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Reports
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2010 Chairman's Report
Diana Roberts, Chairman
The Pennsylvania Credit Union Foundation (Foundation) is a public, corporate, nonprofit, charitable organization. Its mission is to provide resources that advance the credit union movement in Pennsylvania, promote credit union success, and build education and awareness of the credit union philosophy in the community. The Foundation supports both Pennsylvania’s financially underserved and victims of natural and manmade disasters worldwide.
In 2010, the Foundation raised $261,333 in total funds, an increase of 11% over that raised in 2009. Unrestricted revenues, or those directly raised and managed by the Board of Directors realized $231,583, an increase of 5.3% over the $219,941 raised in 2009. Several factors contributed to these banner results including:
- The Pennsylvania Credit Union Association (Association) – $33,840 in direct donations, and special events, including a $20,000 restricted grant for anticipated webinars that will benefit small credit unions;
- Credit unions – $99,000 in direct contributions and $33,500 in special events;
- Corporations, Vendors, and Business Partners – $45,200 in direct contributions;
- The Viva Las Vegas Fall Leadership special event – $38,448.
The Community Investment Fund (CIF) campaign raised more than $3.5 million in investments and realized almost $20,000 in revenues for the Foundation. Proceeds continued to decrease, unfortunately, because of the continuing decline of interest rates. I’m particularly grateful to Bucks First Federal Credit Union; Discovery Federal Credit Union; Erie Federal Credit Union; Greater Pittsburgh Police Federal Credit Union; Members 1st Federal Credit Union; Mid-Atlantic Corporate Federal Credit Union; Pennsylvania State Employees Credit Union; and Sun East Federal Credit Union for their investment in excess of $150,000 to the Fund. Proceeds were used in support of small credit union projects as outlined in a report to the National Credit Union Foundation (NCUF) by the Executive Director.
I’m grateful to all of our Board members for their fundraising efforts, particularly George Nahodil, Members 1st Federal Credit Union; Dave Ackerman, USX Federal Credit Union; Hugh Bray and Rick Stipa, TruMark Financial Credit Union; Barbara Bowker, Pennsylvania State Employees Credit Union; and Jeff DeBree, Penn East Federal Credit Union. The entire Board recognizes the relationship between fundraising and empowerment to approve and evaluate grants as a reflection of the Foundation’s stewardship to its donors.
The total number of grants awarded or supported in 2010 was 66 valued at $141,537 compared to 46 for $191,000 in 2009. While the Foundation’s regular grants portfolio was projected to decline by 23% to $140,000 in 2010, the REAL Solution’s RP3 project actually bolstered an increase in the number of grants managed although not in the total value of awards compared to 2009; hence financial literacy and small credit union grant awards experienced declines. Financial literacy projects decreased by 29.4% to 12 grants, and by $32.5 % to $87,759; small credit union projects by 41% to 17 grants and by 45.9% to $38,778.
Since its inception seven years ago, the financial literacy program has been implemented in 157 of Pennsylvania’s 501 school districts. Financial education courses are taught in 257 high schools, 67 elementary schools, and 46 social and community centers. The program has provided 2,396 person hours of teaching and over 2.4 million hours of learning to more than 91,605 students.
Nearly 77,852 books were purchased and used by students, up by 4,000 from 2009. In addition, six new classroom education projects were awarded, five student branches opened (bringing the number of student branches to 34 in Pennsylvania), and five community outreach programs were implemented during the Foundation’s 14th year of operations.
Continued growth of community outreach programs continued at a slower pace than anticipated because of the continued drain of revenues from credit union bottom lines. However, 12,670 community center participants continued to benefit from 8,933 hours of credit union intervention in nearly 5,000 classes in financial education in Lancaster, Lebanon, Luzerne, and Beaver Counties. Education in the workplace also increased with the addition of 31 SEGS at which over 1,100 participants received 81 hours of training in fields ranging from investment to healthcare.
While small credit union grants declined in 2010, the number of members who benefited from their implementation continued to rise.
Two new marketing projects resulted in 651 new members receiving share accounts, the opening of 264 additional share daft accounts, 365 new personal loans, 129 new auto loans, 20 new home equity loans, 88 new debit cards, 174 CD investments, 36 vacation clubs, 48 Christmas club memberships, 34 IRA accounts, and 33 mortgages originated. Three of the four grantees who received debit card awards did so at the end of 2010, so they have not yet been tracked. However, the single credit union reporting showed 50 new and presumably younger members, of which 22 applied and received debit cards. In addition, 10 existing members also received cards, bringing the total to 32 for the year.
Four technology projects were approved resulting in 249 new members receiving share accounts, 412 opening share draft accounts, 50 receiving personal loans, 60 auto loans, 38 debit cards, two credit cards, 137 investing in CDs, and one IRA. Finally, two credit unions received “I Bank” grants during the second half of 2010. Once implementation begins, each will provide Bill Pay and member services through the Internet. Moreover, with the continued development of SCUNet, the program designed to more closely integrate small credit union marketing, financial, and administrative functions, it is expected that demand for Foundation support for its marketing, technology, and member service projects will increase markedly in 2011.
On January 12, 2010, the Caribbean nation of Haiti was devastated by an earthquake that killed more than 250,000 people and dislocated hundreds of thousands more, mainly in Port-au-Prince, Jacmel, Leogone, and Carrefour.
The Foundation immediately responded to the disaster, by petitioning the NCUF to open the CUAid disaster relief website and to request immediate assistance from Pennsylvania credit unions. As a result more than $30,000 was raised during the days immediately following the earthquake. In addition, the Association Board of Directors established a Haitian fact-finding team to identify the extent of the damage to credit unions and to assess the state of the remittance program in Haiti.
President/CEO Jim McCormack appointed Foundation Executive Director Joe Wambach to lead the team to Haiti. Wambach had previous project and technical experience in Haiti during the 1980s and 1990s with CARE International and the Cooperative Housing Foundation. McCormack also invited Joe’s spouse, Maryse Wambach to join the team because of her familiarity with the language and culture of the country and because of his profound concerns about the plight of relatives still living in Haiti.
Foundation vice chair Dave Ackerman, and Foundation secretary Chris Woods volunteered to join the team because of their own concerns about the suffering and were the final two appointments to the fact-finding team. While the results of the mission will be described in the report of the Executive Director, I do want to express the Board’s appreciation for the service of our board colleagues Dave and Chris, who used their own personal funds and took valuable time off from their duties, as well. I’m also grateful to the Boards of Directors of USX Federal Credit Union, Cranberry, and Keystone Federal Credit Union, West Chester, respectively for permitting Dave and Chris to join this important mission.
As my term as Chair draws to a close, I want to take this opportunity to discuss certain priorities as the Foundation approaches its 15th anniversary. First, we need to increase our credit union fundraising base. In spite of our successes, only 35% of our member credit unions actually contributed to the Foundation in 2010. While many credit unions do contribute to worthwhile causes in their local communities, all must realize that the Foundation also funds local projects in credit union areas and at local schools and, therefore, are worthy of your financial support.
Second, continued support must be received from vendors, a group whose contributions increased in 2010. Third, we need to continue to support the REAL Solutions program and the advantages it brings to both the Association and to the Foundation. Much of its future in Pennsylvania will depend on the continuation of the Investor Education in the Workplace Program. Fourth, we must expand our small credit union project grants portfolio if we are to continue to support Pennsylvania’s underserved. Fifth, we should continue to provide consulting and guidance for financial literacy activities implemented by credit unions and third party nonprofit organizations.
Finally, we must continue to invest in international development either through partnerships between credit unions in Pennsylvania and in countries like Haiti or through direct partnerships between the Association and third world countries through the World Council of Credit Unions (WOCCU).
This report would not be complete without thanking Foundation ex-officio member Ray Brunner, Association Chairman, and ex-officio member, Jim McCormack, Association President/CEO, for their guidance and support. Ray will be succeeding me as Chair in May, 2011, and I wish him all the best in guiding the Foundation forward in the future. Jim’s vision is always welcomed and continues to provide a beacon of hope for thousands of underserved individuals. I continue to look forward to and will always remember collaborating with staff members Michael Wishnow, Joseph Wambach, and Denise Maneval during the remainder of my service as Chair for the benefit of the credit union movement in Pennsylvania and elsewhere.
2010 Executive Director’s Report
Joseph Wambach, Executive Director
During its 14th year of operations, the Pennsylvania Credit Union Foundation (Foundation) experienced an incredible year of fundraising with increases in both total revenue by 11% to over $260,000 and in unrestricted revenue by 5.3% to over $230,000, compared to 2009. The Foundation experienced increases in nearly every category: 14% from Board fundraising activities to $143,894; 10% from credit unions to $98,719; 22% from vendors to $45,175; 14% from the Viva Las Vegas Fall Leadership Campaign to $38,448; 6% from Pennsylvania Credit Union Association (Association) unrestricted contributions to $13,840; and 30% from Association employee contributions to $7,610.
Interest revenues rose by 65% percent to $2,324.38; however, a total far short of the $13,857 realized in 2008. The lower interest rate also continued to effect proceeds from the Community Investment Fund, although proceeds did gain 1% percent over 2009 to $19,539 on investments in the fund by credit unions of over $3.5 million in 2010.
The Foundation succeeded in attracting increased unrestricted funds despite the continuing effects of the economic downturn on the credit union movement. Despite a decrease in the Foundation’s overall grants portfolio, a series of unique projects not directly financed by the Foundation were developed and managed by Foundation staff and contributed to the Foundation’s appeal and ultimate fundraising success. Nonetheless, the changing economic climate did have a significant effect on the grants portfolio. The total amount of grant funds awarded decreased by 35% from $191,000 to $126,000, while the number of grants decreased by 65% from 46 to 28.
Financial Literacy grants continued to be implemented at the community level. Housing Opportunities of Beaver County, (HOBC), a project partner of WEST-AIRCOMM Federal Credit Union, received a third year grant of $10,000 to assist first time home buyers and victims of foreclosure. PROBE, Inc. received a fourth year $6,700 grant through its partner, Lebanon Federal Credit Union. Erie Federal Credit Union received $8,896 to continue its financial literacy project in Crawford County and to develop a state of the art education website for students in all of its areas of classroom intervention. The Foundation also continued to support the Young Men’s Futures Symposiums and the Young Women’s Futures Symposiums through a $10,000 grant to Junior Achievement of Central Pennsylvania. These provided life skills and financial literacy to 500 underachieving high school sophomores and juniors in six Pennsylvania counties.
The Foundation noted an increased demand for its classroom education funding at schools in which student branches were previously established without Foundation assistance, making credit unions and non -profit organizations eligible for funding. For example, Service 1st Federal Credit Union, the first credit union in Pennsylvania to establish a student branch at Danville Area High School, opted for an education component as an inducement for increased recruiting of student branch members and received a $10,000 grant.
P & G Mehoopany Employees Federal Credit Union received $10,000 to establish virtual education components and an educational website for four schools with pre-existing student branches – Tunkhannock High School, Dallas Area High School, Susquehannock Vo-Tech High School, and Elk Lake High School. Management Intl., Inc. received a $4,900 grant to implement an education program at Northern York High School, the site of a Members 1st Federal Credit Union student branch. Wheatland Federal Credit Union received the more traditional grant to open a student branch at Hempfield High School, Lancaster County, to provide classroom education to a minimum 200 students at the school.
The Foundation has become involved in a number of initiatives stemming from its technical expertise by providing assistance to the National Credit Union Foundation (NCUF) and to the Association. For example, the Association’s Investor Education in the Workplace program proved an unexpected boost for the Foundation because it provided investment training to nearly 2,000 staff at 38 credit unions. This program also has the potential to provide the Foundation with a source of future grant requests through REAL Solutions from credit unions that desire to provide investment advice directly to its members by Investor Education trained staff. A $15,000 grant to the Association permitted the hiring of a manager to direct the project under the coordination of the Foundation Executive Director. Considerable credit for Investor Education’s success goes to former Association and Foundation Chairman John Kebles. He received acclaim from the credit union community for his efforts. Because of the projects success, Investor Education’s Phase II continuation in 2011 will resume.
In addition, a REAL Solutions grant of $13,000 was received by the Foundation from NCUF to provide data about savings and the manner in which borrowers use funds received through Credit Union Better Choice loans. Previously the project provided only information on the number of borrowers, the number of delinquencies, the number of additional loans, and the amount saved by borrowers who chose credit unions over payday lenders. Vicki Joyal, a consultant with the National Credit Union Foundation, has been hired to perform the study through various data processors who serve credit unions throughout Pennsylvania. The Foundation’s involvement in programs like Investor Education and Credit Union Better Choice stems from a growing reputation for evaluating the results of implemented projects, for measuring long term results that lead to strategies for success, and for the resultant effects on the human condition of underserved credit union members.
Small credit unions have been given a significant vote of confidence by a $20,000 contribution to the Foundation from the Association to assist in their continuing development. The grant will encourage enhanced staff training through webinars that will facilitate complex compliance issues impacted by recent regulations put into place by regulatory bodies, including the NCUA.
In September, 2010, Dave Ackerman, Chris Woods, and Maryse Wambach joined me on a fact-finding mission to Haiti to measure the effects of an earthquake that struck that Caribbean island in January, 2010. The team’s specific interests were:
- to explore options for reestablishment of the remittance system – the transfer of funds from the people of the United States to Haitian friends and relatives in Haiti. Many of the instruments of the system – computers, servers, generators, and fiber-optics equipment – were destroyed. Moreover, fees charged to use the system were onerous because of the prominence of only a few cash transfer companies in Haiti. While it is still too early to draw any definite conclusions, it is evident from discussions with the Canadian aid agency, Le Livier, that a need exists to revitalize the system, both from marketing in the United States and from establishing a larger number of end point users to introduce increased competition into the system. WOCCU’s Service Corporation continues to study the system closely in attempts to provide a solution to the problem. The Association and the Foundation will work closely with WOCCU to find solutions to the issues of marketing and end point use.
- to evaluate the state of credit unions, their staffs, and their members as a result of the earthquake. The team visited 15 credit unions during their 12- day mission and came away with the impression that while reconstruction was a necessary response to the damage caused by the earthquake, it could partly be addressed with funds from WOCCU’s emergency relief campaign. The Association Board is expected to take up questions raised by the team including credit union reconstruction, psychological assistance to credit union victims, technical training for staff, continued identification of viable credit unions in Haiti, and the provision of equipment to credit unions in need.
On a personal note, the team also visited the home town of my wife, Maryse Wambach – Port-a-Piment in Southern Haiti – to assess the state of the credit union there, as well as the condition of her relatives. It would appear as if there are internal difficulties at the credit union that will preclude intervention at this time. However, the Wambachs managed to assist a cousin who had been beaten, robbed, and his primary school destroyed, as well as another cousin who was stricken by a severe case of malaria. Both are on the mend, thanks to the intervention of the Association, the Foundation, and of credit unions.
I had the privilege of getting to experience the working capacity and spirit of two of our Board volunteers – Dave Ackerman and Chris Woods – in a most difficult environment. They proved sensitive, insightful, and thoughtful under conditions that were truly stressful because of their understanding of the true meaning of People Helping People ®. None of us will forget the difficulties we faced while in Haiti, nor the experiences we were fortunate enough to enjoy, particularly the gentleness, the kindness, the perseverance, and the stoicism of the Haitian people. They are truly remarkable!
Thanks also to Chair Diana Roberts, CEO, Hershey Federal Credit Union, for your leadership; to Association President/CEO and Foundation ex-officio member Jim McCormack for your confidence and support; and to Michael Wishnow, Senior Vice President, Communications & Marketing, and Association Foundation Liaison, for your encouragement and good humor.
Finally, thanks to all of the Foundation’s generous donors and supporters for your continued support for the Foundation. Our vision is an extension of your dreams to share the credit union mission and philosophy with all Pennsylvanians. We will do everything in our power to live up to your expectations in 2011 and beyond.
For more information about the Foundation, call or e-mail Joseph Wambach, Executive Director at 800-932-0661, ext. 5244, or write:
Pennsylvania Credit Union Foundation
4309 North Front Street
Harrisburg, PA 17110
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