Strategic Philanthropy For Community by Slord_Suniverse

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									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
1. 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.
2. Community relations and philanthropy are different from,
   but connected to “outreach”. You can strategically
   connect them for a range of strategic value.
3. Organizations viewed as “socially responsible” attract
   and retain high-quality employees. So why not credit
   unions?
4. Strategic community relations and related philanthropy
   efforts can lead to paths for entering new markets (REAL
   Solutions®).
5. There are things you can do right now to better leverage
   what you are already doing particularly around employee
   workplace giving.
                  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.
                       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
                  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?
                  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.
         Leveraging Your Credit Union’s Community Relations
                       and Workplace Philanthropy Programs




           Mission
    To promote and improve
consumer financial independence
     through credit unions
                      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
                    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                    Winner of The
            extensive standards               Association of
            of America’s most                 Fundraising
            experienced and                   Professionals Award
            respected charity                 For Excellence in
            evaluator.                        Fundraising
                    Leveraging Your Credit Union’s Community Relations
                                  and Workplace Philanthropy Programs


Take-aways
1. 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.
2. Community relations and philanthropy are different from,
   but connected to “outreach”. But you can strategically
   connect them for a range of strategic value.
3. Organizations viewed as “socially responsible” attract and
   retain high-quality employees. So why not credit unions?
4. Strategic community relations and related philanthropy
   efforts can lead to paths for entering new markets (REAL
   Solutions®).
5. There are things you can do right now to better leverage
   what you are already doing particularly around employee
   workplace giving.
                  Leveraging Your Credit Union’s Community Relations
                                and Workplace Philanthropy Programs



1. 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
                        Leveraging Your Credit Union’s Community Relations
                                      and Workplace Philanthropy Programs

2. Community relations and philanthropy are
   different from, but connected to “outreach”. But
   you can strategically connect them for a range of
   strategic value.
 Philanthropy & Classic              Outreach & Strategic
 Community Relations.                Philanthropy.
 Marketing, branding, image-         Making a difference in
 building activities that may        individuals’ financial lives by
 increase membership, but are        focusing on those of low wealth,
 basic expectations placed on        modest means and working
 all community institutions.         family household.

    Sponsoring local sports teams    Financial education
    Walks, thons, races              Low-cost check cashing
    Food drives                      Low first time home loans
    Grants to social service orgs    Immigrant accounts
    Toy Drives                       Affordable services
    United Way                       Outreach to assist those
    Habitat for Humanity              physically & economically
    Scholarships                      disadvantages.
                                      Payday advance and other
                                       consumer friendly alternative
                                       financial services.
                          Leveraging Your Credit Union’s Community Relations
                                        and Workplace Philanthropy Programs

Maximizing value
                                            CU’s ARE EXPECTED
      Pure Philanthropy                      TO CREATE BOTH
                                            ECONOMIC & SOCIAL
                                                  VALUE!
           Sponsoring local sports
            teams
           Walks, thons, races
           Food drives                      Financial education
SOCIAL     Grants to social service orgs    Affordable services
BENEFIT    Toy Drives                       Low-cost check cashing
           United Way                       Low first time home loans
           Habitat for Humanity             Immigrant accounts
           Scholarships                     Outreach to the physically &
                                              economically disadvantages.
                                             Payday advance and other
                                              consumer friendly alternative
                                              financial services.
                                                        Classic ROI

                             ECONOMIC
                              BENEFIT
                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?
                              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.

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


    4.   Strategic community relations and related
         philanthropy efforts can lead to paths for
         entering new markets (REAL Solutions®).

    Another way to look at lower-wealth and working class households

    Low income                              Upward potential income
    Rent                                    First time homeowners
    Younger age         viewed              Student loans
    Immigrant          another              Remittances
    Minority              way               Chance to represent
    Less educated                           Education loans
    Unemployed                              Staffing opportunity
    Low-income neighborhood                 Loyalties not developed yet
    Larger family                           Multiple relationships
    Higher cost services (lower savings)    Difficult to disappoint
    More difficult to serve than            “Emerging” markets
     traditional members.                     representing organic growth.
                   Leveraging Your Credit Union’s 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
                    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!
                  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       Estimated Member
   – Average loan size $336            Savings $500,000!
   – Default rate 1.2%
   – 10% required savings
             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
                Leveraging Your Credit Union’s Community Relations
                              and Workplace Philanthropy Programs

            Success story:
            Load n’ Go Card
  Co-Vantage Credit Union
              (Wisconsin)

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

Traditional institutional (corporate) giving models

1. Corporate/Institutional Giving Program
2. Corporate/Institutional Foundation
3. Corporate Fund
4. Employee Giving/Matching/Volunteering
                  Leveraging Your Credit Union’s Community Relations
                                and Workplace Philanthropy Programs



1. 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.
                  Leveraging Your Credit Union’s Community Relations
                                and Workplace Philanthropy Programs



2. 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.
                 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.
                     Leveraging Your Credit Union’s Community Relations
                                   and Workplace Philanthropy Programs



4. 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.
                 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.
                    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?
Institutions are reclaiming their employee
workplace giving & volunteering programs
• 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
TECHNOLOGY ALLOWS
• Branding
• Personalization
• Choices
                    Leveraging Your Credit Union’s Community Relations
                                  and Workplace Philanthropy Programs

Determining the right “model” for your CU
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

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.
                      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
                      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
THANK YOU!
Steve Delfin,     Executive Director
National Credit Union Foundation
601 Pennsylvania Avenue, NW; Suite 600
Washington, D.C. 20004-2601
Direct: 202.508.6769
Cell: 202.550.7084
Email: sdelfin@ncuf.coop


www.ncuf.coop              and   www.cuaid.coop

								
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