ALEXANDRIA, Va.–NCUA said it is designating June as Minority Depository Institution Awareness Month to “enhance the public’s understanding of the vital work minority depository institution credit unions perform in underserved communities nationwide,” while separately announcing it has also opened the comment period for its charitable donation accounts proposed rule.
The agency said initiatives during MDI Awareness Month will include:
- A webinar on June 8 on how MDI credit unions help minority communities access safe, fair, and affordable financial services and promote greater financial security
- The release of the 2022 MDI Annual Report to Congress
- The 2023 Community Development Revolving Loan Fund grants round for low-income and MDI credit unions, open until June 30
- Updates and information on the NCUA’s online training, resources, and support programs tailored to the specific needs of MDIs.
The Definition
The agency defines an MDI credit union as having a majority of its current members, board of directors, and the community it serves consisting of individuals who are Black American, Asian American, Hispanic American, or Native American. Credit unions self-designate as MDIs by responding to the minority questions on the CUOnline Profile, the agency noted.
“Service, opportunity, and financial security are central to the mission and work of minority depository institutions,” Chairman Todd M. Harper said in a statement. “One in 10 federally insured credit unions is an MDI, and while they tend to be smaller than many other financial institutions, they play a much greater role in expanding access to safe, fair, and affordable financial products and services and supporting local development in under-resourced communities. This month, the NCUA acknowledges their efforts and affirms our commitment to ensuring these credit unions remain an integral part of the financial services system.”
A Little History
In 2015, the agency noted it launched the MDI Preservation Program, offering technical and educational services to address the unique needs of MDIs.
“As a result of the agency’s efforts, Congress has now recognized the MDI designation as a qualifying factor for Community Development Revolving Loan Fund grants,” NCUA said.
NCUA said it has also adjusted its examination process to accommodate the distinctive business model of MDIs.
“This important evolution in the examination process provides the NCUA with greater insight into MDIs’ strategies and member needs while providing MDIs with useful metrics to benchmark their work against their true peers,” the agency stated. “This leads to enhanced services to members and under-resourced communities. For 2023, the NCUA has increased the staff hours allocated to MDIs in the Small Credit Union and MDI Support Program to a total 5,500 hours.”
Charitable Donation Accounts
Separately, the 60-day comment period for stakeholders to submit comments on the NCUA’s proposed rule that would amend the charitable donation accounts section of the NCUA’s incidental powers regulation is now open, the agency announced. Comments must be received by July 31.
The NCUA board, at its May 25 meeting, unanimously approved a proposed rule that would add “war veterans’ organizations” to the definition of a “qualified charity” that a federal credit union may contribute to using a charitable donation account. The board approved the proposed rule noting the attributes of “veterans’ organizations” as defined by section 501(c)(19) of the Internal Revenue Code are aligned with the purposes of the current charitable donation account rule. A “qualified charity” is a section 501(c)(3) entity defined by the Internal Revenue Code and must be both a non-profit and be organized for a charitable purpose. The proposal also asks commenters if there are other groups, entities, or organizations the NCUA board should consider adding to the definition of a “qualified charity” to inform potential future rulemaking in this area, the agency explained.
For more information or to submit a comment, go to https://www.regulations.gov/document/NCUA-2023-0043-0001.
You Can Now Get CUToday.info’s Daily News Headlines in Your Mailbox at the Low, Low Price of Free
Are you missing out on the latest news in credit unions? Missing the trends and developments you need to be aware of? We can help. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
And it’s free!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.