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Donations

April 27, 2007

It is always interesting to read the year end statements of companies and credit unions. Lots of PR in those pages.

Last night at our AGM we presented information about where the credit union gave most of it’s money. It just happens to be the 3 local elementary schools that receive the largest percentage. Our total giving is about 8.8% of our net earnings. An interesting benchmark and one that most people consider as an adequate mearsurement. But I got to thinking, what other means could be used to view this. Westminster Savings gave $950,000 to their foundation which does not include other contributions. Given their member numbers that is a whopping $18.58 per member at least. North Shore CU gave $1million from their foundation not including other contributions this year. Their membership numbers would put them at $27.42 per member! These are fantastic amounts. Our CU is only at $7.41 per member. But then compare that with the 1% guideline that is so often touted as the necessary level of giving. Westminster Savings would be $2.05 per member, we would be 84 cents per member (sorry I couldn’t get North Shore’s figures). It seems either as a percentage or a per member basis credit unions are giving institutions. So you wonder why we look at the banks a little suspiciously.

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2 Comments leave one →
  1. April 27, 2007 11:26 pm

    Agreed we’re a giving bunch. One other thing worth mentioning is that most credit unions here in Canada are part of Imagine (www.imagine.ca) and have committed to giving 1% of pre-tax profits.

    The amounts in the end depend on how your calculating it. Are you just using the donations amount reported on financial statements? Does this include giving via respective foundations? marketing? What about donations in-kind — people, time, resources, equipment, etc. which often aren’t reflected in balance sheets.

    NSCU has about 36,266 members (as of Dec 2006) and donated approximately $66,000 in 2006 according to its financial statements. That puts them around $1.82 per member. Factor in other giving like their $1M Legacy Fund which was recently granted to the North Shore Outdoor School and you’d get a higher number.

  2. tinfoiling permalink*
    April 28, 2007 12:34 am

    I was just using the net earnings (post tax) as the calculation for percentages. . Donations in kind were not included. Both North Shore and New Westminster donations were their giving to their foundations or in NSCU’s case the large amount your foundation gave this past year. Again this is were definitions to create a common benchmark are so important. It would be easiest if there was some understanding as to what a “donation” was. I would suggest monies donated to foundations and dollar amounts supported by receipts or invoices from non-profits should be included. Donations in kind could be monies attributed to some independent value given to an outside organization. You are right, most of these never show up in the balance sheet.
    NSCU (including the $1M) would be at a phenomenal $29.39 per member!

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