Community Sector Banking 2013 Yearbook

yearbook

inside

one from our chairperson

two not-for-profit sector by numbers

three from our ceo and md

four from our shareholders: community 21

seven from our shareholders: bendigo and adelaide bank

ten financing social outcomes

eleven financing social enterprise

fourteen making in-roads

sixteen banking on community housing

eighteen investing for impact

nineteen impact through partnerships

twenty action on reconciliation

twenty-three our executive team

twenty-four our board

twenty-six our numbers

twenty-seven our thanks

Community Sector Banking respectfully acknowledges the traditional owners of 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 yearForeword

Every year, we keenly anticipate the production of our yearbook. This publication is a celebration of all the great work we have done in the past 12 months; and is a fine acknowledgement of the collaborative impact that we, in partnership with our sector and banking colleagues, have on local communities.

This year is no different. In 2013, we have created strong solutions in community housing, we have helped many marginalised people through the provision of microcredit loans, and we continue to lead the way in social finance. Internally, we have proudly launched our Reconciliation Action Plan.

During the year, we welcomed our 7,500th not-for-profit customer. In all that we have done – and all that we continue to do – we are helping these customers to make a real impact in their own communities.

Vision

Community Sector Banking has a vision to be the financial institution that strengthens not-for-profits in delivering social change and community wellbeing.

Mission

We harness the understanding and capabilities of our joint venture partners to provide tailored banking and innovative financial solutions for not-for-profit organisations.

> left: Community Sector Banking staff Lorelle and Daniel volunteering for #GivingTuesday

Jessica and workmates from Bendigo Access Employment Services planting for their social enterprise

Community Sector Banking is today a leading provider of banking and financial services to Australia’s not-for-profit sector. Beyond that, it is an organisation with an unwavering commitment to supporting social change.

Throughout 2013, Community Sector Banking has pursued activities of benefit and relevance to the sector. It has operated sustainably and profitably, to the collective benefit of our shareholders and our people.

To that end, on the basis of modest profits in the past financial year, Community Sector Banking made another dividend payment in November to its shareholders, Bendigo Bank and Community 21.

A number of highlights in 2013 warrant attention. The launch of our Reconciliation Action Plan reflects our values and our strongly held commitment to working with Indigenous people and communities.

Recent changes to Community Sector Banking’s organisational structure herald a strong future in which we can really focus on the things we do well. We are in a great position to deliver on our vision of providing banking services enabling not-for-profits to deliver social change and community wellbeing.

The launch of the Australian Charities and Not-for-profits Commission (ACNC) in July was a positive step in bringing all charities under a single regulatory body. The coalition government’s decision to abolish the ACNC and to establish a new national Centre for Excellence for Australian civil society means an uncertain future as far as sector regulation goes. We hope the

government retains a national regulatory framework for charities and that it sets the new Centre up with sector ownership, engagement and control.

In the current context – where a change in government and fiscal constraints in state and territory jurisdictions cause sector funding to grow scarce – the work we do grows ever more important, and we remain committed to finding alternate funding sources for not-for-profits.

I am proud to witness the cooperation, collaboration and understanding between our joint venture partners. The board conveys its thanks to Greg and his team for their continuing work to ensure Community Sector Banking is a great success.

David Thompson AM Chairperson Community Sector Banking

from our chairperson

one

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

$166QLD$81NT

$155WA

$168VIC

$110TAS$173SA

$204NSW

$174ACT

volunteering

average donation by state per person

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

600,000not-for-profit organisations in Australia

58,779of which are economically significant

almost double the contribution of $21 billion from agriculture

$43 billioncontribution to GDP by not-for-profits

equal to $40 billion contribution from government admin and defence

volunteering in 2011of the working population employed by not-for-profits8%

that’s over

people889,900References turn to page 27

two

not-for-profit sector by numbers

The past year has been one of remarkable growth and continued innovation at Community Sector Banking, with much exciting work being done in the social finance and impact investing space.

The not-for-profit sector is growing in size and stature in Australia. Today, one in 15 Australians work for a not-for-profit or a charity, and volunteers contribute more than $14 billion in work hours to the sector.

Yet 2013 has been a year of upheaval for our not-for-profit customers and their colleagues. A change in government inevitably shakes things up; while the roll-out of the National Disability Insurance Scheme (NDIS) brings uncertainty for both service providers and the recipients of those services, particularly as the new government reviews the delivery model.

Amidst all of this, Community Sector Banking has remained a solid and strengthening pillar of support within the sector.

Our banking products and services are being taken up by more not-for-profit organisations around Australia. Indeed, our customer base grew 18% last year, and we now proudly include more than 7,500 not-for-profit organisations nationally as our customers.

Remaining true to our vision, we are reinvesting our profits into continued innovation, particularly in the social finance space. It’s this ongoing work that really reflects our passion for social change and delivering real community solutions.

A constant theme in the work we have done this year is around how we create new pathways for social investment. We are blending capital solutions and exploring opportunities in impact investing

– and have become sought after experts in this space, being invited to participate in forums and to contribute to reports.

Then there is our continuing work in social and affordable housing, the growth and certification of our Social Investment Deposit Account (SIDA) and our continued delivery of the In-roads program – all great examples of how the year has been ‘business as usual’, but with a social twist to it.

We are really starting to see the hard work by our invaluable staff and partners in social finance transform into tangible solutions and I very much look forward to seeing these strategies hit the market in 2014.

Greg Peel CEO and Managing Director Community Sector Banking

from our ceo and md

three

50% Bendigo Bank

50% Community 21

A consortium of 20 not-for-profits+

from our shareholders Community 21 shareholdersSupporting people with multiple disabilities including deafblindness to achieve self-fulfilment and connection with community in Victoria and Tasmania.www.ableaustralia.org.au

Providing opportunities for community members to engage in education and employment.www.acg.com.au

Working towards an Australia free of poverty and social exclusion, helping disadvantaged people build a better future for themselves and their families.www.bsl.org.au

Working towards social justice for Tasmania’s disadvantaged and providing opportunities for people in need to reach the fullness of life.www.anglicare-tas.org.au

Australia’s national voice for the needs of people affected by poverty and inequality, working towards a fair, inclusive and socially sustainable nation.www.acoss.org.au

Community 21 - a consortium of 20 leading community sector organisations - and Bendigo Bank joined forces to create Community Sector Banking in 2002.

Our shareholders collaborate closely: Bendigo and Adelaide Bank provides use of their branches, financial licenses and high level governance support, while Community 21 supplies in-depth knowledge of, and access to, the not-for-profit sector and its unique challenges and opportunities.

four

Providing opportunities for growth, development, support and security for people with disabilities and their communities.www.multitask.org.au

NSW’s peak body for the social services sector, providing independent leadership in community welfare, poverty, disadvantage and social inclusion.www.ncoss.org.au

A Tasmanian community business partnership delivering employment, training, mentoring and business solutions to employers and job seekers.www.ogroup.org.au

Supporting communities in Dubbo and western New South Wales since 1976, in response to a need for support and opportunities to develop sustainability.www.oec.org.au

Working within communities to alleviate poverty and disadvantage, providing people with skills and resources to create their own lasting solutions to poverty.www.oxfam.org.au

Australia’s oldest independent children’s charity working to improve the quality of care, life opportunities and status of children.www.ozchild.org.au

Enabling each person with a disability that they support to live as an empowered and equal citizen.www.scopevic.org.au

Assisting vulnerable children, youth and their families to make positive changes in their lives, to be connected and contribute to their communities. www.stlukes.org.au

Getting people back to work with employment and skills services, Indigenous support, construction and human services in partnership with QLD communities. www.skillcentred.com.au

Seeking to create a future without youth homelessness by providing support to young people, youth workers and the homelessness sector. www.yfoundations.org.au

Committed to facilitating the most effective and efficient ways to connect donors to the causes that matter to them, for money to get where it’s needed.www.cafaustralia.org.au

Delivering employment, training and business services to job seekers and companies across the East Coast of Australia.www.etcltd.com.au

Delivering community finance and investment options for social enterprises, not-for-profits, and loan products to low income individuals in South East QLD.www.foresters.org.au

Australia’s peak body for not-for-profit organisations assisting unemployed people to get and keep jobs and promoting better understanding of disadvantage.www.ja.com.au

Supporting the development of a world-classnot-for-profit rental housing sector, improvingthe lives of lower income and disadvantagedhouseholds in NSW.www.communityhousing.org.au

five

Community 21 shareholders

The role of Community 21 is to support the growth and development of the Australian not-for-profit sector. This is achieved through our continued investment in Community Sector Banking.

Community 21 is made up of 20 not-for-profit organisations. These shareholders each bring understanding, great commitment and passion to the table.

Our collective knowledge of the not-for-profit sector provides invaluable guidance to Community Sector Banking, so it can continue to design and deliver products and services that get great results for the sector and, by extension, the community.

The 2013 launch of the National Disability Insurance Scheme (NDIS) has been a strong focus during the year. We’ve worked closely with Community Sector Banking, utilising our rich understanding of the sector and access to policy information, to examine how this major policy change will impact on the vulnerable people using the scheme and how a shift to a client-centred funding model will impact on the operations of disability service providers. We will watch closely for changes to the NDIS under the new government.

In 2013, Community 21 also invested significant time and resources exploring how crowdfunding can be applied to the not-for-profit sector. Crowdfunding, which is growing at a phenomenal rate both in Australia and overseas, is a new means of creating greater levels of engagement with the broader community while raising much-needed funds.

Looking to the future, Community 21 eagerly anticipates the moment we can open our doors to potentially thousands of not-for-profit organisations, who can become shareholders in our organisation and contribute their voices to the work we do.

This process will bring the whole sector together under the banner of Community 21 to create a stronger voice and more tangible outcomes for the not-for-profit sector.

Andrew Billing Director Community 21

from our shareholders community 21

six

From its earliest days, Community Sector Banking has been a perfect fit with Bendigo and Adelaide Bank. With a shared commitment to social change and community wellbeing, we are helping to make a difference, together.

Bendigo and Adelaide Bank is proud to support the critical work of not-for-profits within local communities. In our own case, the Community Bank® network has now returned $102 million to local communities, and Bendigo Bank’s Community Enterprise Foundation™ has raised $70 million and distributed $50 million to 5,181 community organisations since inception.

These monetary measures are a great indication of our commitment to creating strong communities. Yet our mandate – to form relevant and valued connections in local communities – cannot always be measured in dollars alone.

An equally valued measure of our work is our investment in Community Sector Banking, both as shareholder and supplier. This investment – which started in partnership with Community 21 in 2002 – reflects our long-held ambition to work closely with the many not-for-profit organisations in our community.

Community Sector Banking shares our values and is committed to developing products and services aligned to the needs of the not-for-profit sector.

That is why Community Sector Banking is involved in impact investing and social finance; offering solutions in areas like affordable housing, disability services and aged care; and continually expanding upon the financial services they provide to the not-for-profit sector. These things are tangible evidence of Community Sector Banking’s commitment to the broader community. In providing the above solutions, Community Sector Banking is filling gaps in financial services that traditional banks won’t – and that is reason for community celebration!

We remain extremely proud of our ongoing investment in Community Sector Banking, and firmly believe that it forms a valuable component of our community engagement strategy.

Mike Hirst Managing Director Bendigo and Adelaide Bank

from our shareholders bendigo and adelaide bank

seven

$4 billion market capitalisation $60.3 billion total

assets

Top 60 ASX

500 branchesOver

A- credit rating with Fitch, Standard & Poor’s and Moody’s

15 years of Community Bank® June 2013

Partnership with Oxfam reaches $9 million raised

$70 million raised and $50 million distributed by Bendigo Bank’s

Community Enterprise Foundation™

Innovative 5 star Green rated office building opened in Adelaide

November 2013

1900 ATMs

1.5 million customers

returned to local communities through the Community Bank® network

$102 million

Bendigo and Adelaide Bank aims to be Australia’s leading customer-connected bank.

bendigo and adelaide bank snapshot

Our customer-centric values,

ability to innovate and a culture of doing things differently have carved out a position for our bank that continues to be unique.

Mike Hirst Managing Director Bendigo and Adelaide Bank

eight

Hope Street Youth & Family Services’ carer Lara with client Divine

nine

20,000

73%

social enterprises in Australia

operational for at least 5 years

29%are not-for-profitswith a business venture

All of this work, and much more, positions Community Sector Banking as a social finance specialist. And we’re drawing on our rich experience in these areas to define a new path forward for impact investing and to blend capital solutions.

Indeed, it’s a very exciting area to be working in. Through our participation in the Department of Education, Employment and Workplace Relations’ (now the Department of Education) ‘IMPACT Australia’ report, as well as other forums in this arena, we estimate the impact investing market will grow to $10 billion in the next ten years.

Impact investing is still in its early days in Australia. Given our deep experience, we’re excited to be at the forefront of this field, working closely with other passionate

Community Sector Banking proudly occupies a growing role in the social finance space in Australia and we’re respected for our work on a global stage. In 2013 we clearly defined our goals in this exciting field.

In recent years, Community Sector Banking has worked hard within different areas of social finance. We devised and implemented the Social Investment Deposit Account (SIDA), an investment account with a social conscience. We’re an active investor in Social Enterprise Finance Australia (SEFA) and have developed solutions designed to support the community housing sector.

organisations to mature the impact investing market in Australia.

In our work, we draw on international best practice and participate in international forums to gain invaluable insights into what’s happening in other markets around the world. We continue to foster strong relations with our colleagues at NESTA UK, Big Society Capital and the Centre for Social Impact (Australia). While our retained position on the board of the International Association of Investors in the Social Economy (INAISE) ensures we remain connected to the people, organisations and policies spearheading change in this space.

We’ve spent much time in the past year exploring ways to integrate the knowledge gained through our work to deliver new solutions in social finance.

There are a number of constant themes in the work we do in social finance – from finding ways to maximise our impact and that of our not-for-profit customers, to accessing funds and creating new pathways for social investment. In addressing these themes, Community Sector Banking remains true to its vision.

financing social outcomes

ten

SEFA supports Team Wild

Based in Far North Queensland, Team Wild runs a program to support disenfranchised youth in Cairns and reduce rates of recidivism amongst challenging youth offenders.

Its Rights of Passage Entitlements program, known as ROPE, works with young Aboriginal and Torres Straight Islanders. And it’s getting results. Of the 56 young offenders who took part in 2012, 48 have not reoffended.

ROPE uses outdoor recreation to reengage its participants, combined with activities that recognise and maintain culture.

To transition to a sustainable footing, Team Wild joined with a group of philanthropic equity investors to buy a charter and sailing catamaran. This reef tourism business will fund the ROPE program on an ongoing basis.

SEFA provided a loan to help refinance the initial equity investment and cover the cost of a refurbishment and cabin upgrade.

financing social enterpriseThis is the second year of our investment in Social Enterprise Finance Australia (SEFA), a social enterprise that lends to other social enterprises. SEFA’s focus is social impact and it works with organisations that have a social mission at their core.

SEFA provides support and loans for for-profit and not-for-profit organisations who use the power of business to achieve aspirations and solve social and environmental problems. It partners with organisations to help them achieve their social mission and deliver positive outcomes for people and communities.

> right: Team Wild catamaran supporting the ROPE program

eleven

Arbias clients and their carers participating in a community program

1,843 In-roads loan enquiries

473loan applications received

625people accessing financial literacy assistance

28loans completely paid off

250 loan applications approved

$2,677 average loan amount

The In-roads lending program has delivered more than 250 microcredit loans to individuals across Australia, helping marginalised people get back on their feet.

The program is a vehicle through which disadvantaged people can overcome exclusion from mainstream banking, and receive financial literacy support. Almost 70% of approved loans were provided to people who identify as Indigenous.

Over the course of its two year pilot, in partnership with FaHCSIA (now the Department of Social Services), In-roads has been a great success. That’s why we’re proud to commit to continuing the program independently beyond 2013.

I’m on a pension and struggle to get the things I really need. My car

wasn’t working, and out here you need a vehicle - some of my relatives are over 700km away.

“It was really good to be able to speak to someone in person at In-roads, where they treated me with respect and trust and understanding. I have a simple loan, it’s not much, and it’s paid automatically so I don’t have to worry.

“To be trusted to pay back my loan means a lot to me. It’s boosted my morale and helped me out a hell of a lot. And I have no worries about being able to see my family now that my car is working.”

Errol Indigenous In-roads participant in the Kimberley area of WA

making in-roads

< left: Lena received In-roads assistance to purchase a fridge

fourteen

3% 13 applications

Northern Territory

28% 131 applications

Remote WA

5% 25 applications

South Australia

6% 27 applications

Victoria

7% 31 applications

Tasmania

9% 43 applications

Illawarra, NSW

15% 74 applications

South East QLD & Northern NSW

27% 129 applications

Queensland

Reasons for loan applicationIn-roads loan applications by geography

other

of loan applications from people who identify as Indigenous

69%

household items

40%

car rego/repairs

22%

car purchase

18%

pay bills

1%medical costs

3%

pay off other credit

7%

mobility scooter bond for renthouse repairs

1%1% 4%3%

of loan applications from people who identify as Indigenous

69%

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With about 300,000 families on a waiting list that stretches out to ten years, there is a clear and pressing need for new solutions in social and affordable housing in Australia. In 2013, Community Sector Banking invested a great deal of time and resources in this arena.

We continued to invest in the sector, adding $70 million in loans to take our total exposure to $150 million. This equates to about 230 much-needed dwellings being built around Australia.

Beyond providing finance, we are also committed to developing lasting, positive solutions for the sector. In 2013, we built on our partnership with PowerHousing Australia, the collaborative industry body representing community housing providers, working with them on a range of exciting initiatives.

banking on community housing

> left: Cassandra and baby Charlotte in their affordable home

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Shared equity model for transition to home ownership

Statistics show that it’s becoming more and more difficult for people to buy their first homes. Community Sector Banking has been working with community housing providers around Australia to create a new pathway to home ownership.

Called the shared equity model, the scheme is structured so tenants own up to 75% of the property and, an equity provider the other percentage as a passive investor. This enables tenants who would otherwise be unable to invest the required deposit to take their first step toward home ownership.

Following positive feedback, we are working with our lawyers and credit department to finalise the model.

Housing bond rating with Standard and Poor’s

Creating a rateable housing bond is a logical move, given financing needs in the social and affordable housing sector are in the region of $7 billion.

Drawing on a successful model from the UK, Community Sector Banking and PowerHousing Australia are now developing a proposal for leading credit ratings agency, Standard and Poor’s, as a means of accessing new funds to support the sector.

When this housing bond is finalised, much-needed capital can be made available to grow Australia’s stock of affordable and social housing – moving families off the waiting list and into accommodation.

International conference a great success

Community Sector Banking was delighted to join with participants from Canada, the US and the UK at the International Housing Partnership conference hosted by PowerHousing Australia in September.

A key theme at the conference was that government funding for social and affordable housing is becoming scarce across the globe. The positive news? Australia is keeping pace in terms of developing initiatives that respond to the growing crisis.

> right: Long term tenants Neil and Patricia

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banking on community housing

+

customer opens a social investment

deposit account

Community Sector Banking donates 50% of our account profits

customer can choose to donate interest as well

they get a safe and

secure return

a positive social impact through community grants program

How SIDA worksWhile account holders, both organisations and individuals, can also choose to donate a percentage of the interest they earn to the work of not-for-profit groups.

SIDA was certified by the Responsible Investment Association of Australia (RIAA) in September 2013 – and we’re now looking forward to the launch of SIDA grants in early 2014, our first practical step into philanthropy.

A Grants Advisory Committee was elected in September 2013. Along with representatives from Community Sector Banking and Bendigo and Adelaide Bank, incoming Chair Bruce Argyle brings philanthropic knowledge, while committee member Samantha Hannah-Rankin’s knowledge of microfinance and social housing will also direct our strategy.

At Community Sector Banking we’re not only providing ethical banking options for customers, but also practicing what we preach – ensuring our choices as a company reflect the values of the not-for-profit sector we serve.

In line with increasing consumer demand for socially responsible banking products, we launched our Social Investment Deposit Account (SIDA) in 2012.

At first glance SIDA is a simple deposit account - but with two key differences. Community Sector Banking returns 50% of its profits from the account directly to the sector through a grants program.

We understand that philanthropy is about far more than monetary return. In our current explorations with the philanthropic sector, we’re collaborating for mutually beneficial investment options, greater impact, acceptable investment risk and ensuring adequate return for the community.

In all that we do, Community Sector Banking seeks to reflect the ethics of the not-for-profit sector. We ensure we provide equal opportunity for all employees, source products and supplies from sustainable sources, treat our communities and environment with respect and uphold a high standard of ethical behaviour.

investing for impact

eighteen

How SIDA works We’re committed to helping strengthen the Australian not-for-profit sector and the communities it serves.

Throughout 2013, Community Sector Banking helped create real impact by working with colleagues and sector leaders to share knowledge, examine outcomes and produce resources for the sector.

Investing in innovation

We partnered with Job Futures to present the inaugural Steve Lawrence Social Innovation Award, celebrating creative and sustainable social enterprises. To support the award beyond 2013, we also launched the Steve Lawrence Award Fund.

National Disability Services

In December we were active participants in National Disability Services’ CEO conference, providing a stage for over 500 disability sector leaders to discuss key developments and collaborative opportunities.

Thriving in the new norm

In September we proudly supported the 2013 National Community Bank® conference. Themed ‘Thriving in the New Norm’, it provided a platform to go beyond the everyday to a more aspirational way of doing business in communities.

The Social Marketplace

We exhibited at a highlight event for social enterprise: The Social Marketplace. Host to a variety of organisations and potential investors, the event facilitated learning with activities such as theoretical investments to social enterprises with promising futures.

Keeping the social sector updated

For the second year, we supported the Australian Council of Social Services’ sector-specific daily media bulletin service. Our funding will help grow the project to a wider audience.

Real assistance

2013 was a busy year, and we proudly supported our customers’ activities by:

• Hosting over 300 representatives from not-for-profits at our information nights, co-hosted with Bendigo Bank branches across the country.

• Collaborating with Third Sector magazine to produce a straightforward guide on specialised banking products and services for the sector.

• Supporting community organisations through training and conferences.

• Our staff running, walking and cycling their way around the nation in support of not-for-profits, hitting huge fundraising targets and big personal achievements.

impact through partnerships

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Given our involvement with Indigenous groups, it was only fitting that this year we embarked upon the RAP program.

Led by Reconciliation Australia, the RAP program enables organisations like ours to document what we’ll do to influence or contribute to reconciliation in Australia. It’s a way of defining practical actions to strengthen relationships with Indigenous groups and to promote greater equality.

In addition to contributing to the goal of reconciliation, creating our own RAP is a powerful representation of the values we hold true.

The decision to formalise our commitment to a Reconciliation Action Plan (RAP) was met with unanimous approval by Community Sector Banking’s staff, executive and board.

Community Sector Banking has worked for a long time with Indigenous organisations around Australia. Our In-roads program provides small loans to financially excluded Indigenous people. Our housing specialists have been working with the Cape York Institute to create a home ownership scheme. Then there are the 120 Indigenous organisations we have direct relationships with.

Defining our RAP

We officially launched our RAP during National Reconciliation Week in May 2013. A working group of people from across the organisation, including Community Sector Banking executives, board members and staff, will steer the progress of the RAP over the next three years.

Our first step was to prioritise a cultural awareness program. This program ensures that when we deal with Indigenous organisations or individuals, we do so with sensitivity and respect.

We expect all staff to complete the cultural awareness program by mid 2014 and it has since been included in inductee training so new staff are exposed to the same values and understanding.

Our Welcome and Acknowledgement to Country policy is also being adopted across Community Sector Banking, ensuring public acknowledgement and respect.

We know that developing and implementing a RAP takes time, with the journey as important as the destination. Our RAP is an ongoing, evolving process. We look forward to seeing the positive impact our contribution to reconciliation has within local communities.

action on reconciliation

twenty

Nahri Indigenous dancers performing at our Reconciliation Action Plan launch

twenty-one

twenty-two

Robbie participating in an Arbias community program

Wayne Trotman Head of Finance and Risk

> Financial management and risk

> Reporting and analytics

> Legal

Greg Peel CEO and Managing Director

> Policy and governance

> Internal and external strategy

> Human resources

Joe Sheehan Head of Funding and Projects

> Lending solutions

> Capital markets

> Research and project management

Amanda Watt Head of Marketing and Communications

> Brand and partnership management

> Marketing strategy

> Internal and external communications

Ken Langston Head of Business Development

> Customer experience

> Business development

> Stakeholder liaison and education

our executive team

twenty-three

7,500+ not-for-profit customerscelebrating

Three representatives from Bendigo and Adelaide Bank and three from Community 21 govern Community Sector Banking.

David Thompson AM Chairperson

Joined in 2002. David is a founding Director of Community Sector Banking and the founding Chair of Community 21. He is currently CEO of Jobs Australia, Chair of the National Roundtable of Non-profit Organisations Limited, Chair of the Jobs Australia Foundation, Chair of COMMACT International and Director of Beyond Empathy.

Andrew Billing Director

Joined in 2013. An Australian Institute of Management and Australian Institute of Company Directors Fellow, Andrew is skilled in business diversification, strategic planning, financial management and corporate governance. Andrew has been employed by O Group since 1998, fulfilling a number of leadership roles prior to his appointment as CEO in 2004.

Lauren Bean Director

Joined in 2013. Lauren is the Acting CEO and Company Secretary of St Luke’s Anglicare, a graduate of the Australian Institute of Company Directors and has other Directorships including Community 21, Bendigo TAFE and Remembrance Parks Central Victoria.

Lauren has a keen interest in community development and the promotion of women in leadership roles.

our board

Community 21 representatives

twenty-four

from the chair

Jenny Dawson Director

Joined in 2002. Jenny is a non-Executive Director of Bendigo and Adelaide Bank. She is also Chair of the bank’s Audit Committee, Chair of Sandhurst Trustees Limited and Chair of the Regional Development Advisory Committee for the Loddon Mallee region in Victoria.

Rob Hunt AM Director

Joined in 2002. Since retiring as Managing Director of Bendigo and Adelaide Bank, Rob remains involved in various community initiatives on behalf of the bank, including Community Sector Banking and Community Telco Australia.

He is also the current Chair of Treasury Corporation Victoria.

Greg Peel CEO and Managing Director

Joined in 2002. Having held senior positions with international banks in Sydney, Brisbane, Melbourne and London, Greg has broad experience in banking and finance. For the past 16 years he has been with the Bendigo & Adelaide Bank group focussing on Community Sector Banking and social finance.

Eleri Morgan-Thomas resigned from her position as board representative effective 28 June 2013.

Bendigo and Adelaide Bank representatives

twenty-five

19,524 deposit accounts 1,918 loan accounts

total accounts

21,442

our customer accountsour customer diversity: by value

3% Childcare

2% Religious2% Philanthropic & Voluntarism

2% Individual (incl SIDA)

2% Indigenous

1% Law, Advocacy & Politics

1% Other

Professional Associations

Education & Research

Environment

23%Social Services

5%5%

6%

12%Health

14%Culture & Recreation

22%Housing &

Developments

total average funds under management

(both loans and deposits)

$749million

our not-for-profit customers

2012 6,3282013 7,476

18% increase

twenty-six

our numbersAs at 1 November 2013

Community Sector Banking generates income from the Bendigo and Adelaide Bank for deposits and loans it manages on behalf of our customers. This income is determined under a profit sharing arrangement. 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.

Includes:

Cash Management Trading Account

Capacity Building Online Account

b-packaged® & b-optimised®

Gift Fund Account

Social Investment Deposit Account

Loan facility

our thanks

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. (S46637) (12/13)

referencesNot-for-profit sector by numbers - page two

> Productivity Commission (2010), Contribution of the Not-for-Profit Sector, Research Reports, Canberra

> ABS (2009), Australian National Accounts: Non-Profit Institutions Satellite Account 2006-07, reissue 2009, Cat No 5256.0 ABS, Canberra

> National Volunteering Strategy (2011)> McGregor-Lowndes, Myles and Newton,

Cameron J (2009. An examination of tax deductible donations made by individual Australian taxpayers in 2006-07 [QUT Working Paper No 45])

> NAB Charitable Giving Index 2013

Financing social outcomes - page ten

> Barraket, Jo, Collyer, Nick, O’Connor, Matt, & Anderson, Heather (2010) Finding Australia’s social enterprise sector : final report. Social Traders, Melbourne.

Community Sector Banking could not have had such a successful 2013 without the support of a broad team of skilled professionals. We take this opportunity to thank all of our suppliers, as well as customers and organisations that supported us during the year.

Thanks also to the many business units and branches of Bendigo and Adelaide Bank that have provided assistance, guidance and support.

contact us

1300 CSBANK (1300 272 265) Monday to Friday 8.30am to 6pm AEST [email protected]

visit uscommunitysectorbanking.com.au and keep in the loop with our newsletter or drop into any Bendigo Bank branch

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