CU 2.0 Podcast Episode 260 Matthew Butler on Charitable Donation Accounts

CDA - three letters but, ask Matthew Butler, and he will tell you this is a potential huge win for credit unions and their communities.,<br/>Butler is founder of Elite Capital where a chief product offering is the CDA - that’s a charitable donation account and, no, I hadn’t heard of it either.<br/>Just a handful of credit unions currently use a charitable donation account and Butler is here to tell you that’s a costly mistake.<br/>Here’s why: a CDA allows a credit union to make investments in otherwise impermissible vehicles where the kicker is that 51% of returns have to be distributed as charitable donations (that presently means a 501 C 3).  But the credit union can retain the remaining 49% for its own uses.<br/>What’s an impermissible investment?  In the show Butler points particularly to investment grade corporate bonds.  There are other options too.  <br/>Why don’t more credit unions use CDAs? We talk at some length in the show about that very point.<br/>A lot simply haven’t heard of CDAs.<br/>Also on the show is Fernando Arrue, portfolio manager at Elite Capital.<br/>Listen up.<br/>Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com<br/> <br/> And like this podcast on whatever service you use to stream it. That matters.<br/> <br/> Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto<br/><br/>