Comment Period Open for Charitable Donation Accounts Proposal

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. 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.