In the community. A report into the community activities of Bendigo and Adelaide Bank

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1 In the community A report into the community activities of Bendigo and Adelaide Bank

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3 Table of contents 1. Chairman and Managing Director s report 4 2. Executive summary 5 3. About Bendigo and Adelaide Bank 6 4. Our community partnerships 8 5. What is special about Community Bank Community Enterprise Foundation Community Sector Banking Homesafe Solutions Environment and sustainability Telecommunications and technology Lead On The Scholarship & Youth Development Fund PlanBig 38 Annexure A Australian Electoral Division Summary 41

4 1. Chairman and Managing Director s introduction The global financial crisis has been a challenging time for many overseas financial institutions. Australian banks have proven to be resilient during this period, in part because of early and decisive action by strong regulators and the Government. But even in Australia, many competitors have been taken over or collapsed and public debt markets were, for a time, frozen. Every Australian bank has relied on government guarantees to borrow from the wholesale markets every bank, that is, except Bendigo and Adelaide Bank and our wholly owned subsidiary, Rural Bank. Bendigo and Adelaide Bank s various business models have proven to be resilient and self-sustainable through the financial crisis. However, our future is about so much more than providing financial services to customers. Our future is beyond banking. At Bendigo and Adelaide Bank, we are committed to working with our local communities to deliver employment opportunities for local people, retain capital and provide a source of revenue for important local projects as determined by the community. If we can help create vibrant local economies, generate strong support for community business and foster strong and long-lasting partnerships, then this will be a key driver for a highly effective local and national economy. The success of this philosophy is clearly demonstrated through our Community Bank model which distributes up to 80% of a Community Bank branch s profit back into the community for local projects and programs. We recently reached an important milestone when the Community Bank network returned $50 million to support local community groups and projects across Australia and this figure is growing. What the numbers don t reflect is the additional financial and non-financial contributions that have been committed to help deliver these projects by our communities partners such as local businesses, volunteers, not-for-profit organisations, and not least of all, Local, State and Federal Government. Without these successful partnerships, many of these projects would have remained the hopes and dreams of local communities. This philosophy has been successfully implemented into other Bendigo and Adelaide Bank s initiatives, including the Community Enterprise Foundation and Community Sector Banking, both of which are a large focus of this community report. We genuinely believe that by working together in partnership with other stakeholders including Government so much more can be achieved to help build the local economies in communities throughout Australia. This report highlights Bendigo and Adelaide Bank s significant involvement in investing in the sustainability of Australian communities. Robert Johanson Chairman Mike Hirst Managing Director 4

5 2. Executive summary This report documents Bendigo and Adelaide Bank s achievements through its community engagement activities, including reinvestments of more than $50 million into Australian communities. In addition, the report highlights the significant contributions achieved in partnering with the Government and the community. Bendigo and Adelaide Bank specialises in financial services but a commitment to community engagement has resulted in earning people s confidence in our ability to deliver satisfactory community solutions. With a decline in key banking services and availability of capital, many rural and regional communities are facing difficult times. In addition, many communities find it difficult to manage the social and economic capital generated in their region. Bendigo and Adelaide Bank s Community Bank model helps communities build that capital by creating a self-generating income stream and a self-determining culture for the future. The Community Bank model provides banking infrastructure to communities that may have limited or no facilities. It also provides real and tangible social and economic benefits that no other banking models offer. This model supports many of the Government s initiatives to promote sustainable rural and regional communities. Bendigo and Adelaide Bank has successfully implemented other initiatives aimed at community sustainability. These include: Community Enterprise Foundation Bendigo and Adelaide Bank s charitable arm Community Sector Banking a banking initiative for not-for-profit organisations Environmental and sustainability programs through Community Energy Australia and Generation Green Lead On our youth development program Community Telcos PlanBig our newest community facilitation initiative These initiatives recognise that a multi-faceted approach to community engagement and support is required to ensure the needs of a community are met. While the Community Bank model empowers communities and distributes profits to local projects in most need, initiatives such as Lead On and PlanBig assist projects that will benefit all communities, regardless of location. Other Bendigo and Adelaide Bank initiatives, such as Community Sector Banking, recognise that there are many organisations that work for the good of the community and equally need the bank s support. In addition, with initiatives such as Community Telco and Generation Green, the bank aims to assist communities where impediments to growth, such as access to technology and environmental sustainability, have been recognised. These initiatives, in conjunction with the Community Bank model, provide a comprehensive package of support that is community generated, direct or indirect and of a general or targeted nature. Bendigo and Adelaide Bank is committed to continuously improving its current programs and is developing new initiatives to build better communities. We hope that in reading this report, you will be inspired to think about how the bank can enrich the lives of local people and their communities. 5

6 3. About Bendigo and Adelaide Bank Customer advocacy Customer satisfaction World class net promoter score of +37 (April 2010) highest customer advocacy of any Australian bank 1 31% open advocates of Bank 2 #1 for everyday accounts, loans and credit cards 9 Leading Australian bank in customer satisfaction Our history Bendigo and Adelaide Bank s history stems largely from amalgamations of building societies and other financial services businesses. The most notable merger in the bank s 150-year history was in 2007, when Adelaide Bank and Bendigo Bank joined to form the sixth largest Australian-owned bank. Trust #1 Australian bank 4 Our customers and their communities are the core platform of our businesses which supports our vision to be Australia s leading customer-connected bank. Brand Top 20 brand in Australia 5 Corporate responsibility #1 of Australian listed companies 6 Sustainability World s Top 10 sustainable listed companies 7 Unprompted awareness 34% nationally 2 Business customer satisfaction Leading Australian bank with 84.5% satisfation 8 1 Newfocus, April Quantum Choice, October The Leading Edge, June Interbrand 6 Australian Centre for Corporate Social Responsibility, March Roy Morgan Research, April Retail Finance Intelligence, August

7 3.2. Our businesses Bendigo and Adelaide Bank s network of businesses provide a wide range of products and services, including personal and business banking, financial planning, commercial mortgages and unsecured loans, investment products, margin lending, insurance and superannuation. Bendigo Bank delivers retail banking products and services to more than 1.4 million retail customers via a national network of more than 450 branches (including the Community Bank network and agencies). Adelaide Bank has successfully established itself as a product innovator specialising in home loans for the mortgage broker and mortgage manager market. More than 30% of all Australians source their home loan through a mortgage manager or broker. Adelaide Bank s suite of products has been specifically designed for customers in this market. Rural Bank provides specialist banking services to the farming sector. Its products are available at over 400 regional locations nationally including through Bendigo and Community Bank branches, Elders Rural services outlets and selected Ray White Rural agencies. Rural Bank is a wholly owned subsidiary of Bendigo and Adelaide Bank. Sandhurst Trustees is home to Bendigo and Adelaide Bank s wealth management products and services including managed funds, common funds, cash management accounts, superannuation and wills and estate management. Sandhurst Trustees products are distributed to customers by third party financial advisers, with selected products available to customers through Bendigo Bank branches. Leveraged Equities is a wholly owned subsidiary of Bendigo and Adelaide Bank and is a specialised margin lending business with a proud history of innovation and performance in the wealth financing market. Oxford Funding provides cash flow finance solutions that allow business customers to use their debtor ledger to finance business growth, fund new acquisitions or meet the demands of seasonal peaks in turnover without the need for bricks and mortar security. Homesafe Solutions is a joint venture between Bendigo and Adelaide Bank and Athy Pty Ltd which provides the Homesafe Debt Free Equity Release product. Homesafe Solutions assists senior homeowners to access the equity in their homes without going into debt. 7

8 4. Our community partnerships Community Bank Established 1998 Community Bank branches 269 Donations to local groups and projects $51 million Volume footings Community capital raised $18.3 billion $140 million Shareholders 66,159 Dividends paid to shareholders Community Bank branch staff 1,319 Community Bank branch directors 1,689 $17.2 million Community Bank accounts 844,349 Community Enterprise Foundation Established 2005 Community investment $30 million Community projects 2,500 Organisations and communities benefited 3,000 Community donations Community Sector Banking Established 2002 Community sector customers 4,220 Funds lent Environment and sustainability Generation Green 75,000 people $129 million Lead On Established 1999 Number of partners 1,300 People involved 8,500 Community projects completed 1,250 Standalone sites 4 Outreach partnerships 3 Community Telco Established 2000 Number of communities 30 Total customers 13,000 PlanBig Established 2010 Number of plans 709 Number of members 3,240 Homesafe Solutions Established 2005 Funds under management $220 million Key partners Athy Pty Ltd Scholarships Established 2007 Scholarships awarded 55 Students benefited 33 Ban the Bulb > Number of communities involved 54 > Community energy bill savings $43.3 million > Premises involved 17,000 > Number of bulbs exchanged 272,410 8 > Reduction in greenhouse gas emissions > Payment made to community groups 170,730 tonnes (equivalent to 40,000 cars) $575,107

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10 5. What is special about Community Bank? Community Bank at a glance: Community Bank branches Donations to local groups and projects Volume footings Community capital raised 269 $51 million $18.3 billion $140 million Shareholders 66,159 Dividends paid to shareholders Community Bank branch staff Community Bank branch directors Community Bank accounts *As at 31 December 2010 $17.2 million 1,319 1, , Providing communities with a sustainable future Bendigo and Adelaide Bank s Community Bank philosophy is what is good for the community is good for business. This philosophy continues to resonate with customers and their communities more than a decade since the first Community Bank branch was introduced. Bendigo and Adelaide Bank s Community Bank network continues to grow and remains a core part of our growth strategy for the future. Community Bank branches provide communities with more than just quality banking services they deliver employment opportunities for local people, retain local capital, are a local investment option for shareholders and provide a source of revenue for important community projects determined by the local community Building a vibrant community A Community Bank branch is formed by a locally owned and operated company as a franchise of Bendigo and Adelaide Bank. Bendigo and Adelaide Bank provides the coverage of its banking licence, a full range of banking products, staff training and ongoing support. Depositors are protected by Bendigo and Adelaide Bank s imposing track record when it comes to the security of their funds. The board of each Community Bank company is made up of local volunteers, while the staff employed to work at the Community Bank branch are members of the local community. Bendigo and Adelaide Bank and the community company are each entitled to agreed portions of the revenue of the local Community Bank branch. Profits made by the local company are available for reinvestment into the community through dividends to shareholders and grants to community groups and projects. 10

11 How does a Community Bank work? Bendigo and Adelaide Bank Banking infrastructure Balance sheet Credit Marketing Local shareholders provide start-up capital Local community elects volunteer board Local community Staff Banking relationships Business Board established local financial services company Up to 80% of profits distributed for community projects Community Bank Franchise Agreement 20% of profits distributed to shareholders as dividends 5.3. What makes Community Bank different? Before the Community Bank model was implemented communities had no say in where the profits generated from local bank branches went. This is not the case with Community Bank branches, which provide communities with an opportunity to contribute to the prosperous future of their region in addition to important local banking infrastructure. A community decides where the profits generated by their local Community Bank branch are invested for most productive use and greatest community gain Why did the model evolve? In Australia, more than 2,050 bank branches closed between 1993 and These closures represented a 29% reduction in branch numbers in seven years with many communities left without any local banking services, including ATMs. Bendigo and Adelaide Bank recognised the impact the reduction in branch numbers had on local communities and developed the Community Bank model. The Community Bank story first started in 1998 when Bendigo and Adelaide Bank partnered with the Victorian communities, Rupanyup and Minyip, to establish a banking pilot to return banking services to these towns. These Community Bank branches were a success, and since the twin branches first opened their doors more than a decade ago, more than $450,000 in profits have been returned to local community projects Success = Growth The Community Bank model was sought out by many rural communities looking for a sustainable solution to branch banking that could be quickly implemented. However, the model has proven to translate into metropolitan communities and is now one of the fastest growing banking networks in Australia. The Community Bank network has more than 269 branches with $18.3 billion in banking business. It is supported by volunteer directors, more than 66,159 local shareholders and more than 1,319 staff members. In excess of $51 million in Community Bank branch profits has been returned to community projects and $17.2 million has been paid in dividends to local shareholders. 11

12 5.6. Community Bank network returns more than $50 million The Community Bank network recently reached a significant milestone, returning $50 million to support local community groups and projects in Australia and this figure continues to grow. This figure does not reflect the additional financial and non-financial contributions made by our communities partners. These partners include local businesses, volunteers, not-for-profit organisations, and not least of all, Local, State and Federal Government. Without the commitment of our partners, important projects would have remained the hopes and dreams for many local communities. Furthermore, this milestone strengthens the importance of the Community Bank network as an alternative source of funding for local community initiatives. It is important to note that, unlike the philanthropic activities of many of our competitors, the local community decides where the profits from a Community Bank are invested, rather than the bank s corporate head office. Bendigo and Adelaide Bank is proud of what it has achieved through its Community Bank model, which is based on genuine partnership. In many cases, all levels of government have partnered with the community and Bendigo and Adelaide Bank to achieve fantastic results Partnering for the future The Community Bank concept was initially garnered from community support for face-to-face banking services. What has become evident since the first Community Bank branch opened is the additional social and economic contributions as more capital is retained locally, more commercial activity is stimulated and the confidence of local community leaders increases. Today, our 269 Community Bank branches are located across Australia and are contributing significant funding to many local government areas and state and federal electorates. The essence of the Community Bank concept is in sharing the responsibilities and rewards between the community and Bendigo and Adelaide Bank. Communities across Australia have accepted the responsibility of providing start-up capital and making their branches successful. In addition, they are increasingly reaping rewards that aren t just limited to banking. We have already seen significant benefits to our rural and regional communities when the local Community Bank branch partners with other businesses, community groups and all levels of Government to implement important community projects. However, there is still much more that can be achieved by working together, particularly with government, in a more formalised and focused way to implement long-term planning initiatives to improve outcomes for regional Australia now and in the future. 12

13 How a small bank built a big town Cummins District Community Bank Branch South Australia Cummins is a small farming community on the Eyre Peninsula in South Australia. The major industry in the district is dry land farming with some sheep and cattle. The township has approximately 700 residents with another 1,500 in the surrounding districts. When the last bank in the town closed down 11 years ago, residents were forced to travel 70 kilometres to Port Lincoln to undertake their banking business. It was then that the Cummins community rallied together to partner with Bendigo and Adelaide Bank to form their own Community Bank branch. The Community Bank restored a sense of optimism in the community, providing a vision of hope and prosperity. In addition, it gave the community of Cummins a welcome source of capital to fund new ventures. Cummins District Community Bank branch has contributed more than $1.2 million to community projects within the district, including smaller community hubs such as Karkoo and Kapinnie. The hamlet of Kapinnie is 30 kilometres from Cummins with approximately 50 families residing in the area. The community hall and recreation ground has been a hub for the local community. The community hall and recreation grounds are on donated land and the facilities are maintained voluntarily by the community. The town decided it needed to resurface the netball/tennis courts by replacing existing fencing and shelter and upgrading the toilet facilities to include access for the disabled. The total cost of this project was estimated at $207,000. The Cummins District Community Bank (through the Community Enterprise Foundation ) provided seed funding of $30,000 to enable the dream of the Kapinnie community to become a reality. This core funding has been partnered with funds from State and Local Government (Community Benefit SA contributed $25,000 and Lower Eyre Peninsula District Council $9,000), local donations and fundraising to the tune of $22,500 and the Foundation for Rural Regional Renewal which contributed $5,000. In-kind labour has been valued at $7,500 to date. The community still has some work to do, but without their Community Bank branch it is unlikely the project would have commenced. In addition to supporting Kapinnie, the Cummins District Community Bank played a pivotal role in restoring access to medical facilities for the community. Within the township of Cummins, housing for Locum GPs and Registrars was desperately required in order to maintain a local medical service at the hospital and medical clinic. Existing accommodation was below standard and there was constant need for back-up support for the resident GP. The Community Bank, in partnership with the Federal Department of Health and Ageing, upgraded the accommodation to ensure the community has continued access to a local GP. The Community Bank branch provided a total of $100,000 towards this project and assisted the community in securing Federal Government funding of $100,000. This project has given the community the opportunity to provide adequate accommodation that will help attract quality Locums and Registrars to the town. It is also a prime example of how the Community Bank branch has partnered with the Federal Government to deliver essential services to regional communities. 13

14 How hope built a $9.5 million sporting complex Diamond Creek, Eltham, Hurstbridge & Districts Community Bank Branches - Victoria In Diamond Creek, local sporting clubs and residents recognised the need for an indoor, multi-purpose sporting facility to support sports and other activities in the region. Together with members of the Diamond Creek, Eltham and Hurstbridge & Districts Community Bank branches, a committee was formed to raise funds to commence this project. It was estimated that the project would cost approximately $10.5 million and therefore, gaining the support of the local Shire Council, State Government and/or Federal Government was crucial. The community was finding it difficult to raise the funds and to get the project started. The Diamond Creek, Eltham and Hurstbridge & Districts Community Bank branches were looking to invest in a large project that would benefit a broad range of people and retain local capital within their community and committed $1 million to this project. The local Shire Council, the State Government of Victoria and Federal Government committed the remaining $9.5 million and also the land that the sporting facility was to be built on. This great collaboration between the community, their Community Bank branches and all levels of Government has now produced the Community Bank Stadium which will service more than 6,000 people per week. The facility will provide sporting facilities for two school communities, multiple basketball and netball teams, facilities for gymnastic clubs and amateur theatre groups as well as meeting rooms that can be used for other groups, such as the Senior Citizens Club. This is a great example of how a community can partner with their Community Bank branches and various levels of Government to take control of its own destiny while maintaining control over local funds for the benefit of their region. Community Bank plays Doctors and Nurses Mount Barker Community Bank Branch - Western Australia The Mount Barker area in Western Australia was in dire need of a new local medical facility, with the closest alternative facilities located more than 50 kilometres away. Mount Barker Community Bank branch helped coordinate a project to establish a local medical centre and has provided funding for the project through a $200,000 interest free loan. Without access to new medical facilities, the community faced the prospect of losing its existing medical practitioners due to the seriously out-dated and undersized premises. In addition, the 5,000-strong community has raised more than $773,000 in capital from their local Shire and $620,000 in State and Federal Government grants to make the centre a reality. Their aim is to provide a space for local doctors, nurses, and specialists. Stories like this one, from communities where Community Bank branches operate, show what can be achieved and are a powerful incentive for community members to bank locally. The great thing about the Community Bank model is that the community is in control, says David Boromeo, Bendigo and Adelaide Bank s WA State Manager. They use the profits from their banking services to develop and grow their community. There are now 40 Community Bank branches in West Australia that have returned $5.4 million to their communities and $2.8 million in dividends to shareholders. This represents a massive injection of cash into their local economy. The Mount Barker example demonstrates the role our Community Bank branches can play in generating or retaining essential services in the communities in which they operate. 14

15 Protecting a community from natural disasters Turramurra Community Bank Branch - New South Wales Ku-ring-gai, including Turramurra, is in a bushfire-prone area, bound on three sides by national parks. It s also had its share of natural disasters from other causes such as storms which are aggravated by it being one of the highest places in Sydney, and with the highest level of rainfall. The facilities for both the local State Emergency Service and Bush Fire Brigade are considered sub-standard due to their age, and needed to be rebuilt and refitted. The cost of rebuilding a modern facility for both organisations was in the order of $2 million. Much of this funding has been made available by the State Government, Ku-ring-gai Council, the SES and the NSW Rural Fire Service, but money to fit-out both buildings is now required. The amount of money required for the fit-out is $218,000 and it is the community intends to raise these funds in the local area. Turramurra Community Bank branch is assisting in this process by launching a fundraising appeal in conjunction with Community Enterprise Foundation. Turramurra Community Bank branch will also match funds raised on a dollar-for-dollar basis up to a total of $100,000. Andrew Betty, the Local Controller from Ku-ring-gai SES, said his entire team are looking forward to moving into their new headquarters, leaving behind the old tip site where they are currently housed. The building will be state-of-the-art and designed as a fully functioning headquarters, meaning that everything the SES needs will be in one place, he said. It will enable us to better respond to the needs of the community and serve them as best as possible in the future. Mark Unsworth from the Ku-ring-gai Bush Fire Brigade said the brigade had been planning for a new building for many years, one that includes meeting rooms and a training room large enough for their entire team. The new headquarters will include a training room fitted out with all modern facilities and training aids, which will mean all training is as productive as possible, Mark said. We are thrilled to have the support of Turramurra Community Bank Branch to make this a reality and are looking forward to our first training session in the new facility. 15

16 6. Community Enterprise Foundation : generosity begins at home While our Community Bank model provides local communities with necessary financial services and support for community projects, Bendigo and Adelaide Bank also recognises that for some projects locally generated funding is simply not enough. Bendigo and Adelaide Bank s philanthropic arm, the Community Enterprise Foundation (the Foundation), was established to widen a community s access to funds by providing access to a best practice fundraising and gifting vehicle for all communities to use. Community Enterprise Foundation at a glance: Established 2005 Community investment Community projects Organiseations & communities benefited Community donations *As at 31 December 2010 $30 million 2,500 3,000 75,000 people The Foundation works by matching funds from corporate contributors (like Community Bank companies), individual donors (including Government) and benefactors with community-driven projects and programs for families, youth, health, education, the environment, the arts and more. Again, this funding leads to building stronger communities. The Foundation facilitates this objective by providing expertise in grant-making to those wishing to return funds to community projects and programs. It also provides access to a fully administered, tax-effective fundraising vehicle through Bendigo and Adelaide Bank s distribution network and electronic payment systems. In this way, the Foundation has been developed to ensure that giving is made more accessible to all Australians in a way that is locally relevant and responsive as a result of the Foundation s donor advised structure. Administered by the Bendigo and Adelaide Bank s own trustee company, the bank subsidises the overall cost of providing the Foundation. This provides all communities with access to a well-administered, comprehensive and flexible governance structure to manage their own local philanthropy and gifting activities. Further, the Foundation s donor-advised structure ensures that local knowledge, planning and prioritisation play a key role in the mobilisation of goodwill and investment of philanthropic funds in projects and programs that are most important to individual communities. 16

17 6.1. Why are we better together? The Foundation believes that together, ordinary people can make real and visible changes in the places that matter to them most their local communities. From helping a town recover from bushfire devastation and natural disasters to providing increased health outcomes for young people, the Foundation can assist communities to overcome overwhelming obstacles. Communities facing major economic difficulties or recovering from natural disasters often don t have the required capital to undertake necessary reconstruction work. Through the Foundation, communities have access to a wider pool of funding to undertake the necessary projects to get their communities back on their feet How do we make it happen? The Foundation aims to bring together local people who care about their community. Bendigo and Adelaide Bank s national network of branches allows the Foundation quick access to communities to deliver help fast and right where it s needed. Any community, group or individual can apply to set up a named management account. Donations may be invested to grow over time, creating a gift that keeps on giving, or may go directly to projects that are active now. A community knows best where funds are needed. A community can appoint an advisory committee to let the Trustee, who has the ultimate responsibility for deciding where donations are made, know this important information. The Foundation s expertise combined with a community s local knowledge is a match for any challenge. The Foundation believes that our expertise in giving, in funds and risk management and our access and understanding of local community needs, combined with a community s local knowledge, can conquer the most difficult community challenges. Foundation achievements Established in 2005, today the Foundation has helped communities to invest more than $30 million back into essential charitable projects and programs in their own backyard. In the Community Enterprise Foundation raised donations and contributions of $9 million nationally. It distributed over $7 million to over 600 community groups and organisations for projects around the country. These contributions were made through nearly 90 separate grants programs. 17

18 The Upper Murray/Tooma Bushfire Appeal is a management account of Community Enterprise Foundation ABN , The Bendigo Centre, PO Box 480, Bendigo, Vic (S27212) (12/09) Turning a black day into a new dawn Partnering with Government, business and the community - Victorian Black Saturday bushfires On February 7, 2009 the Black Saturday fires in Victoria destroyed 40% of the Murrindindi Shire. One of the most heavily affected communities in the Shire was Marysville. By mobilising the donor-advised structure of the Foundation, Bendigo and Adelaide Bank was able to provide access to a gifting vehicle that allowed donors to indicate their preference for a community or cause they wished to support. $450,000 was raised to support Marysville, and with the participation and guidance of Dandenong Ranges Community Bank Group Directors, Peter Marke and Tony Thompson, these donations were used to leverage further funds from the Government and philanthropic supporters to reconstruct the town s centrepiece the Marysville Community Centre. With the help of Victorian Bushfire Recovery and Reconstruction Authority and the financial support of Bluescope Steel, Coca-Cola Australia and both State and Federal Governments, $7,000,000 was secured for this devastated community to build a new community health centre, rooms for doctors, a multi-purpose meeting space, a community group office and indoor recreation centre. More than 35,000 individuals, businesses, community groups and government departments contributed over $8,500,000 to the Foundation s Black Saturday Bushfire Appeals. Overall, 33 communities were impacted by the fires across Victoria and all had some level of community relationship with the Bendigo and Adelaide Bank Group. While all donors were given an opportunity to indicate a preference towards a community or cause, a majority of them gave without indicating any specific criteria for their goodwill. With these funds, the Foundation sought to partner with a wide range of philanthropic and funding organisations to leverage the overall funding available for reconstruction and disaster prevention projects. This included the establishment of the matched-funded $4,000,000 Bushfire Recovery Community Infrastructure Program in partnership with Regional Development Victoria. With $2,000,000 each from the Foundation and the Victorian State Government, this program provided up to $300,000 in funding for fire-affected community infrastructure projects in all 33 communities affected by Black Saturday. In a first of its kind, philanthropic/government partnership funding was provided to a wide range of community infrastructure projects including: Community halls and recreation facilities Signage and community beautification programs Replacement of tourist railway infrastructure destroyed by fire Donate here Improvements to fire fighting equipment in community facilities Construction, reconstruction and fit-out of Men s Sheds Reconstruction of walking trails and other natural tourist attractions Improvements to community kitchens and catering facilities to support future disaster relief Through the Foundation s work, communities devastated by Black Saturday were connected with a wide range of philanthropic givers, including government, business and individuals. The Foundation not only provided an attractive structure for such giving, it also acted as a major rallying point for the reconstruction appeal. Bushfire Appeal Upper Murray/Tooma Show your support today by donating at this branch or online at Community Enterprise Foundation 18

19 The Queensland Flood Appeal is a management account of Community Enterprise Foundation ABN , The Bendigo Centre, PO Box 480, Bendigo, VIC, (S32736) (01/11) Rebuilding communities Flooding relief While 2009 was a tough year for Victorians who confronted the Black Saturday bushfires, much of Queensland experienced catastrophic flooding, not only in 2009 but again in Given the national presence of Bendigo and Adelaide Bank and its wide range of community partnerships, the Foundation launched appeals for both the 2009 and 2011 floods to support those flood-affected communities in Queensland. Funds raised will be distributed to assist charitable organisations working with communities throughout affected areas with relief, recovery and reconstruction where required. In 2009, funds raised provided support for flood-related cleaning, community infrastructure repairs, the purchase of new rescue equipment for the SES and many other community projects. Donate at any Bendigo Bank branch or online Again, the Foundation was quick to act to support the affected communities, and was able to rally many worthy donors from all sectors of our society. Queensland Flood Appeal Show your support today by donating at any Bendigo Bank branch or online at Community Enterprise Foundation Supporting more than just disasters However, the Foundation is not all about disaster relief. The fundraising capacity of the Foundation as a gifting vehicle available to all communities can play a role in mobilising any level of goodwill within a community and turning it into tangible outcomes for those in need. In Ringwood East, the local community rallied to raise funds for a local autistic girl in need of an assistance dog. The community appreciated the impact a dog would have on her life, giving her a greater level of independence, self esteem and an overall improvement in psychological well-being and quality of life. Each dog costs approximately $29,000 to rear and train over a two-year period. By working with the local Ringwood East Community Bank Branch and using the Foundation, the local community raised $30,000 to secure and train a dog to support the young girl and make modifications to the family home to improve her safety. The community worked with the Royal Guide Dogs Association of Australia who provided the assistance dog. In the process, it was discovered that the Royal Guide Dog Association did not currently have funding support for their assistance dog program. As a consequence, the Ringwood East community has decided to continue its overall appeal with a view to becoming the largest annual funder of the Royal Guide Dogs Assistance Dog program each year. In a similar way, many communities are now using the Foundation as a means of making local goodwill towards community projects more tangible. This is being particularly done with a view to leverage funding opportunities. 19

20 7. Community Sector Banking: helping not-for-profit organisations While supporting our communities directly through Community Bank branches and the Community Enterprise Foundation is an essential part of Bendigo and Adelaide Bank s community activities, the bank has also recognised that other community organisations derserve support in this endeavour. Community sector, not-for-profit organisations have very specific banking needs needs which are mainly unmet by the financial services sector. The bank saw that by developing a specific banking arm, Community Sector Banking, with products and services tailored to the community sector s needs, it could assist in the delivery of assistance to communities well beyond the reach of our Community Bank network. Community Sector Banking was established in 2002 as a joint venture between Bendigo and Adelaide Bank and a consortium of 20 not-for-profit organisations, calling themselves Community 21. Community Sector Banking at a glance: Established 2002 Community sector customers Funds lent Key partners 4,220 $129 million Oxfam Australia, Anglicare Tasmania, OzChild, Youth Accommodation Association, Foresters Community Finance, Jobs Australia, National Council of Social Services (NCOSS), Australian Council of Social Services (ACOSS), SkillCentred Queensland, Able Australia, O Group, Scope, NSW Federation of Housing Association Inc, Access Community Group, Enterprise Training Centre (ETC), Orana Education Centre (OEC), New Train, Charities Aid Foundation, Brotherhood of St Laurence, St Luke s Anglicare The Community Sector Banking initiative remains the first and only banking service in Australia solely dedicated to the community sector. The success of the business rests on its high level of specialist expertise and deep understanding of the not-for-profit sector. Its key focus is on enhancing the capacity of the community sector to deliver genuine social impact. Community Sector Banking has over 4,220 customers nationally and has lent over $129 million to the not-for-profit sector. Community Sector Banking s customers range from: Smaller local community organisations such as sporting and cultural clubs. Medium sized not-for-profits such as childcare and aged care entities. Large not-for-profit national organisations including ACOSS, Jobs Australia and St Vincents de Paul. Bendigo and Adelaide Bank is extremely proud of what it has achieved in partnership with Community 21. The initiative again demonstrates that by partnering with the community you can achieve much higher standards of success than if you were to attempt to approach this on your own. * As at 21 February 2011 Community Sector Banking provides day-to-day banking services, with the assistance of Bendigo and Adelaide Bank branches, to not-for-profit and community sector organisations. Bendigo and Adelaide Bank s community based approach to banking remains an important source of direct and indirect support for Community Sector Banking s services. Most importantly, in addition to providing a tailored banking service, Community Sector Banking is committed to its broader objective of developing and delivering initiatives that generate positive social impact and contribute to the social development of Australia. 20

21 Bistro with a view Agnes Water s Surf Lifesaving Club Agnes Water is a small community located 70 kilometres north of Bundaberg in Queensland. The town has a small shopping area, tavern, motel and a few caravan parks. In recent years, there has been more development in the area as holiday makers discover this precious part of Australia. Agnes Water Surf Club was established in 1989 and moved to its present location in With no café or restaurant on the beach, the club saw an opportunity to create a community hub where families could gather for a meal a bistro with an exceptional view. In turn, the facility would provide the club with a welcome source of revenue, which could be used to support the club s core activities ensuring the safety of all those who enjoy the Agnes Water beaches. In 2009, the club faced a problem. It was ready to build a new restaurant but as a not-for-profit organisation, was having trouble securing funding. That s where Community Sector Banking (CSB) came in. Understanding the concept Realising the importance of the income stream that the new restaurant would generate for the club, Agnes Water tried regular funding avenues, approaching several banks for finance with no success. Their local bank, the Agnes Water 1770 Community Bank Branch, then suggested getting in touch with CSB. CSB helped every step of the way, says Kim McArley, the club s Treasurer. Right from the start, they went out of their way to help. Community Sector Banking structured a loan for the club and was instrumental in helping it secure a Federal Grant once they had the loan in place. Agnes Water first spoke to CSB in July 2009 and in April 2010, the new restaurant and second level was built. The project took 12 months to complete from financing to development. Support for the community With the entire Agnes Water community behind the project and the local Community Bank branch, it was only natural that CSB became involved and worked together with the local township on the project. Today, CSB s support and relationship continues, with regular calls and visits to the new site to check on its progress. In addition, the local Community Bank branch supplied a vehicle to help Agnes Water transport equipment to and from the beach during patrol. 21

22 A great service in need of a great service Alcheringa Hostel Alcheringa Hostel provides quality aged care in Swan Hill in northwest Victoria. The not-for-profit organisation governed by a community board is a safe, secure environment where residents are given dignity and respect. As an integral part of the close-knit community, the operators wanted to build a brand new, 75-bed facility which would also cater for dementia patients. Funding was the problem. Talks with a major bank were frustrating and going nowhere. Then, Alcheringa heard about Community Sector Banking. The idea of dealing with a specialist service for not-for-profits was instantly appealing. In banking, relationships are critical, says Tony McLynskey, Senior Manager, CSB. After making contact through CSB s Bendigo office, the Alcheringa CEO and Chairman had a series of personal meetings with Tony McLynskey. Mr McLynskey says he immediately realised the Alcheringa team were just good quality people and that he believed in the project. We took time out to understand who they were and what they were doing. The loan was approved and helped Alcheringa get the project back on track. A bright future Alcheringa couldn t be happier. The new hostel is now built and the team is so highly respected that it s taken over management of two other facilities in regional Victoria at the request of the State Government. It is also well advanced in planning a new independent living estate adjacent to its Swan Hill hostel again with the help of funds through CSB. The Chairman of Alcheringa, Arthur Graham, says the personal relationships were what set CSB apart. We actually got to meet them ourselves. They were good to deal with and trusted us, he said. This is what distinguishes Community Sector Banking - a real relationship with real people who can make things happen quickly. This allows CSB s not-for-profit customers to do what they do best providing essential services for the community. 22

23 Meeting an urgent community need The Range Children s Centre Places at The Range Children s Centre, like most community childcare centres, are in huge demand. With more than 200 children on the waiting list, the parent-run Management Committee realised the centre needed to expand. The centre decided to add another room, and offer an extra 11 places of high quality care to the community. The problem was funding. The local council owns the building, not the centre. The council was happy to contribute, but wouldn t sign off on the deal until The Range secured its own share. Other banks wanted the building as security, which didn t work when the council owned the building. Other banks also expected committee members to guarantee the loan, not recognising the members were volunteers. The Range already used Community Sector Banking for its daily banking needs and so approached them for help with the loan. It s just about better understanding The Range management team met Chris Weston and Tony McLynskey from CSB to talk through the project. They understood the situation that the centre didn t own the building, and was governed by volunteers. They knew the project was not only financially sound but good for the community. After looking carefully into the centre s financials, CSB offered finance in two sections a loan, and an overdraft. It all went smoothly and was pretty straightforward, said Jason Faranda, Treasurer, The Range Children s Centre. Chris Weston says it s just about knowing how not-for-profits work. We understand their business, their cash flow and the cycle of when they actually receive funds. It just helps to drill down a little bit more and understand the complexities of the business, he said. More childcare places The loan approval led to the final go-ahead from council, and construction is now underway on the extension. The extra places offered in the new room have already been filled. A project rejected by other banks was embraced by Community Sector Banking, and will help relieve the critical shortage of quality childcare places in Melbourne s inner south-west. And that s what sets Community Sector Banking apart. Real people working with customers to find real solutions. We know one size does not fit all, and we find ways to say yes which means our not-for-profit customers can focus on providing the best possible service to the community. 23

24 8. Homesafe Solutions: unlocking hidden wealth for Australia s aging population Homesafe Solutions at a glance: Established 2005 Funds under management Key partners * As at 30 September 2011 $220 million Athy Pty Ltd Many thousands of older Australian homeowners find themselves in the unenviable position of having to watch every dollar they spend from day to day, while most of their money remains locked up in their single, biggest asset: their home. Many of these Australians are either forced to sell or move out of their home just to access their equity. Alternatively, they may be forced to rely on Government assistance, placing a big strain on the economy. Bendigo and Adelaide Bank is committed to addressing this problem which is only going to rapidly grow in the future as Australia s population ages. Together with its partner Athy Pty Ltd (Athy), it has developed an innovative product which has the potential to positively change the social welfare of many older Australians. The revolutionary product is the Homesafe Solutions Homesafe Debt Free Equity Release product, which allows senior homeowners access to the equity in their home without downsizing or going into debt. Currently it is only available in Sydney and Melbourne, however, there are plans to extend it nation wide. The Homesafe Debt Free Equity Release product enables senior Australians to supplement their retirement savings by selling part of the future sale proceeds of their home. This provides the customer with an opportunity to remain in their home and community for longer. The Homesafe Debt Free Equity Release product is not a loan or reverse mortgage. There are no repayments required by the customer while they live in their home and the customer can reside in their home for the rest of their lives, rent free. The Homesafe Solutions joint venture (between the Bendigo and Adelaide Bank and Athy) is a community-minded approach which highlights the commitment to use the bank s capital, people and skills to meet social challenges. The future social and welfare impact on older Australians is not just a concern for the bank. There is currently a recommendation from the Productivity Commission regarding Equity Release products in its draft report into Caring for Older Australians. The Commission has recommended Government support the equity release market. Whilst the Government provides support to retirees through the aged pension and other public services, equity release can play an important complementary role in enhancing the wellbeing of older Australians promoting independence, connectedness and choice. 24

25 Enjoying the twilight years Matthew and his wife Pamela have taken advantage of the Homesafe Debt Free Equity Release product which is designed to enable them to access the equity in their home without going back into debt. Homesafe valued their home at $420,000. They needed $130,000 to pay off the mortgage, do some renovations and retire in comfort. Taking the couple s age and property value into account, Homesafe purchased 60% of the future sale proceeds of their home. Given a number of the unique features of Homesafe, when Matthew and Pamela s home is eventually sold Homesafe s share of 60% may be reduced if they sell earlier than expected or if the sale proceeds of their home are greater than expected. That worked out well because it actually paid for the balance of the mortgage and some renovations. Since we ve got Homesafe we don t have to worry about the interest rates going up down or wherever they go from now on. Unlike a reverse mortgage, Matthew and Pamela have the certainty of knowing that whatever happens to interest rates or the value of their home, they will always be entitled to at least 40% of the sale proceeds of their home. 25

26 9. Environment and sustainability: more than just a buzz word Bendigo and Adelaide Bank has come to recognise the importance of environmental sustainability through its work in assisting its community partners. Simply put, without a sustainable environment, the overall future of the communities which the bank partners is under threat. The bank recognises it can provide assistance to its stakeholders so they can contribute more to environmental or social sustainability. The bank s approach to environmental sustainability has been to work with our partners to help them reduce their environmental impact while minimising local capital drain and generating additional income streams through initiatives that improve their prospects for a sustainable future. It is evident that increased environmental awareness and sustainability is vital to long-term community wellbeing. Together we need to find more sustainable ways to produce, consume and live. In light of these challenges, Bendigo and Adelaide Bank has introduced a raft of initiatives to help customers reduce their impact on the environment and improve the overall sustainability of their communities. These include: Generation Green provides consumers and communities with practical solutions that support a cleaner, greener and more sustainable future. Its solutions range from products and services through to community engagement and education campaigns. Bendigo Bank Green Loans help consumers reduce their impact on the environment by offering a reduced rate for environmentally friendly cars, homes and renovation. Community Energy Australia, a wholly owned subsidiary of the bank, works with communities to help them take control of fuel sourcing, use and distribution in a sustainable way. Generation Green Project objectives 1. To increase the uptake of renewables and energy efficiency activities among the bank s customers and community partners. 2. To reduce our customers exposure to increasing energy costs. 3. To increase customer and community awareness and desire to reduce greenhouse gas emissions. 4. To reduce greenhouse emissions. 26

27 8.1. Generation Green In 2006, the opportunity to partner with ES Link Services 7, an independent environment and sustainability consulting company, and the Victorian Sustainability Fund 8, managed by Sustainability Victoria, provided the catalyst for the expansion of activities in the environmental and sustainability space through Generation Green. A key outcome of the Generation Green program to date has been the development of a unique community and government engagement model that provides opportunities for communities to work together to combat climate change. One of the Generation Green programs that applied this model with significant success was the light bulb exchange program, Ban the Bulb 9. Ban the Bulb has achieved success in raising awareness about energy efficiency, reducing individual energy costs and greenhouse gas emissions. The Generation Green program has been influenced by a number of factors including geographic location, community demographics and available partnerships, and cater for the needs of both urban and regional customers and communities. Future programs will develop the community engagement model and will continue to focus on engaging key partners that help Bendigo and Adelaide Bank deliver solutions to its stakeholders and members of the communities in which it operates Project partners A key focus of Generation Green program was the development of strategic partnerships that would enable Bendigo and Adelaide Bank to deliver solutions to its customers and community partners efficiently and effectively. Following is a list of past and current Bendigo and Adelaide Bank partners that have been involved in the implementation of Generation Green activities: Natural Strategies Group ES Link Services Community Groups such as local CFA brigades, SES units, sporting clubs, and community service clubs such as Lions, Rotary, APEX and Men s Shed Community Bank network Victorian Employers Chamber of Commerce & Industry Greenhouse Balanced Low Energy Supplies and Services My Home My Climate AGL Energy Climate Coolers Easy Being Green Local Government Authorities Each of these partners provide important environmental and sustainability services, or access to key memberships where the uptake of such initiatives are vitally important to securing an environmentally sustainable future. Ban the Bulb at a glance: Number of communities involved Community energy bill savings Premises involved Number of bulbs exchanged Reduction in greenhouse gas emissions Payment made to community groups 54 *As at 31 December 2010 $43.3 million 17, , ,730 tonnes (equivalent to 40,000 cars) $575, www/ html/2418-about-the-sustainability-fund.asp 9 See Community Snapshot page 28 27

28 Seeing the light Generation Green Ban the Bulb The Generation Green Ban the Bulb program engages community-based volunteers, including the Country Fire Authority (CFA), State Emergency Service (SES), sporting clubs and service clubs to replace incandescent light bulbs free of charge in Victorian properties. Local community organisations are paid an installation fee for every bulb they exchange, which assists them with their local fundraising activities. Partnership is integral to the successful implementation of the Generation Green Ban the Bulb model. Partners are required at a local level (local Bendigo Bank branches, volunteer community groups and Local Government) and create and purchase carbon offsets from the abatement activity. During the Ban the Bulb programs, carbon offsets created through the reduction in energy consumed by the new energy-efficient light bulbs were accredited under a combination of the Federal Government s Greenhouse Friendly legislation and the Victorian Government s Victorian Energy Efficiency Target. Project partners varied as required from community to community. Operational partners included Easy Being Green, My Home My Climate and Low Energy Supplies & Services. The program was enormously successful, with over 60 communities across Victoria implementing it. The programs achieved significant outcomes for their local communities and for the environment. Together the over 60 communities exchanged 272,410 incandescent bulbs for new energy-efficient alternatives in approximately 17,000 homes and businesses. The community groups received a total of $575,107 as payment for their volunteers completing the bulb exchanges - money that is being used to support projects and programs in their local communities. The reduction in energy consumption over the life of the 272,410 new energy-efficient bulbs is equivalent to approximately 170,730 tonnes of greenhouse gas emissions. This is equivalent to taking over 40,000 cars off the road for a whole year. Bendigo and Adelaide Bank partner, Low Energy Supplies & Services, estimates that householders will save approximately $170 per annum off their energy bill as a result of the bulb exchange. This means that the 17,000 households and businesses that participated in the Ban the Bulb programs are likely to save $2,550 each and a combined $43,350,000 over the 15-year life of the new energy-efficient bulbs. 28

29 Motoring along Community Energy Australia s biodiesel fuel initiatives A wholly owned subsidiary of the Bendigo and Adelaide Bank, Community Energy Australia applies the proven Community Bank principles to pool community demand for biofuel, thus improving buying and negotiating power. The model also generates income for communities which can be invested into local development. The North Central Victorian Community Fuel Project illustrates the way it works. The project was prompted by farmers who wanted to establish a bio-diesel plant in the region. This would allow them to grow and process oil seed locally, giving them greater control over their fuel supplies. Regionally based transport companies and councils were also interested. The community approached Bendigo and Adelaide Bank to see if it could help. Community Energy Australia applied the Community Bank development process and started collecting supportive pledges from the community while setting up a pilot project to test demand. Locals went off and found customers who were willing to test out a new arrangement. The bank found a fuel supplier and a truck and literally went out delivering fuel. That service is dedicated to the project s customers so they now have a more secure fuel supply. The project evolved into a staged process. The community has taken control of the distribution of liquid fuels for farmers and commercial users, while it builds its own storage facility. From here, the community is considering whether it will work up to a locally owned bio-diesel plant. Meanwhile, the bank provides credit facilities and negotiates with suppliers on behalf of the community project. The community has already become more fuel self-reliant and the project is generating income that is being reinvested into local development. 29

30 10. Telecommunications and technology: the Community Bank model is not just about banking Technology is an enabler. Access to technology solutions and cost-efficient and effective telecommunications is essential for the growth and development of all our communities. With many of the products and services produced in our communities being sold and delivered in wider markets, and indeed the necessary services being used by communities coming from outside, telecommunications and technology are becoming even more important to them, especially those in remote locations. Issues such as current supplier business plans, national agendas overriding local requirements, remoteness, scale of business and the sophistication level of existing technology infrastructure all impact on the ability of many non-metropolitan (and metropolitan) communities to access cost-effective technology. In recognition of this fact, Bendigo and Adelaide Bank established a communityfocused telecommunications initiative, Community Telco, in early 2000 with a pilot programme established in Bendigo and surrounding districts. Community Telco is designed to minimise the capital drain communities face from the purchase of essential services such as telecommunications and to enable them to participate in their local telecommunications strategic agenda. Community Telco Australia is owned in equal shares by Bendigo and Adelaide Bank and telecommunications provider, AAPT. There are currently five Community Telco businesses operating in approximately 30 communities across four states. Community Telco at a glance: Established 2000 Number of communities 30 Total customers *As at 30 September ,000 (approx.) Like the Community Bank model, a community aggregates its local telecommunications demand, enabling them to have some influence in the infrastructure investment decisions of suppliers by committing their expenditure and/or capital to support the provision of services and infrastructure. The aggregated buying power of the Community Telco group enables local communities to access competitively priced telecommunications technology, the best available telecommunications solutions, and to improve their future prospects. By keeping profits in local communities, capital that would otherwise be lost to the region can be reinvested locally, creating new jobs and opportunities. The key to the success of the model is a community s desire to make a change and the commitment to see it through. Community Telco Australia aims to address these issues by providing the community an opportunity to generate its own income streams to fund community outcomes. These successful regional businesses also generate employment and contribute to a thriving local economy, which makes that region an even more attractive investment destination. The Community Telco group has the full support and backing of Community Telco Australia and Bendigo and Adelaide Bank, providing processes, systems, and significant buying power to benefit our own local businesses and communities. 30

31 10.1. What are the community benefits? To identify and document the impact a Community Telco company has on the region in which it operates, a study of Bendigo Community Telco s economic and social contribution to the Bendigo region was undertaken. This Bendigo-specific example demonstrates that, with a locally owned and influenced telecommunications company that s committed to improving infrastructure and services, regional businesses now have the potential to compete on equal footing with their metropolitan counterparts. The benefits identified in this study include the following 11 : An increase in economic development, particularly industry development. Greater prosperity for the entire region. Diversified employment opportunities. Creation of new jobs, particularly high-value jobs in information technology and telecommunications industries. A diversified economic base beyond traditional resource and commodity sectors. Enhanced educational programs, particularly in distance education. Reduced brain drain to major cities. Improved health care and social programs delivery. Significant efficiencies achieved by government. Business productivity improvement. Opportunities to competitively access markets outside the region. 11 (Source: Economic Impact Analysis (2007) undertaken by Bendigo-based research company Compelling Economics.) Hitting service for a six Tasmanian Cricket Association Historically, the Tasmanian Cricket Association (TCA) accessed their telephony via the Clarence City Council s infrastructure. It was becoming increasingly apparent to the TCA that this solution was no longer suitable to its changing needs. The TCA needed to be able to quickly upgrade its services by adding and changing lines, particularly on game days when additional lines and services were required for the media and other participants at short notice. The existing system necessitated a technician call-out to provision new lines for the media centres well in advance of game day, a time-consuming and costly exercise. An effective way to contact senior administrators, wherever they were on the ground, was also a key requirement when considering any new system. Understanding the right solution TCA contacted its Tasmanian-based Community Telco, Tastel, to assist in finding a solution. For Tastel Community Telco, the key to finding the right solution was to understand TCA s clients. This is one of the key attributes of Community Telco the desire and ability to know the way its customers work and what they need to achieve as a business. In the case of TCA, it included undertaking a comprehensive audit of its existing communications setup. Once Tastel had identified TCA s unique requirements, they began to develop an appropriate solution. In conjunction with Tastel s business partner Samsung Communications, they worked closely with TCA s management team to develop an IP telephony solution that delivered the required flexibility and capability to meet both current and future needs. Improving media connectivity with the new system has enabled the administration to immediately connect media broadcasters without having to order lines from third parties. The time and cost saved has been significant, along with the benefit of being able to bill individual broadcasters for actual usage. Tastel Community Telco has assisted TCA to develop a communications platform that not only resulted in savings on our communications outgoings, but also enabled our workforce to operate more productively. 31

32 Improving efficiency and cost savings McKern Steel McKern Steel manufactures and supplies steel products for new homes to the building industry. The regionally based firm has two sites around 125 kilometres apart and predominately services the metropolitan Melbourne market. The need for regular and efficient communication and data-sharing between the two sites is critical for the day to day success of the business, with clients expecting consistency, accuracy and responsiveness. McKern Steel required an internal communication system that could provide seamless, efficient and economical communication between its two sites. Understanding the right solution After obtaining a detailed understanding of McKern Steel s business relationships and daily operations, Bendigo Community Telco worked closely with the firm to develop a custom-built Private Internet Protocol Network (PIPN). Bendigo Community Telco s skilled team of technicians established this unique and innovative telecommunications solution and takes care of ongoing maintenance, allowing McKern Steel to concentrate on its day-to-day business while benefitting from the improved system. What were the benefits? Increased cost-effectiveness McKern Steel will reap the long-term benefits of the system as calls between the two sites are free of cost. Further, the majority of outbound calls from the head office will be at reduced rates due to long-distance calls now being charged as local calls. Higher speed of information exchange also means that the staff can go about their work more efficiently. Increased internal efficiencies communication via and phone is faster and simpler for staff within and between the two sites. Improved customer service incoming calls to one office can be simply transferred to the other at the press of a button, removing the need to ask the customer to call the other office. Clearer and more efficient communication between internal staff also translates to more accurate and efficient output. We couldn t be happier with Bendigo Community Telco s approach to helping with our needs, and the PIPN solution they have provided. It benefits our business in several ways, through improved customer service and more efficient processes, while it also gives us access to cheaper call rates. 32

33 11. Lead On: how we help leaders of tomorrow Supporting our communities directly is an important objective of Bendigo and Adelaide Bank. While generally the method of this support is determined by communities themselves, there are some programs which are deemed so important to the health of our communities that the bank determines to sponsor them directly. As with environmental sustainability, the health and development of our youth is vital to the ongoing success of our communities. To that end, Bendigo and Adelaide Bank is the major corporate supporter of the Lead On youth development program which started in Bendigo in The program is open to all young people and aims to work with the local community to engage young people in activities and projects which give real-life experiences in an inclusive, supportive and creative environment. Lead On at a glance: Nearly 8,500 young people involved Over 1,250 community projects completed Over 1,300 community/civic, business, educational and government partners have worked alongside Lead On in delivering community building projects and activities across Australia 4 stand alone sites throughout Australia 3 Outreach partners Queensland & Tasmania * As at 30 September 2010 Lead On is owned by the community and run by the community. Lead On aims to strengthen relationships between young people and the broader community by ensuring the young are invited into strategic discussions and decisions around a community s broader objectives including social and economic sustainability. Since Lead On began, about 8,500 young people have partnered with various business, civic and education entities to complete more than 1,250 community building projects and activities across Australia. 9.1 What is the Lead On model? Lead On is a community-building model that actively seeks and facilitates a whole of community approach to addressing community need and harnessing opportunities to contribute to community prosperity. Lead On s mission is to contribute to building communities that are sustainable, cohesive, inclusive and can realise their full potential. Lead On is about engaging our young people in meaningful, real-life projects and activities as a community-enriching program (rather than simply a youth development program.) Vital elements of the Lead On model are: Youth Governance - Young people have the opportunity to determine the relevance and value of each project Lead On undertakes. This normally happens through the Youth Advisory Board structure in each Lead On initiative. This process helps to develop leadership skills and provides an ideal platform for young people to be involved in real life decision making scenarios. This is facilitated by Lead On staff with support from community mentors. Community Ownership Local Lead On initiatives are owned by the community and funded by the community. The resources required are provided from the community in partnership with government (Local, State, Federal), philanthropists, local business and civic organisations. Inclusion The Lead On model encourages participation of young people from all sectors of the community. This approach sees young people from diverse backgrounds working together as part of project teams. Connection Lead On projects and activities provide an environment where young people and business/civic leaders and the broader community can achieve outcomes which benefit the entire community What are we trying to achieve? Lead On works in conjunction with the community to: Build bridges and break down barriers between various segments in the community, especially those that divide the young and older generations. Expose our future leaders to the value of participating in community activities, and encourages our business and community partners to engage and support young people in meaningful, real-life development activity. Educate young people through involvement and experience in projects and activities that deal with real-life issues. Enable young people to discover and experience the broad realm of opportunity available in their community. Create a greater sense of belonging and connection to community. Engage young people in discussions and debate about the future direction of their community. Expose community and business leaders to the capacity of young people and the contribution they can make as active participants in their community. We value this as a great contribution to the development of young people and their community. 33

34 Developing youth of today for tomorrow Community Door program The Community Door program enables young people to actively contribute to local boards and committees of sporting organisations, festival committees, boards of management, businesses and communities. The program is a two-way process where both young and older people benefit. Young people develop new skills and networks, are given the opportunity to contribute to decision making processes and become aware of what is possible in their region. Community organisations gain insight into the capacity of young people and their perspective on different issues. By taking the role of mentor, they get to transfer their knowledge and skills to the future decision makers and drivers of their community. What does the project achieve? The long-term strategy of the Community Door program works towards the overall objective of enhancing social and economic outcomes for communities. The aim is to reach this objective by engaging with young people - the future custodians of our communities. Other specific objectives and outcomes include: Enabling young people to learn about community involvement, contribution, volunteerism and how things are achieved within their community. Enhancing a community s understanding of mentoring processes and the effectiveness of youth participation. Accelerating community productivity and achievement through the early engagement and development of young people in decision-making processes. The program was developed in response to young people wanting to involve themselves more with their community but not knowing how to. Recent research supports this, identifying the next step as one of the key barriers preventing young people from becoming involved. Community Door aims to provide that next step. Lead On helps to find young people and community organisations that would like to be involved, match them suitably, bring them together and help develop the young people in any way possible. Lead On also provides an evaluation process to ensure relevant and worthwhile experiences for everyone. Why is mentoring important? As well as being mentored within the boardroom structure, young people can have additional reference points outside the boardroom for additional support. Lead On can also advise boards on how to engage with young people. 34

35 What is the community benefit? Traditionally, communities invite people into decision-making structures when they are in the middle to later productive years of their life. If people are engaged with these processes when they are young, the community benefits both socially and economically. Community Door provides an avenue for young people to become involved in this process under the guidance of older people with more developed skills and knowledge. It unites the wisdom of experience with the passion and idealism of youth. The end result is accelerated productivity and achievement for the community. It also: Supports the future sustainability of the region by nurturing the skills of young people and shaping their preparedness to participate in their local community. Provides examples of real case studies from this program for other regions to replicate or follow, which highlight key learnings and outcomes. Builds future leaders, establishes sustainable communities and builds community capacity through the engagement of youth. Builds and develops new networks and community mentoring processes. Develops tools and resources for other communities to utilise. How do we ensure the project is sustainable? Funding is important but it is only needed to set up new Community Door programs and facilitate discussions between participants and mentors. The successful Bendigo pilot demonstrated that young people who participate develop a strong sense of commitment to their communities and plan to continue their involvement after the completion of the program. In addition to these benefits, boards and committees increase their knowledge of effective youth participation practices, develop mentoring skills and have an enhanced view of the value of young people on boards or committees. Community Door builds the skills, knowledge and desire of young people to continue to work on boards and committees in the future. What is social enterprise? The next chapter of the Lead On evolution will incorporate the development of social enterprise activities in communities which Lead On has the privilege of being invited to participate in. Lead On has developed experience in connecting young people with the community by facilitating projects and activities which draw their interests and passions. Lead On is now elevating these experiences to incorporate the real-life, meaningful experiences young people desire in an inclusive, supportive and creative business environment. Lead On facilitates the development of social enterprise activities by incorporating business principles including economic sustainability in an enjoyable peer-to-peer environment. The enterprise is managed and run by young people with funding sourced from the local community. While the enterprise fast-tracks the experiences of young people and provides connections with the broader community, it also allows them to gain an experience of the positive impact they can have on the social and economic sustainability of their community. 35

36 12. The Scholarship & Youth Development Fund: helping to achieve dreams Bendigo and Adelaide Bank supports and contributes to a variety of community, sport, business, education and arts organisations. We not only offer financial assistance but provide access to our network of partners and skilled staff through our volunteer work. Scholarships As part of Bendigo and Adelaide Bank s commitment to help build stronger communities, we have established a Scholarship fund for rural and regional students who have no other option but to move away from home to further their education. Each year grants are awarded to outstanding, but disadvantaged students, from a rural or regional area, that have been offered a full-time place at an Australian university or college campus. The Scholarship aims to support first year undergraduate students who, due to social or financial circumstances, would not have been able to further their education. The Scholarship is available Australia-wide and invites applications from school leavers from December each year. Successful applicants initially receive funding for one year and depending on academic performance, the scholarship may be renewed to support a second year of study. The Bank supports this initiative to help regional students to achieve their academic dreams and maybe one day retuning home with their skills and knowledge to benefit their local community, Bendigo and Adelaide Bank Chairman, Robert Johanson said. Young people from regional areas who want to go to university in the city face huge costs, mainly because they don t have the option of living at home. Influences like family circumstances, drought, natural disasters and the global financial crisis have had a significant impact on a young person s ability to continue with further education. Scholarships at a glance: Established 2007 Scholarships awarded Students benefited Study areas * As at 10 February 2011 Languages, medicine and surgery, dental science, engineering, osteopathy, science, journalism and screen arts, foreign affairs and new generation science Supporting young adults away from home When you live in the country and want to go to university you have to move away from the support of your family. The cost of living in the city is high, but with the help of the scholarship, I m studying at the University of Melbourne. I have finally achieved what I worked so hard for at school. Caitlin Chapman, Bendigo and Adelaide Bank Scholarship recipient 36

37 Youth Development Fund The Youth Development Fund exists to provide an additional funding source to young Australians to assist them in furthering their education, seizing a development opportunity or providing a benefit to their local community. It enables young people to pursue an opportunity at a National or International level. The field of endeavour is unrestricted but the applicant must demonstrate a high level of personal commitment to the activity. By undertaking the activity, it is agreed that the individual will gain an on-going benefit as a result of this experience. The maximum value of any one grant is $500 and is to be directed towards the costs directly attributable to the activity, such as travel costs. Its not just monkey-business Fiona Boyle - International Student Volunteers trip (Thailand) Fiona sought assistance to attend a two week conservation program with International Student Volunteers as part of her Conservation Biology and Ecology studies with La Trobe University student. During the program, Fiona and other volunteers worked with the Gibbon Rehabilitation Project (GRP) which provides medical treatment and rehabilitation. Fiona assisted with observation of released families of gibbons that had been successfully reintroduced into the forest and with her colleagues built new enclosures with concrete bases for those animals still undertaking rehabilitation (concrete foundations allow for better hygienic conditions for the gibbons due to easier cleaning). A burning desire to succeed Laiton Telfer - International Fire Study to the USA Laiton was a second year student at Swinburne University, studying a Diploma of Fire Technology. As part of this final year, students were offered the chance to travel to the USA for two weeks in October on an International Fire Study. This trip covered the fire industry operators, fire behaviour and fire protection systems. Laiton wanted to study the USA approach how they fight fires and the techniques they use, how they respond and what their main priorities are when responding to an incident and bring back any learnings to his community. Laiton has volunteered at the Wandong CFA since he was 12 years old and his Brigade has a banking relationship with the local Bendigo Bank Community Bank branch. Laiton hopes to become a full-time CFA staff member. Currently he is working with DSE and has recently assisted with the Victorian floods. 37

38 13. PlanBig: tackling community projects online PlanBig at a glance: Established 2010 Number of plans Number of members 709 3,240 *As at 10 February 2011 One of the key ways to ensure the continued growth and prosperity of our communities is to encourage and promote community derived innovation. This is particularly the case amongst younger members of the community, who often migrate to large population centres to develop their ideas. The challenge Bendigo and Adelaide Bank faced was how to keep young minds in its communities. We quickly identified that this involved ensuring there was a market for their ideas and suitable, generationally relevant support during their development. The key to this was access to other people with similar ideas, knowledge, experience and skills. PlanBig.com.au was designed by Bendigo and Adelaide Bank as a place where anyone with a plan, a project, an idea or a dream can connect with other people to find the resources, expertise and support to bring their plan to reality. The bank has used its experience in facilitating community outcomes to create a website that addresses the fact that in many instances, community is no longer just about the people who live near you. PlanBig helps people with a common goal come together online to share ideas and effort to achieve a real-world outcome. PlanBig draws on the strengths of social networking to enable people to efficiently share information, create partnerships and support each other s plans. One day we hope that PlanBig will be part of everyday life, a selfsustaining community that is of real use to passionate people and a real benefit to communities with all kinds of plans, big or small. 38

39 Kidney Kidnections Simone Eykes joined PlanBig because she wanted to create a book called Kidney Kidnections to give families affected by kidney disease a chance to tell their stories. Her big reason to write was that her own daughter was dealing with the disease. Thanks to PlanBig, Simone had people to plan with and found 19 other families to share their stories. She met fellow PlanBigger James Mepham, a photographer looking to make a difference through the power of portraits, and consequently her book had some beautiful pictures. The outcome is that Kidney Health Australia is now going to publish her book. This is what Simone had to say about her experience on PlanBig: I am so proud to announce that on Monday, not only did I get the 20th story for the book and the most amazing photos from James, I also found out in writing that Kidney Health Australia will not only publish, but print and promote Kidney Kidnections! I still have seven months of work, however a big thank you to PlanBig for giving me this space to think out loud and network. It has certainly played a big part in my little idea, which just became a huge reality! 39

40 You can t stop the music! Colin Thompson, a Bendigo-based musician, wanted to start an annual Blues and Roots music festival in Bendigo. He joined PlanBig to see if it could help turn his dream into reality. Since being on PlanBig, Colin has received support for his idea, had help with writing a business plan and received media coverage for his plan. He s appointed a board to oversee the festival arrangements and has just held a media launch to announce the first annual Bendigo Blues and Roots Festival. This is what Colin had to say about his experience on PlanBig: This plan is going all the way babe! Can t thank the PlanBig team enough for the encouragement, advice and support you ve provided thus far. This is a brilliant forum for people to connect and bring their plans to fruition. Loving it! 40

41 Annexure A Australian Electoral Division summary Australian Electoral Division summary (as at 18 August 2010) Victoria Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Aston 2 1 $345, Ballarat 2 3 $31, Batman Bendigo 4 10 $1,036, Bruce Calwell Casey 4 - $1,038, Chisholm 1 2 $183, Corangamite 4 8 $560, Corio 3 6 $558, Deakin 3 1 $626, Dunkley Flinders 10 - $4,764, Gellibrand 2 2 $505, Gippsland 3 5 $458, Goldstein 3 1 $359, Gorton Higgins 5 - $1,766, Holt 1 1 $1,422, Hotham 2 - $1,165, Indi 3 3 $180, Isaacs 4 1 $1,261, Jagajaga 2 1 $1,026, Kooyong 3 1 $875, Lalor 2 2 $505, La Trobe 7 2 $1,540, Mallee 6 6 $829, Maribyrnong 1 3 $79, McEwen 10 - $3,149, McMillan 8 6 $2,444, Melbourne 2 4 $137, Melbourne Ports 2 2 $406, Menzies 3 - $797, Murray 6 3 $1,105, Scullin Wannon 8 4 $557, Wills 1 1 $1,035, Total number of branches

42 Northern Territory Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Lingiari 3 - $133, Solomon 1 1 $2, Total number of branches 4 1 Tasmania Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Bass Braddon 1 3 $ Denison Franklin 2 2 $294, Lyons 3 - $64, Total number of branches 6 9 New South Wales Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Banks Barton 1 - $25, Bennelong 2 - $122, Berowra 2 - $363, Blaxland Bradfield 1 1 $154, Calare Charlton Chifley Cook Cowper Cunningham 1 - $65, Dobell 1 - $148, Eden-Monaro 3 - $150, Farrer 3 3 $1,790, Fowler Gilmore 5 - $701, Grayndler Greenway Hughes Hume 2 - $327, Hunter Kingsford Smith 1 - $125, Lindsay Lyne Macarthur

43 New South Wales continued... Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Mackellar Macquarie 2 - $318, McMahon Mitchell Newcastle New England North Sydney Page 1 - $183, Parkes 1 - $37, Parramatta Paterson Reid 1 - $17, Richmond Riverina 5 2 $651, Robertson 4 - $401, Shortland Sydney 2 - $37, Throsby 1 - $337, Warringah 2 1 $139, Watson 1 - $70, Wentworth Werriwa Total number of branches Australian Capital Territory Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Canberra 2 - $226, Fraser Total number of branches 2 1 Queensland Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Blair 2 4 $211, Bonner Bowman 1 1 $44, Brisbane Capricornia 2 1 $156, Dawson 1 3 $45, Dickson 2 1 $92, Fadden 2 - $522, Fairfax 3 2 $208,

44 Queensland continued... Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Fisher 1 - $36, Flynn 4 2 $77, Forde 4 - $784, Griffith Groom Herbert Hinkler 1 1 $43, Kennedy 5 6 $319, Leichhardt Lilley Longman Maranoa 2 - $74, McPherson 3 1 $596, Moncrieff Moreton 1 - $54, Oxley Petrie 1 - $67, Rankin 3 - $328, Ryan Wide Bay 3 - $224, Wright 2 2 $27, Total number of branches South Australia Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Adelaide 1 7 $66, Barker 2 1 $154, Boothby Grey 2 - $1,095, Hindmarsh 1 3 $208, Kingston 1 2 $37, Makin Mayo Port Adelaide Sturt Wakefield 2 3 $259, Total number of branches

45 Western Australia Electoral division Community Bank branches Bendigo Bank company owned branches Total contributed by Community Bank branches to the community Brand 2 - $139, Canning 5 - $749, Cowan 1 - $21, Curtin Durack 4 - $121, Forrest 4 1 $706, Fremantle 1 - $46, Hasluck 3 - $363, Moore O'Connor 8 - $483, Pearce 8 - $1,446, Perth 3 1 $580, Stirling Swan 1 - $43, Tangney Total number of branches

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