This Program represents an investment made by mecu on behalf of its members in the development of more sustainable living. This investment is only made possible because of group of like minded community oriented people and organisations choice to come together to bank. Program funding is derived from the profits generated from this activity. In the true spirit of cooperation investments are made back into the community’s from which mecu itself derives its support.
The Community Investment Program establishes how mecu will maximise its positive impacts in the community prioritising those that are most relevant to our core business, products, services, members, and employees both in the short and long term.
background and values
As mecu grows one thing remains the same. Our values, which reflect those of our members guide our decisions and strategies for conducting business.
mecu strives to provide our members with value for money, compelling integrated finance solutions, and memorable superior service in a profitable and sustainable way. We choose to work in partnership with community organisations that are also committed to social, environmental and economic responsibility and will share our resources to enhance the well being of our communities of interest.
The mecu Community Investment Program reflects mecu’s values and the on-going commitments we make to our stakeholders.
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Objective of the program
The objective of the mecu Community Investment Program is to support activities which make a contribution to resolving economic, social and environmental problems thereby making a positive, measurable and sustainable difference to society.
Whilst it may be tempting to turn the Community Investment Program into a marketing initiative, self promotion shall not become a primary objective of the program.
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Guiding principles
Communities, which have developed their economic, social and environmental capability, are better positioned to draw on their own resources to become sustainable. Initiatives for sustainable development should focus on collaboration between government, the non-government sector and business together with the community.
mecu is committed to working towards the sustainable development of our communities of interest and to leveraging the support of its members to assist one another.
The mecu Community Investment Program reflects the expectations of mecu which represents the values, interests and attitudes of its members. The essence of our community development effort is to recognise and define problems that are relevant to our business of banking and the communities we serve and then design and apply solutions. A very necessary feature of our investment in community development is the growth of economic, social and environmental capability across our communities of interest.
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areas of investment
Consistent with mecu's Stakeholder Engagement Policy a process of ongoing stakeholder consultation has identified and four areas where community development investment can be focused.
environment
In its efforts to develop a more environmentally sustainable society the mecu Community Investment Program will provide support to those initiatives that work to address issues relating to private land conservation across Australia.
Private bushland contains threatened plants and animals, which are often not found in public parks and reserves. With nearly 70 per cent of Victoria alone already cleared it is crucial we act now to conserve and enhance the one million hectares of unprotected bush that remains. An expansion of our cities will lead to a further loss of native lands and biodiversity.
mecu recognises that its business of banking contributes to a changing climate as well as a loss of biodiversity when financing new home construction.
The Community Investment Program will support initiatives that:
- improve the sustainable use of land
- improve biodiversity
- address a changing climate
- advocate policy and behavioural changes which assist these aims
- encourage households to live more sustainably
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Housing
mecu regards access to safe, secure and affordable housing as a pre-requisite for improved, education, health, employment outcomes as well as enhanced financial well-being and stronger families.
As a consequence the Community Investment Program will support initiatives that:
- Encourage the development of a strong community housing sector
- Encourage the design, construction and renovating of more environmentally efficient housing
- Enhance the community’s access to a greater range of safe, secure and more affordable housing options
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Community resilience
mecu regards education including professional development as a prerequisite for achieving greater levels of resilience in the face of constant economic, social and environmental challenge. By becoming more resilient to these challenges communities are better placed to achieve their full potential. Improving the educational prospects of all Australians is a key way to ensure that all individuals are able to achieve their own aspirations for material well being and personal fulfilment whilst living in a more sustainable environment.
A strong community sector is vital to the sustainable development of Australian society. mecu is also committed to making a positive impact on the economy and society by promoting professional directorship and good governance within the sector.
The mecu Community Investment Program will provide support to those initiatives that work to address issues relating to:
- Student welfare
- Enhancing student retention in regional Victoria
- Enhancing equality of educational opportunity
- Education in financial literacy
- Professional development for student and qualified teachers, and particularly teachers involved in the areas of science, environmental and social studies
- Leadership development for government school leaders
- Advancement of skills amongst boards of non government organisations
Funds shall be provided to support the growth and development of regional communities where mecu operates. In this regard funding may be allocated for the purpose of building partnerships between community groups and key regional stakeholders which provide strategic and targeted responses to economic, environmental and social issues affecting the region.
Furthermore mecu believes that advances in science will also assist communities to become more resilient in the face of economic, social and environmental challenges Accordingly the mecu Community Investment Program will provide support to initiatives which:
- Encourage science education
- Encourage young people to seek and develop careers in science and science education
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International development
mecusupports the pursuit of the World Council of Credit Union’s vision of Quality Credit Unions for Everyone. The World Council of Credit Unions promotes the sustainable development of credit unions worldwide to empower people to grow through access to high quality and affordable financial services.
mecuwill also support the Credit Union Foundation of Australia to develop community access to affordable financial services in the Asia Pacific region and to assist communities in developing countries achieve economic independence.
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Forms of Payment
Community Investment Program payments will generally be made in the form of a grant however funds may also be paid in the form of a non interest earning loan. A loan may be considered in the case that funds are sought by a community sector owned social enterprise venture that trades to fulfil a social or environmental mission. In this situation mecu’s lending staff would be engaged to assist in the assessment of the organisations capacity to repay the loan. Loan funds to any single community sector organisation would be limited to $25k and a repayment period of not longer than two years. An annual limit of $100k in loan funding applies under the Community Investment Program.
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Unplanned giving
1. On occasions the Community Investment Program may be used to fund projects which arise as a consequence of significant natural disasters that impact mecu members and the communities served by mecu. Such payments will be made within the budget allocated to the Community Investment Program unless additional funding is provided by the Board of mecu. Payment of all such amounts for natural disaster relief requires Board approval.
2. On occasions small donations of less than $1k may be provided for causes that whilst consistent with the objectives of the mecu Community Investment Program do not warrant formalising in accordance with the documented funding process. Such funds shall be met from a specified contingency included into the annual budget. These requests shall be approved by the CEO and be reported to the Board’s Sustainable Development Committee. Such funds shall only be provided to existing mecumembers.
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Exclusions
Investments will not be made in the following areas:
- Projects which conflict with mecu’s values and policies
- Cash donations except where funds are paid to a registered charity / appeal established as the result of a natural disaster or major civil incident and where tax deductibility status is provided
- Organisations, which have received funding from mecu in the past 12 months unless a commitment to a multi year funding agreement exists
- Funding to sporting clubs/sporting events
- Health care
- Fundraising events which are not part of a natural disaster relief effort
- Arts initiatives
- Capital item purchases for schools or government institutions
- Political causes, campaigns or candidates
- Salaries and overhead costs for an organisation where full funding of these costs is sought
- Dependant relationships where funding represents 100% of a projects budget
- Publication of books or videos unless they are to be used as an educational resource for teachers, students or schools
- Projects with a low likelihood of sustainability beyond the funding period
- Social clubs or religous groups
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Program administration
governance
All funding from the mecu Community Investment Program shall be reported to the mecu Board’s Sustainable Development Committee and in mecu’s annual Sustainability Report.
measurement and evaluation
Reporting on the input, output and impact of all funding is a requirement of each investment.
Recurring funding will not occur without an annual assessment of the outcomes achieved from the investment and budget approval. Reporting will be consistent with the requirements of the St James Ethics Centre’s Corporate Responsibility Index.
communication
Funding of mecu Community Investment Program projects and outcomes of the investment will be communicated to stakeholders in the Interact magazine. Case studies will be presented on mecu's website.
Funding formula
The quantum of annual funding for the mecuCommunity Investment Program will be no more than 4% of mecu’s after tax annual profit projected for the year of the expense and is subject to Board approval as part of the annual corporate budget approval process. Only investments formalised in a Memorandum of Understanding or approved by the Board shall be accounted for within this amount. mecu’s investment into it’s Conservation Landbank shall be considered within this annual funding amount.
Program register
A register of all projects funded under the mecuCommunity Investment Program will be maintained by the National Community Banking Manager.
Program review
The mecuCommunity Investment Program will be reviewed annually by the Sustainable Development Committee.
The mecustakeholder engagement process will be important in choosing where to focus investment in the community.
Application process
Unsolicited applications for funding from the mecu Community Investment Program will not generally be accepted.
Following consultation with a representative of mecu’s Community Banking Team an application for funding may be developed which will be considered by mecu in accordance with established Community Investment Program procedures.
The application is divided into four parts:
1. Background
This section places an application in context by describing the nature of the issue being addressed. Where possible the extent of the issue the project is seeking to address will be quantified and its relationship with either of the four areas of focus determined by mecu will be identified. A brief history of the recipient of the funds and how it has been addressing the issue to date will be included.
Matters for consideration will include:
- What has already been done in this field and by whom?
- What is known about the issue and what research exists on the issue?
- Why does this work need to be done?
- How well placed is the organisation to do the work?
2. The project
This section shall include details of the project to be funded, what difference it will make to mecu’s communities of interest and how it relates to one or more of the four areas for investment.
Matters for consideration will include:
- What is proposed and why?
- How does the project relate to the mecu Community Investment Program focus areas?
- Who is going to do the work, and how well qualified are they to do it?
- What is the governance structure overseeing the project?
- What results are expected?
- Where will the work be done?
- How long will it take?
- How is this project distinguished from others?
- What risks of failure have been identified and what steps have been taken to mitigate these?
- How will project outcomes be publicised?
- What is the overall cost of the project?
- Are there other sources of funding for the project?
- How will the work continue after the current funding period?
- Has a project monitoring and evaluation process been developed?
3. Objectives
This section shall include details on the objectives of the project.
4. Review & evaluation
This section shall detail how the impacts of the project will be monitored, quantified and reviewed. Account will be taken of these impacts when considering any future applications for funding.
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Documentation required
Where applicable the following information shall accompany all applications for funding under the Program.
- Evidence of Incorporation as a not-for-profit body
- Tax exempt status, with copy of ATO letter. If the organisation is a Deductible Gift Recipient (DGR), also supply the ATO notification letter.
- Australian Business Number (ABN)
- A copy of the most current Audited Financial Statements and/or current Annual Report
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Funding process
Where an application for an investment is approved it will be accompanied by an Investment Agreement between mecu and the applicant.
The Investment Agreement will outline all terms and conditions under which funds have been provided and will detail the responsibilities and accountabilities agreed to by mecu and the recipient.
It is an expectation that all recipients of funding will conduct part or all of their banking with mecu.
The Investment Agreement will detail the steps the project will undertake to achieve its objectives. Inputs provided by mecu will be identified, as will intended outcomes. The impact of the investment will be reported by the applicant to mecu at agreed intervals throughout the project.
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