Using Charitable Donation Accounts to Be More Strategic in Your Giving: An Interview With Andy Roquet

Andy Roquet
Andy Roquet Photo
Senior Executive Benefits Specialist
CUNA Mutual Group

Where the rubber hits the road and the fun part of charitable donation accounts is looking at the community organizations that credit unions have supported through having these programs, says Andy Roquet during Episode 64 of the CUES Podcast.

Executive benefits specialist with CUESolutions platinum provider CUNA Mutual Group, Madison, Wis., Roquet describes one credit union that helped build three community libraries, which had significant impact and visibility. 

“I’ve also heard of funding high school or college score boards where you can have your credit union’s name on there.” Other credit unions have used their CDAs to donate to Children’s Miracle Network and the National Credit Union Foundation.

In Episode 64, Roquet defines a CDA as a special arrangement through which the credit union is allowed to make special, potentially higher income investments to offset charitable donations. After the board makes a resolution to set up a charitable donation account and approves an investment policy, credit unions can put up to 5 percent of their net worth into a CDA. 

“Then you must give away 51 percent in a five-year period,” he explains. “There can be some accumulation year over year if you want. The other 49 percent can be kept as normal income.”

Roquet says a best practice with CDAs is to make giving more strategic. “Quite often giving is done in many departments by many individuals in a credit union. CDAs allow management to see and bring this together into one budget line item to truly see the impact of giving.”

The episode also covers:

  • key concepts in accounting for CDAs;
  • when and how to talk with the board about CDAs;
  • what kinds of investments can be used to fund these accounts; and
  • how to involve employees—including millennials—in a credit union’s charitable giving process in a way that boosts their morale and motivation.
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