Alterna Savings

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Growing OurCommunities TogetherDear Members:

The year 2005 was the first year for your new credit union, Alterna Savings, and

this is our first opportunity to tell you about our corporate social responsibility

(CSR) and community activities.

We feel like cooks in the kitchen this year, as we stir together the much-loved

CSR programs of the two former organizations that make up Alterna Savings

(CS CO-OP and Metro Credit Union).

This past year, we have had the exciting task of bringing them together and

creating something that will continue to bring benefits to the communities we

serve. We have a presence in Ottawa, the Greater Toronto Area, Kingston,

Pembroke and North Bay, and we are committed to supporting all the locations

that our members call home.

Alterna Savings understands that CSR goes beyond traditional philanthropy,

although those activities are an important part of our CSR commitment. As such,

we have adopted, through the creation of policy, four CSR pillars on which we will

be focussing our efforts: Philanthropy, Community Economic Development,

Financial Literacy and Accountability.

Read on for details of how we met our commitments this year. We hope you

enjoy!

Best regards,

Earl Campbell Gary M. Seveny

Board Chair President & CEO

Earl Campbell and Gary M. Seveny

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Philanthropy

A Record $205,000 Raised through 7th Annual Alterna‘Do it For Dad!’ Run and Family WalkWith one in nine men struck with prostate cancer, there is much need for research, patient care and education

around the disease. For the seventh year, Alterna Savings took up the cause as the presenting sponsor and

organizer of the Alterna ‘Do It For Dad!’ Run and Family Walk in Ottawa.

The third largest run/walk in Ottawa, Alterna ‘Do It For Dad!’ brings

out a large cross-section of the community on Father’s Day each

year. This past year, over 1800 participants, the highest number ever,

ran or walked along the two, five or ten kilometre routes on Colonel

By Drive. This included a large number of employees who not only

helped out on the day, but formed teams, raised money, and

participated in the run itself.

The most exciting number related to the 2005 event, was of course,

the record $205,000 raised! To date more than $1 million has been

raised. Funds are donated to the Ottawa Regional Cancer Foundation

for prostate cancer research, patient care, education and capital

needs.

“Father’s Day is the perfect time to draw

attention to the effect of prostate cancer

on Canadian men. Early detection and

education dramatically increases the

chances of survival for prostate cancer

patients,” said Earl Campbell, Chair, Alterna

Savings.

Max Keeping, Vice President,News - CTV and Honorary ChairAlterna Do it for Dad 2005.

Some of the 1800 participants run along Colonel By Drive, Ottawa.

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Our Philanthropic Commitment

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Philanthropy

Giving to community projects and non-profit

organizations is a priority for Alterna Savings, and

as such we are currently in the process of forming a

Donations Committee to administer our Donations

and Spare Change Programs going forward. This

committee will commence work in 2006.

If you are a former Metro Credit Union member

you may already participate in the Spare Change

Program. Through this program the “spare change”

(under $1) in participating members’ accounts is

swept into one of three pools of funds, to alleviate

homelessness, for children’s issues or for

environmental issues. We are pleased to announce

that in future the Spare Change Program will be

extended to members of former CS CO-OP.

Watch for more information about the Donations

and Spare Change Programs in 2006!

Philanthropy

Corporate Giving and Spare Change Program

As part of the Alterna Savings Corporate Social

Responsibility Policy adopted by the Board of Directors in

2005, Alterna Savings has committed to contributing 2%

of pre-tax profits each year to community. This is twice

the Imagine Canada guideline. We have maintained our

membership in the Imagine Canada program and continue

to support its goals. Committing to 2% is only the

beginning though. This report details how this translates

into action in our communities—through donations,

sponsorships, and more.

Living it up at the Summer Adventure Day Camp of St. Felix Centre in downtownToronto. A donation from Alterna Savings supported this program.

Beyond Do It For Dad!, Alterna Savings supports many events and

activities that bring people together for education, celebration

and change. Our list of sponsorships is long, so the following is

only a sampling of those undertaken by the credit union in 2005.

We were glad to support, and work in partnership with, these

worthy organizations.

Canadian Social Investment Conference Alterna Savings was a key

sponsor of this national conference hosted by the Social Investment

Organization, the Canadian organization for socially responsible investing. The

conference was held in June 2005 in Toronto.

Dave’s Ultimate Auction Alterna Savings was honoured to be the presenting

sponsor of a fundraiser for the Dave Smith Youth Treatment Centre. This Ottawa

organization helps youth between 13 and 18 years of age work towards

overcoming drug and alcohol dependency.

Golden Apple Award From September to June each year, Alterna

Savings, in partnership with Majic100 radio, presents the coveted Golden

Apple Award weekly to a favourite Ottawa area teacher. Students and parents

nominate their favourite teachers and if they are selected they receive a $500

bursary to use at their school!

Indo-Canada Chamber of Commerce Annual Awards and GalaNight Held annually in Toronto, Alterna Savings was a sponsor of this event

recognizing the achievements of high contributing Indo Canadians.

SEDI Awards Social Enterprise and Development Innovations (SEDI) assists

Canadians who are struggling economically to realize their full potential. Alterna

Savings was proud to sponsor the SEDI Awards 2005 event, held in Toronto, which

celebrated the journey of people who have overcome barriers to achieve their

personal best.

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PhilanthropyPhilanthropy

Sponsorships

Bill Parker of Majic 100 and CynthiaLittle of Alterna Savings present theGolden Apple Award to Denise White(centre) of Sir Wilfrid Laurier HighSchool.

Musical entertainment at the Indo-Canada Chamber of Commerce gala.

Philanthropy

Alterna Savings the Social ResponsibilityPartner of the University of Ottawa School of Management

Announced in November 2005,

Alterna Savings is very pleased to be

working with the University of

Ottawa School of Management to

promote social responsibility among

future business leaders.

“Alterna Savings believes in

promoting and encouraging a culture

of social responsibility within student

populations. This conviction has

inspired the establishment of our

program,” said Gary Seveny, President

and CEO, Alterna Savings.

Alterna Savings will work with the

School of Management over the next

five years. The commitment includes

the funding of an annual Alterna Social

Responsibility Award, to be given to a

third year student who demonstrates exceptional CSR leadership. This student will become

a Corporate Social Responsibility Ambassador at the School in their fourth year. We will

also fund a number of social responsibility projects within the school.

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Richard Bertrand, Vice Chair, Alterna Savings Board of Directors, Gary Seveny, AlternaSavings President & CEO and Dean Micheál J. Kelly, University of Ottawa School ofManagement, celebrate the announcement of the Alterna Savings Social ResponsibilityProgram.

Philanthropy

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Philanthropy

Two recent major natural disasters caused Alterna Savings to mobilize and lend

our support: the tsunami in South Asia and Hurricane Katrina.

In early 2005, Alterna Savings donated $15,000 to the Canadian Co-operative

Association (CCA) for rebuilding in Sri Lanka and Indonesia. The CCA has a long

connection with credit unions and co-operatives in these countries and has raised

$750,000 for the project. We will keep members posted about the status of the

rebuilding efforts.

Then when Hurricane Katrina hit, Alterna members generously donated a total of

$3,310.19 to the Canadian Red Cross to support the recovery efforts. This

fundraising initiative was sponsored by Credit Union Central of Ontario on behalf

of its member credit unions.

Mobilizing in Times of Disaster

The Community Builder Mortgage Program helps non-profit organizations to raise

funds while providing a great mortgage to their members and supporters. There

are currently 41 organizations and clubs participating in the program.

How does the program work? When a supporter of a registered organization

closes the 5-Year Community Builder Mortgage at Alterna Savings, 0.5% of the

mortgage amount will be provided to that group as an honorarium. Currently

available to former Metro Credit Union, this program is expected to be extended

to former CS CO-OP in 2007.

We were very proud when this program, launched in 2004, won the 2005 Ethical

Funds Company™ Building a Better Future Award and the 2005 National Credit

Union Innovation Award from Credit Union Central of Canada.

Community Builder Mortgage Program:the mortgage that gives back

Rebuilding in Sri Lanka.Photos courtesy of Canadian Co-operative Association.

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Philanthropy

Alterna Savings’ employees don’t just serve our members’ financial needs. They participate in projects that

benefit the community each year.

This year, our staff raised over $11,000 (and made in-kind contributions) in support of a variety of local

projects. These ranged from assisting a family with a disabled child to install an elevator in their home to

supporting the Salvation Army, a local women’s shelter and an organization serving deaf adults and children.

To raise funds, our staff held bake sales, developed and sold an

Alterna cookbook, had 50/50 draws, cycled on stationary bikes,

and more. Some groups chose to focus on the United Way

workplace campaign, and others ‘Do It For Dad!’.

Staff also volunteered their time, in fact close to 400 hours last

year, helping groups in the community, from organizing

scavenger hunts for kids in Pembroke to volunteering at the

Daily Bread Food Bank in Toronto and the blood donor clinic in

Bolton. And, several staff members represent Alterna in the

community by sitting on boards or committees of local

organizations.

United WayWorkplaceCampaignThrough sales of an Alterna cookbook,

raffles, individual donations and more,

employees raised $26,000 for the 2005

United Way workplace campaign. These

funds were disbursed to local United Way

offices in Ontario.

Alterna Savings employees Jessica, Raj, Jackie and Sindy at the Juvenile Diabetes Research Foundation 2005 Ride for Diabetes Research in Toronto.

Employee Commitment

Community Economic Development

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When Panagiotis Tsiriotakis immigrated

from Crete to Toronto in 2003 he had

200 Euros to his name. Of great value,

though, was his family’s thousand-year

history of producing high quality olive

oil in Crete. It wasn’t long before he

formulated his plan to retail this

premium organic olive oil through his

own business.

After Panagiotis participated in the

Self-Employment Assistance (SEA)

small business training program,

Acropolis Organics was born. He then

found his way to Alterna Savings and

the Community Micro Loan Program.

This program provides small loans to

micro-entrepreneurs to help them

launch or grow their businesses.

The credit union provided Panagiotis

with a business start-up loan. And,

Susan Henry, Alterna Savings’

Community Economic Development

Specialist, has supported Panagiotis

through all the steps involved in

being a new entrepreneur.

“If it wasn’t for the credit

union, I probably wouldn’t be

here. Alterna Savings gave me

a dramatic boost to start the

business. Susan helps me all

the time. Every time I have a

problem she helps me solve

it,” he says.

Success is coming his way as retailers

discover the quality of his product.

Acropolis Organics certified organic

extra virgin olive oil is currently available

in high-end food stores including

Pusateri’s in Toronto, and on The

Shopping Channel. The oil was recently

awarded Best International Olive Oil

2005 by a European gourmet magazine.

“I believe Acropolis Organics is a prime

example of how micro-credit can

contribute to local businesses and

economies. I am so proud of the

success Panagiotis is experiencing. I

believe he is poised for unbelievable

growth,” says Susan Henry.

Credit unions have a long history of supporting and investing in their local

economies. A large portion of members’ deposits into Alterna Savings are re-

invested in loans and mortgages to individuals, organizations and businesses in

Ontario.

We also take our commitment further through programs like the Community

Micro Loan Program and the Immigrant Employment Loan Program.

CommunityEconomicDevelopmentat AlternaSavings

Community Micro Loan ProgramHelps Bottle Success

Susan Henry, Community Economic DevelopmentSpecialist and Panagiotis Tsiriotakis of Acropolis Organicsat the Bay Branch of Alterna Savings in Toronto.

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Community Economic Development

Community Micro Loan Program

Maytree Foundation–Alterna Savings Immigrant Employment Loan Program

Newcomers to Canada often need Canadian accreditation or training to obtain

work in their chosen field. This can often be a costly process, but traditional

credit guidelines make it very difficult to obtain a loan without a Canadian

credit history or guarantor. Through a partnership in the GTA with the Maytree

Foundation, Alterna Savings grants loans to local immigrants and refugees for

short-term skills and education upgrading.

The loans Alterna Savings gives to

micro-entrepreneurs through the GTA-

based Community Micro Loan Program

can provide a significant boost to their

businesses. As of December 2005,

$305,039 in active loans were held by

89 program participants. Loans range

from $1,000 to $15,000.

Further, we are proud to say that

from the inception of the

Community Micro Loan Program,

we have supported 373 micro-

entrepreneur members. Our micro-

entrepreneur members currently

have personal financial products

with Alterna Savings totalling

$883,092.00. That means they

have been able to translate their

business success into personal

financial progress as well, and

make an even greater contribution

to our local economy!

Beyond the provision of loans, our

Community Economic

Development Specialist Susan

Henry supports our members

through business advice and

coaching. She also holds a quarterly

networking café where our micro-

entrepreneurs hear from expert

speakers and network with each other.

We are currently exploring Alterna

Savings’ possible involvement in micro-

credit in Ottawa.

Other Loan FundAdministrationAlterna Savings also administrates and

provides expert advice to two other

GTA-based loan funds: The Access

Riverdale Community Loan Fund and

the Anglican Loan Fund.

Celebrating International Yearof MicrocreditThe year 2005 was declared United

Nations International Year of

Microcredit, and Alterna Savings

celebrated with a reception for the

local microfinance community at our

Bay Branch in Toronto on October 25.

Mera Angus of the Amera Fashion Group displayed her creationsat the Microcredit event and spoke about building her businesswith the support of the credit union.

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Sometimes the financial world can seem like an

unfamiliar maze. Alterna Savings is committed to

educating members about financial matters. We want to

provide members with the right tools and knowledge to

make smart choices and reach their goals.

In 2005 Alterna Savings held member education seminars in Toronto

and Ottawa locations on homebuying, financial planning and insurance

issues. Over 160 members enjoyed the seminars last year, reporting

their satisfaction with the information provided. We also held

education seminars on a wide range of topics for staff at Toronto's

Mount Sinai Hospital and York University, organizations committed to

helping their employees reach their financial goals.

We also published articles on financial topics in our member newsletter and posted

information on our website.

Watch for more member education seminars as we go forward. You are most welcome

to attend!

Corporate accountability and transparency are in the world spotlight

these days. Many corporations are now participating in “triple-bottom

line reporting” or “accountability reporting”. This means they are going

beyond traditional financial reporting to measure their social and

environmental impacts and performance.

We are proud to say that Alterna Savings was there from the beginning, performing its

first social audit in 1993.

As part of the recently adopted Corporate Social Responsibility Policy, the new credit union

has committed to undertaking biennial, independent social audits, and to reporting the

results of these audits to members and the general public through an accountability report.

Terms of Reference for a Social Audit Advisory Committee have also been adopted. The

Committee will be formed and begin work in 2006, and the results of the first audit will be

presented to members in 2007.

Accountability

Financial Literacy

Seminar held at the Bolton Branch.

Alterna Savings

Alterna Savings: 400 Albert Street 165 Attwell Drive

Ottawa, ON Toronto, ON

K1R 5B2 M9W 5Y5

613.560.0100 • 416.252.5621 • 1.877.560.0100

query@alterna.ca

www.alterna.ca