SOCIAL RESPONSIBILITY
Each credit union is an integral part of the community it serves, whether that community is made up of cities and towns, a workplace or a community formed by people who share an interest of some kind. Unlike for-profit financial institutions, credit unions are cooperatives that exist solely for the purpose of providing for the financial needs of their members. Therefore, it is quite easy to understand how naturally Social Responsibility comes to credit unions.
The League actively supports and encourages credit unions in their community outreach efforts. In support of those efforts, the League maintains a committee on Social Responsibility. The purpose of that committee is to develop a unified plan of social responsibility for the League through recommendations to the League's Board of Directors. That plan features programs and events that focus statewide efforts on affordable housing, financial literacy and designated charitable and community activities that enhance the positive image of credit unions as well as the public's overall awareness of them. To capture the essence of the goodwill and outreach that Massachusetts credit unions have been engaged in over the years, the League in 2006 launched the Credit Union Community Hope Initiative.
Credit Union Community Hope Initiative
The Credit Union Community Hope Initiative is a broad based effort, rooted in the credit union philosophy, and is being undertaken by Massachusetts credit unions to improve the quality of life for low and moderate income families. The Initiative will meet this goal by focusing on the financial needs of low and moderate income Massachusetts families to find and maintain affordable and permanent homes. The cornerstones of the Initiative are the commitment to provide affordable housing in support of the Home Loan Payment Relief Program, otherwise known as HLPR, and our long term partnership with the Massachusetts Coalition for the Homeless. Click here for more information on the Credit Union Community Hope Initiative.
Home Loan Payment Relief Program
In 2006, Massachusetts credit unions announced that they would provide $100 million in affordable mortgages. The pledge was part of the national credit union Home Loan Payment Relief (HLPR) program, which is making more than $1.5 billion available for qualifying individuals and families nationally.
The HLPR program is an initiative that was started by HarborOne Credit Union, nurtured by the League and adopted by the Credit Union National Association (CUNA). It is a program that goes to the heart of the credit union motto, "people helping people," and it will enable many Massachusetts residents to take the major step into home ownership that they did not think possible.
HLPR loans were originally established as 3/1 Hybrid ARMs with 3% down payments for members with household incomes at or below the local area median at a rate that is discounted by one percentage point for the first three years. After that, the loans are indexed to the one-year Treasury rate with 1% annual caps and a 5% lifetime cap. Loans are made to members under the credit union's underwriting criteria.
Now, in addition to the Hybrid ARM, there are three other options, a 5/1 ARM and 7/1 ARM and a Fixed Rate option. Visit the CUNA website for complete information on the HLPR Loan Initiative.
Thus far, Massachusetts credit unions have pledged over $110 million to the fund and they have funded 304 mortgage loans amounting to approximately $73 million. For more information, contact League Executive Vice President Al Ricci at aricci@cucenter.org.
Massachusetts Coalition for the Homeless
In 1989, the League, in partnership with Massachusetts' credit unions, formed the Credit Union Affordable Housing/Homeless Trust. Through a variety of annual events and activities, the Trust provides a vehicle through which the credit unions of Massachusetts can combine resources to address the needs of homeless families and children. The Trust's partner in this effort is the Massachusetts Coalition for the Homeless. To gain a better understanding of the fine work that this organization does, please visit their web site at www.mahomeless.org.
2007 was the most successful fundraising year since inception for the Credit Union Affordable Housing/Homeless Trust. On November 28, 2007 at the Credit Union Center, representatives from the Trust and the League presented a check for $120,000 to Robyn Frost, Executive Director of the Massachusetts Coalition for the Homeless. Click here to view the front page article in the January 2008 issue of the League's monthly newsletter, Values & Visions.
The record setting donation was a result of various programs and fundraising events held throughout the year. A total of 86 credit unions, 17 Associate Members, all six Chapters, and 3 Friends of Credit Unions participated in the fundraising events. Click here to view a listing of the participants and their level of contributions.
2007 Fundraising Activities
Direct Fundraising Campaign
Direct appeal letters were sent to all credit unions asking them to make a single contribution or an installment pledge for 2007. They were asked to become one of the following sponsors:
| $5,000 |
Major |
$750 |
Silver |
| $2,500 |
Platinum |
$500 |
Bronze |
| $1,000 |
Gold |
$250 |
Friend of the Homeless |
Sixty-one (61) credit unions donated $42,875 as a result of the Direct Fundraising Campaign.
Golf Tournament
On August 20, 2007, the 19th Annual Golf Tournament to benefit the Massachusetts Coalition for the Homeless was held at the Marlborough Country Club. One hundred and twenty-nine (129) golfers participated. Thirty-seven (37) credit unions and 23 partners and friends of credit unions helped to sponsor the tournament. The golfers also participated in a raffle and silent auction. The golf tournament raised $47,204.
Hebert Candy Bar Sale
October 15th through November 30th was designated for the 6th Annual Hebert Candy Bar Sale. The candy bars were sold in credit union lobbies to members and staff or were used as giveaways on special occasions, appreciations, and product promotions. Forty (40) credit unions participated, sold a total of 451 cases of candy and raised $12,104. Click here to view a list of participating credit unions.
Chapter Donations
The League's Chapters showed their support for the Trust and its charity, the Coalition, throughout the year. In addition to supporting the annual golf tournament through various sponsorships, the Chapters also donated funds totaling $2,570, based on the number of attendees at their monthly meeting at $1.00 per individual and/or in the name of their speaker.
Lobby Canisters
The Trust has available plastic canisters in the shape of a house that a credit union can place in its lobby to encourage contributions from members and staff. In 2007, fifteen (15) credit unions took advantage. They raised $3,208.11. We would like to see even more credit unions participate. The plastic canisters can be ordered by contacting the League.
Miscellaneous Programs/Initiatives
Credit unions were also encouraged to consider getting involved by sponsoring their own fundraising events. The League raised funds through employee participation in "Casual Dress Days." One credit union, Boston Firefighters Credit Union, decided to donate funds that matched a small percentage of the total funds passing through their lobby coin machine. This donation was over $1,000. Massachusetts credit unions that attended the Spring and Fall Conferences and the Annual Convention also agreed to donate $5.00 of their registration fee to the charity. One credit union, Hanscom Federal Credit Union, raised over $12,000 with two special fundraising events including their holiday raffle. In 2007 these programs and initiatives resulted in contributions totaling $17,872.
Children's Book Drive
This non-fundraising event was again very successful. April 2007 was designated as the month for the 7th Annual Book Drive. The League provided credit unions with lobby posters and stuffer/handouts to publicize the drive. Forty-seven (47) credit unions and the League participated and collected 20,570 books that were distributed to non-profit agencies in many cities and towns throughout the state. The 2007 drive brought the total books collected in the drive's seven year history to approximately 150,000 books!
2008 Fundraising Plans
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Direct Fundraising Campaign - Please respond!
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Children's Book Drive - April - Get Involved!
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Annual Golf Tournament - August 18th - We need sponsors!
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Hebert Candy Drive - October/November - Our sweet fundraiser!
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Lobby Canisters - Order yours now!
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Other Programs/Initiatives - Consider your own event!
Finally, credit union participation in these events is strongly encouraged. Direct donations are accepted throughout the year. Checks should be made payable to the "Credit Union Affordable Housing/Homeless Trust." For more information, please contact Al Ricci, League Executive Vice President, at aricci@cucenter.org or 1-800-842-1242.
National Social Responsibility Recognition Award Programs
Since 1987, the Dora Maxwell Social Responsibility Recognition Award has honored credit unions for their charitable works in their communities. Some credit unions have ongoing programs and establish a special relationship with local social service agencies or school programs. Other programs address many different needs in the community. No matter the size or scope of a project, each participating credit union builds its reputation as a good corporate citizen along the way.
Credit unions enter the Dora Maxwell Award program in one of seven asset categories or the chapter/multiple credit unions category.
Beginning in 1990, the Louise Herring Award for Philosophy in Action has commended credit unions that make exceptional efforts to include credit union philosophy in their daily operations and member service. Programs that provide financial education to particular member groups within the credit union or special assistance to low-income members struggling to pay heating bills, for example, are clear examples of the philosophy that sets credit unions apart from other financial institutions.
Entrants in the Louise Herring Award program compete in three asset categories.
Send your entry to Donna Bevilacqua, director, Communications and Community Relations by September 5. Each submission must be accompanied by a $50 entry fee made payable to the League/Association. First place winners will advance to the national competition. National winners will be honored at the Governmental Affairs Conference in Washington, D.C., in February 2009.
Click here for information on the Dora Maxwell and Louise Herring Award including their entry forms.
For more information, contact Donna Bevilacqua at 1-800-842-1242 or dbevilacqua@cucenter.org.
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