TEXARKANA, Texas–Red River Employees FCU has partnered with the Cornerstone Foundation, the philanthropic arm of the Cornerstone CU League, to establish a Donor Advised Fund called “RRCU Gives.”
According to the league, a Cornerstone Foundation Donor Advised Fund offers many of the advantages of a private/public credit union foundation without the initial set-up costs, ongoing excise taxes, and administrative expenses.
“By partnering with the Cornerstone Foundation, a credit union avoids the continual compliance and reporting requirements, as well as a separate accounting system to track the nonprofit’s financials,” the league said.
Brad Bailey, CEO of RRCU, told the CCUL the credit union is in the early stages of establishing RRCU Gives and expects to have the foundation up and running sometime in 2023.
Avoiding ‘Administrative Burden’
“We didn’t want to have to hire a full-time person for the foundation, and we had heard from other credit unions it was a lot of work,” he told the Cornerstone league. “By partnering with the Cornerstone Foundation, we can avoid most of the administrative burden and the expense of setting up our foundation.
“We already do a lot of internal fundraising for charities but not much on the membership side,” Bailey continued. “This will enable members to support many of the charities we have teamed up with, and it offers the added benefit of the foundation being a qualified nonprofit.”
According to the league, the charities RRCU supports include the United Way, local blood banks, and others, Bailey said.
A ‘Work in Progress’
The advisory panel for RRCU Gives will consist of employees from across departments and branches.
“They will be in charge of the foundation, along with the marketing campaigns, whether internal or to the membership. It will definitely be a work in progress, but I believe our employees will embrace it,” the league quoted Bailey as saying.
The $1.3-billion Red River FCU has more than 115,000 members.