A final rule that includes federally tax-exempt veterans’ organizations within the definition of “qualified charity” to which credit unions may contribute using a charitable donation account (CDA) was approved Thursday by the board of the federal credit union regulatory agency.
The final rule, approved unanimously by the three-member National Credit Union Administration (NCUA) Board and set to take effect Dec. 21, applies to a post or organization of past or present members of the Armed Forces of the United States, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization recognized as exempt from taxation under section 501(c)(19) of the Internal Revenue Code (IRC), according to the draft final rule notice.
The measure revises the NCUA’s incidental powers rule.
In all, the agency said it received seven comment letters on the May proposal. Of those, six supported the proposal as written. Responding to the agency’s invitation to suggest what other organizations should be considered for inclusion in the “qualified charity” definition, some offered the following specific recommendations tied to various sections of the IRC:
- 501(c)(4): civic leagues, social welfare organizations, and local associations of employees.
- 501(c)(5): labor, agricultural, and horticultural organizations.
- 501(c)(6): business leagues, chambers of commerce, and real estate boards.
- 501(c)(7): social and recreational Clubs.
- 501(c)(29): qualified nonprofit health insurance issuers.
Reg Lookup: Charitable Donation Accounts