Group 4 Final Proposal

Western Michigan University 1 Community Promise Federal Credit Union
TABLE OF CONTENTS Executive Summary...................................................................... 2 - 3 Current Situation..4 Target Audience5 Primary Research6-63 Objectives & Goal.64 Strategy..65 Tactics.66-67 Social Media Summary.68-72 Timeline.73 Evaluation.74 Conclusion................................75 APPENDIX A....76-77 News release sent to newspapers and online publications APPENDIX B78-79 Fact sheet sent to all media APPENDIX C80-81 Special event budget APPENDIX D82-83 Video news release sent to all local networks APPENDIX E84-88 Brochure and postcard to be distributed at special event APPENDIX F89-90 Frequently Asked Questions Works Cited.91 Contact Information...92
EXECUTIVE SUMMARY The aim of this public relations campaign is to ultimately increase membership numbers for Community Promise Federal Credit Union. Community Promise Federal Credit Union is part of the National Federation of Credit Unions that serves populations who are underserved financially in the United States of America. As a new organization to the Kalamazoo community, it must establish its brand, inform audiences of its organization, and motivate target audiences to open new memberships. Community Promise Federal Credit Union must overcome the stigma that surrounds the words credit and bank; this negative connotation is especially prevalent within its target audiences. Since Community Promise Federal Credit Unions services are geared toward individuals who are financially underserved, this plan only focuses on the Hispanic population as its target audience. This campaigns main objective is to raise awareness of Community Promise Federal Credit Unions services among the Hispanic population of Kalamazoo through multiple tactics. In order to raise awareness among Latinos, Community Promise Federal Credit Union must inform the Hispanic population in Kalamazoo of its mission, vision, and values to motivate them to become members. This campaigns tactics for achieving Community Promise Federal Credit Unions goals of obtaining 360 members by the end of 2013 include a special event, social media campaign, print materials, and video and print news releases. The proposal predicts one thousand or more individuals will attend the special event Carnival Latino. Finally, the plan will discuss criteria for the Community Promise Federal Credit Union to evaluate each tactic. The organizations business plan, an interview with a board
member, and publications regarding the organization in news sources are combined with research on social media to ensure knowledge and understanding of the situation and ability to successfully achieve objectives. Each tactic must be evaluated individually, so Community Promise Federal Credit Union can see the success of each portion of this proposal and how it influences the organization in a positive way. Through this comprehensive plan, Community Promise Federal Credit Union can inform the Hispanic population of its services, establish a relationship with the Latino community, and motivate Hispanics in Kalamazoo to open memberships.
SITUATION Community Promise Federal Credit Union (CPFCU) is dedicated to providing fair and affordable financial services and education for our members, particularly those not typically served by traditional financial institutions. However, CPFCU must overcome the negative stigma that surrounds the word credit and bank. The negative connotation of these words thrives within the target audience. Awareness can be expanded through educational outreach and community partnering with non-profit organizations throughout Kalamazoo. CPFCU is the only financial institution within the Edison neighborhood, according to Google maps. CPFCU will continue to increase awareness by participating in special events and continuing community outreach. The credit union also faces image issues due to the lack of continuity in branding. However, CPFCU can effectively achieve the objectives and goals detailed in this proposal by establishing their brand in Kalamazoo. CPFCU can establish their brand in Kalamazoo by further developing their positive image by sharing their mission, vision and values with the community. Branding will involve the use of consistent color schemes, key messages, and progressive marketing in brochures and publications.
AUDIENCE General target audience: o Low-income families o Minorities within Kalamazoo including: Hispanics, members of the LGBTQ community, and senior citizens in Kalamazoo Specific target audience for Carnaval Latino: o Low-income Hispanic families in Kalamazoo
INTERVIEW WITH CPFCU VOLUNTEER 1) What exactly is your position at CPFCU and what do you do? Office Manager coordinate volunteers, service member accounts (open/deposit/withdraw), assist with loan applications, etc. 2) Who is in charge of the Public Relations activities at CPFCU and what is a brief overview of what they are currently working on? We have a marketing committee. They are reviewing the marketing plan that was developed during the charter process and preparing an implementation plan. 3) You are mainly trying to reach the Hispanic population in Kalamazoo and the Edison neighborhood, are there any other specific populations you would like to broaden to in the future? Part of the initial marketing plan is to also work with the north side of Kalamazoo. Possibly have a branch near the Family Medical Center. 4) Please give us a description of CPFCUs general objectives. An important part of Community Promises mission is providing ongoing financial education to its members. We will support The Kalamazoo Promise by making members aware of the importance of saving for college. Too many Kalamazoo families do not understand that there are many other costs associated with attending college besides tuition, such as room, board, and books, which the Promise does not cover. We will encourage families to begin saving for their childrens education as soon as possible, and we will provide products that both encourage and reward sound college saving habits. In the long term, we plan on taking financial literacy directly into KPS classrooms to ensure that students themselves understand the importance of saving and financial planning.
5) What Public Relations work has been done thus far at CPFCU? (you may be brief) (See Lee Kirks email) 6) May I have some copies of any past research you have done? (See Lee Kirks email) 7) Do you have any major current problems that need to be overcome at CPFCU? We need to make more people in the Edison neighborhood more aware that we are open and how we can help them. Since we are not able to offer checking accounts and/or debit cards for a year or more they seem to be hesitant to open an account. They need/want more access to their money. 8) What type of Public Relations plans do you intend on implementing in the near future? We plan to do some door-to-door campaigning and participate in neighborhood events. 9) Do you have any special events that your team is currently working on for CPFCU? Not at this time. 10)How many different people do you have working on your PR team at this time? 3-4 people 11)Would you like to make any changes to your logo or are you planning on keeping the design you currently have? No. We have had several comments from seasoned marketing people who like the logo.
PRIMARY RESEARCH
COMMUNITY PROMISE
Federal Credit Union (proposed)
Business Plan
Community Promise FCU 816 Washington Avenue Kalamazoo, MI 49001 February 2012
Community Promise Federal Credit Union Mission Statement

Our Mission: We are a Community Development Credit Union, dedicated to providing fair and affordable financial services and education for our members, particularly those not typically served by traditional financial institutions. We will help Kalamazoo grow by enriching our members, building partnerships and investing in our neighborhoods.
EXECUTIVE SUMMARY
This business plan provides information on the proposed Community Promise Federal Credit Union in Kalamazoo, Michigan. Community Promise has received a preliminary low-income designation from the National Credit Union Administration. It will also be a Community Development Credit Union (CDCU) through its membership in the National Federation of Community Development Credit Unions. Community Promise will target its services and products towards residents of Kalamazoos core neighborhoods, with a particular focus on working families, African-American and Hispanic households, and younger residents. While Community Promise will have a single branch when it opens, we will provide non-cash outreach services at other locations in Kalamazoo once we are settled in so that we can provide access to as many potential members as possible.
A diverse group of engaged citizens first began discussing the idea of bringing a lowincome designated CDCU to Kalamazoo in 2006. Their initial research convinced them that such a credit union was very much needed. They formed a loosely organized steering committee that included individuals from non-profits, local government, and the business and finance communities, as well as representatives from state and national credit union organizations. For the next few years, this group struggled with both funding and leadership challenges. In 2009, the steering committee secured grant funding for a sixmonth, part-time project manager and gathered over 700 survey responses from neighborhood residents. With these two tasks completed, the movement to bring the credit union to Kalamazoo had both leadership and the baseline information it would need to both begin to formulate a business plan and to convince funders to support the project. We describe Community Promise as a four-legged stool because it can only succeed if all four of its legs are strong. Our first and most important leg is our human capital. Community Promise is blessed with a wealth of human capital, starting with its management team. We have a dedicated and diverse group of talented individuals who guide the project, and who have agreed to serve as the Community Promise Board of Directors once the credit union opens for business. We also have individuals who have agreed to serve on the Supervisory and Credit Committees, which are mandatory committees for all credit unions, who work with the team now. We also have volunteers who work with us on fundraising, community relations, and facility design. Community Promise also has a broad and growing network of community partners who support us in various ways. Some of our partners have made specific commitments of support, and their
formal commitments that pertain directly to member services, technical support, or education are described in the letters that are also appended. The second leg is our loan pool. We have secured over $925,000 in pledges from individuals, businesses, banks, credit unions, non-profits and faith-based organizations, all of whom have agreed to invest in CDs or savings accounts that Community Promise will use to fund its initial loan pool. The amount pledged to date is far more than adequate to meet our needs. The third leg is our main office, which will be located at 1313 Portage Street in the heart of the Edison neighborhood. The building was rehabilitated and made ready for tenant occupancy in 2011 with Community Development Block Grant funds provided through the City of Kalamazoo to Downtown Tomorrow, Inc., the buildings owner. DTIs support for Community Promise also includes a five-year lease commitment at rent that is far below rate. Community Promise has secured funding commitments, particularly from the Irving S. Gilmore Foundation, that will allow us to complete the buildout of the space we will occupy. The fourth leg is operating capital, the funding that we will need to run the credit union until we grow to the point where we are self-sustaining. This leg has proved to be the most challenging, but in the past nine months, we have had some significant successes that have provided us with commitments that are more than adequate to support our business operations. With four strong legs, Community Promise now has the strong base that it will need to bring fair, affordable and accessible financial services to those Kalamazoo residents who need them.
PROJECT HISTORY
The organizing campaign for Community Promise occurred in two phases. The first phase was led by the Steering Committee from 2006-2008. This informal group was organized by a small number of individuals interested in neighborhood economic development who had attended a conference on community wealth-building strategies held at the W. K. Kellogg Foundation in the neighboring community of Battle Creek. The featured speaker at this event was Clifford Rosenthal, President and CEO of the National Federation of Community Development Credit Unions. Inspired by Mr. Rosenthals presentation, this group brought together community leaders from non-profits, neighborhood groups, and local credit unions to consider how to best address the challenges created for working class families. The observed trend was that traditional banks and credit unions were leaving Kalamazoos core neighborhoods and predatory financial institutions (payday lenders, rent-to-own stores, tax advance agencies, check cashing and remittance services, and pawn shops) moved in to fill the void. (This trend has accelerated during the current economic downturn, which has hit Michigan particularly hard.) The Steering Committee researched the issue, and concluded that there was a real need for a credit union that would focus on the needs of those residents of Kalamazoos low-income neighborhoods who either had no relationship with or else made minimal use of traditional banks and credit unions. They contacted representatives of the National Credit Union Administration to learn about the chartering process. They became aware of the benefits that flow from having the low-income designation, and they applied for and received a preliminary low-income designation from the NCUA under the name Kalamazoo
Community Development Federal Credit Union. The Steering Committee joined the National Federation of Community Development Credit Unions, and it also partnered with the Michigan Credit Union League. Both of these organizations remain active partners, and have provided us with training and materials at little or no cost. By late 2008, the Steering Committee itself was losing both energy and members. Those who remained had come to realize that the complexity of chartering a new credit union required an experienced leader, someone who could build a base of support for the project with key stakeholders, recruit new team members, particularly those with backgrounds in business and finance, and secure the funding commitments the credit union would need to get its charter. Following a lengthy selection process, Lee Kirk was hired on a contractual basis in February, 2009 to take over leadership of the project. Mr. Kirk recruited several new team members, including J. Michael Ross, who volunteered his 20 plus years of credit union management experience as a volunteer. By October, 2009, the transition in overall project leadership was complete. The new team, consisting of five members of the original Steering Committee and 12 new members, committed itself to overseeing the project through the completion of the chartering process. Of these 17 individuals, 11 agreed to serve on the credit unions board once the charter was received, and the others agreed to serve on committees, including the Supervisory and Credit Committees that the credit union would need to have in place when it opened. Mike Ross, a credit union veteran with over 20 years of management experience, was selected as CEO designate in 2010 following a competitive selection process. As with any volunteer organization, there has been some turnover, but the majority of the staff and
volunteers, as well as prospective board and committee members, have been with the project since 2009. Finding funding to move the project ahead was essential, and the Kalamazoo community has been generous in its support of the project. The initial funding for Mr. Kirks work was secured through a $20,000 investment from the Local Initiatives Support Corporation (LISC) and a $4,000 investment from the W. E. Upjohn Institute for Employment Research received in the winter of 2009. In the fall of 2009, the project was buoyed by a $40,000 grant from the Kalamazoo Community Foundation, followed by a $30,000 investment from the Irving S. Gilmore Foundation. With this funding in hand, Mr. Rosss services as a credit union consultant were retained. The new team recognized that it would need a strong base of community partners in order to reach the target families and individuals it wanted to serve and to secure the necessary funding support. While the team members themselves brought a wealth of connections to the project, more relationships were needed, and therefore the team conducted outreach efforts focusing on faith-based organizations (non-profits and neighborhood groups, health care providers, the downtown business community, and local educational institutions. In addition, particular attention was paid to Kalamazoos growing Hispanic population. Relationships with the local credit union and banking community were strengthened during this process, and Kellogg Community FCU agreed to provide Community Promise with full support for its IT and business operations. This relationship should be particularly valuable for Community Promise, since KCFCU presently does this work for Inspire Community Development, our sister credit union in the nearby city of
Battle Creek. This diverse and expanding community web has already created a synergy surrounding Community Promise that continues to grow. The new team recognized that the credit union needed a name that captured the mission of community development credit unions while at the same time branding the credit union as unique to Kalamazoo. Informal surveys were taken at community events and businesses. After several months of discussion, the Board unanimously agreed that Community Promise achieved both objectives. Community is a word with deep roots in the credit union movement; a reminder that credit unions bring people together, that they build both wealth and a sense of community for their members. This environment of cooperation and community is the type of environment Community Promise will create for its members. The word Promise has special significance for Kalamazoo because the city is home to The Kalamazoo Promise. This nationally renowned program, known locally simply as The Promise, is a pledge by a group of anonymous donors to pay up to 100 percent of tuition and mandatory fees at any of Michigans public colleges or universities for graduates of Kalamazoo's public high schools. This gift, which is endowed in perpetuity, was designed to transform both Kalamazoo Public Schools (KPS) and the larger community. Its goal is not only to encourage students to attend college, but rather to help create tomorrows workforce, encourage new businesses to come here and current ones to grow here, and to make Kalamazoo a community of choice. An important part of Community Promises mission is providing ongoing financial education to its members. We will support The Kalamazoo Promise by making members aware of the importance of saving for college. Too many Kalamazoo families do not
understand that there are many other costs associated with attending college besides tuition, such as room, board, and books, which the Promise does not cover. We will encourage families to begin saving for their childrens education as soon as possible, and we will provide products that both encourage and reward sound college saving habits. In the long term, we plan on taking financial literacy directly into KPS classrooms to ensure that students themselves understand the importance of saving and financial planning. The biggest challenge for Community Promise has been securing gifts and pledges to cover the costs of constructing and equipping its main office, and to fund its operating expenses until it became self-sustaining. In the past year, the project has secured significant gifts from local funders. Grants awarded in 2010 and 2011 totaling $138,000 from the Irving S. Gilmore Foundation have been awarded to our fiduciary, Guardian Finance & Advocacy Services. These two gifts have provided Community Promise with funding that is more than adequate to complete the buildout of its main office at 1313 Portage Street, and to purchase furniture and office equipment. The campaign to secure pledges to support our capital needs surpassed its goal when we received a $150,000 pledge from the Local Initiatives Support Corporation to support operating costs. Community Promise has also benefitted from Downtown Tomorrow, Inc. (DTI), the non-profit arm of Kalamazoos downtown community. The downtown community recognizes that a strong downtown needs strong neighborhoods, and it has a long-standing engagement with the Edison neighborhood. DTI secured $250,000 in Community Block Development Grant funds that were used to renovate the property where Community Promise will have its main office. DTI has also agreed to rent office space to Community
Promise at a far below market rate: $2,000 total in year one, $4,000 total in year two, and $6,000 total in years three through five. With a strong community base of support, with volunteers and staff committed to do the work, with funding for the construction of its building secured, with a generous rental agreement, and with funding commitments adequate to fund its operating expenses, Community Promise is ready to bring much needed fair and affordable financial services to Kalamazoo.
COMMUNITY PROFILE
Kalamazoo: A City of Contrasts Because it will focus its services on the underserved, Community Promise will focus much of this Community Profile on data that underscores the social and economic challenges that many Kalamazoo residents face, all of which underscore the need for the types of services that the credit union will provide both to its members and to the larger community. While there is no way to mask the data on poverty, poor health outcomes, and other indicia of poverty and despair, all of which are discussed later in this section, Kalamazoo has many assets, both social and financial, and it is one of the most generous cities in the country. Kalamazoos long philanthropic tradition first came to national attention in 2005 with the announcement of the Kalamazoo Promise. This program, funded in perpetuity by anonymous local donors, guarantees full tuition at any Michigan public university or college for any students who attends Kalamazoo Public Schools from kindergarten through high school graduation. The benefit is awarded on a sliding scale, with students who do not attend a Kalamazoo Public High School until ninth grade qualifying for payment of 65% of
tuition upon graduation. The Promise has spurred a growing number of communities around the country, from small towns to larger cities such as Pittsburgh and Denver, to develop similar programs. Many Kalamazoo families do not appreciate the significance of the fact that Promise pays only tuition, and does not cover living expenses, books, or any of the other costs typically incurred by college students. Savings for college still matters, and is still challenging, particularly for working families whose children might want to attend college in another city. Community Promise will work with its members with school age children to prepare them to take the fullest possible advantage of the Promise. Kalamazoo is home to Western Michigan University, a dynamic, student-centered research university with an enrollment of 25,000. The Carnegie Foundation for the Advancement of Teaching places WMU among the 76 public institutions in the nation designated as research universities with high research activity. Last year, another group of anonymous local donors gave the university a $100 million gift to fund a new medical school. This gift was the largest one ever received by an American public university. Community Promise has developed a relationship with Westerns business school, and hope to have an upper level or graduate business students working as interns once the credit union opens Kalamazoo is also home to Kalamazoo College. As a highly selective, nationally renowned, and internationally oriented four-year college of arts and sciences, Kalamazoo College has developed a tradition of excellence in the fulfillment of this mission. It is located in Kalamazoo, Michigan, and enrolls 1,348 students from 40 states and 25 countries. For more than 30 years, Kalamazoo College has offered a nationally-recognized curriculum called the Kalamazoo Plan, an undergraduate experience that combines rigorous liberal
arts scholarship and opportunities for experiential education in both domestic and international settings. The College has received $35 million from a local alumnus to create the Stryker Institute for Social Justice Leadership. Community Promise has relationships with the colleges Business and Economics Department and with its highly regarded Service-Learning program, which has provided the project with an outstanding intern who focuses on media relations. The generosity of this community, and the willingness of its citizens to come together to solve problems, that has provided Community Promise with the support needed to support its charter application. This spirit of engagement and investment is what will assure Community Promises long-term success. Analysis of Market Conditions and the Need for Credit Union Services Residents of the City of Kalamazoo have access to many financial Institution options, including local, regional, and national banks, credit unions, payday loans, rent-to-own stores, money wiring services, and check cashing facilities. These institutions offer a wide variety of services to residents including checking, savings, check cashing, short-term payday loans, credit cards, CDs, IRAs, commercial banking, personal loans, mortgages, home equity loans, on-line banking, ATMs and telephone banking. These services are not equitably distributed, but are instead concentrated almost exclusively in downtown Kalamazoo and on busy thoroughfares in the citys more affluent neighborhoods. Banks and credit unions have almost no presence in most of the Kalamazoo neighborhoods with high poverty rates. The Edison Neighborhood, Kalamazoos largest neighborhood with a population of approximately 9,000 people, no longer has any traditional financial institutions such as banks or credit unions, the last one having left in
the mid 1990s. This discrepancy has contributed to a proliferation of payday loan, check cashing, rent-to-own, and money-wiring services, all of which impose high charges for services that are provided free or at a minimal charge to customers of banks and credit unions. The Northside neighborhood, where Community Promise will have outreach sites, has a single credit union that is located at the southwest corner of the neighborhood on a one-way street, with only limited engagement in the neighborhood. The Eastside neighborhood, another neighborhood with a large population of low-income residents, has no traditional financial institutions. Anecdotal evidence strongly suggests that residents of all of these neighborhoods may seek loans not only from the growing number of payday lenders, but also through informal and sometimes dangerous channels. In addition, the limited financial literacy of many Kalamazoo residents, like those in other inner-city neighborhoods throughout the country, discourages them from attempting to open accounts at traditional financial institutions. Those who have such accounts too often use them use them only for electronic deposits of paychecks and government checks. While there are financial literacy and similar educational programs available through area non-profits and churches, these tend to be in-house programs. Michigans downward economic spiral has and will continue to increase the number of individuals and families who are in acute financial distress. All of these factors leave Kalamazoo residents vulnerable to various types of predatory financial service entities. State law allows interest rates and fees that can be as high as 400 percent at the payday loan and check cashing services which populate the landscape in many neighborhoods. In addition, fees which seem small for check cashing services and other simple transactions can add up to a substantial expense for individuals struggling in
poverty. Moreover, the inability to acquire credit makes many low-income residents vulnerable to the high costs of rent-to-own outlets. Prior history of poor credit ratings, lack of financial understanding, language barriers (particularly in the Hispanic community), lack of identification documents, and suspicion of large financial institutions emerge as substantial barriers to their participation in mainstream processes.
Economic Analysis of the City of Kalamazoo This analysis of Kalamazoos changing economy and demographics is based on data provided by economic researchers at the W. E. Upjohn Institute for Employment Research, a nationally recognized institution based in Kalamazoo. The City of Kalamazoo is city in transition. While still dependent to a considerable extent upon its manufacturing base, the city and its surrounding metropolitan area have lost thousands of well-paying manufacturing jobs in the past 15 years, including approximately 5,000 automobile jobs, and over 20,000 jobs in the paper industry. In 2009 alone, the Kalamazoo metropolitan area lost 3,000 manufacturing jobs and more than 6,100 jobs in total. At the same time, the areas healthcare providers have added some jobs; however, without substantial retraining, most of the unemployed production workers will not have the technical or soft skills necessary for them to make the jump to the healthcare field or other more promising occupations. For many of the citys residents, particularly in the core neighborhoods Community Promise is targeting, this transition has not been an easy one. The citys unemployment rate reached 16.9% in 2010, and the city has seen a significant increase in the number of individuals and children falling below the poverty level. For some, the poor local economy has forced them to move elsewhere, while for others the citys changing economic profile has persuaded them to move to more suburban locations outside the city. As a result, the city is losing population. The analysis below is based on data collected by the U.S. Census from two different time periods: 2000, the year of the most recent completed decimal census, and 2010 data
which were recently released by the U.S. Census in its American Community Survey (ACS) program. During the period from 2000 to 2010, the city population has declined by 3.5 percent, or more than 2,200 individuals. Likewise, the number of employed residents living in the city fell by 12.1 percent, and the number of unemployed residents rose by more than 25 percent. Not surprisingly, the citys unemployment rate rose to 16.9 percent from 12.5 percent in 2000. The industrial profile of the city workers has changed during the nine-year period, with employment reductions reported across all industries. Manufacturing employment has dropped by nearly 25 percent. Even in the private education and healthcare sector, employment dropped by 2.8 percent. In the environment of job loss, it is not surprising that the number of individuals and children struggling in poverty has increased during the period. In 2000, less than a quarter of the citys residents lived in poverty, but by 2010 it had reached 38.8 percent of the citys population, with the number of children growing up in poverty in the city rising to over 52 percent. Finally, in 2010, more than 7,100 households earned less than $15,000, or nearly over 25 percent of the citys households. Even though the Kalamazoo region continues to have Michigans most vibrant economy, overall economic conditions have deteriorated substantially in the greater Kalamazoo region since 2007. As mentioned above, employers have cut more than 6,100 jobs from their payrolls in 2009 in the Kalamazoo-Portage MSA (Kalamazoo and Van Buren counties). The MSAs unemployment rate climbed to 10.7 percent in 2010 from 5.6 percent in 2007. In the City of Kalamazoo, the estimated number of persons unemployed rose by
85 percent from 2007 to 2010, and the unemployment rate has hovered just 14 percent in 2009 and 2010. Health data provide additional and sobering insight into Kalamazoos growing poverty population. The unmet need for accessible, affordable and high quality primary health care services in Kalamazoo County continues to rise. With 34,905 (14 percent) Medicaid recipients in the county and another 25,440 uninsured residents, there are more than 60,000 county residents who are either uninsured or underinsured. To compound matters, other serious health challenges the community faces include patients with multiple, complex health needs for specialty care, homelessness, high rates of infant mortality (particularly among African American infants) and patients with significant mental health and substance abuse concerns. The City of Kalamazoo is home to the majority of the countys low-income population. In spite of having many lovely and affluent neighborhoods, Kalamazoo has the 5th highest poverty rate (38.8percent in 2010) among the nations cities with 65,000 or more residents (2010). Joblessness and economic circumstances dramatically increase the ranks of the uninsured. Medicaid births constitute 60percent of all births in the city while 53.1 percent of births are to unwed mothers and 13.8 percent are to teens age 15-19. Thirty-one percent (31.9percent) of births in the city occur with less than adequate prenatal care. In 2004, Michigan had the second-worst infant mortality rate in the country and Kalamazoo County had the second-worst in the State of Michigan. Data from 2009, the most recent available shows that Infant mortality in the county overall is 9.5 deaths per 1,000 live births, but the rate for black infants is 20.8 per 1,000 live births.
Unpaid medical bills continue to be the leading cause of bankruptcy filings both locally here in Kalamazoo and nationally as well. The collaborative relationship between CPFCU and the Family Health Center, which provides health care services to many residents of Kalamazoos core neighborhoods, is based in large part on the Family Health Centers recognition that the physical health of its patients and their families is directly related to their fiscal health, and that the consequences of financial stress often have impacts on individuals and families that can be profound and long-lasting. The importance of the link between physical and fiscal health is further recognized by the support that CPFCU received from Bronson Healthcare Group during the chartering process. Bronson runs southwest Michigans largest hospital, which is located on the boundary between the Edison neighborhood and downtown Kalamazoo. Bronson Hospital has a long-standing commitment to the neighborhood, and provided funding for Community Promises chartering phase.
Economic Profile of City of Kalamazoo Residents 2000 2010 % chg Population 77,092 74,382 -3.5% Population 16 years and over Civilian labor force Employed Unemployed Unemployment Rate Industry Employment Construction Manufacturing Wholesale trade Retail trade Information Finance and insurance, and real estate Professional, scientific, and management Educational services, and health care Arts, entertainment, and accommodation and food services Poverty Rates All People Related Children Under 18 Years 62,928 60,700 -3.5% 42,428 39,301 -7.4% 37,141 32,656 -12.1% 5,287 6,645 25.7% 12.5% 16.9% 35.3%
1,506 876 5,788 4,346 840 594 4,416 3,822 858 277 2,062 1,499 2,756 2,552 10,334 10,620 4,841 5,363
-41.8% -24.9% -29.3% -13.5% -67.7% -27.3% -7.4% 2.8% 10.8%
24.3% 26.0%
38.8% 59.7% 52.2% 100.8%
Household Income in the City Total households Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Median household income (dollars) Mean household income (dollars) U.S Census
2010 Number Percent 28,181 100.0% 3,742 13.3% 3,448 12.2% 4,199 14.9% 4,083 14.5% 4,405 15.6% 3,942 14.0% 1,678 6.0% 1,628 5.8% 633 2.2% 423 1.5% 31,421 47,266
TARGET NEIGHBORHOOD PROFILES

The Edison Neighborhood Kalamazoos Edison neighborhood is located just south and east of the downtown area. Edison is one of the largest of the citys 21 identified neighborhoods, in terms of both geographic size and population. It is home to the largest Hispanic community in Kalamazoo County, and is the most racially diverse neighborhood in the city. In recent years, Edison has also accommodated many new residents seeking alternative lifestyles. Once a premiere working class neighborhood, the area declined as manufacturing jobs disappeared. By the late 1980s Edison had become Kalamazoos poorest and most crimeridden neighborhood. Housing values had plummeted and businesses on once-thriving Portage Street had closed or been supplanted by adult-oriented businesses. Prostitution and drug-related crime were significant problems. Several neighborhood initiatives have resulted in the purchase of under-used and decaying buildings as well as the removal of a major adult night club and other associated businesses. The credit union plans to place its permanent main office in a portion of a former adult bookstore on Portage Street in what is the commercial heart of Edison Slowly, reinvestment in the neighborhood has taken place, and public amenities (such as parks and the branch library) have been revitalized. Crime has decreased, and many homes have been rehabilitated. The Washington Square area, where CPFCU will be located, has seen significant investment in the past few years. One and two bedroom apartments have been built above storefronts on Portage Street. Their moderate rents have made them attractive to individuals and young couples who work downtown or at Bronson Hospital. There are waiting lists for the complete units, and other similar apartment projects are
coming on line. In addition, 24 custom built single family homes are being constructed just a couple of blocks from where CPFCU will have its home. This development is the first new subdivision in Kalamazoo in over 30 years. The Edison neighborhood, however, remains one of the poorest in the city, and the downturn in the economy and a lack of good paying jobs still impacts residents. The well organized neighborhood association, the Hispanic American Council, and many engaged non-profits and churches do, however, provide a strong framework to keep things moving forward. The neighborhood remains challenged, however, and its population dropped from 8,196 in 2000 to 5,048 in 2010. 2 per cent of the neighborhoods residents are African-American, and 15 per cent are Hispanic. It is expected that the percentage of African-American and particularly Hispanic residents in Edison will continue to increase in this decade. The Edison Neighborhood does not have a commercial bank, a credit union, a mortgage or a general finance company. Residents must travel outside the
neighborhood to access any banking services or rely on the predatory financial services that are available at pay-day lenders, check cashing services, seasonal tax advance storefront businesses, pawn shops, or rent to own facilities that are a growing presence in and around Edison.
With an average family size and a percentage of married-couple families with children that are both somewhat larger than the city as a whole, the Edison neighborhood is home to a high percentage of pre-school and school-age children. A high percentage of single mother households coupled with high poverty levels in the Edison neighborhood indicates that the vast majority of the neighborhoods children are economically disadvantaged. Indeed, over 95 per cent of students at the neighborhoods three public elementary schools qualify for free and reduced lunch. Edison residents also have fewer years of formal schooling than the population of the city as a whole. As a university city, Kalamazoo has a high percentage of persons who have attained a bachelors degree or higher compared to most other major cities in Michigan. Edison, however, has significantly fewer residents with college degrees. Edison is a neighborhood in transition. While great strides have been made, the neighborhood still is impacted by crime, poverty, and a weak economy. Therefore, it is paramount that the efforts to revitalize the neighborhood continue. The proposed community development credit union is an essential compliment to all of the revitalization activities that are proceeding for the neighborhood. The Northside Neighborhood
Community Promise will provide outreach services non-cash transactions and educational programs, in Kalamazoos Northside neighborhood through its partnerships with the Douglass Community Association (through the Kalamazoo Public Library branch located there) and the Family Health Center. The Northside has long been the home of many African-American residents and the great majority of African-American churches. Like Edison and the citys other core neighborhoods, the Northsides population has dropped significantly since 2000, falling from 5,776
Western Michigan University 32 Community Promise Federal Credit Union to 3,225 residents in 2010. The neighborhood continues to be predominantly African-American. Our long-term vision for the Northside includes opening a second branch, there. We have had very preliminary discussions about locating that branch on or near the Family Health Centers expanding campus, which is by far the busiest business in the neighborhood.
The Northside has seen new retail and service businesses open in the past decade, but these have all been located in the southwest corner of the neighborhood, and are adjacent to downtown Kalamazoo. Most of these businesses are either located on two one-way streets that are the Citys main north/south roadways, or are else are in redeveloped land that is generally perceived to be a part of the citys downtown redevelopment. While there are some storefront businesses that target neighborhood residents, most of the businesses located at the periphery of the Northside are generally
perceived as targeting those passing through the Northside rather than on neighborhood residents. The neighborhoods churches are well-established and stable, and provide the neighborhood with much of its vitality. The expansion of the Family Health Center, which is more than doubling the size of its campus, will also impact the neighborhood and should create new employment opportunities for neighborhood residents. The neighborhood has gained visibility with the opening of two bicycle trails, one of which goes north and west some 24 miles to the shore of Lake Michigan. The other trail, which is particularly popular with neighborhood residents, goes north from downtown along the Kalamazoo River. Our long-term vision includes adding a branch office on the Northside. Until that happens, we will provide member enrollment, non-cash services, and educational programs and member enrollment at both the Family Health Center on West Paterson Street and at Alma Powell Branch of the Kalamazoo Public Library, located at the Douglass Community Association.
BASELINE ASSUMPTIONS, GOALS, AND OBJECITIVES

Field of Membership The initial field of membership for Community Promise, as approved by the NCUA, provides that membership is open to the following: Persons who live in the City of Kalamazoo, Michigan; persons who work, worship, attend school, or participate in associations headquartered in the City of Kalamazoo, Michigan; persons participating in programs to alleviate poverty or distress which are located in the City of Kalamazoo, Michigan; incorporated and unincorporated organizations located in the City of Kalamazoo, Michigan, or maintaining a facility in
the City of Kalamazoo, Michigan; and also included are spouses of persons who died while within the field of membership of this credit union, employees of this credit union, volunteers in the community; members of their immediate family or household, and organizations of such persons. Low Income Credit Union Designation Community Promise has received preliminary designation as a low-income credit union from the National Credit Union Administration. A copy of the letter granting this designation is included in the Miscellaneous Supporting Documents folder. Membership Goals Our projections for membership growth show that we will open 35 accounts per month in our first year, for a total of 420 members. We anticipate that overall membership growth will be steady as we build capacity and expand our community outreach efforts. We project that there will be a five per cent increase in the number of new accounts opened monthly in Year 2, and that this trend of overall membership growth will continue in subsequent years. Membership growth will depend on Community Promises ability to attract and retain members who, for a variety of reasons, do not participate with mainstream financial institutions. Community Promise recognizes that many potential members, particularly those in the Hispanic Community, do not have a valid Social Security Number. All of our deposit material will clearly state that natural person members who do not have a valid SSN must forgo the receipt of dividends until they have received an Individual Tax
Identification Number (ITIN) from the Internal Revenue Service (IRS). Community Promise will work with such members to apply to the IRS for an ITIN (Form W-7). Major Objectives The following objectives represent the major goals of Community Promise during its first five years of operation: Providing a safe, low-cost alternative to the many predatory financial service providers that currently operate in Kalamazoos most vulnerable neighborhoods. Weaning members and potential members from dependence on payday lenders, check cashing services, used car dealers, pawn shops, and rent-to-own establishments will be a key to our long-term success. Working with our many faith-based and non-profit partners, as well as other community organizations, to grow our membership and make those who need our services aware of how Community Promise can help them. Achieving loan service coverage in Kalamazoos core neighborhoods, with our main initial focus on our home base, the Edison neighborhood, the largest low-income neighborhood in Kalamazoo. We will provide educational programs and member enrollment services at outreach locations in the Northside neighborhood in cooperation with two key community partners, the Family Health Center and the Douglass Community Association, both of whom provide services both to Northside residents and to potential credit union members throughout the Kalamazoo community.
Working with community partners, including the Hispanic American Council, to engage Kalamazoos Hispanic community and encourage them to utilize the many services that the credit union will provide.
Increasing financial literacy among both members and in the larger community. Working with Kalamazoo Public Schools and other community partners to help member families save for their childrens college education. Kalamazoo is blessed to be the home of the Kalamazoo Promise, which pays up to 100 percent of tuition and mandatory fees at all Michigan colleges for graduates for any Kalamazoo Public high school. However, too many KPS graduates cannot take full advantage of the Kalamazoo Promise because they do not have savings to cover room, board, books, and other costs associated with attending college.
Meeting our asset growth goals. Attaining an overall net worth greater than six per cent at the end of three years. Our three-year target for outstanding loans to total assets is 35-45 per cent. Because much of our loan portfolio will consist of six- to nine-month personal and share-secured loans, this ratio is lower than comparable peer data.
Seek CDFI certification from the U. S. Department of Treasury as soon as possible, and aggressively pursue funding opportunities available through this program to build our capital.
Pursue grant opportunities through the NCUA and local funders. Taking full advantage of the educational programs and support services offered by the Michigan Credit Union League.
Attain the highest possible customer service quality for borrowers, depositors, grantors and partnering organizations. At least one staff member will be bilingual, since our goal is to remove linguistic barriers to providing secure financial services and make Community Promise a welcoming environment.
Maintain a diverse, inclusive, progressive, efficient and well-managed organization. Partner with local financial service providers, primarily credit unions, to secure support services and additional funding.
PRODUCTS & SERVICES

Overview In its first year, Community Promise will focus on membership growth, basic savings and lending products, and money transfers. Community Promise anticipates that a significant portion of time will be devoted to wealth management, financial education, and credit repair. Our partners will be critical in helping Community Promise overcome the general mistrust of traditional financial institutions found both within the low to moderate income families and individuals as well as in the Hispanic community. Products Community Promise will initially provide its members with these financial products Money orders Check cashing Share accounts ACH (direct deposit) Automobile loans Personal and share-secured loans
Prepaid cash cards
Money orders are a particularly important service for Community Promise members because many of them rely on money orders to pay monthly bills. We will provide fairly priced money orders to our members. Community Promise believes that it is critical to offer popular financial products cost-effectively so as to attract new members, and expects to offset these costs through the margin on new loans and deposits. Services Once it is established, Community Promise will provide free comprehensive financial education programs through regular periodic and offerings as follows: Credit and budget counseling Financial literacy education Wealth management education
Many of these services will be provided in conjunction with our community partners, particularly those who focus their services on low-to-moderate working class families and other constituencies that are historically underbanked and underserved. We will focus on relationship-based educational programs because we believe that by building trusting and consistent relationships with our members, we will retain their business and help them develop sound financial practices. Within three months of opening, we will be providing membership enrollment and non cash services such as loan applications at our three outreach sites. One of the most exciting initiatives we will offer is financial education in the classrooms of Kalamazoo Public Schools. Preliminary discussions have already been held with the Superintendent and his staff, who recognize that financial literacy has the potential to help
students learn to save, and illustrate to them how math is applied in the real world. Working with students is also an excellent way to reach their parents and assist them with financial literacy as well. Our preliminary plan is to start offering a program in the fifth grade in elementary schools located in the Edison neighborhood in the spring of 2013, with the service expanding over time to include more grades and more schools. Several of our credit union and bank partners have indicated a strong interest in working with us on this program.
OPERATIONS
Physical Facilities Since the earliest days of the project, the team advocating for a new credit union in the Edison neighborhood envisioned that its main office would be in the 1300 block of Portage Street. For many years, this block was home to several adult businesses that were blighted not only that block, but on the entire Edison neighborhood. The area immediately surrounding this block is known as Washington Square, and was for many years the commercial heart of Edison. Community Promise will occupy part of a 100 year old building that most recently housed an adult bookstore. This site is identified by the green dot on the Edison neighborhood map. Both the Edison Neighborhood, Downtown Kalamazoo, Inc. (DKI), and Downtown Tomorrow, Inc (DTI)., DKIs non-profit arm and the owner of the building, believe that Community Promise will spur interest in filling the remainder of the storefronts in the building, and will help revive the entire Washington Square commercial district. DTIs commitment to Community Promise and to Edison can be seen in the Letter of Intent included as a file in the Miscellaneous Documents folder. Under this agreement, our rent will be far below market rate.
Downtown Tomorrow, Inc. received $250,000 in Community Development Block Grant funds in 2011 which allow it to renovate and whitebox the entire building that includes our future home. Grants received in 2010 and 2011 from the Irving S, Gilmore Foundation totaling $138,000 will we provide funding that is more than sufficient to meet the costs of completing the buildout and providing the furnishings that Community Promise will need beyond what has already been donated to us. These funds are being held by our fiduciary, Guardian Finance & Advocacy Services. This documentation is included in the grant, gift, and investment commitments that are included with this application. We have worked with a local architect to design our space, and have secured cost estimates for our buildout. Included in our application are our construction cost estimates, a schedule of the equipment and furniture we have received through donations and letters from the donors, a listing of the estimated cost of equipment we will need to purchase, and a letter of intent to lease the space signed by our landlord. As soon as our operating capacity permits, which we estimate will be three months after we open, regular outreach services will be provided at least once per month on the Northside of Kalamazoo at both the Family Health Centers main office (the purple dot on the Northside map) and at the library branch at the Douglass Community Center (the green dot on the Northside map). When we first open, we also plan on having regularly scheduled outreach and educational programs at least once a month at the Hispanic American Council (the purple dot on the Edison map). Computers, Record Keeping and Back Office Support Community Promise will work with our mentor, Kellogg Community Federal Credit Union, to handle back office work, computing, and record-keeping until we are able to set
up and sustain our own systems. We will be provided with software and operational support, along with terminals and a fire wall protected VPN connection to access mainframes. This will provide Community Promise with a live, real-time connection to loan and deposit servicing records. KCFCUs relation with Inspire Community development Federal credit Union in Battle Creek will provide it with a good understanding of Community Promises needs, and there have already been several meetings held with KCFCU executive and IT staff on these technical issues. We have attached our agreements with KCFCU for technical assistance and back-up staffing, as well as a letter from Fiserv describing the systems we will be using. Staffing and Hours The initial office hours for the Edison branch will be Tuesday and Thursday from 9:00 a.m. until 5:00 p.m., and on Saturday from 9:00 a.m. until 1:00 p.m. Staff in the office during these hours will include the CEO, a branch manager, and a member service representative. Volunteers as well as board and committee members will enroll members at outreach locations, and will conduct educational programs. Additional staff, services, and outreach activities will be added as membership growth demands and funding permits. We have two grant applications pending and one that will be submitted soon that will, if awarded, allow us to broaden our outreach activities without incurring additional expenses. All volunteers and team members will receive training on Security, Privacy, TIS, BSA, CIP, OFAC and FINCEN.
MARKETING
Marketing Efforts to Date
One of the challenges that any new venture faces in this age of transition in old media and the fluid world of new media is getting the word out to the target audience. Its message must be conveyed accurately, in a timely manner, and through content providers that provide the best opportunities for success. For a new credit union, particularly a Community Development Credit Union with a low-income designation, marketing can be a challenge because of the diverse constituencies that must not just be reached, but also engaged and encouraged to join. Attention must also be paid to funders and other supporters as well, since the credit unions ability to grow and thrive will depend on the broadest possible community support. In many ways, Community Promise has been marketing itself to the community since early 2010, when the current team came together. We have a long and growing list of community partners, excellent support from the Kalamazoo philanthropic community, and commitments from a variety or organizations who will provide us with direct support and/or access to potential members. We sent out our first newsletter using Constant Contact in January, 2012, and we will use this platform to keep the community updated as we move towards charter approval and opening. Marketing Before We Open Community Promises formal marketing efforts will begin before we open. Staff will develop a tri-fold series of brochures and smaller, two-sided cards that will provide basic information about member services, benefits, hours, and incentives, as well as required disclosures. We already have gathered brochures from other similar credit unions that we will use to develop ideas. We also have Spanish language materials from similar credit unions, and we will have brochures that are specific to the needs of the Hispanic
community, and not just direct translations of our English-language materials. We will work with the Hispanic American Council, one of our key partners, on preparing materials that will best address the needs and concerns of Kalamazoos Hispanic Community. We will work with the Council to establish relationships with the areas two Spanish language newspapers. We already have well established relationships with both design professionals and print shops. We will limit costs by printing most of our materials in black and white, using grayscale to enhance overall appearance. Estimated cost is $3,500. We will continue to use our monthly newsletter to keep our community partners and supporters informed. Our media intern from Kalamazoo College will have Community Promise ready to launch on Facebook and Twitter once we open. We will use social media to encourage both members and the greater community to visit our website. We have begun a dialogue with community partners, including the Economics and Marketing Department at Kalamazoo College and the Haworth School of Business at Western Michigan University, about establishing a marketing committee. Community Promise has been actively engaged with OnePlace, a program funded by local foundations that provides a broad array of support services, materials, seminars, and webinars for nonprofits. We will have an advisory marketing committee in place by the time we open. Current team members (Breznau, Crawford, Escamilla, Houston, Kirk and Platte) all have experience in various types of local marketing efforts as well. We also have received coverage from local media, and staff and board will prepare press releases so that we can inform the community of our progress. We will let the
community know once our charter is approved, but our larger marketing and communications will not begin until after we open for business. We will have large printed signs in our windows once the charter is approved announcing that achievement, and we will have a visible sign ready to install once we are ready to open for business. Total cost here is estimated at $1,000. First Quarter We plan to keep our actual opening date relatively low key, with a formal grand opening ceremony three or four after opening. This will allow us to focus on the actual operation of the credit union, and on getting all staff, particularly those who are newly hired, acclimated to the credit union environment. We will not engage in any significant publicity campaigns until just before our grand opening. This event will be heavily publicized through mainstream media, including the local newspaper, key radio stations, and our own communication tools. Staff and Board will make presentations about Community Promise at key community organizations, at service clubs, and at public meetings of governmental bodies, all of which are covered live on local cable channels, and then rebroadcast several more times. Community presentations will be a part of our ongoing marketing effort, but they will be particularly prominent in our first and second quarters. Team members are expected to make the churches, temples, service organizations, and the non-profit boards they serve on aware of the services Community Promise provides. We will ask anyone who joins the credit union for an email address and cell phone number to increase the number of ways we can reach our members, and we will ask how they learned about Community Promise and why they decided to join. We will have a sign-
up list at community events whenever practical so that we can secure email addresses to add to our newsletter subscriber based. We will also ask attendees at these events how they learned about the event, and how they first learned about Community Promise. The newsletter and the website will be our most important communication tools. We will use our newsletter to keep the community informed and engaged. We will members and supporters to visit our website regularly. Our staff is trained on how to update the website and prepare the newsletter, which will significantly reduce the costs. We estimate that these services will cost us no more than $50 month. Second Quarter We believe that our most effective marketing will be done in conjunction with our community partners. Through relationships we have with Kalamazoos two largest interfaith organizations and with faith-based partners, we have access to over 50 congregations. Our partnerships with the Hispanic American Council (HAC), the Edison Neighborhood Association, the Family Health Center (FHC), Kalamazoo Public Library, and the Douglass Community Association (Douglass), we will be able to schedule informational meetings and reach hundreds, if not thousands of potential members. We plan to have outreach events at HAC, FHC, and Douglass on at least a monthly basis starting in the second quarter. These will be publicized through posters and flyers, and through local media. Costs for these events should be minimal, no more than $100 per quarter for printing. Note that this will be an ongoing quarterly expense. We will advertise in the local Spanish Language newspapers for several months, and then assess the effectiveness of this effort. Cost should not exceed $250.
Presentations to non-profits, both staff and boards, will be highlighted during the second quarter as a way of making those organizations that directly serve and work with out target population aware of the services we offer. Third Quarter We plan on advertising on the inside of buses with bilingual signs. This advertising will be targeted to Kalamazoos cold-weather winter months, November through March, when ridership is highest. Sign production should cost $500 for design by our design professionals and production by the bus ad company. Cost is $20 per month per bus. We would advertise in 10 buses, for a cost of $1,000. We would evaluate the effectiveness of these ads, and make a decision on whether to repeat this the following year. By the end of the third quarter, if not sooner, we will be at HAC, FHC, and Douglass at least two times per month. Fourth Quarter We will examine our print materials during the fourth quarter and see if there are items that need to be replaced or modified, and whether there are new print materials that should be added. While we cannot predict the cost for potential revisions or additions, it would be prudent to project a $500 cost here. Fifth Quarter By the beginning of our second year of operation, we will actively engage with the three elementary schools that serve the families that are in our target membership. These schools are Edison, and Washington, both of which are located in the Edison neighborhood,
and El Sol, a bi-lingual school located about one mile from Edison. As is noted elsewhere, Kalamazoo Public Schools have a high poverty rate, particularly in grades 1 5. We will make presentations at school events as a way of engaging families, and we will focus on the importance of saving for college. Print materials for these events should cost no more than $250. This activity could start sooner, depending on how the school year lines up in relation to our marketing schedule. Quarters Six through Eight By the time we have been open for well over a year, we should have a good idea of what works and what doesnt. Our focus will continue to be on staying in touch with current members and reaching out to new ones through our partners, through community events, and through social media. We will make sure that our events and activities receive coverage through local print and electronic media. We do not anticipate incurring any new costs, either one-time or ongoing, during this time period.
Marketing Costs
Item Brochure and Flyers Signs Email and Website Publicity Posters and Flyers Ads in Spanish Language Newspapers Bus Ads Updated Brochures Contingencies Total Date Pre-opening Pre-opening Ongoing Ongoing 2nd Quarter 3rd Quarter 4th Quarter Ongoing Unit Cost $3,500 $1,000 $50/month $100/quarter $250 $1,500 $400 Total Cost $3,500 $1,000 $1,200 $800 $250 $1,500 $400 $2,350 $11,000
GOVERANANCE & ORGANIZATIONAL STRUCTURE

Community Promise will be run by a Board of Directors whose members have diverse backgrounds in financial management and/or community engagement. A veteran credit union manager has already been selected to serve as Community Promises CEO. These individuals will all have passed NCUA background checks prior to the commencement of their service with Community Promise once it opens its doors; indeed, the great majority already has received this clearance. The Supervisory Committee will serve as an internal auditor, and the Credit Committee will oversee loan practices, consider policy exceptions, and make recommendations on loan policy revisions if needed. The Credit Committee will make policy recommendations to the board, and will review loan applications that fall outside guidelines provided to staff, and track overall lending on at least a monthly basis. Both committees will have three members. All resumes are included in a separate folder titled Resumes. Community Promise will provide its services in conjunction with Guardian Finance & Advocacy Services as its non-profit 501(c)(3) partner. Community Promise will perform all of the functions and provide the financial services and products that credit unions typically provide to their members, including financial education and outreach programs. Guardian, who has served as fiduciary for Inspire Community Development FCU in the neighboring city of Battle Creek, will partner with the Community Promise to receive and disburse grants and gifts in accord with donor intent and applicable federal and state regulations. Kellogg Community Federal Credit Union, which provides backroom, IT, and administrative support to Inspire, will serve that same function with Community Promise.
The written agreements between both Guardian and Kellogg Community are separate files in the Miscellaneous Documents folder.
CONTINUITY
The key to sustainability for Community Promise as a regulated and federallyinsured institution is the ability and capacity to generate a consistent annual return on assets. Our long term goal is to have an ROA of 0.5 to one percent ROA. New programs and new product development, loan losses, short-term liquidity borrowing, and/or short-term interest rate mismatches between assets and liabilities could each potentially reduce the credit unions net income. Our target should allow the credit union to survive a simultaneous occurrence of more than one of the above-mentioned events. Another key to long-term sustainability is the ability to keep our credit unions operating expenses at five to seven percent of total assets. Realistically, it could take as long as five years to reach the growth goal targets necessary such that operating expenses fall within this target percentage. Once Community Promise has reached its target size and efficiency, it should be self-sustaining. We anticipate that once this point is reached, operating expenses can keep pace with inflation simply by growing the credit union at a rate equal to the inflation rate. Community Promise will prepare by-laws that address all aspects of credit union governance. Board member terms will be staggered, with specific term lengths for individual members determined when the charter has been approved. We will work with our mentor credit unions to insure that we have back-up personnel support in the event of an emergency or unanticipated absence.
Our point person for training, both for staff and board, will be our Economic Development Specialist, Lynn Storum Asker. Ms. Storum Asker is well known to the Community Promise team, having visited Kalamazoo frequently since 2009. Her assistance will be particularly helpful when we add board and committee members who may not have broad experience in credit union management and oversight. In addition, the Michigan Credit Union League will provide staff and board with training, as is described more fully in the support letter included with this charter application filing. Our membership in the National Federation of Community Development Credit Unions will provide us with access to training and technical support, as well as assistance in securing secondary funding support, as more fully described in the letter from the federation appended to this filing. Finally, our membership with CUNA provides us with a variety of resources for training and technical assistance The technical, IT, and backroom support provided by our mentor, Kellogg Community Federal Credit Union, will naturally strengthen both staff and those board and committee members most directly responsible for financial oversight. KCFCUs current involvement with Inspire, our sister credit union in Battle Creek, has already given it insight to the challenges and opportunities that new community development credit unions with the low-income designation face. Within six months of receiving charter approval, we will establish committees that will focus on outreach and media, both traditional and social. We intend to use these committees as well as our board as a means of nurturing potential board and committee members. We also will continue to work with our community partners, particularly those
in finance, to identify individuals who might be able and willing to lend us their expertise in areas such as financial management and product development. Kalamazoo has a strong tradition of community leadership in non-profits and education, and we are confident that future leaders will emerge to provide Community Promise with the leadership it needs to fulfill its mission. Kalamazoo Public Library has a department with two full-time staff members that provides a variety of support services to non-profits, including seminars, presentations, and webinars on non-profit management. Community Promise staff have already taken advantage of the outstanding programs the library provides. Growth Goals No credit union can meet all the credit and other financial needs of its members, but it is imperative, particularly for any Community Development Credit Union, that it be large enough to carry out visible, effective and persuasive lending to its growing membership base. The minimum target size must also be large enough to be self-sustaining and operationally efficient. Our primary focus during the first year will be raising deposits by educating members on the importance of having a safe, affordable place to deposit their money. We have secured over $935,000 in pledged non-member deposit commitments, a number that is more than adequate to meet our needs. Our deposit growth will be controlled and capped by our capital ratio. With excess deposit pledges, we have a little cushion incase some commitments fall through. Pledges and donations to support our operating costs have also been received. Documentation supporting the funding we have secured,
including grants received and pledged commitments, is included files included in the Miscellaneous Documents folder. Over the past three years, the Community Promise team has worked diligently to build relationships throughout the community. This will allow us to open our doors for business with a strong base, one that will provide us with a variety of means to attract and retain members, and to build and maintain a strong board and attract committee members with the skills we will need on our committees. This strong base will also provide access to a variety of local funding opportunities, including internships funded with outside dollars. We currently have grant applications pending with the Local Initiatives Support Corporation (LISC) for a part-time Americorps intern who will focus on the Hispanic Community, and with Western Michigan Universitys Business School. We also have been invited to apply for a grant to support educational funding from State Farm Insurance, which we expect to file in March when the application process opens. While none of these opportunities are included in our financial projections, they do underscore the fact that Community Promise is well-positioned to attract outside funding that will help it grow and fulfill its mission. CONCLUSION The proposed Community Promise Federal Credit Union has a built a strong team, an ever broadening base of community support, and it has now secured solid financial backing. Once it receives its charter, it will be well positioned to bring the much needed financial and educational services that a Community Development Credit Union with a low0income designation can provide to the under-served residents and families of Kalamazoo.
Community Promise Federal Credit Union Supporters and Partners

Bronson Healthcare Group Bronson Park Clergy Byce & Associates Career Momentum H. P. and Genevieve Connable Fund Derkstudio Douglass Community Association Downtown Kalamazoo, Inc. ECCU (Educational Community Credit Union) Edison Neighborhood Association Family Health Center First Baptist Church First Community Federal Credit Union First Congregational Church First National Bank of Michigan The Irving S. Gilmore Foundation Goodwill Industries of SW Michigan Guardian Finance & Advocacy Services Hispanic American Council ISAAC Jeska Interior Design Kalamazoo College o Economics & Business Dept. o Mary Jane Underwood Stryker Institute for Service-Learning Kalamazoo Community Foundation Kalamazoo Cooperative Housing Kalamazoo Public Library Kalamazoo Public Schools Kellogg Community Federal Credit Union Keystone Community Bank Local Initiatives Support Corporation Michigan Credit Union League n-Dimensional Design NAACP (Metropolitan Kalamazoo Branch) National Credit Union Administration National Federation of Community Development Credit Unions Northside Ministerial Alliance Peoples Food Co-op St. Joseph Catholic Church TCB Enterprises Temple Bnai Israel Vanguard Church W. E. Upjohn Institute for Employment Research
Community Surveys
In 2008 and 2009, the Edison Neighborhood Association led an effort to gather community surveys to determine the level of interest in the proposed credit union, and to get some sense of what types of services residents wanted to see the credit union provide. Steering Committee members, Americorps workers and community volunteers visited churches, schools, neighborhood association meetings, small businesses, non-profit offices, and other venues where they were likely to find the residents who would most benefit from the services the credit union would offer. Most of the surveys were gathered through one-onone interviews with residents of the Edison neighborhood, where the credit union will have its main branch. Others were gathered on the Northside, where the credit union will do outreach, educational programming, and provide non-cash services. In all, 765 individuals filled out at least part of the survey. The results demonstrated that there was both a demand and a need for the services that a credit union could provide to Kalamazoos underserved, low-income neighborhoods. The surveys revealed the following: 672 respondents answered at least some of the questions about services and products. 636 respondents indicated that they would be interested in becoming members 619 respondents said that they would be interested in joining even if the credit union initially offered only basic services, such as loans and savings accounts. 381 respondents said that they would use the cash cashing services. 435 respondents said that they would want to open a checking account
347 respondents said that they would open a savings account when the credit union opened, with the average deposit being $602.
465 respondents indicated that they would make regular deposits, ranging from $5 to $20,000.
269 of the respondents who said they would make regular deposits provided information on the amount of that deposit, with the average deposit being just under $500.
403 respondents said that they would want to apply for a loan at some point, with the average loan amount being $9,600.
53 respondents said they would consider being volunteers at the credit union. 36 respondents said that they would not join the credit union.
The surveys of neighborhood residents were consistent with the hundreds of anecdotal comments we have heard over the past three years throughout the community from elected officials, from priests, from non-profit executives and field workers, from educators, from police officers assigned to Edison and the Northside neighborhoods, from ministers and rabbis, from bankers and credit union CEOs, and from owners of businesses large and small this credit union is very much needed and can have a real impact.
Community Promise Federal Credit Union
1313 Portage Street Kalamazoo, Michigan 49001 Hours: Monday Friday 47p.m. Phone: 269-459-1777 Contact Us
Community Promise Receives Charter

A new credit union is coming to Kalamazoo. Community Promise Federal Credit Union has received its charter from the National Credit Union Administration, and plans on opening in its permanent home in the Edison neighborhood by the end of the year. Community Promise will be a community development credit union. Its target membership will be families and individuals who have little or no relationship with mainstream financial institutions. It will provide an alternative to payday lenders, rent to own stores, and other businesses that charge high fees for basic financial services. Mike Ross, Community Promise's CEO, said the credit union plans to be an integral part of both Edison and the entire community, adding that its mission has already received broad community support.
"Our goal is to change the financial habits and to help the people who want the help, and the community has been tremendously supportive of our plan." said Ross. "We have a special designation as a low-income credit union from the NCUA," Ross added. "This will allow us to grow faster, and pass along those benefits to our members. Edison Neighborhood Association Director Tammy Taylor has been involved in various efforts to bring a credit union to her neighborhood over the past six years, and is the Board Secretary for Community Promise. She is thrilled that Community Promise will soon be opening its doors. "Edison has been without a bank or credit union since the 1990s," Taylor said. "Community Promise will be a huge asset for us because it is our neighborhood, and will be a part of Edison for years to come." Lee Kirk led the team that came together in 2009 to make the dream of bringing a credit union to Edison a reality. "It took us a little while to realize just how difficult it is to open a new credit union even in the best of times," Kirk said, "and these were not the best of times. Luckily, we have had many generous supporters who believed in our mission. Kirk said that the Kalamazoo Community Foundation, the Irving S. Gilmore Foundation, and the Local Initiatives Support Corporation had important funding for the project, adding that it received financial support, donated services, and other types of support from many other businesses, non-profits, churches, and individuals. Kirk singled out Downtown Tomorrow, Inc. (DTI) the credit union's landlord, for special thanks. "DTI has stuck with the project since its earliest days," Kirk noted, "and they agreed to lease terms that will allow us to use our resources to better serve our members." "We are very pleased that Community Promise has received its charter," said DTI Vice President of Planning and Development, Steve Deisler." It's indeed a significant accomplishment - one we felt it was critical to support. We were able to structure a lease agreement that provides Community Promise with an opportunity for long-term success. "Our revitalization efforts have focused on making the space available to a tenant that provides an essential neighborhood service," Deisler added, "and our goal has been met. This is a good day for the Edison neighborhood and Portage Street business corridor, and since Portage is a major artery in to downtown, what's good for Portage Street is good for downtown." Community Promise Board Chair Jim Houston echoed Kirk's comments about the importance of broad community support, noting that Community Promise has received both logistical and financial support from the local banking community, particularly from its mentor credit union, Kellogg Community FCU, as well as Keystone Bank, ECCU, First
Community Federal Credit Union, and First National Bank of Michigan. "We would not be where are today without their support," Houston said Initially, the credit union plans to offer regular shares, club shares, share certificates, unsecured loans, share secured loans, auto loans, money orders, prepaid cash cards, and check cashing from its office at 1313 Portage Street. It will provide non-cash services starting next year at Saint Joseph Catholic Church and on the Northside at the Family Health Center and the Douglass Community Association. Financial literacy and membership education initiatives are top priorities for the credit union, and Community Promise will provide the community with more information on its programs once it has formally opened for business. Michigan Credit Union League CEO David Adams welcomed Community Promise to the MCUL family. "At a time when other financial institutions have pulled back from the area, a credit union is preparing to open its doors to help and serve those who need it most. We applaud this effort and will be there to provide support and advocacy as Community Promise FCU moves forward." NCUA Chair Debbie Matz also welcomed Community Promise, noting that it will provide access to affordable financial services to people who have been left behind by other financial institutions. "As a new charter in a market with few other insured financial institutions, this credit union will be well-positioned to make a significant difference in the local community," Matz said. "I applaud everyone who organized and supported this chartering effort." For more information, contact Lee Kirk at 269-271-9099 or LKirk@CommunityPromiseFCU.org.
Opening celebration is Tuesday for Community Promise Federal Credit Union in Kalamazoo's Edison Neighborhood
By Al Jones | ajones5@mlive.com on February 21, 2013 at 1:00 PM, updated February 21, 2013 at 1:01 PM Community Promise Federal Credit Union is a Community Development Credit Union that has converted space at 1313 Portage St. in the Edison Neighborhood. Its hours are 4 to 7 p.m. Monday through Friday. Al Jones | Gazette File KALAMAZOO, MI -- A grand opening for the Community Promise Federal Credit Union is scheduled for Tuesday (Feb. 26) in the Edison Neighborhood. Community Promise Federal Credit Union is the Community Development Credit Union that opened recently at 1313 Portage St. An open house and community celebration is to be held at the Edison Neighborhood Association office at 816 Washington Ave., just around the corner from Community Promise. It is set for 5 to 7 p.m. The credit union is to be open during the reception, and its leaders encourage the public to visit. Designated as a low-income credit union, Community Promise FCU is set to offer auto loans, check cashing, unsecured loans, share secured loans, money orders, prepaid cash cards, regular shares, and other financial services and products. According to information provided by the National association of Federal Credit Unions, it is able to "accept non-member deposits, obtain grants and loans from the Community Development Revolving Loan Fund, accept secondary capital accounts, and qualify for exemptions from statutory limits on member business lending," In a press release, they said the event provides the Community Promise team an opportunity to acknowledge and thank the many organizations and individuals who helped it earn its federal charter.
It will also provide an opportunity for community members, particularly residents of Edison, to learn about the services we will provide, said Jim Houston, chairperson of the Community Promises Board of Directors. In the release, Community Promise Chief Executive Officer Mike Ross said, Education is at the core of what we do. We want to empower our members by providing them with the knowledge and tools to make sound decisions. A goal of the enterprise is to expand financial literacy in the community. The credit union plans to partner with Kalamazoo Public Schools and Communities in Schools of Kalamazoo to teach basic money management skills to students at the neighborhoods elementary schools. Data show a correlation between student savings accounts and academic success, according to Office Manager Chris Shults. Too many Kalamazoo residents fall prey to payday lenders and other similar businesses, said Kalamazoo Mayor Bobby J. Hopewell, who will deliver welcoming remarks at the event. I am pleased that Community Promise will provide Kalamazoo residents with access to fair and affordable financial services. "We are thrilled that Community Promise is open," said Steve Deisler, executive director of Downtown Tomorrow Inc., a private, non-profit entity that is the real estate development and fundraising arm of Downtown Kalamazoo Inc. The credit union is the redevelopment of a location that formerly housed an adult bookstore (just south of the corner of Portage Street and Washington Avenue). As owners of the building, we felt it was important to bring in a tenant that will provide an essential neighborhood service, and to structure its lease to provide an opportunity for long-term success. What's good for Portage Street is good for downtown The credit union's hours are 4 to 7 p.m. Monday through Friday. More information about it and its services and financial products are available by calling 269-459-1777 during business hours. Community Promise is chartered by the National Credit Union Administration, and all accounts are insured up to $250,000. Business writer Al Jones may be contacted at ajones5@mlve.com and 269-365-7187. Follow me on Twitter at ajones5_al.
Credit Union is bringing needed services to neighborhood

http://www.cusocialgood.com/credit-union-bringing-needed-services-neighborhood/ Thursday, March 7, 2013 @ 05:03 PM Community Promise Federal Credit Union of Kalamazoo, MI, the Community Development Credit Union that recently opened in the Edison Neighborhood, is holding an open house and community celebration to acknowledge and thank the many organizations and individuals who helped it earn its federal charter. It will also provide an opportunity for community members, particularly residents of Edison, to learn about the services we will provide, Houston added. Kalamazoo Mayor Bobby J. Hopewell, who will deliver welcoming remarks at the event, notes that the services that Community Promise are very much needed. Too many Kalamazoo residents fall prey to payday lenders and other similar businesses, he noted. I am pleased that Community Promise will provide Kalamazoo residents with access to fair and affordable financial services. Community Promises CEO, Mike Ross is excited about expanding financial literacy. Education is at the core of what we do, Ross said. We want to empower our members by providing them with the knowledge and tools to make sound decisions. Community Promise will be partnering with Kalamazoo Public Schools and Communities in Schools of Kalamazoo to teach basic money management skills to students at the neighborhoods elementary schools. Data show a correlation between student savings accounts and academic success, according to Office Manager Chris Shults. Edison Neighborhood Association Director Tammy Taylor, who is the Board Secretary for Community Promise, welcomes the services the credit union will provide. Edison has been without a bank or credit union since the 1990s, Taylor said. Community Promise will be a huge asset for us because it is our neighborhood, and will be a part of Edison for years to come. Be Sociable, Share!
Community Promise Federal Credit Union a wise investment for the community (Editorial)
By Linda S. Mah | lmah@mlive.com on March 01, 2013 at 9:00 AM, updated March 01, 2013 at 9:07 AM Jim Houston, left, and Lee Kirk stand inside the new Community Promise Federal Credit Union at 1313 Portage St. Al Jones | MLive/Kalamazoo Gazette It takes more than money to build a community. And, thats why the Community Promise Federal Credit Union is such good news for the Edison neighborhood. This new credit union, which celebrated its grand opening on Tuesday, is dedicated to expanding financial opportunities within a framework of educating its members about their finances. So while it gives residents a place safe and trustworthy place to keep their funds and conduct basic financial transactions, it is also dedicated to teaching people how to make their money work
for them.
As Jim Houston, chairman of the credit unions board of directors put it, We explain how borrowing money works so they get a better understanding of borrowing and lending. Thats key in a community that has long not had access to traditional banking resources. Many residents fall prey to payday loan services, which charge exorbitantly high rates for
their loans, which are easy to misunderstand or ignore, if youre desperate enough for cash. In a MLive/Kalamazoo Gazette live chat earlier this month Lee Kirk, former Kalamazoo city attorney and director of community relations for Community Promise FCU, said nationally, 90 percent of all payday loans are not repaid on time not because the borrowers dont want to pay but because the rates on the payday loans are designed to trap them in a web of fees. He told of one person who took out a $600 loan and was told to pay $30 every two weeks. In two years, shed paid almost $1,500 in interest and made no headway on her principal. Kirk and Houston say Community Promise will work to change peoples habits by partnering with the Kalamazoo Public Schools and Community in Schools of Kalamazoo to teach money management skills in the schools. Theyll also work with members to provide low-cost, short-term loans to help payoff debt and build credit histories of customers. On a more basic level, the credit union is going into a space along Portage Street, which has long struggled to find solid footing, even after the Dj Vu nude dance club moved out of the neighborhood. We hope having the credit union provide a needed push for further development. Building community wealth is obviously about more than actual dollars. Neighborhoods need basic services such as access to financial institutions, to thrive. But the philosophy of Community Promise is more than bricks and mortar, it is about a desire and a plan to grow an educated community that can adequately manage its resources and thus do more to help families and neighborhoods grow in a healthy way. The Community Promise Federal Credit Union sounds like a wise investment. This is an editorial from the Kalamazoo Gazette. For more Kalamazoo Gazette opinion pieces and letters visit http://www.mlive.com/opinion/kalamazoo/.
OBJECTIVES Community Promise Federal Credit Unions informational objective: o Increase financial education and awareness within the minority community in Kalamazoo, Michigan o Host more financial education sessions throughout the community Community Promise Federal Credit Unions motivational objective: o Increase Community Promise Federal Credit Unions membership GOAL Opening 360 accounts by the end of the year
STRATEGY Currently, Community Promise Federal Credit Union is combatting the negative stigma of financial institutions, specifically within their target audience. CPFCU must inform the Hispanic population in Kalamazoo and the surrounding area of its mission, vision and values. In order to overcome this obstacle it is suggested that CPFCU uses various channels of traditional and new media to promote events, share members biographies, highlight local news and share financial education information. Subsequently, CPFCU will be able to build relationships and trust within the target audience by engaging in social media conversation and community outreach.
Tactics: Carnaval Latino o CPFCU will purchase a booth at the Hispanic American Councils Carnaval Latino to expand community awareness. The fee includes registration and advertising space in promotional materials distributed by the Hispanic American Council. Postcard size handouts o At the Carnaval Latino, volunteers will handout bilingual postcards, printed on glossy card stock paper. The handout will provide information on the credit union, including but not limited to: a URL link to their website, a brief description of the credit union and pictures of previous community outreach events or members. Video News Release o Demographically, the VNR should include people within the target audience. o :5 Shows a mom buying her child a new backpack for school o :10 Shows a dad putting gas into a car o :15 Shows a senior citizen purchasing medication o :20 Shows a family eating an abundant meal o :25 Shows each person saying Thank you Community Promise and young child saying Gracias Community Promise o :30
o :35 CPFCU employee/volunteer Community Promise Federal Credit Union, placing investing your money where your values are o :40 Logo and location information
Social Media Campaign This section provides an outline detailing how Community Promise Federal Credit Union (CPFCU) can gain members through an increased awareness among the target audience directly from social media. Target Audience: Hispanics and other minorities in the Kalamazoo area Objective(s): 1. Most social media users respond to messages that involve discussion, comments, and relationship building, we suggest that CPFCU continue to engage with this particular audience through Facebook and YouTube. Facebook and YouTube provide an accessible commenting forum that aims to increase communicative social media usage. According to Evolution Creative Marketing, 60% of Hispanics visit video sharing sites and of those, 94% watch online videos visit YouTube. These users are more likely to add content or respond to content. In addition, There are roughly 3.5 million Spanish-speaking adults (18+) on Facebook in the US. A testimonial from Michelle Payne, Communications and Education Manager/Marketing at Eli Lilly Federal Credit Union ($1.1 billion, Indianapolis, IN) states, that she closely tracks the credit unions Facebook page and reads member comments that allude to service and trustworthiness as being a top reason why the member is with a credit union (Creditunionsonline.com). Therefore, it is important to establish a presence within these two social media outlets. While, Community Promise Federal Credit Union will continue to maintain its presence on Facebook and Twitter, starting a YouTube account will be equally beneficial. It is important not to attend
to potential members by maintaining a YouTube channel because the Hispanic demographic heavily uses YouTube for social media.
CPFCU must educate their target audience in order to motivate them to become members. The most cost effective way to accomplish this is by using multimedia and publishing various videos and presentations on YouTube and Facebook.
Strategies:
1. Maintain current Facebook page through frequent updates with relevant content based upon: Promoting the target audiences interests Promote events happening at CPFCU, in Kalamazoo or collaborating with partner organizations Share interesting financial and educational facts Provide special offers to current members or for new members Post photographs featuring new members, staff spotlights and events, etc.
According to Inkling Media, a few updates spaced throughout the day will give you a greater chance of being seen. Vary the content and you might see an increase in impressions and engagement. In order to maximize CPFCUs influence on social media, they should update their Facebook three times per day.
Additionally, CPFCU should choose to make updates at particular times of the day. Below is a
study done by Mashable.com that details peak days of the week and times of the day in which most Facebook users engage in conversations:
Furthermore, Facebook is also a key tool in promoting various events. CPFCUs presence at community events such as the Carnaval Latino will have long-term benefits. If CPFCU promotes events on Facebook this would engage a greater amount of potential members. Based on the diagram above, promoting this event would best be done on weekdays, especially on
Wednesdays between noon and 6 p.m.
Pros and Cons of using Facebook:
Pros: Creates a gateway for interacting with target audiences Increases opportunities for CPFCU to promote services while incurring minimal fees Easily promotes events and special offers Gain insight through Facebook Analytics that detail the number of clicks, likes, reach, and how many people are talking about posts Build audience on Facebook by creating advertisements that promote events, the page or posts Cons: If the CPFCU chooses to advertising, this can become costly Large number of Facebook users creates broad pools of audiences The increased amount of Facebook users makes it difficult to reach certain target audiences Certain updates may only be relevant to particular audiences Posts may not receive responses, likes, clicks, or a lack of reach and interaction if the page does not have a large population following
Cost: While Facebook is free to users, CPFCU may choose to pay for advertisements. Advertising
must be paid for, thus building an audience could prove to be costly. It is necessary to know how to calculate individual advertising campaign costs on Facebook, you can estimate the cost before you create your ad, at http://www.facebook.com/ads/create Also, the bid estimator will show you the range of bids that are currently winning the auction among ads similar to yours. Based on this, you can determine how much you wish to spend per click or per thousand impressions. You can multiply that number by the number of clicks/thousand impressions you wish to receive each day to determine your approximate daily budget. The amount that you're charged each day will never exceed the daily budget that you set (Facebook, 2013).
2. Create a YouTube channel based on the following criteria for video and/or content: Promotes CPFCUs services and special offers Provides messages from CPFCUs board members Highlights testimonials from various members Upload slide shows, videos and/or photographs of the grand opening, workers and volunteers at credit union and other events Video release informing the general public why CPFCU is different from other financial institutions and how they intend to improve the community YouTube is an effective tool in educating and engaging audiences through visual images and videos. According to Panovista Marketing, it is important to consider what keywords users search. Panovista Marketing advises to use a tool from YouTube called Insights for Audience that provides information on what videos are being watched and what search terms were used.
Insights for Audience also determines how popular your videos are, what demographics are watching them and how they found the video.
In addition to choosing a good title and providing popular key words, offering closed captioned text or Spanish subtitles in a video may increase the popularity of CPFCUs videos within their target audiences.
Audience Engagement is another tool provided by YouTube that will help CPFCU build an audience. With this tool, CPFCU must complete the first steps detailed by YouTube.com: Who They Are: Pick demographics, like women over 35. Pick geographic location and show the ad in a particular zip code. Habla Espaol? Target by language and show the ads only to Spanish speakers. What They Like: Try interest categories to reach people who watch videos that pertain to similar issues. Alternatively, remarket to people who have visited the credit unions website before. What They Watch: Keywords put your ads on the right Google video and YouTube search results and related videos. Custom content packs are hand-chosen by YouTube specialists for topic and quality. On the other hand, simply pick the YouTube videos and channels that suit your needs. Furthermore, when reaching particular audiences such as Hispanics the timing of video postings is crucial. According to the Huffington Posts YouTube 101, ReelSEO created the following diagrams to determine traffic flows for YouTube according to day of the week and the time of day:
According to the information shown above, the most effective days and times to post videos are Tuesday thru Thursday between noon and 4 p.m. Pros and Cons of using YouTube: Pros: Beneficial for audiences that prefer a visual medium YouTube Insights on Audience tool helps to determine analytics of who is watching CPFCUs videos, how they found the video, what keywords were used in searching videos and what videos different demographics watch Cons: Gives brand recognition Reaches broad audiences and provides information to the general public Eliminates the cost of advertising
May be hard to find for some users depending on the title and description of video Not always accessible to those without internet or other necessary software May need to hire a third party contractor if a volunteer is not able to upload videos or film high quality videos
Cost: While YouTube is free to all users, businesses that would like to promote their services or company must do the following: According to YouTube, one must post their video on YouTube. Then use Google AdWords for keywords to promote the video to the target audience. Account owners will only pay when viewers choose to watch the video. TrueView is another option to advertise it is similar to AdWords and offers comparable prices URL to TrueView: http://www.youtube.com/yt/advertise/trueview.html
TIMELINE
Monday, April 22 Monday, April 29 Monday, June 24 Monday, July 8 Wednesday, July 10 Monday, July 15 Monday, July 21 Monday, July 22 Monday, July 29 Friday, August 2 Week of August 5 Monday, August 12 Wednesday, August 14 Monday, August 19 Wednesday, August 21 Monday, August 26 Monday, September 2 Monday, September 9 Invitation received from designer Accept invitation Submit down payment for booth Create volunteer shifts Obtain all necessary photos and information for half-sheet (5x7) and brochure Final half-sheet copy and images ready Contact potential photographers Half-sheet design Initial contact with potential volunteers Submit final payment of site fee to Hispanic American Council Receive half-sheet first draft from director Return corrected half-sheet proofs to designer Alterations of half-sheet by designer Confirmation of all volunteers Receive half-sheet back from designer Half-sheet sent to director for approval Complete volunteer registration form Half-sheet approved by director Release half-sheet to printer Confirm volunteers Inform volunteers of orientation meeting Complete and print volunteer nametags Purchase Piatas and candy Contact potential photographer from Western Michigan University Half-sheet received from printer Fill all Piatas with candy Confirm photographer Event Receive all volunteer evaluation forms Evaluate increase/decrease of memberships Evaluate demographics of members
Friday, September 13 Saturday, September 14 Saturday, September 21 Monday, September 30 Monday, October 28
EVALUATION The Credit Union must be able to evaluate the outcomes from the Carnival Latino event. o The postcard-sized handouts will track how many hits the Community Promise Federal Credit Union homepage receives within a one-month period after the event, through analytics. This is a direct cause and effect relationship because the half-sheet will read a separate link, so the Community Promise Federal Credit Union can track how many hits this separate link received and not just the general public. o The Credit Union should measure the demographics of its current members before Carnival Latino and then measure them again after the event. Evaluating the demographics of members will allow the Credit Union to see if the Hispanic population owning accounts at the Credit Union increased after the event. o Continually, the Credit Union will be able to see how many individuals open accounts in the month following the event. o One week after the event the Credit Union will calculate the number of halfsheets that were passed out at the event. These forms of evaluation will allow CPFCU to expand their understanding of community engagement and the benefits of interacting with a key demographic on a more public scale.
CONCLUSION The evaluation of the Carnival Latino event will provide Community Promise Federal Credit Union with a learning experience on how to successfully interact with a group of individuals. Furthermore, with the use of social media analytics on YouTube and Facebook, Community Promise Federal Credit Union can see the scope of impact each of the tactics on the specific media created. Without the evaluation of each tactic, the Community Promise Federal Credit Union will not understand how these activities make a difference in their membership numbers, image in the community, and relationship with key demographics. This public relations campaign is aimed to increase the awareness and membership numbers of Community Promise Federal Credit Union by focusing on the specific target audience of Hispanics in the Kalamazoo area. The campaign outlines multiple tactics including a special event, social media campaign, video and print news releases, and printed materials. Through research about Community Promise Federal Credit Union and the Hispanic population, each tactic is designed specifically to connect with Latinos. Not only will each of the outlined tactics connect with the Hispanic population, but also they will establish Community Promise Federal Credit Unions presence in the neighborhood and ultimately increase membership.
Appendix A
NEWS RELEASE
For Immediate Release
Community Promise Federal Credit Union September 21, 2013
Kalamazoo, Mich.- Community Promise Federal Credit Union, Kalamazoos newest Credit Union, is participating in the Carnaval Latino on Sept., 21, 2013. CPFCU will have a booth at the Carnaval where there will be various activities available for children including piatas and candy. CPFCU will also be providing information at the booth such as brochures and postcards that detail information on how to sign up to become new members and open a new account. The Carnaval Latino begins at 11 a.m. and ends at 10 p.m. Come take time to talk with current volunteers and learn about Community Promise Federal Credit Union. ### About Community Promise Federal Credit Union: CPFCU is brand new to the city of Kalamazoo. Community Promise can offer their members a wide range of services that aim, to be safe and affordable while providing a convenient location and a diverse membership database. Memberships are offered to anyone who lives, works or attends school in Kalamazoo. There are also many different programs available at CPFCU from financial counseling to savings programs.
Community Promise Federal Credit Union 1313 Portage Street Kalamazoo, MI 49001 www.CommunityPromiseFCU.org info@CommunityPromiseFCU.org Like us on Facebook!
Appendix B
FACT SHEET
Fact Sheet
Provides the Greater area of Kalamazoo with fair and affordable services. Serves all diverse populations Membership available to anyone who lives, works, worships or attends school in Kalamazoo. Credit counseling financial services and student savings programs are available.
FAQs:
Q: What is the contact information to CPFCU? A: You can reach us by email at Info@CommunityPromiseFCU.org or call us at 269-459-1777 Q: Where is CPFCU located? A: Community Promise Federal Credit Union is located at 1313 Portage Street, Kalamazoo, MI 49001. Q: How do I go about signing up with CPFCU? A: Come into CPFCU and meet with a staff member. They will be able to sign you up with an account in about 15 minutes.
Information:
Community Promise Federal Credit Union is a new Credit Union in Kalamazoo that is offering their services to the Greater area of Kalamazoo, Mich. Located in the Edison neighborhood, Community Promise hopes to reach all areas of the population through fair and affordable banking. Through new partnerships, enriching membership and regular donations, Community Promise FCU hopes to continue growing for its people.
Q: Where can I find out more information? A: You can check out our website at http://www.communitypromisefcu.o rg/ Q: What are the hours of operation? A: Community Promise is open from 4 p.m. 7 p.m. Monday-Friday. Q: Am I able to get a debit or credit card? A: Unfortunately, Community Promise can only deal with cash at this point and is not able to work with plastic. Q: What is the highest loan I am able to receive? A: At this time, Community Promise is only able to start with $5,000 loans and nothing higher.
CONTACT INFORMATIO N: Community Promise Federal Credit Union 1313 Portage Street Kalamazoo, MI 49001 www .communitypromiseFCU.org info@CommunityPromiseFCU .org
Appendix C
BUDGET
Community Promise Federal Credit Union Carnival Latino Saturday, September 21, 2013 11:00 am - 4:00pm Location: Arcadia Creek Festival Place 1,500 expected attendees Photography/Videography Includes digital rights and 2 hours of photography Printed Materials postcard - 1050 pieces (double sided, four color, glossy, (5x7) Supplies & Miscellaneous Volunteer nametags (sleeves, paper, ink) Venue - Arcadia Creek Festival Place Venue rental fee - 1 day @ $300/day Children's Activities Pinatas and candy (3) TOTAL $100.00 $100.00 $250.00 $250.00 $30.00 $30.00 $300.00 $300.00 $150.00 $150.00 $830.00 $830.00
Appendix D
Appendix E
POSTCARD ENGLISH
Who We Are:
We are a Community Development Credit Union, dedicated to providing fair and affordable financial services and education for our members.
1313 Portage Street Kalamazoo, MI 49001
What We Do:
We offer a variety of savings accounts and affordable loan options.
C o m e in t o o u r o f f ic e t o o p e n a n a c c o u n t t o d a y !
Phone: (269) 459-1777 Hours: Monday Friday 4-7 Website: www.CommunityPromiseFCU.org
B u il d in g a b e t t e r f u t u r e f o r o u r c o m m u n it y !
POSTCARD SPANISH
Quien Somos: Somos una Cooperativa de Crdi to al beneficio del desarrollo comunitario dedicados a proveer servicios financieros y educativos, justos y econmicos para nuestros miembros.
1313 Portage Street Kalamazoo, MI 49001
Que Hacemos: Ofrecemos una variedad de cuentas de ahorros y prstamos seguros. N o s v i s i t e y a b r a u n a c u e n t a h o y !

Telfono: (269) 459-1777 Horas: Lunes Viernes 16:00-19:00 Web si : www.CommunityPromiseFCU.org
C o n st r u y en d o u n f u t u r o mej o r p a r a n u e s t r a c o m u n id a d !
BROCHURE ENGLISH
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Helping the Community Build a Better Future!

Community Development Credit Union is dedicated to providing fair and affordable financial services and education for our members. Our members include a diverse population including those who are not typically served by traditional financial institutions. We help Kalamazoo grow by enriching our members, building partnerships within the community and investing in our neighborhoods.
1313 Portage Street
PLACE STAMP HERE
Building a better future for our community!
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City, ST ZIP Code Recipient Name Street Address
If you need more placeholders for titles, subtitles or body text, just make a copy of what you need and drag it into place. PowerPoints Smart Guides will help you align it with everything else.
Kalamazoo, MI 49001
M embership is open to anyone who lives, works, volunteers, worships, or attends school in the city of Kalamazoo.
Membership Information
Safe and Affordable Services You Can Trust!

Savings Accounts:
Regular Account Club Account Holiday Account Share Certificate of Deposit -12 month term -penalty for early withdrawal*
Printing:
All accounts require a Minimum of $5.00 to open. Minimum $50 balance to earn interest. Interest Rate: 0.10% A.P.Y.
Penalty for early withdrawal* A.P.Y. = Annual Percentage Yield Dividends calculated on the average daily balance, and paid Monthly when declared by the Board of Directors. *A 90-day interest penalty will apply to any withdrawal prior to Maturity of a Share Certificate of Deposit.
Loans Continued:
Short Term Loans 6 mos. 18% A .P.R. $20 application fee M ax. L oan A mt. $1,000 Auto Loans 9.9% A .P.R. 24 mos. - $2,500-$3,000 30 mos. - $3,500-$4,000 36 mos. - $4,000-$5,000 Shared Secured Loans Up to 60 mos. Share Rate +3% M ax. L oan A mt. $5,000
L ate Payment Fee: $20 when payment is received 10 days or more after due date. Applies to all loans.
Contact Us
Phone: 269-459-1777 Fax: 269-459-1778 Hours: M ondayFriday 47pm Location: 1313 Portage Street K alamazoo, M I 49001 Visit Our Website: www.CommunityPromiseFCU.org For more information, email us at: info@CommunityPromiseFCU.org Follow us on Twitter @CommPromiseFCU

Loans:
Credit Building Loans 12 mos. 18% A .P.R. M ax. L oan A mt. $1,100 Unsecured Emergency Loans 12-24 mos. 18% A .P.R. M ax. L oan A mt. $2,500
BROCHURE SPANISH
Printing:
Ayudando la Comunidad para Construir un Mejor Futuro!

Somos una Cooperativa de Crdi to al beneficio del desarrollo comunitario dedicados a proveer servicios financieros y educativos, justos y econmicos para nuestros miembros. Particularmente aquellos que no son atendidos por instituciones financieras tradicionales. Ayudaremos a Kalamazoo en su crecimiento al enriquecer, construyendo sociedades, e invirtiendo en nuestros comunidades.
1313 Portage Street
PLACE STAMP HERE
Construyendo un mejor futuro para nuestra comunidad!

City, ST ZIP Code Recipient Name Street Address
Kalamazoo, MI 49001
L a membresa est abierta a cualquier persona que vive, trabaja, son voluntarios, van a la escuela y adoran en la ciudad de Kalamazoo.
Informacin de Membreca
Ofreciendo Servicios Seguros y Econmicos en que Usted Puede Confiar!

Cuentas de Ahorros:
Cuenta Regular Cuenta de Club Cuenta de Vacacin Certificado de Accin de D epsitos -plazo de 12 meses -penalidad por retiro de dinero *
Printing:
Prstamos Continuado:
Prstamos no garantizados de emergencia 12-24 meses. 18% A .P.R. M ax. cantidad de Prstamo: $2,500 Prstamos a corto plazo 6 meces 18% A .P.R. $20 precio de aplicaci n M ax. Cantidad de Prstamo: $1,000 Prstamos de Autos 9.9% A .P.R. 24 meces - $2,500-$3,000 30 meces - $3,500-$4,000 36 meces - $4,000-$5,000 Prstamos Asegurados de Accin Hasta 60 meces Tasa de participaci n +3% M ax. Cantidad de Prstamo: $5,000
Pago tardo: $20 al pago recibido 10 das o mas despus de la debida fecha. Se aplica a todos los prstamos.
Todas las cuentas requieren un mnimo de $5.00 para abrir. Saldo mnimo de $50 para ganar inters. Tasa de Inters: 0.10% A .P.Y.
A.P.Y.= Annual Percentage Yield (Porcentaje de Rendimiento Anual) Dividendos calculado sobre el saldo promedio diario, y se abonar mensualmente al declarado por la Junta de Directores.. *Un inters de 90 das de multa se aplicarn a cualquier retiro antes del vencimiento de un Certificado Depsito de Accin.
Informacin de Contacto
Telfono: 269-459-1777 Fax: 269-459-1778 Horario: L unes a Viernes 47pm Ubicado: 1313 Portage Street K alamazoo, M I 49001 Visita nuestro sitio Web: www.CommunityPromiseFCU.org Para mas informacin, envanos un correo electrnico: info@CommunityPromiseFCU.org Sguenos en Twitter @CommPromiseFCU

Prstamos:
Prstamos para juntar Crdito 12 meces. 18% A .P.R. M ax. Cantidad de Prstamo: $1,100
A.P.R. = Annual Percentage Rate (Tasa de Porcentaje Anual)
Appendix F
FREQUENTLY ASKED QUESTIONS Q: What is the contact information to CPFCU? A: You can reach us by email at Info@CommunityPromiseFCU.org or call us at 269-459-1777. Q: Where is CPFCU located? A: CPFCU is located at 1313 Portage Street, Kalamazoo, MI 49001. Q: How do I go about signing up with CPFCU? A: Come into CPFCU and meet with a staff member. They will be able to sign you up with an account in about 15 minutes. Q: Where can I find out more information? A: You can check out our website at http://www.communitypromisefcu.org/. Q: What are the hours of operation? A: CPFCU is open from 4-7 p.m. Monday through Friday. Q: Am I able to get a debit or credit card? A: Unfortunately, CPFCU only performs transactions with cash and is not able to use credit or debit cards of any sort. Q: What is the highest loan I am able to receive? A: At this time, CPFCU is only able to start with $5,000 loans and nothing higher.
Works Cited Ayliffe, Ian. "Panovista Marketing Blog." Panovista Marketing Blog. N.p., 16 Mar. 2013. Web. 18 Mar. 2013. Litt, Michael. "YouTube 101: How to Get Your Video Found, Watched and Shared." The Huffington Post. TheHuffingtonPost.com, 25 Sept. 2012. Web. 18 Mar. 2013. Mueller, Ken. "Best of 2011- How Often Should I Update My Facebook Business Page?" Social Media Inbound Marketing SEO Solutions for Small Business Lancaster PA Inkling Media RSS. N.p., 30 Dec. 2011. Web. 18 Mar. 2013. Ragusa, Gina. "Social Media Study Reveals Why Consumers Join a Credit Union." Credit Unions Online.com. N.p., 6 Feb. 2013. Web. 18 Mar. 2013. "Reaching Hispanics Online: Part II - Social Media." Evolucion Creative Marketing. N.p., 13 Mar. 2011. Web. 18 Mar. 2013. "TrueView." YouTube. YouTube, n.d. Web. 18 Mar. 2013. Warren, Christina. "When Are Facebook Users Most Active? Mashable. N.p., 28 Oct. 2010. Web. 18 Mar. 2013.
Western Michigan University 96 Community Promise Federal Credit Union CONTACT INFORMATION AND RESPONSIBILITES
Bryleigh Loughlin Group Leader (616)443-1575 Byleigh.b.loughlin@wmich.edu Executive summary, timeline, budget, conclusion and postcard
Alyson Wiley (708)363-2461 Alyson.p.wiley@wmich.edu
Editing, compiling document, situation, tactics, strategy, evaluation, objectives, target audience and the video news release Courtney Parkinson (248) 904-4356 Courtney.c.parkinson@wmich.edu Primary research, news release, frequently asked questions and facts sheet Rocio Munoz (616) 325-0838 Dulce.r.munoz@wmich.edu Social media summary, brochure and translation of material from English into Spanish

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Community Promise Federal Credit Union Mission Statement

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-41.8% -24.9% -29.3% -13.5% -67.7% -27.3% -7.4% 2.8% 10.8%

38.8% 59.7% 52.2% 100.8%

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TARGET NEIGHBORHOOD PROFILES

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BASELINE ASSUMPTIONS, GOALS, AND OBJECITIVES

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PRODUCTS & SERVICES

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Prepaid cash cards

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GOVERANANCE & ORGANIZATIONAL STRUCTURE

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Community Promise Federal Credit Union Supporters and Partners

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