CFC Board Defers Asking for Integrity Fund Donations

The CFC Board of Directors recently voted not to seek contributions to the Cooperative System Integrity Fund in fiscal year 2021. CFC also will not process any ongoing contributions in fiscal year 2021 from systems that previously elected to automatically donate a percentage of their annual patronage capital distribution.

Fund Sits in a Strong Financial Position

With an available balance of $5.3 million on April 1, and average annual advances of less than $1 million over the last four years, the fund is in a strong financial position. The fund’s balance is generated through voluntary contributions from members and associates, either with a portion of patronage capital refunds or direct cash contributions. The CFC board will consider resuming requests for contributions next year.

Hundreds of Co-ops Have Been Helped

Since its creation in 1986, the Integrity Fund has awarded more than $29 million in grants to nearly 300 electric cooperatives in 43 states for the purposes of:

• fighting takeover and annexation attempts by investor-owned utilities and municipal electric systems;
• preserving rights to offer non-electric energy services; and
• resisting regulatory, judicial or legislative actions that threaten the existence of the cooperative business model.

Generally, Integrity Fund grants cover up to 50 percent of eligible expenses, subject to a maximum limitation. Grant applications are reviewed and approved by a five-member committee made up of CFC, NRECA and Rural Electric Statewide Managers Association representatives.

For more information about the Integrity Fund, contact CFC’s Donna Goff at donna.goff@nrucfc.coop or 800-424-2954, ext. 1655.