Community Purpose Accounts

Our Role

Working with co-ops across the country, we’ve seen some interesting ideas for how you can give back to your community. Some cooperatives have established scholarship trust accounts with Homestead to keep that money invested until it’s needed. Others have established a revolving loan fund to provide funding for heat pumps, storm windows and doors.

Homestead knows about how co-ops are giving back because we know co-ops – what they are doing, how they are using their money, how they are solving financial challenges in their communities.

Establishing an Account

Entity or trust accounts are typically established by cooperatives for community purpose accounts, and any account administration needs are the responsibility of the cooperative. Homestead Funds acts as the investment vehicle for entity accounts. Once the account is open, you receive the same level of customer service as our other shareholders, and you have the same mutual fund choices available for your account. 

Making Transactions

Accounts may be funded by indicating your investment method on the application. Money can be submitted to Homestead Funds by check, ACH transfer or wire transfer. Please call 800.258.3030 for wire instructions. 

Rebalancing and Moving Money

Account rebalances or fund exchanges can be made over the phone by an Authorized Agent of the account if that option was selected on the application or online if login credentials have been established. If you did not elect telephone privileges, your request must come in writing. You may update your telephone transaction options at any time by submitting the  Account Services Form.

Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.

Distributions

If your distribution request is more than $50,000 in any one fund, or if you instruct us to send proceeds to an address, party or bank account that we do not have on file, the Authorized Agent must submit the request in writing on the  Account Distribution Request Form  and include a Medallion Signature Guarantee.

Account Maintenance

To update the Authorized Agents on your account, complete the  Entity or Trust Account Authorization Form. Make sure to list all of the Inquiry-Only Agents and Full Account Access Agents on the form because the Agents listed on the form will replace prior Agents on file. The form must be signed by a Full Account Access Authorized Agent already on file (or one being added). You must include the entity documentation or trust documents showing the updated account signers.

To update account basics such as address, telephone/internet options, dividend and capital gains options, and bank information, use the  Account Services Form. Some updates may be able to be done online as well.

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