The Federation class Building Blocks of Community Finance met July 19 at CUNA Management School in Madison, WI. Presenting were Jim Schrimpf of Brewery Credit Union and Paul Grinde at CoVantage Credit Union. Jim and Paul are pictured at left (front row) with some of the class. Pictured at right is Brandi McKnight of Missoula Credit Union. Also presenting were Pablo DeFilippi, Federation VP of Membership, and Sarah Marshall and Susan Brunner, CU Breakthrough consultants.
Covered were the building blocks of community finance: Low Income Designation, CDFI Certification and becoming a Community Development Credit Union (CDCU) through membership with the Federation.
Building Block #1: Low Income Designation
The NCUA low income designation provides your credit union with the tools to help increase institutional capacity including the ability to accept secondary capital, exemption from the MBL limitation, the right to accept nonmember deposits, regulatory flexibility to serve low income consumers and FOM expansion opportunities.
Building Block #2: CDFI Certification
CDFI certification is one of the most valuable credentials available to community development organizations. In addition to the $1.5 billion in capital grants that have been awarded by the US Treasury Department’s CDFI Fund to date, CDFI certification is the gateway to attracting local recognition as a community leader as well as to accessing additional public and private sector funds.
Building Block #3: Become a CDCU
The Federation specializes in helping credit unions serve low income markets in a way that’s responsive to the LMI consumer’s needs, but also sustainable for the credit union. The Federation develops and delivers innovative products focused on low and moderate-income consumers, fosters strategic partnerships, identifies best practices and lessons for serving underserved communities, and provides education and training to CDCU leaders.