By Ray Birch
SNELLVILLE, Ga.—The African-American Credit Union Coalition (AACUC) has entered into the second phase of its Future Fund campaign, and the organization says that in addition to driving programs that address the racial wealth gap, the effort will also support small credit unions in an area critical to their ongoing success—succession planning.
As CUToday.info reported, AACUC said it has launched the second phase of its Future Fund campaign via a charitable donation account (CDA) fund with $26 million in initial investments and Dallas-based ALM First serving as investment advisor.
According to AACUC, the Future Fund is a “bold, transformative funding source created to ensure the long-term strength and sustainability of the AACUC.
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“Funding helps support and expand crucial programming that addresses the racial wealth gap, preserves small credit unions, lifts up low-income communities and spreads financial access and inclusion to the underserved,” said AACUC President Renee Sattiewhite.
The AACUC said the fund also creates an operating reserve that will ensure the continued reach of AACUC across the credit union movement.
“It's a continuation of something we had started a long time ago with the legends of AACUC,” Sattiewhite said about the genesis of the fund. “Back in the day, the National Credit Union Foundation started the Pete Crear Endowment Fund. We began our first phase with the National Cooperative Bank. Then, we launched our second phase with ALM First.”
How CDAs Work
By utilizing charitable donation accounts, or CDAs, credit unions can fund charitable contributions through investment returns rather than through operating income, Sattiewhite noted.
“AACUC will be a beneficiary of standalone CDAs along with a commingled fund offered by ALM First,” Sattiewhite explained. “They're doing the very large investment amounts, the transformative deposits, and that's been extremely helpful to reaching our goals.”
In addition to helping those in communities across the country close the racial wealth gap through contributions to organizations and businesses, with the fund AACUC is also helping small credit unions succeed, Sattiewhite emphasized.
“Yes, we have programs that impact the community, but what we also want to do is bring sustainability to the small credit unions,” Sattiewhite said.
Renee Sattiewhite
More Than Aspirational
Sattiewhite insisted that AACUC’s efforts are more than “aspirational.”
“We are doing things that are tangible,” she said. “We've got some terrific programs, but in the past we haven't had the resources to scale these efforts. However, now, with the support of Navy Federal Credit Union and SchoolsFirst Federal Credit Union, we can really move toward the finish line here to make programs impactful.”
Sattiewhite said that a portion of the proceeds will be directed to AACUC’s Small Credit Union Sustainability initiative.
“Imagine if we were able to use some of these proceeds to offset CEO retirement costs for the credit union,” she said.
Talent-Related Issues
The funds would go to small credit unions so they could address some talent-related issues.
“As we know, small credit unions often don't have the best retirement programs. I want to help us get there,” Sattiewhite said.
As CUToday.info has steadily reported and as Sattiewhite acknowledged, there is considerable discussion around helping small CUs survive and thrive, but it remains a dilemma.
“I also want to make sure that we figure this out,” she said. “There are too many people, working separately, trying to solve this problem. I say we all get in a room and figure it out, make it happen, spend 30 days and figure it out. Well, part of our fund will go to figuring out that solution, what does that look like, for example, can we get small credit unions operating on one core system.”
Coming Soon
While not disclosing specifics, Sattiewhite added that AACUC is working with another potential “strong partner” that will bring even greater resources to the fund and to AACUC.
Another major campaign will be announced soon. “It will be something very exciting,” she said. “Right now, however, we want to extend our thanks to all of the current investors, and to the National Cooperative Bank and ALM First for the work they have done get the Future Fund off to a great start.”