Today's Challenge
One of the challenges facing the U.S. credit union movement today is finding the resources, both human and financial, to meet the growing demands of credit union development. Often, foundations’ grant requests surpass the amount of grant funding the by as much as 3 to 1. To meet these growing demands, NCUF, in partnership with the Association of Corporate Credit Unions and the American Association of Credit Union Leagues, has established the Community Investment Fund (CIF).

The Facts About CIF
Purpose 
The Community Investment Fund provides funds for national and state level development initiatives and a stable source of funding for Foundation grant making and endowment growth.

Method 
Participating credit unions invest a suggested amount (see Suggested Investment Level below) into a special account at a participating corporate credit union. The corporate credit union reinvests those funds into a designated U.S. Central account, designed specifically for the CIF. A portion of the dividend is paid quarterly to the National Credit Union Foundation to support state and national development initiatives. NCUF splits their dividends with the state foundation or league based on a pro rata share. The remaining dividend earned on the account is paid to participating credit unions.

Terms 
Participating credit unions should review the terms provided by their corporate credit union for specific details and terms of the accounts.

The following terms reflect the general parameters for the accounts that have been established under the CIF program.

90-Day Notice Account 
The account is structured as a 90-day notice account. Once funds are placed in the account, a participating credit union must give 90 days notice before withdrawals can be made. This variable rate account is re-priced monthly and is intended to pay a total dividend comparable to short-term investments with a maturity of 60 to 120 days. A variable monthly dividend will be split 50/50 between the credit union and the National Credit Union Foundation. Half of NCUF’s portion is returned, pro-rata, to the state of investment origin.

Fixed Rate Certificate of Deposit (3-year & 5-year terms) 
The account is structured as a fixed rate certificate of deposit, with maturity established at the time of issuance of either three or five years. Once funds are placed in the account, a participating credit union is expected to keep the funds in the account through maturity. This fixed rate account is designed to pay a total aggregate dividend rate comparable with a comparable fixed rate term investment. This new option enables credit unions to more precisely determine the extent of their investment in the CIF program. Distribution: First 2% to the investor, second 2% to NCUF, half of which is returned, pro-rata to the state of investor origin. In a rate environment exceeding 4%, the additional dividend is returned to the investor. Contact your corporate credit union for specific regulations concerning the certificate of deposit.

Suggested Investment Level 
Regardless of asset size, the suggested level of investment is 1/10 of 1 percent of assets or $1 million. Three levels of recognition have been identified:

Investor Circle: Investments of less than 1/10 of 1% of assets.
Leadership Circle: (suggested level of investment): 1/10 of 1% of assets, or $1 million. 
Chairman’s Club: ¼ of 1% of assets, or $2+ million.

Distribution 
A portion of the dividend (up to 2%) is paid to the National Credit Union Foundation to support state and national credit union development initiatives. The portion of the dividend credited to the CIF will be utilized as follows:

• 40% to the Foundation's general fund for development 
• 50% to state development initiatives 
• 10% to the Foundation Endowment growth 

Uses 
Funds distributed from the CIF can be used for:

• International Partnerships 
• Education of credit union and league employees and volunteers 
• Public education initiatives related to credit unions 
• Projects and programs that support new, small or community development credit unions 
• Programs or projects that extend credit union services to the unserved or underserved