CU 2.0 Podcast Episode 260 Matthew Butler on Charitable Donation Accounts

Send us a textCDA - three letters but, ask Matthew Butler, and he will tell you this is a potential huge win for credit unions and their communities.,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.Just a handful of credit unions currently use a charitable donation account and Butler is here to tell you that’s a costly mistake.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.What’s an impermissible investment?  In the show Butler points particularly to investment grade corporate bonds.  There are other options too.  Why don’t more credit unions use CDAs? We talk at some length in the show about that very point.A lot simply haven’t heard of CDAs.Also on the show is Fernando Arrue, portfolio manager at Elite Capital.Listen up.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  And like this podcast on whatever service you use to stream it. That matters.  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