Our Story
When we first launched the CU De Novo Collective website, a few vendors and large credit unions asked us if they could help with donations. As a grassroots volunteer effort, we were honestly surprised and touched by the offers of support. But then we thought, “Heck yes! We’ll take donations and create a foundation.” So that’s what we did.
The CUDNC Foundation is a 501c3 corporation. All donations are tax deductible and 100% of all money donated goes to help start new credit unions.
Raising capital for new charters
In the last three years only 8 charters have been granted. Of those, seven were black-led and the other Native American. Most new charters will never see the light of day because they are not able to raise adequate capital. We have been working closely with new charters, the NCUA, and various organizations that have provided "in kind" and greatly discounted service donations to drive the capital requirement down.
There is no minimum capital requirement for a de novo, it is completely dependent upon their business plan. But what we do know is that a credit union that wants to start with basic services, or what we like to call the "cigar box" credit union, that they can usually achieve that with $100,000.00 in capital. Capital is 100% a donation. It is not an investment and will not be repaid.
New credit unions are vital to the health and viability of the movement. It's getting harder to defend our tax exempt status with the credit union difference. Think of this as the NEW credit union difference story!
“It’s not about the money, not about accumulating capital. It’s about helping people’s lives be better. - Louise Herring