Katie BaileyIn light of recent news from the Trump administration regarding the tax status of 501(c)(3) organizations—and, more indirectly, 501(c)(6) associations that engage in advocacy—The League is proactively monitoring developments and ensuring credit unions across our footprint remain informed.
While the conversation continues to unfold, it’s important to recognize that the Internal Revenue Service (IRS) is the governing authority that grants and reviews these designations. This is a crucial distinction from the credit union tax exemption, which was established directly by Congress in recognition of our unique cooperative structure.
“We’re confident that the work of both The League, as a 501(c)(6), and the Credit Union Impact Foundation, as a 501(c)(3), remains well within the bounds of our respective tax designations,” said Samantha A.M. Beeler, President of The League of Credit Unions & Affiliates. “Our focus remains squarely on protecting the credit union tax structure and advocating for a modern, effective operating environment for our industry.”
Much of the national scrutiny is expected to focus on cause-based social organizations, as well as institutions like colleges and universities. Furthermore, it is important to note that the administration cannot unilaterally direct the IRS to reevaluate an organization’s tax-exempt status. Any changes would have to follow established legal and regulatory pathways, often prompted by external interest groups.
As a reminder to our members:
- Federal credit unions are designated as 501(c)(1)
- State-chartered credit unions fall under 501(c)(14)(A)
The League wants to ensure credit unions have clarity and context as conversations develop. If you have any questions or would like further clarification, please contact Samantha Beeler.
