October 21, 2004

Millions contributed in donations, sponsorships, services

Toronto, ON, October 21, 2004

In 2003, credit unions and their affiliates contributed $21.6 million in Donations, Sponsorships, Economic Development and other philanthropic causes.

In the third annual national survey of credit union community involvement, the credit union system again demonstrated how locally focused financial institutions care for the communities they serve. For 2003, credit union system respondents said they contributed $21.6 million to community involvement via donations, sponsorships, scholarships and bursaries, charitable foundations and economic development contributions.

Today’s survey results are being released on International Credit Union Day. In Canada and around the world, credit union achievements and co-operative principles are being celebrated on International Credit Union Day, which coincides with Co-op Week, held October 17 - 23.

The 2003 Credit Union Community Involvement Survey was conducted for Credit Union Central of Canada, covering nine provinces. Results increased from the $20.7 million reported for 2002.

“Along with excellence in customer service, social responsibility and caring for others are core values of Canada’s credit unions,” says Joanne De Laurentiis, President & CEO, Credit Union Central of Canada. “Because we are locally controlled financial co-operatives, our social responsibilities overlap with the needs of our local communities. For the third year in a row, this survey quantifies the millions of dollars that credit unions and affiliates contribute to hundreds of communities in the form of monetary support, fundraising, community economic development and more. When you couple those funds with the enthusiastic volunteer efforts of our staff, the credit union system’s contribution to communities is indeed substantial.”

The survey was conducted by Ipsos-Reid in 2004 and received 281 responses, including 273 credit unions and caisses populaires located in nine provinces, as well as eight credit union affiliates.

The 2003 survey shows that responding credit unions and affiliates contributed $14.8 million in monetary support—donations and sponsorships—to worthwhile causes during the year. Showing their commitment to local communities, the large majority of respondents (93%) said they donated to organizations within their trade areas, while a significant proportion (53%) made donations to organizations outside their trade area, but within their province.

Reflecting the community focus of credit unions, sports teams/associations were cited most frequently as recipients of donations and sponsorships (142). Also high on the list were health care causes (136), education (112), arts and culture (110), schools and colleges (109) and economic development efforts (106).

In keeping with the youth theme for this year’s Credit Union Day/ Co-op Week, respondents from the credit union system gave just under $1.0 million for 1,313 scholarships and bursaries, which were offered by 205 credit union system respondents.

In addition, 38 respondents said they contributed $2.9 million to their charitable foundations.

A significant figure not included in the overall tally is charitable fundraising on behalf of other organizations. In 2003, fundraising by the credit union system attracted $2.5 million for worthy causes. This figure includes staff contributions, giving by credit union members and the public.

In the 2003 survey, 189 (67% of credit union system respondents) administered fundraising campaigns for community organizations.

Volunteerism also plays a large role in credit union community involvement. Half of the survey respondents (51% or 143) reported that their employees participate in community activities and/or organizations as part of their paid work. Employee unpaid volunteerism is even higher, with 80% of credit union system respondents indicating that employees volunteer for community activities/organizations, representing the credit union or affiliate during their unpaid time off.

Community economic development contributions by credit union system respondents reached $2.9 million in 2003. Included in this figure is service charges waived or reduced on interest bearing accounts, bonus interest on term deposits, and providing low interest loans and lines of credit to community organizations. Waiving of service charges was the most frequently cited contribution. Among the credit union system respondents, 101 said they waived service charges for 27,092 organizations across Canada. The annual cost of waiving service charges was estimated at $1.5 million, with the cost of reduced service charges on interest-bearing accounts also being significant ($863,000).

Business lending is also an important aspect of community development. Credit unions and affiliates surveyed reported that a total of 29,025 loans were made to businesses in their local communities or trade areas – approximately $3.0 billion in loans, with the average loan amount being $103,000. In keeping with the local focus of credit unions, 47% of respondents said they lend exclusively within the local community or trade area of their branches.

The 2003 Credit Union Community Involvement Survey was conducted in the spring of 2004.

The survey included responses from 281 participants, including 273 credit unions in nine provinces, as well as eight affiliated organizations (such as provincial Centrals). All credit union and caisse populaire respondents are represented nationally by Credit Union Central of Canada (www.cucentral.ca), through membership in their provincial Centrals or Federation.

A local credit union or caisse populaire is a financial co-operative, owned by its members, who are also customers. It is owned and controlled by the people it serves.

The credit union system’s 572* credit unions and caisses populaires have combined assets of over $74 billion and serve more than 4.6 million members in all provinces except Quebec. Credit unions offer a full range of financial services, including savings and chequing accounts, online financial services, loans, RRSPs, RRIFs, RESPs, mortgages and investment opportunities. In addition, the credit union system includes affiliated organizations that offer trusteeship and financial intermediary services, insurance, and wealth management services.

Including the over five million caisse populaire members in Quebec, about 1 in every 3 Canadians is a member of a credit union or a caisse populaire.