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Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Steve Delfin , Executive Directo

Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Steve Delfin , Executive Director National Credit Union Foundation. Leveraging your credit union’s community relations and workplace philanthropy programs. Take-Aways

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Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Steve Delfin , Executive Directo

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  1. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy ProgramsSteve Delfin,Executive DirectorNational Credit Union Foundation

  2. Leveraging your credit union’s 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.

  3. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Consumers expect companies to keep giving in hard times • 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.

  4. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Charitable organizations (501c3 tax-exempt) • 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

  5. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Charitable organizations (501c3 tax-exempt) • 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?

  6. Leveraging Your Credit Union’s 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.

  7. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Mission To promote and improve consumer financial independence through credit unions

  8. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs NCUF’s 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

  9. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Funding sources • Institutional Supporters • Individual Donors • Federal Grants • Foundations • Community Investment Fund (CIF) NCUF meets the extensive standards of America’s most experienced and respected charity evaluator. Winner of The Association of Fundraising Professionals Award For Excellence in Fundraising

  10. Leveraging Your Credit Union’s 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.

  11. Leveraging Your Credit Union’s 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

  12. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs 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.

  13. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Maximizing value CU’s 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

  14. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs 3. Organizations viewed as “socially responsible” attract and retain high-quality employees. So why not credit unions?

  15. Leveraging Your Credit Union’s 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 firm’s 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.

  16. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Another way to look at lower-wealth and working class households 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

  17. 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 Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Success story: Prospera GoodMoney

  18. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Success story: Salary Advance 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!

  19. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Success story: Freedom Suite of Services “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!

  20. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Success story: Commitment Savings 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 (>1,000 members out of 12,000) • Pot of Gold Savers make up 4.4% of PG County CU assets

  21. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Co-Vantage Credit Union (Wisconsin) 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

  22. Leveraging Your Credit Union’s 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 HarborOne’s MultiCultural Banking Center, I will make better financial choices and improve my life. Please continue the program because it’s helpful for everyone in the community.” Maria Leite, Member, HarborOne Credit Union

  23. Leveraging Your Credit Union’s 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%.

  24. Leveraging Your Credit Union’s 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 • $500 Line of Credit • VITA • Citizenship Loans • Coming Soon - payday loans and check cashing.

  25. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Traditional institutional (corporate) giving models • Corporate/Institutional Giving Program • Corporate/Institutional Foundation • Corporate Fund • Employee Giving/Matching/Volunteering

  26. Leveraging Your Credit Union’s 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.

  27. Leveraging Your Credit Union’s 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 company’s 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.

  28. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs 3. Corporate Fund • Companies can create their own donor advised funds at a community foundation of their choosing.

  29. Leveraging Your Credit Union’s 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.

  30. Leveraging Your Credit Union’s 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.

  31. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Strategic employee workplace giving • 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 90s…at an average gift of $250, that’s $1 billion less in giving through payroll deduction campaigns annually. WHAT’S HAPPENING HERE?

  32. Institutions are reclaiming their employeeworkplace giving & volunteering programs

  33. 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

  34. TECHNOLOGY ALLOWS • Branding • Personalization • Choices

  35. 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? Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Determining the right “model” for your CU

  36. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs When considering a more strategic approach • Devise a meaningful strategic philanthropy and institutional citizenship program that leverages your resources including intellectual capital. • Don’t 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.

  37. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs The business case: research shows that . . • 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 society’s 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

  38. Leveraging Your Credit Union’s Community Relations and Workplace Philanthropy Programs Resources • National Credit Union Foundation (www.ncuf.coop) • Filene Research Institute www.filene.org • Center for Corporate Citizenship @ Boston College www.bcccc.net • America’s 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

  39. THANK YOU!Steve Delfin, Executive DirectorNational Credit Union Foundation601 Pennsylvania Avenue, NW; Suite 600Washington, D.C. 20004-2601Direct: 202.508.6769Cell: 202.550.7084Email: sdelfin@ncuf.coopwww.ncuf.coop andwww.cuaid.coop

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