October 20, 2005

In 2004, credit unions contributed $24.6 million in Donations, Sponsorships, Economic Development and other philanthropic causes.

In the fourth annual national survey of credit union philanthropy, the strong commitment of credit unions to their communities was again demonstrated in money, services and time. For 2004, credit union system respondents said they contributed $24.6 million (up by approximately $3 million from 2003) to community involvement via donations, sponsorships, scholarships and bursaries, charitable foundations and economic development contributions.

The 2004 Credit Union Community Involvement Survey and research project includes results from nine provinces and a total of 356 credit unions and caisses populaires. Results showed that contributions increased from the $21.6 million reported for 2003.

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 16 - 22.

“Once again, the national results show the overall strength of credit union community support,” commented Joanne De Laurentiis, President & CEO, Credit Union Central of Canada. “Town by town, city by city—across Canada—credit unions live up to their principles of giving back to the communities they serve. Locally controlled, co-operative financial institutions, credit unions offer excellence in financial services and we are proud of our staff’s professionalism. Much of our philanthropy strengthens the very communities that make our success possible.”

The survey portion of the project was conducted by Ipsos Reid in the spring of 2005 and included responses from 205 of Canada’s credit unions in seven provinces. Aggregate survey data conducted independently by the Credit Union Centrals of Manitoba and Saskatchewan, (151 credit unions) were added to the totals.

Credit unions contributed $18.1 million in monetary support — donations and sponsorships — to worthwhile causes in 2004. How was the money used? Eighty-three of Canada’s participating credit unions contributed donations and/or sponsorships to health care causes, while 76 credit unions report contributing to sports teams/associations and another 70 report donating to “other” non-profit organizations. Sixty-six credit unions say they donated to arts and culture organizations and a considerable number of credit unions also donated to and/or sponsored economic development efforts (62), education (60), schools and colleges (59) and seniors’ causes (49). In the true credit union tradition of supporting local communities, a large majority of responding credit unions (98%) said they donated to organizations within their trade areas.

In addition to donations and sponsorships, respondents from the credit union system gave another $758,000 for 833 scholarships and bursaries, which were offered by 127 credit union system respondents. Eleven B.C. credit unions said they contributed $2.6 million to their charitable foundations.

A significant figure not included in the overall tally is charitable fundraising on behalf of other organizations. In 2004, fundraising by the credit union system attracted an impressive $7.5 million for worthy causes. This figure includes staff contributions, givings by credit union members and the public. In the 2004 survey, 120 (59% of credit union system respondents) administered fundraising campaigns for community organizations.

Credit union employees also strengthen their communities by giving their time to good causes. In 2004, over four-in-ten (46%) of participating credit unions reported that their employees participate in community activities and/or organizations as part of their paid work. Employee unpaid volunteerism is high, with 71% of credit unions surveyed indicating that employees volunteer for community activities/organizations, representing their credit union during their unpaid time off.

Community economic development contributions by credit unions in the study reached $3.1 million in 2004. Included in this figure are service charges waived or reduced on interest-bearing accounts, bonus interest on term deposits, and providing low or no interest rate loans and lines of credit to community organizations. These contributions enable many non-profit organizations to maintain operations that directly benefit the community and support development. The most frequently cited contribution was the cost of reducing or waiving service charges on interest-bearing accounts. Eighty-six of the credit unions participating within seven provinces said that they have waived or reduced service charges for 24,361 organizations

The 2004 Credit Union Community Involvement Survey was conducted between April and July 2005 by Ipsos Reid, with the exception of two provincial credit union Centrals who conducted the survey independently. 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 534* credit unions and caisses populaires have combined assets of over $82 billion and serve more than 4.8 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.

*All credit union statistics are as of the end of the second quarter, 2005.

For further information, contact:

Art Chamberlain,
Media Relations Manager,
Credit Union Central of Canada,
(416) 540-0869
chamberlaina@cucentral.com