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NCUF offers CIF alternative partners with NCB
WASHINGTON (4/8/10)--To diversify revenues, the National Credit Union Foundation (NCUF) has entered into a partnership with NCB, FSB, the thrift subsidiary of the National Consumer Cooperative Bank, to provide another Community Investment Fund (CIF) program alternative for programs supported by NCUF and state credit union foundations. The funding pathway through corporate credit unions--considered a crucial partnership by NCUF and the state foundations--remains in place. The CIF with the corporate credit unions have been a successful program for more than 10 years, enabling credit unions to support the foundations' philanthropic work. The corporate credit union network is a generous investor in the fund and donates administrative time to CIF, said NCUF. "If it weren't for the partnership with the corporate credit union network," emphasized Tom Candell, NCUF interim executive director, "critical programs such as REAL Solutions, Innovation Grants, Development Education and the CUAid disaster relief program would never have been made possible. We look forward to our corporate credit union relationship continuing to support our programs and services." In January, NCUF's Board of Directors made the decision to diversify. NCUF said that during the past two years, the value of all CIF investments declined to about $250 million from its peak $370 million, and it had seen a significant number of investments withdrawn for various reasons. Several large certificates were withdrawn even though they carried a penalty and a stated rate of more than 5%. Several withdrawals occurred because their investment return dropped significantly. Some credit unions withdrew their CIF investments because they do not want to invest in corporate credit unions. "It was important for us when we went looking outside the corporate credit union network to stay within the cooperative family," said Candell. "As the cooperative's community bank, NCB is a natural fit." NCB is no stranger to credit unions. "Our partnership exemplifies the unique set of values we share as cooperatives, and we are excited to expand the impact of NCUF's philanthropic efforts and its innovative Community Investment Fund," said Charles Snyder, chairman of NCB, FSB. CIF gives credit unions the ability to leverage their investments to support innovative credit union programs. CIF with NCB is designed as an alternative to the traditional CIF with corporate credit unions. It allows half of the dividend to be returned to investing credit unions. The other half is donated to NCUF, which disburses its half of the dividends to the various programs. For more detail on how CIF works, the programs it supports, and the unique features of CIF with NCB and the unique features of the traditional CIF with corporate credit unions, use the resource links.
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