Credit Unions navigate the delicate balance of driving financial success while creating meaningful, positive change for their employees, members, and communities. At the heart of their people-helping-people mission lies a compelling question:  "How do we do well while doing good?"

In a rapidly evolving financial landscape, Credit Unions face mounting pressure to adapt. Declining interest income and fee revenues demand constant re-evaluation of income strategies. Simultaneously, the competitive edge of big banks and fintech innovators challenges Credit Unions to meet and exceed the elevated expectations of today’s consumers.

We understand the critical tension between safeguarding the bottom line and championing transformative community impact. Too often, it feels like excelling in one area comes at the expense of the other.

But there is good news: this balance is achievable. Proven, innovative strategies now empower Credit Unions to not only remain competitive but to excel financially while amplifying their positive community influence. We’re eager to partner with you and demonstrate how.

Step 1 – Establish a Charitable Donation Account (CDA) 

A Charitable Donation Account (CDA) allows your Credit Union to invest in a variety of expanded investment options that traditionally would be deemed impermissible by the NCUA. With these new investment options being made available to your Credit Union, you can conservatively expect to increase your Return on Investment from 4% to a 10% ROI. We partner with leading Investment Managers to maximize the financial return of your CDA investment.  

Step 2 – Establish a Community Impact Fund (CIF) 

What makes the Charitable Donation Account possible is the NCUA regulation that requires the Credit Union to donate 51% of the investment returns to a 501(c) Charity of your choice as a way to create Community Impact.

The remaining 49% of the proceeds can be used to fund other Credit Union initiatives at your discretion.   In this scenario, the income generated for the Credit Union is nearly double, increasing from $200,000 to $245,000 which is the definition of “Doing Well”.

However, what makes this strategy so powerful, is that you were also able to generate $255,000 for a Community Impact Fund that will be used specifically to meet the needs of your employees, members and community, which is the definition of “Doing Good”. 

Step 3 – Meet the Needs of YOUR Community

Using a Community Impact Fund (CIF), your Credit Union can further leverage the power of this strategy by directing the 51% of your investment return directly to the needs of your employees, members, and community in the form of an Impact Loan, which is a 0% Interest Loan that helps them save and get out of debt.

A Community Impact Fund solves the biggest problem in your community which is the number of households that are currently ALICE (Asset Limited, Income Constrained but Employed).

The Impact Loan helps employees, members, and your community who are ALICE,  meet their needs such as food and clothing, housing, transportation, and medical expenses.    In the process of paying back an interest-free loan, they are then incentivized to start building emergency savings at your Credit Union.  

Together the CDA and CIF can create a sustainable and scalable form of Community Impact that helps both your bottom line and solves the community’s biggest problems.

Step 4 – Grow Your Income and Your Impact

The end result of this strategy is that your Credit Union has the opportunity to grow both your Income and your Impact. No longer do you have to choose between “Success or Significance.” Now you have the opportunity to have both!  Our goal is to help Credit Unions leverage their unique characteristics to not only compete with the big banks in Fintechs but to thrive.   Together our vision of “Prospering Communities Worldwide” can be a reality and we look forward to working with your team!

Step 5 - Empowering Communities, Fostering Growth

We believe in the power of community development and financial inclusion. The Financial Assistance (FA) Grant program is designed to support Community Development Financial Institutions (CDFIs) in their mission to provide access to affordable financial services and promote economic growth in underserved communities.

Unlocking Opportunities with Up to $1 Million

Through the FA Grant, eligible CDFIs can receive up to $1 million in funding to strengthen their operations and expand their impact. This grant is a game-changer, enabling CDFIs to tackle the challenges they face head-on and create lasting change.

Maximizing Impact with Flexible Funding

Our grant structure is designed to provide CDFIs with the flexibility they need to address their unique needs. Here's how the funding can be utilized:

• 85% Allocation
  
  • Loan Loss Reserves: A portion of the grant can go towards building robust loan loss reserves, ensuring your institution's resilience and ability to weather economic fluctuations.
  • Capital: Another portion of the grant can go towards strengthening your capital base, enabling you to expand your lending capacity and support more businesses and individuals in your community.
• 15% Allocation
  
  • Unrestricted Funds: Enjoy the freedom to allocate 15% of the grant towards operational expenses, capacity-building initiatives, or any other areas that align with your strategic goals.