The Community Impact Fund (CIF) was founded in 2017 with a mission to partner with employers including credit unions to empower A.L.I.C.E. (Asset Limited Income Constrained Employed) individuals towards financial security. Today, CIF partners with credit unions across the country to make that mission real at the local level.

CIF's flagship offering is the Impact Loan Program, which allows credit unions to directly support their own employees—and, by extending the program to key charitable and employer partners, the employees of those organizations as well—through 0% interest Impact Loans for financially vulnerable individuals, particularly those classified as ALICE (Asset Limited, Income Constrained, but Employed)*. This gives credit unions a way to go beyond a one-time grant or scholarship, creating a deeper, ongoing impact for the people connected to their mission.

Credit unions can establish and fund an Impact Loan Program in either of two ways, and the two are not mutually exclusive, however, they work especially well together:

• Direct Charitable Donation - A credit union can make a charitable donation directly to CIF at any time to establish or continue funding their Impact Loan Program.
• Charitable Donation Account (CDA) - A credit union can open a CDA, a specialized investment account that typically generates a higher return than permissible investments held on balance sheet. 51% of those investment gains can be granted to one or more charitable causes — and an Impact Loan Program is one of the easiest, most natural recipients, since it gives a CDA's philanthropic dollars a clear, ready-made destination with built-in reporting and impact.

A CDA is not required to establish an Impact Loan Program, and a credit union can absolutely open a CDA without ever setting up an Impact Loan Program. But because a CDA is designed to generate ongoing charitable dollars, and an Impact Loan Program is designed to put charitable dollars to work in the community, the two are a natural fit — a CDA gives a credit union a sustainable engine for giving, and the Impact Loan Program gives that engine a mission-aligned place to send its output.

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Key Features

• 0% Interest Impact Loans - Impact Loan Program funds are used to provide interest-free loans to help employees—including those of key charitable and employer partners—cover critical expenses such as housing, transportation, medical bills, and basic necessities.
• ALICE-Focused Support - These loans specifically target households that earn too much to qualify for government assistance but struggle to afford daily living expenses.
• Incentivized Savings - As borrowers repay their interest-free loans, they are encouraged to start building emergency savings accounts at their credit union, fostering long-term financial stability.
• Imbedded financial education and Coaching - CIF partners with TrustPlus a national financial coaching organization to integrate financial education and coaching directly into the Impact Loan Program
• Sustainable & Scalable - When paired with a Charitable Donation Account (CDA), the Impact Loan Program can create a self-sustaining cycle of community reinvestment, ensuring ongoing financial impact.

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Key Benefits for Credit Unions

• Addresses Local Financial Hardship - The Impact Loan Program provides direct relief to ALICE employees, both at the credit union and at its partner organizations, supporting financial stability and strengthening the local economy.
• The Dignity of Anonymity - Employees at financial institutions are often reluctant to ask for help, even when they need it, out of shame tied to working in the industry that is supposed to help others be financially well. Because CIF, not the credit union, administers the loan, the credit union never knows which of its own employees has taken one out. CIF becomes the trusted intermediary, removing the barrier of shame and making it safe for employees to seek support.
• Deeper Community Impact - CUs offer Impact Loans to their own employees and, if they choose, can extend that support to employees of key charitable and employer partners. This approach allows credit unions to move beyond a one-time grant or scholarship toward an ongoing, meaningful investment in the people connected to their mission.
• Financial Wellness & Savings Growth - Borrowers transition from debt dependency to savings-building, improving their long-term financial security.
• Sustainable Social Impact – Unlike one-time charitable donations, the Impact Loan Program creates an ongoing cycle of support, continuously reinvesting in the community.
• Regulatory & Mission Alignment – The Impact Loan Program aligns with credit unions' cooperative principles and NCUA-approved charitable strategies, ensuring compliance while maximizing impact.

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Considerations

• Funding Approach - Credit unions should determine whether a direct donation, a CDA, or both best fit their financial strategy and long-term goals.
• Loan Program Management - Proper loan administration and borrower education are essential for maximizing impact and repayment success.
• Community Needs Assessment - Identifying the most pressing financial challenges for ALICE households ensures the program is effectively targeted and impactful.

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The Power of the Impact Loan Program & CDA Together

A CDA isn't required to launch or sustain an Impact Loan Program, and the two can absolutely stand alone. But together, they create a highly efficient, self-sustaining model: the CDA generates the ongoing investment returns, and the Impact Loan Program puts those returns directly into the hands of ALICE employees at the credit union and its partner organizations — all without ever touching the credit union's core capital. This dual approach lets credit unions increase charitable giving while directly addressing financial insecurity, reinforcing their core mission of “people helping people.” An Impact Loan Program isn't just an investment in financial returns—it's an investment in people, communities, and long-term economic stability.

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*As reported on unitedforalice.org

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