Charitable Donation Account

A Charitable Donation Account portfolio allows credit unions to direct a portion of their excess liquidity into investments to cover gifting to charities. Typical gifting portfolios are required to gift a minimum of 51% of the income to 501(c)(3) Charities.

Why a gifting portfolio versus just giving?

If assets are invested at a yield of 5.00% and we gift 50% of the income, we have a net return of 2.50%, or very similar to current bond portfolio yields. The higher earnings of the investments covers the amount you gift. Effectively, we have no cost to give, just the risk of the investment.

Portfolio Structure Recommendation

Our process is designed to develop a desired portfolio structure while focusing on your current income and total return expectations.

First, we work with you to determine your overall financial objectives and the necessary steps to reach them. This includes an examination of your Credit Union’s overall financial position including:.

  • Overall balance sheet
  • Capital position and ratio
  • Income statement
  • Asset liability management report
  • Liquidity position