2012 Annual Report - Alternatives Federal Credit Union

T HE RI P P L E E F F E C T
ALTERNATIVES FEDERAL CREDIT UNION | ANNUAL REPORT 2012
THE C RE D IT PA T H:
TRANSACTOR
SAVER
LEA D ERSH IP. GRO W T H . IMPACT.
M om ent s of i m pac t , l i ke pebbl es t hr own i nt o wat er , c r eat e
r i ppl es t hat ext end out war d and gr ow. At Al t er nat i ves, we see
fi r st hand how t hi s posi t i ve m ovem ent el evat es our m em ber s on
t he Cr edi t Pat h. The ac hi evem ent s of our m em ber s i l l ust r at es
our suc c ess as a fi nanc i al i nst i t ut i on and r em i nds us t hat t he
wor k we do has a r i ppl e effec t t hr oughout t he c om m uni t y.
BORROWER
OWNER
ww w. altern at i v e s .org
4 Mission & Vision
5 Community Programs
7 Business Takes Practice
9 We are the People in the Pocket Neighborhod
11 Studio West
12 Diversity & Inclusion
13 Financial Report
14 Supervisory Report
15 President's Report
16 CEO Report
17 20 Years: Miroslav Knezevic
18 Donors & Funders
$19,063,540
Total Loans GIVEN
TO OUR MEMBERS IN 2012
9,660
MEMBERS ENROLLED
IN BUSINESS CENTS
IN 2012
CURRENT MEMBERS
191
OU R M I S S I ON:
To bui l d weal t h and c r eat e ec onom i c oppor t uni t y
for under ser ved peopl e and c om m uni t i es.
OU R V I S I ON :
DOLLARS SAVED
FOR IDAs SINCE THE
INCEPTION OF PROGRAM
$1,261,275
To i nc r ease our i m pac t and bec om e t he fi nanc i al hub of a
m or e pr osper ous c om m uni t y, wi t h a st r ong l oc al and nat i onal
r eput at i on for exc ept i onal m em ber ser vi c e, c om pet i t i ve deposi t
and l oan pr oduc t s, hi gh em pl oyee m or al e, and i nnovat i ve out r each
and educ at i on pr ogr am s. W e wi l l be t he “head and hear t ”
c r edi t uni on, c om bi ni ng i nt el l i gent busi ness pr ac t i c es wi t h an
unwaver i ng c om m i t m ent t o our m i ssi on, bui l di ng on our t r adi t i on
of i nnovat i on i n sol vi ng pr essi ng l oc al ec onom i c c onc er ns.
4
STUDENT
CREDIT
UNION
COMMU NIT Y PRO G RAMS
Financial education and asset acquisition are critical components of the service we provide our members
and community. We define assets as owning a home, a business, higher education (college or trade),
and having a savings account. Savings are included as an asset because they appreciate in value, can be
exchanged for other assets, and can prevent the need to borrow funds in an emergency.
Much of what we do is based on education. Services considered strictly transactional in other financial
institutions have an embedded educational component at Alternatives. Our loan officers spend a great
deal of time working to ensure members receive the correct loan product for their needs. Our collection
staff works with members on developing a plan to pay their debt while maintaining their other financial
obligations. At a basic level, financial education teaches members how to keep more of what
they earn.
We invite you to take advantage of the many community programs we offer. For more information, please
visit our website at www.alternatives.org and click on the Community tab at the top of the page.
INDIVIDUAL
DEVELOPMENT
ACCOUNTS
Perhaps the most important
services we provide our
members and community is
assisting low to moderate
income individuals and
families in obtaining assets,
the traditional pathway to
increased income in this
country. Individual Development
Accounts (IDAs) are matched
savings accounts designed to
assist low and moderate income
people acquire assets. In the
14 years we have offered IDAs,
we have helped hundreds of
members become homeowners,
business owners, or go on to
higher education. Eighty-seven
people enrolled in new IDAs
during 2012. Thirty-six other IDA
owners completed their savings
plans and obtained their assets.
BALANCE
Another tool we offer members
is BALANCE, a nationwide
service for credit union
members offering a wide
range of financial education.
One hundred and twenty-six
of our members spoke with a
counselor by phone or took one
of BALANCE’s many online selfstudy courses.
MONEYWISE
MoneyWise is our seven week
money management course.
MoneyWise teaches participants
not just how to better manage
their income and expenses, but
how to recognize and control the
triggers that cause unnecessary
spending. Seventy-four people
took one of the four courses
last year.
Our Student Credit Union
program (SCU) was begun
because we believed that
early financial education and
consistency in habits could
be a key to financial security
later in life. Unfortunately,
financial education is not
taught extensively in schools.
Finances are also not discussed
within many families. The
Student Credit Union gives
young people the opportunity to
develop savings habits. Through
the Young Entrepreneurs
Program (YEP) of SCU, young
people have the opportunity
to develop and run small
business projects. The SCU
has branches in eight of the
nine Ithaca City School District
elementary schools, Northern
Lights Learning Center Home
School Cooperative, and
Namaste Montessori School.
Seventy-eight adult and
youth tellers work in the 10
branches, providing services
to 606 student members. As
impressive as the number of
participants and volunteers may
be, what is most impressive
about the SCU is that its
members have almost $840,000
in savings on deposit. These
young people possess assets
and knowledge that will provide
a significant benefit on their
road to financial self-sufficiency.
BUSINESS
CENTS
Free Tax
Preparation
Program
Another important service
we offer members and nonmembers is Business CENTS
(Community Enterprise
Networking and Training
Services). CENTS is a service
for current business owners,
aspiring business owners
and those people who wish to
utilize existing skills to create
additional streams of income.
For people with significant
barriers to employment (the
formerly incarcerated for
example) or people who are
underemployed, starting
a business may be part
of the solution to gaining
financial empowerment.
CENTS provides one-on-one
consultations, a growing
number of workshops and
seminars, and “Getting Down to
Business,” the program’s nine
week flagship business training
course. During 2012, 191
people participated in the three
“Getting Down to Business”
courses, 28 workshops,
seminars, and individual
consulting sessions.
The Free Tax Preparation
Program provides free federal
and state income preparation
for low and moderate income
people throughout the
community. Tax refunds are
an excellent way to begin or
increase existing savings for
individuals and their families.
For the community, Free
Tax Prep brings in millions
of dollars in “new” money.
Alternatives worked with over 70
volunteers to help 1,893 clients
receive $3.5 million in federal
and state tax refunds. $2.5
million of those dollars were in
Earned Income Tax and Child
Care Credits.
460
MemberS ASSISTED WITH
BUDGET PLANS IN 2012
MEMBERS WHO
RECEIVED FREE
TAX SERVICES
Matteo Wyllyamz teaches a packed classroom
for the Internet Marketing workshop series.
5
1,893
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BUSINESS TAKES
PRACTICE
Growing a small business is like improving your yoga practice—
it takes discipline, patience, and a lot of sweat. Heather Healy was
able to provide all of these elements—after financial backing and
attending Business CENTS classes at Alternatives—she was able
to launch Mighty Yoga in 2009. Now the studio employs nine
teachers, eight part time staff, and offers a steady flow of classes.
How do you feel the “Getting Down to
Business” course helped prepare you to
take the leap and start your own business?
It provided an excellent overview of all
the important topics that you need to
know about how to start a business.
There were just a couple aspects of the
course that weren't relevant to Mighty
Yoga, but mostly I learned how much
there was still to learn! I felt that it was
a complete overview, and that if I "did
my homework," I would have all the
tools that I needed to start the business.
After the course, and as business
preparations began, I took time to dig
deeper into many of the topics, and took
advantage of the business coaching
program for some extra support in
areas that needed more attention like
marketing and finance.
How important was the local community to
the success of your business?
Mighty Yoga, like many small businesses,
would not have grown to where it is
today without the support of the local
community. I first heard about the
“Getting Down to Business” course
through a friend and entrepreneur. I
worked with several local businesses to
develop marketing, provide the space,
and prepare the studio. One of my
primary goals for opening Mighty Yoga
was to create a welcoming space for
people to try yoga, and I am so grateful
7
for (and often astounded by) the amazing
response and support we have received
from our community of Mighty Yogis.
Do you have any advice for someone who
might be thinking about starting their
own business?
I think it's really important to understand
your tolerance for risk, and also to have
an exit strategy. Both things that you
don't really want to think about in the
beginning, but being comfortable with
both of those, in a worst case scenario,
really gave me the freedom to make my
vision for Mighty Yoga a reality.
What did you find most unique
about Alternatives?
The feeling that we were working as a
team. I felt that I had a lot of support
as I started putting things together
for the studio, from friends and
family, but also the other community
businesses that I was working with,
including Alternatives. All of my other
interactions with financial institutions in
the past had been impersonal. Knowing I
had the support from Alternatives to grow
and nurture my "baby" was invaluable.
ON THE PATH:
OPENING
A BUSINESS
Products & Services
used by Mighty Yoga:
BUSINE SS
C E NT S
START-UP
LOAN
BUSINE SS
COAC HING
WE ARE
THE PEOPLE IN
THE POCKET
NEIGHBORHOOD
How long did the process of building your home take?
The Pocket Neighborhood is a new
type of intentional community—a small group of
homes gathered around a shared open space. It
exemplifies the values of community living and
sustainability. Like many pioneering housing
options, it takes both an adventurous spirit to
build them and an adventurous lender to finance.
The Jones-Rounds family joined Alternatives in
2009, and has benefited from both participating in
Alternatives’ programs as well as receiving a loan
to build their new home.
How did you find the whole mortgage
application process?
There are a lot of decisions to make when building
a house and this cohousing project is outside
of the scope of anything that Alternatives has
ever done. We were never sure if we were doing
everything that needed to be done, but everybody at
Alternatives, especially Carol Chernikoff, worked
incredibly hard to give us information, respond to
us quickly, and basically stay a step ahead of us.
Working with Brendan Wilbur through the IDA
program and MoneyWise class helped to demystify
a lot about the mortgage process. There have been
a lot of hoops, but Alternatives worked really hard
to makes sure that we saw them and could jump
through them with ease.
9
ON THE PATH:
BUILDING A HOME
Products & Services used
by the Jones-Rounds:
I DA
HO ME LOA N
MO NEYWI S E
The actual construction of the home took about 10 months, but
the entire process was four years in the making. As a single
income family, we never had enough money to build the house
on our own, so it was critical that we invested in a First Home
Club IDA (Individual Development Account) at Alternatives,
and built relationships with other organizations like INHS. We
got pretty creative with financing, including obtaining a grant
from Tompkins County to make one unit of the cooperative
permanently affordable. All of that coordination takes time,
so we feel like we were building our house long before the
excavator showed up last July.
What was the most difficult part of the process?
And what was the most fun?
The hardest part was never knowing exactly how everything
would turn out. The best part was making decisions and
contributing to how everything would turn out. And getting to
know our new neighbors—they're really fun!
What advice would you give someone who is about to begin the
journey of buying or building a home?
Listen to the advice of people who have done it before. I think
that we were impatient about owning a home and tried to make
it happen a few times before we were ready. I think that the best
practical advice I can give is to take advantage of the resources
available at Alternatives, like the IDA savings program and
money education classes (MoneyWise). Emotionally speaking,
my advice to anyone buying or building a home is to be prepared
for a lot of decision making and weighing of priorities. Don't be
afraid to take your time and do it right, building on everything
you learn along the way. And follow your instinct. This is
your home, it's a big deal, so always, always, always follow
your instinct.
Jamie and McKenzie paint their new living room with Felix (5) and Arlo (2)
STUDIO WEST
FOUNDERS:
Greg Kops, Danielle Klock & Scott Hamilton
Studio West is cooperative office-sharing at its best.
It satisfies the triple bottom line of people, planet,
and profits. It is an efficient shared building that gives
members all the benefits of an office without all the
overhead. It’s a place to share work space, share office
equipment, and share enthusiasm. And it’s all right
here in downtown Ithaca on State Street. To help make
the dream of Studio West into a reality, its founders at
Think Topography came to Alternatives for a loan and
walked away with much more.
Why did you go to Alternatives for your business loan?
community or pushers of the status quo. There are
many benefits we’ve realized from opening up our
offices to others with a co-working model: a more
social yet professional workplace, affordability, direct
referrals, new connections, and more opportunities
for networking events, workshops, and hosting area
artists and musicians. We imagined these things when
we envisioned our contribution to a vibrant community
and we remain inspired because it’s working.
How important was the local community to the success of
your business?
We have used Alternatives as our credit union since
we started our business. We’ve appreciated it as
an institution that handles its lending programs
responsibly, especially with its commitment to the
local economy and social justice. We knew that like
many potential candidates for a business loan, our
circumstances were unique. Alternatives was not
only flexible and accommodating, they educated us on
ways that we could improve the terms of our Line of
Credit over time.
The local community is paramount to our success.
Every foundational element of our business came from
our efforts in the community and our relationship with
its members—whether it be how we came together
as business partners, the formation of our values
and long-term vision, the projects we sought, the
source of our co-working membership, or the sense
of community we try to create with the use of our
software platform.
What inspired you to merge business and community?
The benefit of hindsight is that we would probably do
it smarter. Then again, we wouldn’t be where we are
today without going through what we have. There is so
much meaning to derive from our experience exactly
as it is, so with a healthy appreciation for this reality
we say, “Yes, of course!”
From day one we came together because we knew
we shared the commitment to positively impact
society. That starts at home, here in the community.
More importantly, business is always conducted
in communities, and that gives us the choice to
be an engaged and progressive example of our
ON THE PATH:
OPENING
A BUSINESS
Products & Services
used by Studio West:
B US INESS
CENT S
START- U P
LOAN
FRE E Tax
Preparatio n
Would you do it all over again?
DIVE R SIT Y AND INC LU SION
Ten staff on our diversity and inclusion team affirmed
an Alternatives Diversity Recruiting Statement:
“We work to create and support employment and
leadership opportunities for underserved people
and communities.” We continued our efforts to
create a welcoming environment for diverse staff
and members.
Alternatives continues its commitment to hire
and retain staff who reflect the whole community
and the members we serve. In 2012, we ended the
year with ten staff of color (23% of total staff), five of
whom were promoted during 2012 to higher-grade
positions in the Credit Union.
In 2012, we focused on more in-depth training for
staff on diversity issues including the “Undoing
Racism” series, a day-long community-wide training
program with presenter David Billings of the People’s
Institute; and Talking Circles, a program sponsored by
the Multicultural Resource Center focusing on race
issues and racism.
Alternatives sponsored our second annual Community
Leaders Breakfast. Eighteen community members
representing a variety of underserved communities
gave us feedback on our diversity and inclusion
efforts. A number of community leaders asked that
Alternatives staff meet with community members in
order to learn about their needs and to share how
Alternatives may provide them useful services.
We celebrated diversity by sponsoring many
community events including: Sister Friends, the Latino
Civic Association Picnic, the Southside Community
Center Juneteenth Celebration, the Puerto Rican
Day Festival, the Latin Roots Festival, the GreenStar
Community Projects Food Justice Summit, the ICSD
Staff of Color reception, Advocacy Center’s Kids
Are Our Business fundraiser, Newfield High School
senior class All Night (graduation) Party, Community
Wellness Day, LACS annual New Orleans Katrina
Relief trip, Strides for Sarah fundraiser, and the Henry
Highland Garnet Lodge scholarship fundraiser.
T H A NK YOU :
Lenore Olmstead was awarded the Martin Luther
King Jr. Peacemaker Award by CDRC (Community
Dispute Resolution Center)
and GIAC (Greater Ithaca
Activities Center)
for
her efforts promoting
diversity and inclusion, and her lifelong
commitment to social
justice. Lenore is retiring from her position as
Director of Human Resources. We will miss her
open door, open mind, and open heart.
12
Stateme n t
of Financial Co n ditio n
P roducts an d Serv ices
as of December 31 all figures in thousands of dollars
ASSETS
Mortgage Loans
Consumer Loans
Business Loans
Total Loans
Allowance for Loan Loss
Cash
Investments
Fixed Assets
Other Assets
Total Assets
2012
$ 39,980
8,481
6,264
54,725
(420)
1,923
22,530
2,672
981
$ 82,411
2012
2011
23%
21%
$4,359,470
$4,096,852
STUDENT CREDIT UNION
Market Share
2011
$ 33,949
8,414
5,658
48,021
(446)
1,392
20,451
2,642
910
$ 72,970
CONSUMER LOANS
Total Amount Loaned
FINANCIAL COUNSELING
Appointments
HOME LOANS
Total Amount Loaned
$11,385,470
$10,120,935
BUSINESS LOANS
Total Amount Loaned
$3,318,600
$3,258,600
2.30%
1.80%
Delinquency Rate
LIABILITIES & MEMBER EQUITY
Liabilities
$ 2,247
$ 1,425
Checking
Regular Savings
Certificates
Retirement Savings
Total Deposits
Secondary Capital
Capital
Total Liabilities & Equity
20,550
31,898
11,403
7,237
71,088
3,692
5,384
$ 82,411
17,269
27,882
10,026
6,878
62,055
3,957
5,533
$ 72,970
11.01%
13.01%
Capital Ratio
INDIVIDUAL DEVELOPMENT ACCOUNTS
Total Amount Saved by All Participants
FREE TAX PREPARATION
Earned Income Tax Credit Earned
Total Tax Returns Filed
2012
2011
$169,418
$153,054
$1,273,000
1,893
$1,186,038
1,683
2012
2011
239
253
460
337
Superv isory Report
Stateme n t
of O perations
CO MMI TTEE Memb ers :
Evie Westbrook (Chairman), Bill Goodman, Richard Lansdowne, Melissa Pollack (Staff Liaison)
for the year ended December 31 all figures in thousands of dollars
INTEREST INCOME
2012
2011
$ 1,811
853
335
145
3,144
$ 1,641
863
324
234
3,062
Member Shares & Savings
Interest on Borrowings
Total Interest Expense
Net Interest Income
282
163
445
2,699
355
140
495
2,567
Loan Loss Provision
Net Income After Provision
Operating Expenses
Other Operating Income
Net Income
151
2,548
(3,996)
1,302
$ (146)
125
2,442
(3,627)
2,577
$ 1,392
Mortgage
Consumer
Business
Investments
Total Interest Income
INTEREST EXPENSE
13
MEMBER SERVICE
Number of New Members
Previously Considered
“Unbanked”
The Supervisory Committee is appointed by the
Board of Directors in accordance with the Federal
Credit Union Act, and ensures the safety and soundness of the operations and activities of Alternatives.
The committee has the responsibility to review
and evaluate the financial operations of the Credit
Union, and to insure that management’s practices
and procedures safeguard members’ assets. To
that end, the committee: performed surprise cash
counts; reviewed internal controls and policies in
the cash area; randomly reviewed loan account
transactions to verify that changes made to those
accounts were in line with expectations; and
reviewed procedurally some of the details of new
accounts, closed accounts and those deemed to be
inactive. We continue to review existing systems
and with the change in software this year, and the
reporting capabilities that the conversion brings
with it, are hopeful that this work will become even
more effective.
To assist in carrying out its responsibilities, the
committee retained the services of a CPA firm
(Mengel, Metzger, Barr & Co. LLP) to perform the
required annual audits for the year ending December
31, 2012. The results of the previous year audit
show that Alternatives continues to remain a sound
financial institution.
Please be advised, that in order to effectively serve
as your representatives, the Committee must be
kept aware of your concerns. You may contact the
National Credit Union Administration (NCUA) or
the Supervisory Committee directly at ([email protected]) and your concerns will be
addressed in an impartial and confidential manner.
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C EO RE P O RT: T ri s tra m Co ffi n
The past year has been an important milestone
in the growth of our credit union. Once again, our
loans and assets grew by more than ten percent
to reach their highest levels to date. Once again,
our community programs, (Individual Development
Accounts, Free Tax Preparation, the Student Credit
Union, and Business CENTS), made a difference
by serving more people than ever before. And yet,
the overriding theme of much of the work done
here over the past year has been to build the
infrastructure for even greater impact in the future.
We believe that Community Development Financial
Institutions (CDFIs) like Alternatives have much to
contribute to our economic renewal, however to do
so requires us to further develop our capacity to
serve. To that end, we have invested heavily in new
technology that brings us on par with much larger
financial institutions, with the clear understanding
that our people and the relationships they build
will be what continues to set us apart.
online. Our technology implementation is part of an
effort to not only enhance members’ transactional
experiences, but to build the capacity of our
organization so that we may continue to expand to
meet the needs of more underserved people and
communities in our area.
It has been an honor to serve as President of the
board since June. I am proud of the work we do
for the community and of our ability to provide
financial services to the underserved area. In 2012
Alternatives had many accomplishments and yet
we still face many challenges moving ahead.
To those who accept the challenge of building more
prosperous and resilient communities, Alternatives
is a willing partner. We offer a clear pathway:
anyone can travel from being a transactor outside
the financial system to becoming a successful
saver, borrower, and owner of assets, such as a
home or small business. A mission this expansive
requires the ongoing support of many dedicated
volunteers and staff. It also requires the financial
support of those who appreciate the importance of
this work and can help sustain the programs that
help differentiate us from other financial providers.
To that end, we have launched Alternatives Impact,
a 501(c)3 charitable organization that exists to
maintain and grow the educational and community
service programs that build wealth through
entrepreneurship, maximize local people’s tax
credits received, and help people make informed
financial decisions. We encourage you to consider
Alternatives Impact as a means of generating the
maximum local “bang” for your charitable “buck.”
Regardless of which role you play in the success
of Alternatives—member, volunteer, donor, or a
combination thereof—your contributions are so
greatly appreciated. On behalf of our entire staff, I
thank you for your involvement and look forward to
a bright future for Alternatives.
In the beginning of 2012 our Free Tax Preparation
program was again in full swing. By the end of tax
season the program had prepared 1,893 returns,
saving community members an estimated $311,000
in tax preparation fees. The program brought $3.5
million in refunds to participants, including almost
$1.3 million in Earned Income Tax Credits (EITC).
We continued to provide financial education to
members through our MoneyWise classes and
Individual Development Account programs. The
credit union saw significant growth during 2012.
In particular, we welcomed 239 new, previously
unbanked members during the year. Loan growth
for 2012 exceeded the budget by over $3 million.
The lending department was busy, making 128
mortgage loans for $11.4 million, 1,002 consumer
loans for $4.3 million, and 64 business loans for
$3.3 million. As an institution, we cannot fulfill our
mission if nobody borrows our money. These loans
will help to build financial assets in the community.
Loan delinquency continues at a remarkably low
pace, at a rate of 2.3%. We ended the year with
a capital ratio of 11.01%, well above the 7.0%
required by our regulators.
The end of 2012 saw two major initiatives.
We successfully completed our core software
conversion in December. This new system will bring
cost efficiencies to the credit union and enable us
to serve members better. Most members are now
comfortable with the new system, but there is a
steep learning curve for staff and board members.
Second, as opportunities for grants dwindle, we
have explored new ways of funding our non-profit
activities. We have started to fund Alternatives
Impact, the new name for our non-profit arm,
through community donations in addition to
institutional grants.
As we move into 2013, many challenges remain.
As a board, we will continue to strive to fulfill the
mission of Alternatives. We have new opportunities
for expansion, especially in the Binghamton area.
We will continue to develop new sources of funding
for our mission. We will continue to assure that
Alternatives is financially stable enough to allow us
to help the community.
Thank you for allowing me to serve on such a
fantastic board.
T ha nk you
to our v olunteer
Board of D irectors
With Online Access, our new home banking system,
members enjoy improved security features and
increased access to account information in an
attractive, easy-to-use format. We have also
introduced a new online BillPay service that is
free to all members. In 2013, we anticipate adding
more convenience through technology, including
mobile banking and the ability to open an account
15
Throughout the year, staff at Alternatives held
meetings with community groups to explore ways
of increasing diversity at Alternatives.
CO N TAC T: p re s i d e n t@ a l te rn a ti v e s . o r g
CO N TAC T: tc o ffi n @ a l te rn a ti v e s . o rg
The year 2012 was designated by the United
Nations as the International Year of Cooperatives.
As a member-owned cooperative, we revel in
the structure that makes us different. Whereas
banking institutions are organized to benefit
their stockholders, we exist to help you build
assets. Our cooperative is not built just around
providing a good financial value (though we do
that), or offering a more pleasant and comfortable
banking experience (we do that too!)—we exist to
strengthen our community by building wealth and
creating economic opportunity for underserved
people and communities. By connecting the goals
and dreams of our individual members so they can
reinforce one another, we can improve the quality
of life in our area.
P RESID ENT 'S REP ORT: K ennet h Chr is tianson
Ke nny Chris t i a n s o n , Al i s o n C h r i s t i e,
Le slie S tre bel , Pet er M c C r a c k en ,
Bill Goodma n , Ji m F r a v i l , L eo n
Law re nc e , L eo n a r do V a r ga s -M en dez ,
Bre tt Bossa r d, Su j a t a Si dh u Gi bs o n ,
Natasha T ho mps o n
Recent Board of Directors Meeting.
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T H A NK YOU : D on o r s & Fun der s
In 2012 Alternatives moved forward to identify new funding streams to support many of the programs and success
stories found in this report. For years, our community programs were supported primarily through government grants,
many of which have diminished or disappeared.
fact, it’s difficult to pry him away from his desk to take a
lunch! He is beloved by all who’ve worked with him. His
co-workers describe him with such words as thorough,
polite, a great sense of humor, professional, gentle,
clear, detail oriented, prompt, and highly accurate.
At that point he had only been in the country a couple of
years. He and his wife moved from the former Yugoslavia
to Ithaca in 1991 when his wife received a Fulbright
scholarship that brought her to Cornell. They had only
planned to stay a year, but when the Yugoslav wars broke
up their country, they decided to stay. Miroslav spent his
first years taking ESL (English as a Second Language)
courses at GIAC and taking care of the kids. He opened an
account at Alternatives and loved the level of comfort he
felt. He had worked in a commercial bank in the former
Yugoslavia and decided to apply for a teller position here.
He began working at Alternatives in 1993.
Soon, word got around that there was someone at
Alternatives who spoke Serbo-Croatian. Many people
joined Alternatives (be they Serbian, Bosnian or Croat)
because Miroslav could help them with the language,
with their banking, and much more. To this day, there are
many members who only want to speak with Miroslav.
That includes many people who are not from the former
Yugoslavia, but who were helped by him at some point,
and count on his kindness.
Miroslav was a teller for several years and then became
Consumer Loan Clerk. Soon he was promoted to a full
time Assistant Loan Officer. When another staff person
left, he was asked to help out with VISA cards, where his
member service was legendary.
Miroslav is always punctual and rarely absent. He feels
it shows respect toward members and co-workers. In
17
One of his co-workers summed it up: “I think of him as an
unsung hero of the Credit Union.” Thank you, Miroslav,
for 20 wonderful years of service, and best of luck in your
approaching retirement!
The boards of the Credit Union and Alternatives Impact and a volunteer Development Task Force (see below) were
instrumental in moving this initiative forward. Alternatives Impact shares Alternatives Federal Credit Union’s mission
to build wealth and create economic opportunity for underserved people and communities. Alternatives Impact serves
this mission by raising funds to 1) support vital financial development programs, including the Free Tax Preparation ,
Business CENTS , Individual Development Accounts (IDAs), the Student Credit Union, and the Bill Myers Youth Internship;
and 2) support loan capital available to qualified businesses.
In 2012 we set an initial Alternatives Impact goal to raise $10,000 from individuals in support of the community programs. By year end, 26 gifts were made, totaling $10,500. We are grateful to the individuals who came forward in this
way, demonstrating their commitment to economic empowerment and financial justice.
Thank You to Our Supporters
CORPORATIONS, FOUNDATIONS
& INDIVIDUALS
NON-MEMBER DEPOSITS
GOVERNMENT
Federal Home Loan Bank of New York, Community
Foundation of Tompkins County “Excellence in the
New Economic Era” Award, New York Credit Union
Foundation, National Federation of Community
Development Credit Unions (NFCDCU), NEXTOpportunity Finance Network Planning Grant,
Opportunity Finance Network-Create Jobs USA,
Park Foundation, The Strebel Fund for Community
Enrichment of the Community Foundation of
Tompkins County, United Way of Tompkins County,
United Way Youth and Philanthropy, Wells Fargo
NEXT Awards for Opportunity Finance.
Non-member depositors make large deposits,
often at below market interest rates, to support our
lending and other initiatives.
CDFI Fund of the US Treasury Department, US
Treasury Department, Empire State Development
Corporation, Tompkins County Legislature, Town
of Dryden, US Department of Health and Human
Services, US Small Business Administration, US
Department of Housing and Urban Development
(HUD).
ACCORD, Ben and Jerry’s Foundation, Catholic
Charities of Tompkins and Tioga Counties, Empire
State Development, First Unitarian Society of Ithaca,
Ithaca Housing Authority/Three Pillar Foundation,
New Alternatives Fund, National Federation of
Community Development Credit Unions (NFCDCU),
Pan America Bank, Parnassus Fund, Self-Help
Credit Union, Sisters of Charity BVM, Sisters of the
Holy Cross, Syracuse Cooperative FCU, Tompkins
County Department of Social Services, Unitarian
Universalist Association.
Co n tac t : m b b u n g e @ a l te rn a ti v e s . o rg
“This year is your twentieth anniversary at Alternatives,” I
said to Miroslav Knezevic. “I’d like to write an article about
you. Are you game?” Miroslav smiled and said, “What
do you mean ‘game’?” Miroslav is not a native English
speaker, and his answer made me smile and think back
to when he first started working at Alternatives 20 years
ago, when he walked around with a notebook, writing
down American English idioms and opening everyone’s
eyes to some of our crazy figures of speech.
Asked to reflect on his work at Alternatives, Miroslav
said, “I am proud that I am part of the Credit Union team
spreading our mission to “think globally, bank and invest
locally." He goes on to say: “Member relations are very
important to me in my work at Alternatives. I am always
trying to be professional, friendly, reliable, and helpful.”
Miroslav has most certainly succeeded.
Alternatives’ 501(c)3 non-profit affiliate is being renamed, restructured, and reinvigorated. What was previously known
as Alternatives Venture Fund or Alternatives Community Ventures is now Alternatives Impact! This new name reflects
the true impact Alternatives’ products and programs have on the financial health of our neighbors and community.
Alternatives Impact 2012 Contributors
Leslie Ackerman, Richie B. Berg and Lori G. Yelensky, Brett Bossard and Kerry Barnes, Mary Beth and John Bunge, Samantha Castillo-Davis, Carol
Chernikoff, Kenneth W. Christianson, Jr., Alison Christie and Thompson T. Terry, Jr., Tristram Coffin, David and Mary Lynne Currie, Jeff Furman and
Sara Hess, Richard Furnas, William D. Goodman, Karl and Constance Graham, Leni Hochman, Nancy L. Istock, Michael Katz, Leon Lawrence, Eric S.
Levine, Peter McCracken and Jennifer Germann, Margaret Moschak, Blake Myers, Lenore Olmstead, Yvette Rubio, Natasha Thompson, Deirdre and
Mark Silverman
Gifts to support the Individual Development Account (IDA) Savings Program:
Leni Hochman, in memory of Jake Ryan
The Strebel Fund for Community Enrichment of the Community Foundation
Alternatives Impact Board:
Richie Berg, Richard Furnas, Myra Kovary, Leslyn McBean-Clairborne
2012 Development Task Force Members:
Brett Bossard*, Samantha Castillo-Davis, David Currie, Michael Katz,
Blake Myers, Deirdre Silverman, Natasha Thompson*
*Also members of Alternatives Federal Credit Union Board of Directors
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12 5 N. Fulton Stree t
Itha c a N Y 14 8 5 0
Tel . 607. 27 3 . 4 611
Toll Free 877. 27 3 . AFCU
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©2013 Alternatives Federal Credit Union, Ithaca NY