B.C. CREDIT UNIONS GIVE A RECORD AMOUNT TO LOCAL COMMUNITIES

This Angus Reid Group survey was conducted from March 22, 1999 to April 19, 1999.

A self-administered questionnaire package was delivered to the Marketing Managers, General Managers or CEOs of all 86 B.C. credit unions. Sixty-eight credit unions completed the questionnaire for a response rate of 79 per cent. Results are accurate to within +5.5 per cent, 19 times out of 20.

In 1998, B.C. credit unions gave back a reported $5.74 million to their communities -- up more than 14 per cent over the previous year, according to an Angus Reid Group survey.

Direct corporate donations and sponsorships accounted for more than $3 million of the total, with the remainder coming from contributions to charitable foundations, educational bursaries and scholarships, and donated financial services -- service charges were waived for more than 7,500 community organizations by B.C. credit unions in 1998.

"Since their inception 60 years ago, B.C. credit unions have been totally committed to their local communities," said Wayne Nygren, President and Chief Executive Officer of Credit Union Central of British Columbia. "But the contribution of more than $5 million in 1998 was truly outstanding and surpasses the system's own record. The basic credit union principle of giving to the community is clearly more than a slogan."

This record amount was greater than four per cent of pre-tax profits, far exceeding the one per cent recommended by Imagine, a national initiative of the Canadian Centre for Philanthropy. More than 450 companies are officially committed to the Imagine standard.

Maxwell Brem, Director of Communications at Ontario-based Imagine, cited B.C. credit unions for "an impressive performance by any corporate standards in Canada, in terms of giving back to the community."

Much of the giving was philanthropic, such as cash donations, sponsorships, scholarships, charitable fundraising activities and volunteerism by employees. The main recipients were sports teams and associations, non-profit organizations, the arts, economic development, health care and education.

In addition, B.C. credit union employees sat on the boards of 136 community organizations. These ranged from arts groups to business councils and service clubs. About one-quarter of B.C. credit unions provided incentives to employees for participation in community activities. And more than $600,000 in service charges were waived for 7,678 community organizations by B.C. credit unions in 1998.

The province's 11 credit union charitable foundations disburse funds into local communities. These foundations have grown to accumulate more than $8 million in funds.

"The results of this survey are truly heartening," said Nygren. "Throughout much of 1998, the media glare was focused on the high-profile bank-merger talks. But at the same time, B.C. credit unions were quietly giving a record amount to their communities."

The Angus Reid Group survey was conducted from March 22, 1999 to April 19, 1999. A self-administered questionnaire package was delivered to the Marketing Managers, General Managers or CEOs of all 86 B.C. credit unions. Sixty-eight credit unions completed the questionnaire for a response rate of 79 per cent. Results are accurate to within +5.5 per cent, 19 times out of 20. British Columbia's 84 Savings and Credit Unions command more than $21.6 billion in assets, with 330 branches serving more than 125 communities, including 30 that have no other financial institution. More than 7,000 British Columbians work for credit unions and 700-plus serve on credit union boards.

Contact:

Wayne Nygren
President and Chief Executive Officer
Credit Union Central of British Columbia
(604) 737-5034

Maria Doyle
Manager, Marketing
Credit Union Central of British Columbia
(604) 730-6455

Total Corporate Giving in 1998:

• $ 360,000 Bursaries/Scholarships
• $ 670,000 Estimated annual cost of waiving service charges, providing bonus interest on term deposits, and low interest on loans.
• $1,700,000 Contributions to Charitable Foundations
• $3,010,000 Donations/Sponsorships
• $5,740,000 Total

Total Corporate Giving in 1997:

• $ 350,000 Bursaries/Scholarships
• $ 380,000 Estimated annual cost of waiving service charges, providing bonus interest on term deposits, and low interest on loans
• $1,700,000 Contributions to Charitable Foundations
• $2,600,000 Donations/Sponsorships
• $5,030,000 Total

  $5,740,000 - $5,030,000 = $710,000 / $5,030,000 = 14% increase from 1997

  $5.74 million / $136 million (system's profit before taxes & dividends) = 4 % compared to Imagine's at 1% benchmark