African-American Credit Union Coalition Launches Future Fund
New initiative will support leadership development, small CU preservation and financial access for communities of color.
The African-American Credit Union Coalition in Snellville, Ga., has launched the Future Fund, which will support leadership development, preserve small credit unions and improve financial access for communities of color.
The Future Fund is about long-term sustainability and community impact, the AACUC announced in a prepared statement on Wednesday.
“Our traditional fundraising, sponsorships, corporate partnerships and membership dues keep the lights on. As a 501(c)(3) non-profit, we rely exclusively on the support of others to operate — but it’s not enough to grow and scale long-term,” AACUC said. “The Future Fund provides guaranteed, mid- to long-term funding to sustain and enhance critical work.”
The trade group is asking organizations to open a Certificate of Deposit with the National Cooperative Bank (NCB) and donate some or all of the interest to the Future Fund. Organizations are encouraged to invest the maximum-insured value of $250,000, but any investment over $10,000 is eligible. The AACUC is also launching a Charitable Donation Accounts (CDA) Fund with ALM First, which will allow large credit unions and for-profit companies to invest $1 million to $50 million. The CDA Fund will invest primarily in corporate and government bonds.
Nine credit unions and financial services organizations that have invested in the Future Fund include the $28.9 billion BECU in Tukwila, Wash., the $1.2 billion Educational Systems Federal Credit Union in Greenbelt, Md., the $1.6 billion Greylock Federal Credit Union in Pittsfield, Mass., the National Associations of Credit Union Service Organization in Eugene, Ore., the $170 billion Navy Federal Credit Union in Vienna, Va., the $29.2 billion SchoolsFirst Federal Credit Union in Tustin, Calif., TruStage in Madison, Wis., the $5.6 billion Visions Federal Credit Union in Endwell, N.Y., and VISA.
Ty Muse, president/CEO of Visions, is serving as the AACUC’s Future Fund chair, and Bill Cheney, CEO of SchoolsFirst, is serving as honorary chair.
“The strength of our future is measured by the leadership we provide today,” Cheney said. “Our support of the AACUC Future Fund will secure and strengthen the vital role credit unions play in helping Americans thrive and attain financial well-being.”
The Future Fund will build a succession pipeline by supporting internships and leadership development, while securing the legacy of mentorship and professional development AACUC has established.
According to an NCUA analysis, “poor management of succession planning” was either a primary or secondary reason for nearly one-third of all credit union consolidations.
The Future Fund will also support the sustainability of small credit unions that are at the greatest risk of a merger and member attrition. Over the last several years, concerns about small credit union consolidations have been mounting among industry leaders who are exploring and organizing collaborative initiatives to help save some small credit unions from extinction.
In addition, the Future Fund will help credit unions establish and sustain programs to improve financial access for communities of color.
Additional information about the Future Fund is available at www.AACUCImpact.org.