Connecting Philanthropy and Advocacy
Corporate America Credit Union Annual Meeting
April 25, 2017
Gigi Hyland, Executive Director
National Credit Union Foundation
Agenda
• What we know
• The state of credit union philanthropy:
– The money
– The players; and
– The resources
• Connecting philanthropy with advocacy
– It’s always about the people
– The “new” middle class
– The opportunity
What We Know
• 46% of respondents say they either could not cover an
emergency expense costing $400, or would cover it by
selling something or borrowing money.
• 15% of respondents report that their spending exceeded
their income in the 12 months prior to the survey.
• 40% of those who desired credit say that they faced a
real or perceived difficulty in accessing credit.
• 31% of non-retired respondents report that they have no
retirement savings or pension at all, including 27 percent
of non-retired respondents age 60 or older.
What We Know
“I never spoke about my financial travails, not even with my closest
friends—that is, until I came to the realization that what was happening to
me was also happening to millions of other Americans, and not just the
poorest among us, who, by definition, struggle to make ends meet. It was,
according to that Fed survey and other surveys, happening to middleclass professionals and even to those in the upper class. It was
happening to the soon-to-retire as well as the soon-to-begin. It was
happening to college grads as well as high-school dropouts. It was
happening all across the country, including places where you might least
expect to see such problems. I knew that I wouldn’t have $400 in an
emergency. What I hadn’t known, couldn’t have conceived, was that so
many other Americans wouldn’t have the money available to them,
either.”
-- Neal Gabler, author for The Atlantic Magazine
The Secret Shame of Middle-Class Americans
http://www.theatlantic.com/magazine/archive/2016/05/my-secretshame/476415/
What We Know
CFPB: Financial wellbeing = A state of being
wherein you:
– Have control over day-to-day,
month-to-month finances;
– Have the capacity to absorb a
financial shock;
– Are on track to meet your
financial goals; and
– Have the financial freedom to
make the choices that allow
you to enjoy life.
CFSI: Financial
health = 8 measures:
– Spend less than income;
– Pay bills on time and in full;
– Have sufficient living
expenses in liquid savings;
– Have sufficient long-term
savings or assets;
– Have a sustainable debt
load;
– Have a prime credit score;
– Have appropriate
insurance; and
– Plan ahead for expenses.
The Money
• More than ever, credit unions are expanding their charitable
endeavors. From food drives to breast cancer walks, credit
unions are significantly involved in charitable works around
the country.
• While there is no single measure of credit unions’
philanthropic work, there are some telling statistics. In
2015:
– Credit unions contributed $1.1 million to the National
Credit Union Foundation to support financial capability
efforts; and
– The Credit Unions for Kids program generated about
$11 million to benefit 170 Children’s Miracle Network
Hospitals.
The Players
• Many credit unions have gone the route of
starting their own foundation. (Approximately
53).
• There is also a national network of state credit
union foundations and the National Credit Union
Foundation called the “SCUF Network.”
• There are currently 28 state credit union
foundations across the country. In all cases,
these state credit union foundations work in
conjunction with the state credit union trade
association or league.
The Players
• An interactive map that shows all the state credit union
foundations and their key contacts can be found at:
https://www.ncuf.coop/resources/statefoundation/statefoundation-map.cmsx
The Players
A majority of state credit union foundations focus
on financial education, professional development
of credit union staff and volunteers and disaster
relief for credit union communities. Others focus on
certain programs (i.e., high school financial reality
fairs), Volunteer Income Tax Assistance, or raising
funds for Children’s Miracle Network Hospitals.
Others still focus on leadership development for
credit union professionals and grant making to
support smaller asset size credit unions.
The Foundation’s Work
Financial Well-being
Values & Philosophy
Disaster Relief
Financial Well-being
Values & Philosophy
Helping credit union
people recover from
major disasters
Connecting Philanthropy with Advocacy
Start with the “why”
• It’s always about the people – member
centricity
Cooperative Principles
The “New” Middle Class
The Opportunity
• “Embed social change in your business. Financial
institutions should find new ways to get vulnerable
people access to capital. Companies in extractive
industries such as mining or oil and gas should put a
high priority on adding more indigenous suppliers and
employees. Car companies should focus on sustainable
transportation. Pharmaceutical companies need to
create new revenue models around preventing illness.”
- Paul Klein, President/Founder, Impakt
• http://www.forbes.com/sites/forbesleadershipforum/2014/07/09/thecoming-end-of-corporate-charity-and-how-companies-shouldprepare/
The Opportunity
• Balance credit union centric advocacy with
consumer centric advocacy.
• Is there a broader range of issues that can
be advocated for that help the “new”
middle class and thus help credit unions?
– Ford Foundation work
– VISA focus
– Asset building coalitions
– CFA
Connect the Philanthropy
with Advocacy
• What more can we do to connect the business of our
credit unions – saving, lending, education, other financial
products and services – and their philanthropy to the
advocacy?
• Are we leveraging what we do best -- consumer finance - into philanthropy and advocacy that focuses on
strengthening the financial well-being of everyone in your
community?
• Are we linking the philanthropic impact of our credit
unions into the advocacy stories so that it shows credit
unions are working to strengthen the “new middle class”
Each year, REI donates millions of dollars to support
conservation efforts nationwide and sends dedicated teams
of volunteers—members, customers and REI employees—
to build trails, clean up beaches, restore local habitats and
more.... Through responsible business practices across the
company, we strive to reduce our environmental footprint.
Our core purpose guides everything we do: we all work
to inspire, educate and outfit for a lifetime of outdoor
adventure and stewardship.
- from rei.com
Consider…
• From a member’s perspective,
what ONE thing do you do so
well your members tell the
world?
Thank You!