Integrity Fund Seeks Cooperative Contributions

In early April, CFC mailed letters to all members inviting contributions to the Cooperative System Integrity Fund and providing a “Participation Authorization” form for those wanting to set aside a portion of their CFC patronage capital distribution for fiscal year 2023 or contribute to the fund by other means. 

“Even though patronage capital distribution amounts are not approved until the July CFC Board of Directors meeting, the form [due June 30] allows members to designate a percentage of this year’s retirement to the Integrity Fund ahead of time,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said.

Since its creation in 1986, the Integrity Fund—administered by CFC with decisions made by a five-member committee composed of CFC, NRECA and Rural Electric Statewide Managers Association representatives—has awarded more than $30 million in grants to nearly 300 cooperatives in 43 states to fight takeover and annexation bids by investor-owned utilities and municipal electric systems; preserve rights to offer non-electric energy services; and resist regulatory, judicial or legislative actions that threaten the cooperative business model. Cooperatives do not have to contribute to the fund to request assistance.

Please note that the CFC Board of Directors, which administers the fund, is considering changes to the Integrity Fund Terms and Conditions based on staff recommendations. These changes are focused on improving operational efficiencies, realizing cost savings and adhering to accounting and auditing best practices. Specific changes under consideration include placing all contributions in a single “All Purposes” pool in the future; sunsetting withdrawals of prior contributions; and creating a timeline for required disbursal of funds on approved grants. The program changes will be communicated with members following board approval.

The Integrity Fund clearly embodies the strength of a unified rural electric network. “Integrity Fund grants are funded exclusively by the rural electric network, for the rural electric network,” Captain, a member of the Integrity Fund Committee, added.

If you have any questions about the fund or the potential changes to its administration, please contact Captain at brad.captain@nrucfc.coop or Donna Goff at donna.goff@nrucfc.coop.