year book
2014
inside one two three five six eight nine ten twelve fourteen sixteen eighteen twenty-one twenty-two twenty-four twenty-six twenty-seven twenty-eight twenty-nine
celebrating our year from our chairperson not-for-profit sector by numbers from our CEO and MD from our shareholders from our shareholders: Community 21 from our shareholders: Bendigo and Adelaide Bank Bendigo and Adelaide Bank snapshot Social Investment Grants Program Community 21 share offer financing social enterprises creating impact through social housing action on reconciliation our partnerships our board farewell from Rob Hunt AM our executive team our numbers thank you
Community Sector Banking respectfully acknowledges the traditional owners of the country throughout Australia and recognise their continuing connection to land, waters and community. We pay our respect to them and their cultures; and to elders both past and present. Aboriginal and Torres Strait Islander people should be aware that this publication may contain images or names of people who have since passed away.
celebrating
our year
foreword
vision
This publication is an acknowledgement of all our great achievements over the past twelve months. It allows us to celebrate our success with our customers and gives us the opportunity to reflect on our impact in the not-for-profit sector, the partnerships with our banking colleagues and the wider community that we operate in.
Community Sector Banking has a vision to be the financial institution that strengthens not-for-profits and assists them to deliver social change and community wellbeing.
2014 was a significant and successful year: we launched our act. initiative which brings the best of banking and crowdfunding to create a positive impact for not-for-profits and social enterprises; we announced our inaugural Social Investment Grants Program recipients; and lead the way in social housing by taking home the PowerHousing Australia Strategic Partnership award. Internally, we have proudly embraced our Reconciliation Action Plan, which has seen all of our staff successfully complete Cultural Awareness Training.
mission We harness the understanding and capabilities of our shareholders to provide tailored banking and innovative financial solutions for not-for-profit organisations.
Amongst our milestones and celebrations, we also welcomed our 9,000th not-for-profit customer, reaffirming our belief that we are still making a difference and creating solutions that deliver real impact for our customers.
one
from our
chairperson
Throughout 2014, Community Sector Banking has continued to operate a successful business yielding modest profits in the last financial year. We are showing healthy growth in terms of customer numbers – and in the banking business, not-for-profit organisations are investing in Community Sector Banking. Another notable achievement this year is our recently launched act. initiative, which will help the sector generate resources and support from the broader community. We have also made significant funds available to various social housing organisations, providing much needed accommodation to people who can’t afford to operate in the mainstream market. Considerable progress has been made in the development of a Social Impact Investment Fund scheduled for launch in 2015. This fund will meet the desire expressed by institutional investors and organisations for options to invest in activities that deliver positive social impact. Our future directions will remain on the steady course of developing and delivering solutions that meet the particular needs of Australian
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not-for-profit organisations. The shareholder growth of Community 21, ongoing support of Bendigo and Adelaide Bank and the year-on-year success of Community Sector Banking are glowing reflections of our mature partnership, and signal a strong future. I would like to make special mention of one of Community Sector Banking’s inaugural Board members, Rob Hunt AM, who retired in October after serving twelve years in this role. His enormous contribution has been the cornerstone to the success of Community Sector Banking, both in economic terms and what we’ve been able to achieve for Australian communities. The Board would also like to thank Greg Peel and his team, whose ongoing dedication and effort continue to develop innovative solutions – solidifying our position as the leading specialist in not-for-profit banking. David Thompson AM Chairperson Community Sector Banking
We have had a very year and delivered on our strategy of focusing on a number of projects that are going to be beneficial both for Community Sector Banking and the sector as a whole.
strong
not-for-profit sector
by numbers
600,000
not-for-profit organisations in Australia
$2.09 billion donation
Organisations registered with the Australian Charities and Not-for-profits claimed by taxpayers in 2009 Commission not-for-profit by subsector
$54 billion contribution to GDP by not-for-profits
$176 billion worth of assets
12,267
14,201
assist aged persons
$2.09 billion donations
assist Aboriginal or Torres Strait Islander claimed by taxpayers in 2009 peoples
60,755
charities registered with the ACNC
9.3%
13,906 of the working population employed by not-for-profits
assist people with a disability
22,147
5.6 million
$14.6
713
assist children
volunteers
6,658 36%
assist people at risk of of adult population homelessness
billion
wage equivalent in work hours
milli
volunt hour
volunteering in 2013 that’s over
1,081,900
people
4.6 million
volunteers 4.6 million volunteers
$15
billion
wage equivalent in work hours
References turn to page 29
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It’s really important to us that we give people with disabilities the opportunity to gain skills to help them live . Community Sector Banking understands this and they help us create solutions to maximise our impact.
independently
Cath McDonald Chief Executive Officer, Radius
four
from our
ceo and md
2014 has seen the not-for-profit sector playing a broader role in terms of the outcomes it is trying to achieve. The pressure to deliver more with less means the management of capital and funding is critical to its success moving forward. Additionally, the unsettled environment of the upcoming abolishment of the Australian Charities and Not-for-profits Commission further signifies the importance for the not-for-profit sector to find solutions within the community in order to be sustainable. With this in mind, Community Sector Banking has shown our commitment to the sector, by bringing to the market innovative capital raising and funding models that will enable not-for-profits to create real impact in the community. Our continued focus on creating new pathways for social investment has seen the development and launch of the world first act. initiative – a platform that will revolutionise the way individuals and organisations can invest in their community through an integrated crowdfunding and banking activity model. We’re extremely proud of our Social Investment Deposit Account, which has come full circle this year; enabling us to award six not-for-profit organisations with grants totalling $50,000 through our inaugural Social Investment Grants Program. Great progress was also made in the social housing sub-sector, with an affordable housing bond being developed in partnership with PowerHousing Australia.
Subsequently, Community Sector Banking was honoured with PowerHousing Australia’s first Strategic Partner Award, recognising our contribution and ongoing work in this space. I am pleased to acknowledge the efforts and achievements of all of our staff for completing Cultural Awareness Training in line with the ongoing development of our Reconciliation Action Plan (RAP); allowing us to continue informed engagement with Indigenous organisations. The success of Community Sector Banking is dependent on our staff, and the support and guidance from our shareholders, Community 21 and Bendigo and Adelaide Bank. Their investment strengthens our ability to develop solutions for the not-for-profit sector in a way no other banking institution is able to. Lastly, I would like to acknowledge our recently retired inaugural Board member, Rob Hunt AM, a man of immense vision, passion and dedication. His contribution over the last twelve years has been integral in making Community Sector Banking the specialist in not-for-profit banking that it is known as today. Looking to the future, we aim to build on the platforms we have developed and continue to source new pathways to deliver funding to the sector in a sustainable way – creating real solutions and delivering real impact.
Our focus on building a robust banking business has enabled us to further explore and invest in that help provide answers to the most pressing problems within the sector today.
solutions
Greg Peel CEO and Managing Director Community Sector Banking
five
from our
shareholders
Community 21 came to life when innovative not-for-profits recognised that collaboration was the way forward for building a stronger future. Through collaboration and partnership with Bendigo and Adelaide Bank, Community Sector Banking was founded in 2002 – a banking service that gave not-for-profits greater access to funds and control over their finances. Our shareholders work closely together in the day-to-day operation of Community Sector Banking: Bendigo and Adelaide Bank provides access to their nationwide network of branches, financial licences and high level governance support, while Community 21 brings not-for-profit expertise, knowledge and access to the not-for-profit sector and its unique challenges and opportunities.
50% Bendigo and Adelaide Bank
+
50% Community 21 A consortium of not-for-profits
Community 21
shareholders
Community Sector Banking truly understands our organisation and what we are trying to achieve for the people we support. They have great relationship managers and work hard to ensure our specific needs are understood and met. Community Sector Banking has a genuine passion for the sector and we are proud to be associated with them. Kaye Collard, CEO, Able Australia
Where other banks are only just catching on to the importance and spread of the not-for-profit sector, Community Sector Banking has always provided tailored services. We believe that has made a difference to the people we are passionate about supporting in Tasmania, and for others across Australia. As a founding shareholder in Community 21, Anglicare Tasmania are proud to have helped establish Community Sector Banking and to see its impact continue to grow. Right Rev Chris Jones, Anglicare Tasmania
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O Group has been a Community Sector Banking customer for almost ten years now and we’re raving fans! Great customer service and support from our Business Managers, local assistance from our Bendigo Bank branch when we need it, and the right product mix for our needs. We’ve always received very competitive fees and interest rates too. As a shareholder we’ve seen substantial capital growth on our initial investment and enjoyed some dividend return along the way. We couldn’t be happier!
Community Sector Banking has provided Access Community Group with such a great range of relevant and innovative products. Their salary sacrifice products certainly make things easy, and their new act. initiative is an exciting opportunity that can only benefit our community!
Charlie Emmerton, Executive Manager Financial Services, O Group
Larissa Daniel, CEO, Access Community Group
We think Community Sector Banking is leading the push towards a paradigm shift. A whole new chapter using finance principles for social good is beginning - moving into an unforged territory full of hope. As a founding shareholder in Community 21, we’re excited and proud to be part of it. Tracy Howe, CEO, NCOSS
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from our shareholders
Community 21
Collaboration, innovation and leadership; that’s what we’re about. Over the course of our thirteen years of existence, these are the three words that have driven us.
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This year has been a particularly exciting one; I guess you could say we’ve come of age. Thirteen years ago, 20 not-for-profits invested in a radical idea. The result was Community 21, an organisation dedicated to helping not-for-profits take control of their financial destinies into the 21st century.
only banking product of its kind that is 100% focused on building positive outcomes for Australian not-for-profit organisations and social enterprises. To develop a unique, robust and sustainable business model without losing our vision has been a truly remarkable achievement.
In partnership with Bendigo and Adelaide Bank, we created Community Sector Banking, the specialist in not-for-profit banking, offering products and services specifically designed for the sector.
Our continued work during 2014 explores the needs of the sector to create social impact funds and bonds for investment in social housing – as well as devising new ways of responding to the issues that are having an impact on the sector, such as uncertainty, constant change, increase in demand, reduction of resources, funding models and capital raising.
Today, Community 21 is known as the thought leader in the financial and not-for-profit space. This year, in response to the ever-increasing demands placed on the sector, we invited all Australian not-for-profit organisations to invest in Community 21. Our focus was to expand upon our rich source of intelligence within the sector, and to raise up to $4 million to support a number of key initiatives in impact investing. One such initiative is act. The act. platform was created to address the ongoing challenges not-for-profits face in terms of funding and financing, and integrates the worlds of banking and crowdfunding – to deliver a product that allows not-for-profits to take control of their finances. act. is the
In the coming year we look forward to welcoming our new not-for-profit investors to Community 21. With a combined greater knowledge, our focus will be to challenge the thinking around the current issues faced by the sector and continue to be daring in our approach to finding solutions for these issues. Peter Quarmby Executive Director Community 21
from our shareholders
Bendigo and Adelaide Bank Our bank is driven by two fundamentals. We want to make it as easy as possible for customers to deal with us so we can help them achieve their personal financial goals; and we want to play our part in creating communities that are financially, socially and environmentally sustainable. Our shared value objective requires us to be innovative and flexible in the way we do business. We understand we can’t do that alone, or by relying on traditional banking models. That’s why our bank is eager to partner with others to find innovative approaches to the creation and distribution of wealth. This approach is evident in our Community Bank® network, which welcomed its 305th branch in June and has now returned $125 million to support community initiatives – with more than $23 million invested this financial year. We are extremely proud of the way in which we have worked with our community partners to achieve these outcomes. This year we relaunched bendigobank. com.au, improving our customer experience while providing additional functionality. A new look mobile e-banking service provides simple and secure PIN access, easy-to-read graphs and intuitive functionality. Bendigo GoPos®Lite enables on-thego payments via mobile phone, giving business owners more freedom and connectivity than ever before. The redy app – a world technology first –
enables customers to pay redy-enabled businesses through a mobile phone app and earn reward dollars that can be allocated from the app to charities or local community projects of their choice. Remaining true to our vision, an equally valued aspect of our work is our investment in Community Sector Banking, both as shareholder and supplier. We are proud to work with organisations that are driven by the needs of the customer and their shareholders. Community Sector Banking’s launch of act. is a significant achievement, and is evidence of the bank’s responsiveness to the needs of the sector. This platform also sets the industry standard in the provision of innovative banking products; allowing individuals and organisations to invest in their community by combining banking and crowdfunding. Bendigo and Adelaide Bank values our ongoing investment in Community Sector Banking. Through this relationship, we are confident in our ability to build even stronger communities. Mike Hirst Managing Director Bendigo and Adelaide Bank
Bendigo and Adelaide Bank is all about strengthening communities. Our relationship with Community Sector Banking is a major in helping us achieve this, as they are creating pathways that enable this to occur.
catalyst
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Bendigo and Adelaide Bank
snapshot
Bendigo and Adelaide Bank aims to be Australia’s leading customer-connected bank.
at least
A-rated
with Fitch, Standards & Poor’s and Moody’s
$125
million
supporting local community initiatives through the Community Bank® network
ten
1.5
500+ branches
2,000
nationwide
nationally
16
90,000+
Earth Hour
total
asset increase
shareholders
customers
ATMs
major sponsor
years
after tax statutory profit for year ended 30 June 2014
of Community Bank® June 2014
Business Bank
2013
million
top 60 ASX business
7.9%
million
$372.3
of the Year
in Roy Morgan’s Research Customer Satisfaction Awards
We wouldn’t have our nice new building without the support of Community Sector Banking and their understanding of how we operate. They understand our of where we’re actually going.
vision
The Settlement
2014 social investment grants program Community Sector Banking was very proud to award our inaugural round of Social Investment Grants in August 2014. The Social Investment Grants Program is directly funded by 50% of Community Sector Banking’s net profit earnt from Social Investment Deposit Accounts, and interest contributions from Social Investment Deposit Account holders. This money is pooled into the grants fund to support not-for-profits working to improve social outcomes in Australian communities. In 2014 Community Sector Banking awarded six not-for-profit organisations across the country with grants between $5,000 and $10,000 each, totalling $50,000, to deliver programs improving financial inclusion for disadvantaged people. Our grantees provide an update on how their projects are progressing:
Doncare Community Services
Junction Australia
The Smart Consumer Guide for Manningham Melbourne, Victoria
Future Pathways Project Adelaide, South Australia
Doncare created their popular Smart Consumer Guide for low income earners in the Manningham community in 2009. Since the Guide’s launch much has changed, including the challenges of living in a changing fiscal climate. Doncare’s grant is being used to completely revamp and improve the publication, covering information on managing money, community learning and support services. Doncare’s new Guide is currently in development and is expected to be released to the community in early 2015. The Guide is particularly helpful to those who are new to the area, or have never been in a position of disadvantage before. Even for those who have experienced disadvantage, a resource like the Guide can be an ongoing reference - a ‘go-to’ for support and information. It’s invaluable and essential for communities. Barbara Zeller, Manager of Information and Emergency Relief
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The Future Pathways Project provides 30 young homeless people aged 18 to 25 with skills in short and long-term personal goal setting, managing money and budgeting. Money management courses and financial counselling sessions for disadvantaged young people helps set them on positive future pathways to independent living. At the end of the course I was proud, excited and overwhelmed by the potential of these young people. Not only did they learn about money management but also effective communication skills within a group setting and important independent living skills, which will hopefully help improve their quality of life and wellbeing. Clare McMullan, Social Work Student and Co-Facilitator of Future Pathways
Christian Community Aid Know Your Money Financial Counselling Project Eastwood, New South Wales Know Your Money assists individuals and groups in the areas of financial knowledge and how to acquire every day budgeting skills through face-to-face casework, referrals and advocacy. Community education is also a focus, providing methods and practices in handling and budgeting money, debts and loans. We’ve had fantastic feedback from our Know Your Money program, and plenty of interest in sessions planned for 2015. Our first workshops in November and December focussed on budgeting for Christmas, which is a stressful time for most people, especially those on low and single parent incomes. We worked with groups of eight single parents to ensure that their families enjoyed the festive season without unnecessary financial stress. Heather Pinto, General Manager
Bendigo Family & Financial Services (BFFS)
Palm Beach Neighbourhood Centre
Debt Consolidation Project Bendigo, Victoria
Young and Wise Project Palm Beach, Queensland
The BFFS debt consolidation project provides low income earners with access to safe credit, without the burden of fees and interest charges. Eligible clients are able to consolidate their outstanding debts, to a maximum of $5,000, to be repaid within 36 months.
The Young and Wise project delivers financial literacy workshops to young people under the age of 25, who are primarily in transitional and youth accommodation and schools for those who are disadvantaged or marginalised. These workshops, presented by skilled facilitators, are being provided to up to 96 young people, empowering them with financial literacy skills to transition to independence.
One of the greatest impacts of the grant has been our purchase of a new laptop. The laptop has given us the ability to model data, create clear program strategies and deliver them effectively to our clients. The Debt Consolidation Program has finished the pilot stage and has been established as a fully fledged program for our clients. Since August 2014, the program has assisted more than 30 people reduce their debts in the Bendigo region.
So far we’ve conducted seven workshops and it’s been fantastic and really well received. The workshops covered everything from the basics like how to register a car or purchase one and budgeting, to renttry-buy schemes. All of our participants were very motivated when they left the workshops, it’s been wonderful to see. Simone Hickey, Program Manager
Jenny Elvey, General Manager
WIRE Women’s Information Women in Financial Control Workshops Melbourne, Victoria This project supports women who are vulnerable to or have experienced financial abuse to take control of their financial decision-making, by educating financial professionals to assist them. A three and a half hour workshop was developed with content specific to the finance sector on identifying financial abuse in the context of family violence.
Our aim is to increase awareness within the finance industry. We need to plant the seed that triggers policy changes regarding financial abuse – to recognise, as with financial hardship, this is a risk for anybody who is a customer. Julie Kun, Business Development Manager
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Community 21
share offer
Our vision is to be the thought leader in sector finance and capital management. This vision can only be achieved through a commitment to collaboration, an ongoing investment in and preparedness to take a leadership role in the future of the Australian not-for-profit sector.
The Australian not-for-profit sector has a profound impact on all facets of Australia’s society, economy and democracy. Currently within this crucial sector there is a growing need for capital, yet, we are increasingly seeing funds and resources becoming more scarce.
innovative approach to crowdfunding and the development of social impact investment vehicles. With the introduction of these products Community 21 and Community Sector Banking will help the sector to meet the challenges and demands of the future more effectively.
Created in 2001 by 20 not-for-profits coming together and investing in a profit-for-purpose company, Community 21 is one of Australia’s most long standing social ventures.
Future of Community 21
Peter Quarmby Executive Director Community 21
About the share offer
innovation
In 2014, Community 21 launched an historic share offer available exclusively to Australian not-for-profits.
The strategy of the share offer is twofold. Firstly, it aims to promote the continued expansion of Community Sector Banking’s capacity to create products and services that build new funding streams for the not-for-profit sector. Secondly, it will increase the representation of the shareholder base, making a more effective brains trust and supporting Community Sector Banking’s relevance and responsiveness to emerging challenges. The projects that will be developed and brought to market include creating new banking products, an
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Opening up new funding streams for the sector will provide not-for-profits with a united voice and strengthen Community 21’s ability to advocate on behalf of Australian not-for-profit organisations. In addition to the continued investment in the development of sector-focused products and services, Community 21 will also explore opportunities in social finance, and build financial capacity in Australia’s not-for-profit sector.
meet some of the shareholder
Animal Management in Rural and Remote Indigenous Communities (AMRRIC) has the unique mission of advancing veterinary care for companion animals and providing training to Indigenous owners in rural and remote communities. AMRRIC’s aim, through its dedicated staff and voluntary veterinarians, academics, health and animal management professionals, is not only to improve the health of companion animals, but to improve the health and welfare of whole communities.
The principles of Community Sector Banking align directly with ours; by investing in the share offer we are validating our stance and commitment to the sector. We believe more not-for-profits need to be part of a strong cohort network that is aimed at delivering much needed value to our sector. Drew English Business Operations Manager
applicants
Western Australian Council of Social Service (WACOSS) is the peak body for the social service sector in Western Australia. WACOSS has been developing and strengthening the non-government community services sector’s capacity to assist all Western Australians. At the heart of the organisation is the belief that the mark of a civilised community is the support and help it gives to those most in need.
National Affordable Housing Consortium is a values-driven not-for-profit that is aimed at addressing housing market failure and building better communities. Their mission is to facilitate affordable housing outcomes and act as a catalyst for housing innovation. We believe in community enterprises creating opportunities to lead, innovate and operate at scale whilst applying sound commercial principles. To describe the share offer in one phrase – invest in social value: create a social dividend. Mike Myers Managing Director
Cape York Natural Resource Management is a community led organisation which works with individuals, groups and communities. Through formal and informal partnerships they plan and care for land and sea, through natural resource and cultural heritage management. Their goal is to plan for sustainable natural resource management for the whole of Cape York and are doing this by working with people across sectors to identify issues and respond to needs.
The share offer is available until 30 June 2015. For more information on the share offer or to download your prospectus visit community21.com.au.
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financing Community Sector Banking’s vision is to strengthen and support the not-for-profit sector and their work. By partnering with Social Enterprise Finance Australia (SEFA), we give not-for-profits and social enterprises access to a range of financial solutions that support projects which solve social and environmental problems. SEFA provides support, advice and loans to not-for-profits and social enterprises, and prides itself on being one of the first financial services providers in Australia to focus solely on social impact lending. High on their agenda is making social lending and community finance available to organisations that are overlooked by mainstream banks, to enable them to continue delivering positive outcomes in the communities in which they operate.
social enterprises SEFA supports MiHaven MiHaven Property Fund has grown out of MiHaven, a social enterprise that helps unemployed Indigenous Australians enter long term sustainable employment in construction and related industries. As a construction company, MiHaven is also a registered training organisation that can deliver certificates in construction (including apprenticeships) and warehouse logistics. The business model achieves social change driven by industry initiative and innovation. MiHaven has two business models to support their Indigenous employment program: the Cairns-based city model and the remote community-based model currently focused on the Cape York region. To date MiHaven trainees have achieved an average of 90% completion rate in accredited skills training with 70% remaining in long-term employment since commencing the program in 2012.
In their pilot project, MiHaven Property Fund is purchasing a Queenslanderstyle house on a large block in Parramatta Park in Cairns. The land will be sub-divided, the original house renovated and a stylish inner city home built on the land. Both properties will then be sold. This pilot project will provide track record for future investors. With the support and understanding of SEFA, MiHaven was able to structure loan repayments to allow maximum flexibility during the construction period, while providing sufficient runway for the team to market the home.
SEFA is inspired by MiHaven’s proactive approach to sustainable employment training. They are achieving long term employment outcomes for Indigenous Australians and we are very pleased to support their latest pilot project.
positive
Ben Gales CEO, Social Enterprise Finance Australia
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Social Enterprise Finance Australia’s
stories
Food Connect Brisbane Food Connect distributes ecologically grown food from local farmers in south-east Queensland to households in Brisbane and surrounds – trailblazing a path towards local, seasonal eating with a low carbon footprint. In partnership with SEFA, Food Connect can now manage the seasonal cash flows, and continue to build on strong relationships with farmers and increase its environmental and social outcomes.
FBi Community Radio Sydney’s FBi Radio (FBi) is a community-based radio station focusing on youth music and the emerging culture space. SEFA is assisting FBi in purchasing its own premises, in order to upgrade its studios and future proof the organisation. The new facilities will give FBi the opportunity to modernise, as it transitions from analogue to digital, as well as creating more space for volunteers working on music projects.
Wagga Wagga LALC The Wagga Wagga Local Aboriginal Land Council (LALC) has a focus on fostering a culture of spiritual healing and reconnecting young people with elders in the community. While the council oversees culture, heritage and social housing, qualified mentors and trainers guide Wiradjuri youth and young adults towards healthier lifestyles. With SEFA’s financial assistance, Wagga Wagga LALC built a fitness and boxing centre so young Indigenous people can use the facility, practice healthy lifestyles and connect with elders.
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creating impact through
social housing Across Australia there are around 400,000 social housing properties and approximately 200,000 applicants still on a waiting list. Community Sector Banking has a strong history of working with social housing organisations around Australia and our commitment to the sector is evident through the projects we’ve accomplished and will continue to support in the future. We continue to work with various peak body organisations to create sustainable solutions to grow Australia’s stock of affordable and social housing – ensuring we move families off the waiting list and into accommodation.
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Strategic Partnership Award
UK Housing Exchange
PowerHousing Australia (PHA), the national network of not-for-profit housing providers, held its annual Housing Exchange conference in April. Facilitating knowledge between not-for-profit peers and business partners, PHA also took the opportunity to recognise leaders within the not-for-profit community and affordable housing.
Community Sector Banking was pleased to join peers from across the globe, including Canada, UK and the US at the International Housing Partnership Leadership Exchange conference hosted by PowerHousing Australia in September.
Community Sector Banking was the proud recipient of PowerHousing Australia’s inaugural Strategic Partner Award, recognising our contribution to affordable housing within Australia. This is the first time the Strategic Partner Award has been presented to any organisation, and the first award bestowed outside PowerHousing Australia’s membership group. The award acknowledges Community Sector Banking’s commitment to societal change, our connection with the community housing sector, and our understanding of the issues confronting community housing organisations and their members.
The conference gives organisations working towards the transformation of the social housing sector the opportunity to address current challenges and discuss how to adapt to these challenges in the future. Throughout the course of the conference examples of Australia’s initiatives to address these challenges were drawn on, demonstrating that Australia is still leading the way in the global sphere in addressing the challenges of community housing.
Current challenges facing Australia
1 in 96 approx
417
Australians used homelessness services in 2012-13
requests per day for services from homelessness agencies that could not be assisted in 2012-13
666
Indigenous persons per 10,000 who used homelessness services in 2012-13
Community Sector Banking’s funded loans by geography Funded $27.2 million in new loans in 2014
Total loan approved portfolio $160 million
Western Australia
22 dwellings
Queensland
74 dwellings
$1.2m in funded loans
$3m in funded loans
Women’s Housing provides
New South Wales
32 dwellings $7m in funded loans
South Australia
50 dwellings $9m in funded loans
References turn to page 29
Victoria
51 dwellings $7m in funded loans
thousands of people across Victoria access to safe and secure housing services. Beryl and Malcolm are tenants of a house Community Sector Banking assisted in financing.
In 2012-13 there were 666 Indigenous or Torres Strait Islander persons per 10,000 who used homelessness services. The Settlement provides support services and delivers various programs for Redfern’s Indigenous community.
action on Community Sector Banking is built on partnerships with not-for-profit organisations and with the community. Our commitment to strengthening the Indigenous sector and creating social change through the work we do with our Indigenous customers has played a significant role in the formation of our Reconciliation Action Plan. The first anniversary of our Reconciliation Action Plan marked an important milestone for Community Sector Banking. The anniversary, coinciding with National Reconciliation Week, demonstrated the true spirit of cooperation to ‘closing the gap’ between Aboriginal and Torres Strait Islander People in our country and communities.
reconciliation National Reconciliation Week
Cultural Awareness Training
National Reconciliation Week, celebrated across Australia, commemorates two significant milestones in the reconciliation journey – the anniversaries of the successful 1967 referendum and the High Court Mabo decision. The week also gives Australians the chance to share in Aboriginal and Torres Strait Islander histories, cultures and rights.
We are extremely proud to announce that all Community Sector Banking staff have completed their Cultural Awareness Training as part of our commitment to understanding and respecting Indigenous culture.
As part of the week long celebrations we encouraged staff to share what reconciliation means to them – and the responses were overwhelming.
In line with our Reconciliation Action Plan, we identified teams that directly engage with Indigenous communities to participate in a face-to-face Cultural Competency Workshop. The workshop empowers our staff with knowledge that will help them successfully implement initiatives that have positive impacts in the Indigenous community and our not-for-profit customers.
What reconciliation means to our staff...
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our
partnerships
Throughout 2014, we continued our commitment to creating real impact within the sector. We’ve proudly partnered with and worked alongside sector leaders and colleagues, with the aim to share knowledge and skills, question policies, examine outcomes, and develop and bring to market resources specifically for the sector. New age of social media In an age where social media platforms are quickly becoming the norm, partnering with Australian Catholic University Executive Education and social media experts to present a networking session was a logical choice. Focusing on strategies to create effective social content, not-for-profit attendees left the networking session armed with confidence, skills and tools that will allow them to maximise and claim their presence in the social media space.
National Disability Services Throughout the year, we exhibited at numerous National Disability Services conferences across the country. The conferences provided a platform for hundreds of disability sector leaders
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to workshop key developments with a particular focus on the introduction of the National Disability Insurance Scheme.
model sees them continuously giving back to disadvantaged and marginalised communities.
Every Generation Festival
As a commercial client of Salvos Legal, Community Sector Banking proudly supported and endorsed their nomination for Law Firm of the Year 2014, in the prestigious Australian Law Awards. We were thrilled when they were presented with the award, recognising them as Australia’s best of the best.
This year we proudly supported COTA Australia’s Every Generation Festival and Awards. This Festival celebrates the commitment and work community members have made assisting older people to live life to the fullest. We are committed to working closely with COTA Australia in investigating and implementing affordable housing options for older people to remain independent in their own homes for as long as possible.
Better using our assets: CEO forum series We joined forces with Community Council for Australia to conduct a series of interactive forums designed for CEOs and Chairs of Boards across Australia. A panel of experts representing banking, wealth management, investment and philanthropy contributed to robust discussions around the challenges faced by the sector and strategies to overcome these.
Salvos Legal makes history We seek out and engage with suppliers that share our values, which is why we work with Salvos Legal. Their unique
Our ongoing commitment Throughout the year, we have also: • Joined forces with Bendigo Bank branches to host not-for-profit information nights that were attended by local community members. • Continued to support and assist community groups through training and conferences. • Our committed team pledged their support to not-for-profits and their missions by volunteering, running, cycling and walking their way around the country, achieving huge fundraising targets and meeting personal goals. 2014 has been a busy year for the team at Community Sector Banking. Our continued focus on partnering with groups and peak bodies in the sector enables us to work together to create real change in our communities.
We’re both focused on social change and wellbeing, with the same will to make a difference in the . We understand each other, that’s why it was a natural fit to go with Community Sector Banking.
community
Leanne Giardina Executive Director Community Child Care Association
our
board
Jenny Dawson
Greg Peel
Andrew Billing
Director
CEO and Managing Director
Director
Greg joined our Board in 2002. He has been creating innovative financial solutions for Australian and international corporations for over 30 years.
Andrew joined our Board in 2013. He is an Australian Institute of Management and Australian Institute of Company Directors Fellow, skilled in business diversification, strategic planning, financial management and corporate governance.
Jenny is a founding Director of Community Sector Banking, joining our Board in 2002. Her extensive experience in financial reporting, accounting, audit and risk management has been invaluable to Community Sector Banking. Jenny is currently Chair of the Regional Development Advisory Committee for the Loddon Mallee region in Victoria, Chair of the Living Bendigo Project Control Board, and Independent Audit Committee Chair of Goulburn-Murray Water.
Greg’s experience covers corporate banking, trade finance, asset finance, capital markets, integrated global financial solutions and credit and risk management. He has held senior positions with the Bendigo and Adelaide Bank Group focussing on Community Sector Banking and creating banking solutions for the not-for-profit sector. Greg is also a Director of Social Enterprise Finance Australia and Bendigo Asset Management.
Andrew has been employed by not-for-profit O Group since 1998, fulfilling a number of leadership roles prior to his appointment as CEO in 2004. Under Andrew’s leadership, O Group has become one of the most prolific and diverse human resource and business advisory organisations in Tasmania, and the recipient of many state and international awards.
Lauren Bean
David Thompson AM
Robert Musgrove
Director
Chairperson
Director
Lauren joined our Board in 2013. She is also a Director of our 50% shareholder, Community 21.
David is a founding Director of Community Sector Banking, joining our Board in 2002. He is also the founding Chair of our 50% shareholder, Community 21.
Robert joined our Board in July 2014. He joined Bendigo and Adelaide Bank in 1987, and has held a wide and varied range of positions across the Group. Robert also played a pivotal role in the development and expansion of the Community Bank® model. He currently holds the position of Executive Community Engagement and joined the executive team in 2013.
Lauren is CEO of Cara Inc, a not-for-profit providing vulnerable young women with support and accommodation. She is also a Director of Bendigo Cemeteries Trust and a graduate of the Australian Institute of Company Directors. Lauren was previously Acting CEO and Company Secretary of St Luke’s and was instrumental in their successful merger with Anglicare Victoria.
David is currently CEO of Jobs Australia, Chair of the Jobs Australia Foundation, Chair of the National Roundtable of Non-profit Organisations, Chair of COMMACT International and Director of Beyond Empathy. He also a member of the Board of Intercontinental Network for Promotion of the Social Solidarity Economy, and a member of the Federal Government’s National Place-Based Advisory Group.
Robert is constantly looking for ways to give back to his community, such as mentoring and regularly donating blood. He has participated in the Oxfam 100km Trailwalker fundraising event, and recently volunteered for Earthwatch, counting fauna and flora in South African wildlife reserves. Rob Hunt AM resigned from his position as a board representative effective October 2014.
farewell from Rob Hunt A M There is something rewarding about stepping back, in the company of colleagues and partners, to appreciate the achievements we have built together. I am both proud and humbled to be able to do this when considering Community Sector Banking. The not-for-profit sector is critical to the health and wellbeing of people across Australia, and moving forward it will play an even greater part in the success of our nation. The role of Bendigo and Adelaide Bank was always to extend beyond its general commercial application and ultimately impact on the success of our customers and the communities we serve.
I have always believed Bendigo and Adelaide Bank’s role is to feed into the , prosperity of the not off it. Community Sector Banking was borne of the idea that we can improve the prospects and outcomes of the work undertaken by the not-for-profit sector.
community
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In Community Sector Banking we saw the potential to add value to our customer offer, increase the capacity of the not-for-profit sector and improve all of the communities in which we operate. Our unique partnership with Community 21 made it possible for us to create an organisation that specifically addresses the specialised financial and banking needs of this important sector of Australia’s economy. During my time as Managing Director at Bendigo and Adelaide Bank, and subsequently as a Director of the Board of Community Sector Banking, the collective aim has been to generate Community Sector Banking’s capacity to
build specialised products and solutions – in order to improve the outcomes produced by the sector across all communities in Australia. Our work over the years with Indigenous people, the disadvantaged and marginalised; our efforts in introducing new capital raising and funding models such as the Social Investment Deposit Account and its corresponding Social Investment Grants Program, plus the recently launched act. initiative – all these efforts assist us in developing positive and lasting change for Australian communities and the not-for-profit sector. We must never lose sight of the fact that all things we do should be driven from our motive to help our customers achieve success – and this will indeed secure our own ongoing success. The next step in achieving such success is to motivate and mobilise individuals and organisations to participate in societal change through their financial banking and investment decisions. I know Community Sector Banking will rise to the challenge and secure further capital and support for this critical sector of Australian society. Rob Hunt AM Retired Director Community Sector Banking
our
executive team Greg Peel
Ken Langston
CEO and Managing Director
Head of Business Development
Greg has been creating innovative financial solutions for over 30 years and held senior positions with international banks across the globe. He steers Community Sector Banking through policy, governance and overall strategic direction.
Ken brings over 15 years senior executive and directorship experience to the Community Sector Banking team. His knowledge of the not-for-profit sector provides us with guidance in delivering tailored products and solutions to our customers.
Amanda Watt
Joe Sheehan
Wayne Trotman
Head of Marketing, Communications and act.
Head of Funding and Projects
Head of Finance and Risk
Amanda celebrated five years with Community Sector Banking this year. Her vision and strategy has been imperative in positioning us as the leading banking specialist for not-for-profits. Amanda also heads up the recently launched act. initiative – a world first that combines crowdfunding and banking.
Joe brings over 35 years of financial experience working across international banks. He currently oversees the development and delivery of lending and product solutions for our customers. Joe’s understanding of banking and experience plays a pivotal role in creating innovative solutions for our customers and the sector.
Wayne has celebrated over a decade with Community Sector Banking and manages our financial and risk portfolio. With over 22 years experience in the finance industry his knowledge and understanding guide us in managing our assets and risk functions. Wayne also plays a leading role in guiding the strategic direction of Community Sector Banking.
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our
numbers Our customer diversity: by value
As at 1 December 2014 Community Sector Banking is under a profit sharing arrangement with Bendigo and Adelaide Bank. We generate income from deposits and loans that are managed by Bendigo and Adelaide Bank on behalf of our customers. As a franchisee of Bendigo and Adelaide Bank, our customer deposits are protected by the Bank’s regulatory framework and its A- credit rating with all three major agencies.
$910 million
total average funds under management (loans and deposits)
1% International
2% Religion Childcare
Environment
2013 2014
Education & Research
Professional Associations
3%
Our not-for-profit customers
5%
4%
20% increase
18%
6%
Social Services
3% Disability
2% Other Individual (incl Social Investment Deposit Accounts & act.)
Our customer accounts
18%
9%
Housing & Developments
27,375 deposit accounts 1,920 loan accounts
11% Health
2% Indigenous
7,606 9,175
13% Culture & Recreation Law,
1% Advocacy & Politics 2% Philanthropic & Voluntarism
29,295 total accounts
Our products
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Cash Management Trading Account
Gift Fund Account
Capacity Builder Online Account
b-packaged® & b-optimised®
Loan facilities
act.
Social Investment Deposit Account
thank
you
Our efforts and achievements in 2014 could not have been possible without the ongoing support and encouragement from our customers and partners. We would like to take this opportunity to thank all our shareholders, partners, suppliers, customers and organisations that trusted and supported us during the course of the year. Thank you to the business units, branches and support teams at Bendigo and Adelaide Bank; your ongoing banking guidance and support has assisted us in delivering a high standard of banking service to not-for-profit organisations across Australia.
contact us
references
1300 CSBANK (1300 272 265) Monday to Friday 8:30am to 6pm AEST customerservice@csbanking.com.au
Not-for-profit sector by numbers – page 3 McGregor-Lowndes, M., The Australian Centre for Philanthropy and Nonprofit Studies, QUT (April 2014). The Not for Profit Sector in Australia: Fact Sheet Australian Bureau of Statistics (2014). Australian National Accounts: Non-Profit Institutions Satellite Account, 2012-13 (Catalogue No 5256.0) Australian Bureau of Statistics (2013). Labour Force, Australia (Catalogue No 6202.0) Australian Charities and Not-for-profits Commission, website Data.gov.au, ACNC Registered Charities, accessed 19 November 2014 Productivity Commission (2010). Contribution of the Not-for-Profit Sector. Research Report. Canberra, Australian Government Australian Bureau of Statistics (2010). Voluntary Work, Australia, 2010 (Catalogue No 4441.0) Australian Taxation Office (2014). Taxation Statistics 2011–12 Charities Aid Foundation (2013). World Giving Index 2013: A Global View of Giving Trends McGregor-Lowndes, M., & Crittall, M. (2014). An examination of tax deductible donations made by individual Australian taxpayers in 2011–12
visit us communitysectorbanking.com.au
connect
Stay in touch with our in the loop monthly newsletter
Creating impact through social housing – page 18 Steering Committee for the Review of Government Service Provision, Productivity Commission (2014). Report on government services 2014 Australian Institute of Health and Welfare (2013). Specialist homelessness services, 2012–13.
Community Sector Banking Pty Ltd ACN 098 858 765. Authorised Representative No. 265317. Level 1, Wing C, Innovation Campus, Squires Way, North Wollongong NSW 2500. Community Sector Banking is a franchisee and Authorised Representative of Bendigo and Adelaide Bank Limited AFSL 237879. (S49977) (01/15)
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Welcome to act.
Funding positive change through everyday banking act. is a world first banking service that lets customers choose where profits go. The new division of Community Sector Banking, act. allows customers to give to a range of worthy causes through their everyday banking. act. changes the way banking collaborates with not-for-profits and social enterprises, raising money for projects across a wide range of issues. After two years in development, act. works alongside Community Sector Banking’s products and solutions for the community sector, delivering positive social impact to communities across Australia.
act. generates Impact Dollars for its customers – real dollars taken from act.’s profits and gives it to customers to donate to a community project of their choice. Customers can choose where their donations go, how much and how often. As a unique blend of banking and crowdfunding, act. empowers individuals to do something they do every day and make a difference by supporting an issue or cause they feel passionate about. Not-for-profits and social enterprises can generate an alternative income stream and connect with supporters by telling their compelling project story on letsact.com.au.
act. is a natural evolution for Community Sector Banking. Delivering positive social outcomes through banking – this time for individuals. Amanda Watt Head of Marketing, Communications and act. Amanda Watt and Alex Scriven at the act. launch
one
vision
values
To create a unique digital space where individuals can invest in activities that bring about
positive social change
outcome a stronger & more
sustainable not-for-profit sector
engaged activists invested in
social change
simplicity transparency
choice
impact
purpose converting financial capital into
social capital
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act. projects act. gives its customers (activists) the opportunity to earn and donate banking profits to a whole range of inspiring, community-focused projects. Each time activists do their banking, they earn Impact Dollars which they can donate to any of the projects featured on letsact.com.au. Here are some of the projects that launched with act. in November 2014.
SCARF Boys Zone Adventure Camp $5,000 The SCARF Boys Zone Adventure Camp is a personal development camp for young men aged 17 to 20 from a refugee background, hosted by Outdoor Education Group. The camps are focused on outdoor activities, team building and workshops for setting goals, healthy relationships and capacity building in preparation for life beyond Year 12. These camps provide an invaluable opportunity for learning new life skills, developing good habits, increasing self esteem, learning respect for self and others, and building positive relationships. SCARF has been successfully delivering youth camps to recently arrived young people from refugee backgrounds since 2008.
School Breakfast Project $5,800 Plan International Australia’s School Breakfasts Project (run in partnership with the UN World Food Programme) provides vulnerable children with a daily meal of rice, fish and beans, served when they arrive at school each morning. This not only helps them concentrate in the classroom, but also encourages their parents to send them to school. When $5,800 is reached,the UN World Food Programme will multiply the gift by 12; meaning Plan will be able to feed 28,800 children for a year. Since this project started, Plan has helped thousands of children in 250 schools in the Siem Reap district of Cambodia.
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When Meals Really Matter $5,000
‘I Can’ with your help $1,500
SecondBite provides rescued food free of charge to community food program partners who use this quality produce to provide meals, food hampers or food parcels for people in need. In 2014, SecondBite used the act. platform to raise money to provide 12,500 healthy, nutritious meals to vulnerable women, men and their children who would otherwise go hungry over Christmas.
Sailors with disABILITIES aim to build confidence, self esteem and new relationships through sailing. Children and young people with a disability become a crew member and set sail out on the water of Sydney Harbour for an interactive sailing experience on a 54 foot sailing boat. The project provides a unique opportunity in their life, allowing them to develop new skills and leave their disability behind.
In 2013-2014, SecondBite collected 5.6 million kilograms of surplus fresh food that would have ended up as waste. In partnership with more than 1,200 community food programs, this is enough food to provide 11.2 million healthy meals to Australians in need.
Will you help Zamponaki? $500 Lort Smith Animal Hospital (Lort Smith) cares for over 38,000 animals each year through their hospital and adoption centre. Many of these animals have been surrendered, abandoned, mistreated or abused. Last year Zamponaki, a one and a half year old Pomeranian, was unfortunately hit by a car. Upon discovering her back left leg needed to be amputated, her owners made the difficult decision to put her to sleep, rather than pay the costs for treatment.
This interactive adventure opens the children and young people’s world and imagination, expands their abilities and helps them say ’I Can’. For many of the children and young people who take part in this program it may be the first time that optimism becomes a real part of their life.
Lort Smith offered to take Zamponaki into their care, taking on all associated operation costs and aiming to re-home her once she was fully recovered. The next day, Zamponaki went into surgery and is now recovering well. The act. platform helps Lort Smith give animals a second chance at life.
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Project activators act. is a banking service that combines the world of crowdfunding with banking. letsact.com.au is the crowdfunding site that allows not-for-profits and social enterprises to create an alternative income stream whilst increasing engagement with supporters and stakeholders. Here are some insights into posting a successful project with act.
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Setting the target
Telling your story
Share your project
act. banking products
Choose an achievable funding target. act. offers the all or nothing crowdfunding model and if a project doesn’t reach the funding target that was set for the project, the project doesn’t receive any of the pledged donations. On the upside it is proven to create urgency and excitement amongst supporters.
The project needs to have a compelling story. Supporters need to understand the social impact the project will create – after all everyone loves a good story. The act. platform supports videos and photos and provides prompts, so telling a story is easier than ever before.
Engaging with existing supporters and their friends is key. act. helps projects to share their story easily with tips and tools available to engage volunteers, board members, existing supporters, staff, friends and family.
Project supporters can get more involved by taking up act. banking products. When customers open an account, they’ll get a share of act.’s banking profits to support projects they care about on letsact.com.au. act. banking can create an additional revenue stream for not-for-profits and social enterprises in the long term. Visit the banking tab on letsact.com.au for more information.
Sailors with disABILITIES volunteers at the Sydney act. launch
Minister Ajaka and SCARF participants at Wollongong act. launch
Become an activist It’s simple. As soon as you open a bank account with act., you’ll receive a free Impact Account. Every time you do your banking, you’ll earn Impact Dollars into this account. You’re then ready to allocate these Impact Dollars to any of the great projects featured on the act. website. You can choose where your donations go, how much, and how often. It’s your choice. As well as being lots of fun and giving you an extra reason to feel great, act. puts you in charge of your banking and you decide where banking profits should go. So, let’s get into the rhythm of giving back.
Ready to bank with act.? Bank with act. All the banking products and features you need but with the bonus heart and soul. Products are issued by Bendigo Bank.
act. offers a great range of online and telephone banking services, but with bonus heart and soul. Opening an act. account is easy. Call the act. team on 1300 ACT TODAY (1300 228 863) or visit letsact.com.au/ banking to apply online.
Connect with act. Earn Impact Dollars Every act. banking product earns Impact Dollars in your Impact Account. Equivalent in value to everyday Aussie dollars, they quickly add up!
letsact.com.au
facebook.com/letsactau
twitter.com/letsactau
linkedin.com/company/act.
instagram.com/letsactau
Fund projects You choose where your Impact Dollars go, how many, and how often. You can even top up your donation with your credit card.
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Banking that gives back letsact.com.au