You must ensure the level of funding and support is sufficient to operate the credit union by providing services deemed important by the members, as reflected in the membership survey. The PFCU’s financial projections should include all monetary support and subsidies that are detailed in this section of the business plan. Support can come from any source(s), for example:
- A sponsor;
- An organizer;
- An individual;
- A community group or organization;
- A mentor credit union; or
- Another financial institution.
Support can be in the form of:
- Grants or donations for capital;
- Non-member deposits;
- Donated equipment;
- Free or low-cost office space or services; or
- Any other in-kind donations or subsidies.
Each supporter’s assistance should be explained in detail, including:
- What amount or type of support will be provided;
- When the support begins and ends;
- Whether the assistance is to be repaid; and
- Whether there are any other terms or conditions.
Ensure all commitments being relied upon and used to support the financial projections are in writing. Commitments may be in the form of letters, draft contracts, or any other such document substantiating the PFCU’s projections, accompanied by financial statements or similar documentation from the supporter(s) demonstrating their ability to meet the commitment. A sample commitment letter is located here.
The NCUA will review the documentation of the donors’ ability to fund their donated capital commitment or proof of deposit if the donation has already been made. Bank statements or audited financial statements are typically provided to show proof of ability to fund.