As a church treasurer, I often find myself immersed in tax and legal issues that affect church finances. When I came across this one, I thought I’d better give our readers a quick update.
One response to economic changes of the past few years has been increased concern at some ministries about the safety of their deposits. Increasing the federal deposit insurance limit to $250,000 helped ease some of that concern. Recently passed legislation may ease that tension a bit more.
Effective with the July 21, 2010 signing of the Dodd – Frank Act (or the “financial reform bill” as it’s more commonly known), non-interest-bearing credit union accounts now have unlimited insurance. That’s right…unlimited insurance. For ECCU members, this insurance coverage, which is provided by the National Credit Union Administration (NCUA), applies to any analyzed checking accounts. Coverage will be in place until January 1, 2013, unless extended by Congress.
Here are just two of many implications of this change:
- If your ministry maintains your operating accounts with ECCU as analyzed checking accounts, all the funds in those accounts will be insured. (This coverage is in addition to the $250,000 deposit insurance already available for other accounts.)
- By utilizing our Ministry Bonus Sweep Account, you can maximize return of excess funds while keeping checking balances separately insured.
We’ll be giving you more details about this legislation and how it can benefit your ministry on our website, but I wanted to give you the opportunity to be thinking about it now.