Leveraging Your Credit Union

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
Steve Delfin, Executive Director National
Credit Union Foundation
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Leveraging your credit unions community
relations and workplace philanthropy programs

• Take-Aways
• Credit unions that leverage their community
  relations and related workplace philanthropy
  efforts by treating them as part of their overall
  business strategy, can reap a range of
  competitive benefits.
• Community relations and philanthropy are
  different from, but connected to outreach. You
  can strategically connect them for a range of
  strategic value.
• Organizations viewed as socially responsible
  attract and retain high-quality employees. So why
  not credit unions?
• Strategic community relations and related
  philanthropy efforts can lead to paths for
  entering new markets (REAL Solutions).
• There are things you can do right now to better
  leverage what you are already doing particularly
  around employee workplace giving.

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Consumers expect companies to keep giving in
hard times
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• A recent survey of 1,000 adults found that even
  in a poor economy, consumers expect companies to
  support philanthropy.
• More that half the respondents said companies
  should maintain their levels of financial support
  for charitable causes and 26 thought companies
  should give more.
• The research suggests that consumers would show
  less loyalty to companies that curtail giving as
  the economic crisis worsens.

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Charitable organizations (501c3 tax-exempt)
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• There are approximately 1.5 million 501c3
  tax-exempt charitable organizations in the
  following categories
• Arts, culture and humanities
• Museums, symphonies, community theater
• Education and research
• Private colleges, universities, independent
  elementary and secondary schools, noncommercial
  research institutes
• Environmental and animals
• Zoos, wildlife sanctuaries, wildlife orgs, land
  protection groups
• Health services
• Hospitals, public clinics, hospices
• Human services
• Housing shelter, youth sports, halfway house
• International and foreign affairs
• Overseas relief and development issues
• Public and societal benefit
• Private and community foundations, civil rights
  organizations and other advocacy groups, civic,
  social and fraternal orgs
• Religion
• Houses of worship and their auxiliary services

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Charitable organizations (501c3 tax-exempt)
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• From 1987 to 2006 the number of charitable orgs
  registering with the IRS has grown at double the
  rate of the U.S. business sector.
• Employ nearly 10 million people.
• Represent 7.2 of U.S. economy.
• Represent 6.6 of all wages.
• Account for 5.5 of GNP.
• Combined assets of public charities and private
  foundations exceed 3 trillion.
• Why is this important?

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• About NCUF
• Chartered as the CUNA Foundation in 1980, we
  served as a traditional trade association
  foundation for our first decade.
• In 1991, the organization became a formal
  charitable foundation (the National Credit
  Union Foundation or NCUF) focused on the needs of
  consumers and credit unions unique ability to
  meet those needs.
• Today, NCUF remains affiliated with CUNA, but
  we operate under a separate 501(c)(3) tax
  exemption. NCUF is widely recognized as the
  national charitable arm of the U.S. credit
  union movement.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
Mission To promote and improve consumer
financial independence through credit unions
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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• NCUFs role
• Create opportunities for credit unions.
• Bring national resources to bear on local
  initiatives.
• Support and collaborate with state foundations.
• Incubate new ideas, expand successful programs.
• Raise and disburse money throughout the CU
  system.
• Coordinate system-wide disaster relief
  fundraising by CUs to assist credit union
  employees and members.
• Advance thought leadership on
• Community outreach credit union development
• CU philosophy, cooperative values principles
• Cooperative social responsibility
• Philanthropy and volunteerism

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Funding sources
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Institutional Supporters
• Individual Donors
• Federal Grants
• Foundations
• Community Investment Fund (CIF)

NCUF meets the extensive standards of Americas
most experienced and respected charity
evaluator.
Winner of The Association of Fundraising Professio
nals Award For Excellence in Fundraising
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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Take-aways
• Credit unions that leverage their community
  relations and related workplace philanthropy
  efforts by treating them as part of their overall
  business strategy, can reap a range of
  competitive benefits.
• Community relations and philanthropy are
  different from, but connected to outreach. But
  you can strategically connect them for a range of
  strategic value.
• Organizations viewed as socially responsible
  attract and retain high-quality employees. So why
  not credit unions?
• Strategic community relations and related
  philanthropy efforts can lead to paths for
  entering new markets (REAL Solutions).
• There are things you can do right now to better
  leverage what you are already doing particularly
  around employee workplace giving.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Credit unions that leverage their community
  relations and related workplace philanthropy
  efforts by treating them as part of their overall
  business strategy, can reap a range of
  competitive benefits.
• Enhanced reputation
• Fill the Trust Gap
• Influence public policy
• Create more member value
• Increase employee loyalty and productivity
• Build community support
• Increase growth

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

1. Community relations and philanthropy are
   different from, but connected to outreach. But
   you can strategically connect them for a range of
   strategic value.

Outreach Strategic Philanthropy. Making a
difference in individuals financial lives by
focusing on those of low wealth, modest means and
working family household.
Philanthropy Classic Community
Relations. Marketing, branding, image-building
activities that may increase membership, but are
basic expectations placed on all community
institutions.

• Sponsoring local sports teams
• Walks, thons, races
• Food drives
• Grants to social service orgs
• Toy Drives
• United Way
• Habitat for Humanity
• Scholarships

• Financial education
• Low-cost check cashing
• Low first time home loans
• Immigrant accounts
• Affordable services
• Outreach to assist those physically
  economically disadvantages.
• Payday advance and other consumer friendly
  alternative financial services.

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Maximizing value
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
CUs ARE EXPECTED TO CREATE BOTH ECONOMIC
SOCIAL VALUE!
Pure Philanthropy

• Sponsoring local sports teams
• Walks, thons, races
• Food drives
• Grants to social service orgs
• Toy Drives
• United Way
• Habitat for Humanity
• Scholarships

• Financial education
• Affordable services
• Low-cost check cashing
• Low first time home loans
• Immigrant accounts
• Outreach to the physically economically
  disadvantages.
• Payday advance and other consumer friendly
  alternative financial services.

SOCIAL BENEFIT
Classic ROI
ECONOMIC BENEFIT
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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• 3. Organizations viewed as socially responsible
  attract and retain high-quality employees. So why
  not credit unions?

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
3. Organizations viewed as socially responsible
attract and retain and high-quality employees. So
why not credit unions?
Booz Allen Presented with Two Awards for its
Support of Veteran-Owned Businesses. The firm far
exceeds federal subcontracting diversity goals to
win one award for the fourth consecutive year,
and the other for the second year in a row.
San Antonio Business Journal Again Names Booz
Allen as a Best Place to Work. Compelling work
and an expanding roster of prominent clients have
helped the San Antonio office maintain its
award-winning status for three consecutive years.
 
Booz Allen is Recognized with the Outstanding
Corporate Partner Award for its Philanthropic
Efforts. The Association of Fundraising
Professionals honors the firms charitable
initiatives on National Capital Philanthropy Day.
Booz Allen Named a 2007 Working Mother 100 Best
Company by Working Mother Magazine. Working
Mother magazine chooses Booz Allen as one of the
Top 10 Best Companies for Working Mothers for
the third year.
FORTUNE Once Again Names Booz Allen to its List of 100 Best Companies To Work For. Firm is celebrated for its corporate culture, which allows its employees, and its business, to thrive.
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Another way to look at lower-wealth and working
class households
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
4. Strategic community relations and related
philanthropy efforts can lead to paths for
entering new markets (REAL Solutions).

• Low income
• Rent
• Younger age
• Immigrant
• Minority
• Less educated
• Unemployed
• Low-income neighborhood
• Larger family
• Higher cost services (lower savings)
• More difficult to serve than
• traditional members.

• Upward potential income
• First time homeowners
• Student loans
• Remittances
• Chance to represent
• Education loans
• Staffing opportunity
• Loyalties not developed yet
• Multiple relationships
• Difficult to disappoint
• Emerging markets
• representing organic growth.

viewed another way
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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
Success story Prospera GoodMoney

• Active GoodMoney members 630
• Closed GoodMoney members 535
• Total GoodMoney members 1,165
• Total number of loans 8,272
• Total dollar value of loans 3,018,800
• Average loan amount 364.94
• Estimated savings over
• traditional payday lenders 455,839

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Success story Salary Advance
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Created by Ohio credit unions to share risks
• Expanded to 7 States
• 128 participating credit union locations
• Results from past 12 months
• 8,900 Members
• 62,000 Advances
• 2.48 Million in Loans
• 3 Million Member Savings!

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Success story Freedom Suite of Services
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Freedom suite of services
• 2nd Chance Checking
• MoneyMax Card
• Payday Loan Alternative
• 90-day terms
• Rollovers allowed with no additional fee
• 774 members using product in first 6 months
• 1,114 advances
• 374,424 in loans disbursed
• Average loan size 336
• Default rate 1.2
• 10 required savings

Estimated Member Savings 500,000!
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Success story Commitment Savings
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Prince Georges County MD Credit Union
• Pot of Gold Savings
• Members save for a specific purpose
• Commit 3-5 years to save 2,500-10,000
• Members can borrow from the fund for 3 over the
  current savings rate
• Pot of Gold Savers make up 8.3 of membership
  (gt1,000 members out of 12,000)
• Pot of Gold Savers make up 4.4 of PG County CU
  assets

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Co-Vantage Credit Union (Wisconsin)
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
Success story Load n Go Card

• Less than 6 months old
• 341 users/cards issued
• Most not qualified for checking accounts most
  with FICA less that 600
• 200 average balance
• 2 per month fee plus small load fee

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs
HarborOne MultiCultural Center Becomes
Model Credit Union Times, BROCKTON, Mass.
Marking its first year anniversary, an innovative
credit union-run center here, designed initially
as a deterrent to payday lending, continues to
find new community group patrons and is winning
accolades as model for what credit unions can do
in low- and middle-income outreach.
I am a Cape Verdian living in America.
Sometimes we receive wrong information from wrong
people and make wrong decisions because of it. By
taking a class at HarborOnes MultiCultural
Banking Center, I will make better financial
choices and improve my life. Please continue the
program because its helpful for everyone in the
community. Maria Leite, Member, HarborOne Credit
Union
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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Asset size 1,636 Billion.
• Membership 135,000.
• Multi Cultural Center opened in April of 2007.
• Took about a year to begin adding new members.
• To date have added 600 members from their
  financial education programs and another 400
  from their community partnership referrals with
  many bringing in family members.
• Annual growth 13 in membership and 10 in
  assets
• ROA - 0.64 in August and 0.7 (monthly figures)
  in September - Year to date profitability is
  0.51.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Community partners (partial list- most housed in
  multicultural branch)
• Signature Health Care - prenatal awareness and
  heath insurance training
• Neighborhood Housing providing foreclosure
  counseling
• Self Help providing Head Start
• South Shore Housing
• Work force investments
• Training Resources of America
• Ethnicities served
• Cape Verde - speak primarily Portuguese
• Haitian (speak French Creole)
• Several Latino and Caribbean Countries
• Emerging - Brazilian speaking Portuguese
• Classes offered
• English as a second language
• Career Counseling - How to interview- write a
  resume etc.
• Citizenship preparation
• Financial literacy
• Products services offered
• 2nd chance checking

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Traditional institutional (corporate) giving
models
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Corporate/Institutional Giving Program
• Corporate/Institutional Foundation
• Corporate Fund
• Employee Giving/Matching/Volunteering

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Corporate/Institutional Giving Program
• Many institutions operate an annual giving
  program to make charitable grants, funded as part
  of their annual operating budgets.
• No endowment.
• Typically administered by corporate staff and
  directed by the CEO or an advisory committee of
  management staff.
• Is not subject to the rules and regulations
  governing private corporate foundations.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Corporate/Institutional Foundation
• Institutions can create a corporate foundation as
  an independent, tax-exempt private foundation.
• Usually starts with a single gift that can become
  the endowment, that can be increased via future
  contributions.
• Foundation's officers are usually the companys
  owners and key executives.
• At some institutions, employee committees make
  recommendations about projects.
• Institutional foundations are subject to the same
  rules and regulations applicable to other private
  foundations like NCUF.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• 3. Corporate Fund
• Companies can create their own donor advised
  funds at a community foundation of their
  choosing.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Employee Giving/Matching/Volunteering
• In addition to awarding grants to charity,
  institutions often offer to match their
  employees gifts of cash and volunteer time to
  nonprofit organizations.
• Many assist and encourage their employees to give
  by organizing workplace giving programs and by
  facilitating payroll deductions for employees'
  charitable gifts.
• Institutions sometimes match gifts that their
  employees make through workplace giving programs.
• There is increased use of technology for employee
  giving and volunteering.
• Adding choices (beyond United Way) is growing.
• Institutions are realizing that workplace giving
  and employee volunteerism is something they own
  and can leverage.

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Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• 5. There are things you can do right now to
  better leverage what you are already doing
  particularly around employee workplace giving.

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Strategic employee workplace giving
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• A recent study (Valuing Employee Involvement)
  found that 60 of organizations surveyed had
  expanded charity choices in their campaigns.
• In 2005, the United Way Community Leaders
  Conference reported that the number of workplaces
  offering UW-only campaigns had reached a low of
  20.
• The Association of Corporate Contributions
  Professionals surveyed their membership and found
  that 54 offered charity choices beyond the UW.
• UW campaigns have lost 4 million donors since the
  90sat an average gift of 250, thats 1 billion
  less in giving through payroll deduction
  campaigns annually.
• WHATS HAPPENING HERE?

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Institutions are reclaiming their
employeeworkplace giving volunteering programs
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• State-of-the-art technology for workplace giving
  volunteer programs
• Customization for YOUR campaign
• Personalized customer service
• Campaign best practice consulting from 25 yrs in
  workplace giving
• One vendor for donor interface system AND fund
  distribution
• Non-profit, so your costs are less
• Donating employees can get emails tracking their
  donations
• Full integrated volunteer event planning and
  tracking system

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• TECHNOLOGY ALLOWS
• Branding
• Personalization
• Choices

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Determining the right model for your CU
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Here are a few considerations . . .
• Have you inventoried your current efforts and
  determined the level and type of resources you
  expend on all community relations activities?
  (corporate giving, employee volunteerism, etc.)
• Do you want to engage your employees and members?
• Do you want to better leverage your efforts and
  resources to have more impact?
• Are your goals strategically aligned with your
  business interests? (enlightened self-interest)
• How can you differentiate yourself in a manner
  that builds reputation equity? (halo effect)
• Are you wanting to connect to the broader CU
  industry in a manner that shows CSR leadership?
• Have you considered a more strategic model?

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When considering a more strategic approach
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Devise a meaningful strategic philanthropy and
  institutional citizenship program that leverages
  your resources including intellectual capital.
• Dont spread yourself too thin find focus, go
  deep.
• Consider your employees and members interests.
• Sometimes those are not in total sync with your
  current strategy.
• Consider providing these key stakeholders with
  meaningful options such as workplace giving,
  volunteer time, etc.
• Consider industry challenges and how you can play
  a role in addressing those challenges through
  strategic philanthropy and corporate citizenship.
  
• Give serious consideration to a leadership role
  in a major CU industry initiative such as REAL
  Solutions and/or CIF.

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The business case research shows that . .
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• Customers are more likely to buy a product or
  service if it is linked to a responsible charity
  or cause.
• 52 of consumers would pay somewhat more to buy
  from a socially responsible company. Walker
  Research
• The public feels that institutions have a greater
  responsibility now more than ever to play a
  larger role in responding to societys needs.
• 86 of consumers have a more positive image of a
  company if they know it is doing something to
  make the world better. Fleishman Hilliard
• Socially screened investment funds are growing at
  more than twice the rate of the rest of the
  market.
• 74 would not do business with companies that
  they believe do not act in the best interest of
  society. Boston College

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Resources
Leveraging Your Credit Unions Community
Relations and Workplace Philanthropy Programs

• National Credit Union Foundation (www.ncuf.coop)
• Filene Research Institute www.filene.org
• Center for Corporate Citizenship _at_ Boston College
  www.bcccc.net
• Americas Charities www.charities.org
• Council on Foundations www.cof.org
• Business for Social Responsibility www.bsr.org
• CSR Wire www.csrwire.com
• On-Philanthropy www.onphilanthropy.com

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THANK YOU!Steve Delfin, Executive Director
National Credit Union Foundation601
Pennsylvania Avenue, NW Suite 600Washington,
D.C. 20004-2601Direct 202.508.6769Cell
202.550.7084Email sdelfin_at_ncuf.coopwww.ncuf.co
op and www.cuaid.coop