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Red River Employees FCU partners with Cornerstone Foundation to open Donor Advised Fund

Posted: Aug 31, 2022 | Author: Cornerstone League
Cornerstone Foundation  donor advised fund 

Red River Employees Federal Credit Union of Texarkana, Texas, has partnered with the Cornerstone Foundation to establish a Donor Advised Fund. The nonprofit foundation will be named RRCU Gives.

A Cornerstone Foundation Donor Advised Fund offers many of the advantages of a private/public credit union foundation without the initial set-up costs, ongoing excise taxes, and administrative expenses. By partnering with the Cornerstone Foundation, a credit union avoids the continual compliance and reporting requirements, as well as a separate accounting system to track the nonprofit’s financials.

Brad Bailey, CEO of RRCU, said the CU is in the early stages of establishing RRCU Gives and expects to have the foundation up and running sometime in 2023. Already, the advantages of partnering with the Cornerstone Foundation are apparent.

“We didn’t want to have to hire a full-time person for the foundation, and we had heard from other credit unions it was a lot of work,” he said. “By partnering with the Cornerstone Foundation, we can avoid most of the administrative burden and the expense of setting up our foundation.”

“We already do a lot of internal fundraising for charities but not much on the membership side,” Bailey added. “This will enable members to support many of the charities we have teamed up with, and it offers the added benefit of the foundation being a qualified nonprofit.”

The charities RRCU supports include the United Way, local blood banks, and others, Bailey said.

The advisory panel for RRCU Gives will consist of employees from across departments and branches. “They will be in charge of the foundation, along with the marketing campaigns, whether internal or to the membership. It will definitely be a work in progress, but I believe our employees will embrace it.”

RRCU has assets of $1.3 billion with 115,000 members in parts of Texas, Mississippi, Louisiana, and Arkansas.

If you have questions about Donor Advised Funds, please email Emily Moreno, Cornerstone Foundation grants manager.

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