ORDINARY RADICALS How to Incorporate Faith

1
ORDINARY RADICALS How to Incorporate
Faith Finance

• Shawn L. Good
• Manager Branch Operations
• Mennonite Savings and Credit Union

2
Interesting Title

• Ordinary Of no exceptional ability, degree
  or quality
• Radical Arising from / going to the root

3
Ordinary Radicals

• Ordinary Radical is not restricted to the
  CEO or Ph.D with great ideas, but rather anyone
  who is not satisfied with status quo, and
  intentionally invests in being authentic in word,
  belief, and action.

4
Values Faith some assumptions

• Your faith informs your values, values inform
  your actions.
• Values include compassion, integrity,
  responsible stewardship, peace, love, courage,
  leadership, accountability, respect, grace etc.

5
Faith Finance why is it hard?

• Talmud Riddle
• If God intended for us to eat bread, why did He
  not create a bread tree?
• He wants us to partner with Him in creation
  physical, spiritual, relational, social,
  environmental, economical

6
Its not only Christians asking

• "Because all our lives today are affected by
  business decisions... whether or not those
  decisions are coloured by compassion takes on an
  important significance."
• From the foreword by the Dalai Lama

7
Some Radicals speak out

• There is nothing in the Bible about
  spreadsheets, operating manuals, or
  organizational charts but Gods word has a lot
  to say about people and relationships, leaders
  and followers, principles and integrity.
• Corporate Giants Personal Stories of Faith and
  Finance (Darden Richardson)

8
Some Radicals speak out

• Two examples of getting at the root
• When I fed the hungry they called me a Saint.
  When I asked why people are hungry, they called
  me a communist.
• - Bishop Dom Helder Camara
• We give people fish. We teach them to fish. We
  tear down the walls that have been built up
  around the fish pond. And we figure out who
  polluted it. Shane Claiborne The Irresistible
  Revolution

9
Some Radicals speak out

• Each man takes care that his neighbor shall not
  cheat him
• But a day comes when he begins to care that he
  does not cheat his neighbor.
• Then all goes well he has changed his market
  cart into a chariot of the sun!
• Ralph Waldo Emerson

10
The MSCU Story

• 196421 Waterloo County Mennonites explore the
  credit union idea
• 1964Waterloo County Mennonite Credit Union is
  born
• 22 charter members
• 192 in a cash box
• located in Kitchener
• 1989Name changed to Mennonite Savings and
  Credit Union (Ontario) Limited (MSCU).

11
The MSCU Story

• 2007
• MSCU has grown to 8 full service branches, and 5
  part-time offices
• Assets under Administration 650 million
• Membership grown to 16,000
• 110 employees
• Ranked 9th largest in Ontario, 30th out of 500
  in Canada

12
What Makes MSCU Different?
Mennonite Savings and Credit Union draws on its
Anabaptist heritage to uniquely shape its vision
and direction. As members of Mennonite, Amish
and Brethren in Christ communities, we have
joined together and become members of MSCU to
help us apply the biblical concepts of
stewardship, economic justice and service in our
day-to-day economic lives and financial
transactions.
13
What Makes MSCU Different?

• Guiding Statements
• Values Grounded in Anabaptist faith, our
  approach to serving members will reflect
  integrity, compassion and responsible
  stewardship.
• Vision To serve members as an innovative,
  growing and healthy credit
  union, an enabler of mutual aid and the primary
  provider of financial services for our faith
  community.
• Mission To make a difference in peoples lives
  through exemplary service that reflects the
  voice of the member and the values of our faith
  community.

14
What Makes MSCU Different?

• Strategic Directions

• Faith Base
• Cooperative Principles
• Service
• Profitability

• Growth
• Staff
• Brand
• Social Responsibility

15
What Makes MSCU Different?

• Member Owned
• You are not merely a customer at MSCU.  You are a
  member.
• At MSCU, one member's deposits become another
  member's loan every member has a vote and the
  staff and members share fundamental values of
  stewardship and concern.
• Members are also owners in the Credit Union and
  receive a share of the annual profit. 1.6
  million in Owner Benefit Shares distributed
  (March 2007). Calculated at 4.1 of interest
  earned and paid

16
Some radical ideas in action!
Stewardship Programs The combined impact of all
member and MSCU stewardship initiatives is felt
by local, regional, and international
organizations

• Member Assistance Services
• Church Builder Term Deposit
• MSCU Charitable Fund
• Investment in MEDA Sarona Fund
• Support for local churches and church-related
  organizations through program and event
  sponsorship
• Student Bursaries

17
Some radical ideas in action!
Member Assistance Services

• Special Needs PlanAssists members with low or no
  interest loans, funded by Owner Benefit Shares
  and MSCU capital. Member Assistance Services
  (MAS) loans currently stated as just over 2.1
  million.
• Partnership Plan Low or no-interest term
  deposits from one member enable low or
  no-interest loans to another. MAS term deposits
  currently at 1.2 million.

18
Some radical ideas in action!
Church Builder Term Deposit

• MSCU supports churches and church-based
  organizations across Ontario through Church
  Builder term deposits. 
• MSCU donates 0.5 bonus interest to the church or
  charity of your choice.
• Since 1998, over 145,000 has been donated to
  local churches and community organizations
  through the Church Builder Program!

19
Some radical ideas in action!

• MSCU Charitable Fund
• The MSCU Charitable Fund was established in 1999
  as an endowment fund held at Mennonite Foundation
  of Canada to support church and community-based
  charitable organizations. 
• Each year, MSCU allocates 1 of earnings before
  taxes to the endowment portion of the fund. 

20
Some radical ideas in action!

• MSCU Charitable Fund
• Grants totalling 43,280 were awarded to 16
  projects for use in 2007.
• Since the inception of the MSCU Charitable Fund,
  grants totaling 236,900 have been awarded to 102
  different projects
• African Christian Mission of Canada Water well
  project in Kenya
• Mennonite Central Committee Inter-religious
  Hospitality Project
• Hidden Acres Mennonite Camp and Retreat Centre
  Church worker suit

21
Some radical ideas in action!

• MSCU Charitable Fund
• MasterCard Affinity Program
• Purchases made with MSCU MasterCard credit
  cards support church and community-based
  charitable organizations.
• One dollar from every 1000 in purchases made on
  all MSCU MasterCard credit cards is allocated to
  the annual grant fund.
• Does not apply to Student and
• Business MasterCard credit cards

22
Some radical ideas in action!

• Sponsorships
• In 2006, MSCU branches donated over 24,800 to
  assist 83 local organizations with their
  fundraising goals and events.

23
Some radical ideas in action!

• Student Bursary Program
• In 2006, MSCU awarded 23 secondary students a
  combined total of 2,900.

24
What Makes MSCU Different?
Partner in Micro-Finance Program

• MEDA SARONA FUND
• In 1953 MEDA was established as a venture capital
  fund to invest in businesses operated by and for
  the benefit of the poor
• MSCU's investment in this global investment fund
  provides capital for small loans to poor families
  in developing countries, to help them build their
  own businesses and contribute to a better life,
  thus continuing the vision and spirit of
  responsible stewardship on a global scale

25
Financial Services from MSCU

• Chequing and Savings Accounts
• Personal Mortgages, Loans, and Lines of Credit
• Credit and Debit Cards
• Farm and Business Accounts and Lending Services
• Financial Planning
• Estate Planning
• Insurance Options
• Internet and Telephone Banking
• ATMs The Exchange Network

26
Our Commitment

• We promise that
• We will always strive to provide professional,
  helpful counsel that is in your best interests.
• Your financial dealings will be kept strictly
  confidential.
• If the Credit Union makes an error, we will take
  responsibility and work to correct it as quickly
  as possible.
• As a member and an owner, your input will be
  taken into consideration when decisions are made
  for the Credit Union and its future.

27
Mennonite Savings and Credit Union MSCU offers
members the opportunity to be part of a unique,
visionary credit union with a passion for church
community, a commitment to exceptional service,
and a heart for Christian stewardship and
compassion. Its a radical vision!
28
Behind the scenes a few stories

• Mileage Proposal
• New service locations
• Cheque clearing proposal
• Hiring practices
• Internal recognition program

29
Some Bread Tree challenges

• It can be more difficult to lead from a values
  perspective
• what to do when Integrity and Compassion
  collide and form a twisted pile of smoking
  Responsible Stewardship Im convinced we did the
  right thing
• recent email from a Senior Manager after a
  difficult meeting

30
Some Bread Tree challenges

• Need to define what the values look like. An
  action some think is Responsible Stewardship,
  others think lacks Compassion!
• Live it out, starting with the top. Staff now
  challenge us and our decisions based on the
  Values

31
Some Bread Tree challenges

• How to apply changeless values to a changing
  complex industry SWAPs, Securitization,
  bundling of services, CHIP cards
• Regulatory legal requirements doesnt always
  feel like Compassion

32
Some Bread Tree challenges

• Diversity within our bond Technology
  applications
• Fees Interest rates how do you set them?

33
Some Bread Tree challenges

• How to recruit staff who are engaged and aligned
  with the value set?
• We differentiate based on values, but do members
  choose service based on bottom line? (need to be
  competitive)

34
Some Recognition

• Ethics in Action-Ongoing Social Responsibility
  Award (finalist), 2001
• Ontario Credit Union Charitable
  Foundation-Outstanding Charitable Achievement
  Award, 2001
• Canadian Centre for Philanthropy-Imagine Caring
  Company (ongoing), 2001
• Canadian Credit Union Innovation Award - April,
  2003
• Gary Gillam Award for Leadership in the area of
  Social Responsibility presented to Nick
  Driedger March 27, 2004
• World Council of Credit Union (WOCCU) Young
  Credit Union People Program, scholarship 2007

35
MSCUs radical child MERITAS

• Socially Responsible Investing
• Meritas is an SRI Mutual Fund Company owned by
• Mennonite Savings and Credit Union
• Mennonite Foundation of Canada
• Mennonite Mutual Aid
• OVER 250M in assets in 7 years!

36
MERITAS a radical example

• The application of social criteria in addition to
  financial considerations when making investment
  decisions
• The most rapidly growing segment of the financial
  services industry
• In the US, this represents 1 of every 8 dollars
  invested

37
MERITAS a radical example

• The top ten screens for SRI are
• Tobacco Production
• Environmental Impact
• Alcohol Production
• Weapons/Weapons Contracting
• Employee Relations
• International Human Rights
• Nuclear Power
• Gambling
• Cultural and Gender Diversity
• Aboriginal Concerns and Relations

38
MERITAS a radical example

• We believe that all companies should
• Respect the dignity and value of all people
• Build a world at peace and free from violence
• Internalize a concern for justice in a global
  society
• Exhibit responsible management practices
• Support and involve communities
• Practice environmental stewardship

39
MERITAS Some Real Impact

• Enbridge Human Rights
• Pepsi AIDS Crisis
• HBC Living Wage
• The Banks Transparency
• Telus Adult content removed

40
WHY SRI?

• To comply with a moral code
• To achieve a positive social objective
• To achieve better than average returns (yes its
  true it pays!)

41
MERITAS a relevant radical option

• An investment philosophy based on a faith
  perspective
• An emphasis on faithfulness in serving God
• An approach to investing that meshes well with
  other SRI investors who are not faith-based

42
Now its your turn

• So go, be an Ordinary Radical, and turn your
  Market Cart into a chariot of the sun.
• Thank you very much!
• Shawn L. Good
• Manager Branch Operations
• Mennonite Savings And Credit Union
• sgood_at_mscu.com
• www.mscu.com
• 519.772.5214