#4012: How Gerber FCU's Charitable Donation Accounts Boosted Community Contributions...

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Gerber Federal Credit Union’s President/CEO John Buckley and Acumen’s Vice President/CIO Mark Axmacher stopped by the show to share the news about Gerber FCU partnering with Acumen to launch their Charitable Donation Accounts (CDAs), boosting community contributions.

In particular, John and Mark talked about how this initiative has tripled Gerber's community impact, helping local organizations. Misconceptions about risks and fund allocation exist, and Gerber urges other credit unions to adopt these accounts for better community engagement.

Check it out and let us know your thoughts. And be sure to watch the entire episode below for all the details.

Q&A summary...
What are the benefits of implementing Charitable Donation Accounts (CDAs) for credit unions?
CDAs allow credit unions to invest up to 5% of their net worth into higher yielding investments, with 51% of the returns dedicated to charitable giving. This not only increases community impact but also allows credit unions to retain 49% of the returns for their own use.
How does the implementation process for Charitable Donation Accounts work for credit unions?
The implementation process is straightforward, requiring a board vote to approve the CDA and the investment strategies. Acumen provides guidance throughout the process to ensure compliance and effective use of funds.
What misconceptions do credit unions have about Charitable Donation Accounts?
Many credit unions mistakenly believe that investments in CDAs must be high-risk to be effective, and that the 5% net worth allocation for CDAs counts against their employee benefit expenses. In reality, CDAs can be invested in safer options and the 5% is a separate allocation.
How has Gerber Federal Credit Union benefited from using Charitable Donation Accounts?
Gerber Federal Credit Union has tripled its charitable giving, allowing them to support local initiatives like a community museum's children's programming, which they couldn't have done under their previous investment strategy.
What role does Acumen play in the success of Charitable Donation Accounts for credit unions?
Acumen consults, helps implement, and administers the CDAs, ensuring credit unions like Gerber have the support they need throughout the process and beyond, including future commitments.
How do Charitable Donation Accounts improve the branding and marketing of credit unions?
By actively engaging in community support through CDAs, credit unions can enhance their brand image and demonstrate their commitment to local causes, which resonates well with members and the community.