreaking. Together we are growing the necessary capital to help credit unions address systemic inequity in financial service to low-income and communities of color.”

She added, “Secondary capital represents a huge opportunity for credit unions and their members in the years ahead. We believe this commitment from CMG Foundation will pave the way for more industry secondary capital investments enabling minority designated and CDFI credit unions to grow members, lend more deeply in their communities and grow the net worth for their institutions and the members and communities they serve.”