3 celebrating our year

4 from our chairperson

5 from our not-for-profit sector

6 our numbers

7 from our ceo and managing director

8 from our shareholders bendigo and adelaide bank

10 from our shareholders community 21

12 community 21 share offer

14 2015 social investment grants program

16 our partnerships

18 action on reconciliation

20 creating impact through social and

affordable housing

23 b corp certification

25 our executive

26 farwelling jenny dawson

27 our board

28 products

29 thank you

2

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celebrating our yearForeword

Our 2015 Yearbook has been compiled in celebration of our customers and the social impact we have achieved together over the past year. 13 years and more than 10,000 customers on, we’re proud to report on our B Corp certification, more than $100,000 in grants provided to disability not-for-profits, our Inaugural Housing Impact Awards, and the first birthday of our crowdfunding and banking platform, act.

Over the past twelve months, we have supported our customers to achieve in areas like homelessness, disability, Indigenous support, youth and housing, just to name a few. We look forward to continuing these inspiring partnerships into next year and beyond.

Vision

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

Mission

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

Acknowledgment of country

Community Sector Banking respectfully acknowledges the traditional owners of the country throughout Australia and recognise their continuing connection to lands, waters and community. We pay our respect to them and their cultures; and to elders both past and present. Aboriginal and Torres Strait Islanders people should be aware that this publication may contain images or names of people who have since passed away.

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2015 has been a significant year for Community Sector Banking. We have continued with the careful management of our resources and costs to achieve good results despite low and declining interest rates and the broader economic environment.

With the very capable help of the Nous Group, we also affirmed Community Sector Banking’s values and agreed our strategic priorities are:

1. Strengthening Community Sector Banking: grow the business’ financial sustainability through increased provision of financial services and continued financial innovation with the sector

2. Strengthening the sector: deliver broader access and diversity of financial capital to improve the sector’s connectivity with stakeholders and its ability to strengthen community

3. Strengthening communities: provide financial solutions in partnership with the sector to improve individual and customer wellbeing.

I would like to welcome Bendigo Bank Executive, Marnie Baker to our Board. Her arrival is a valuable opportunity to reaffirm how our core principles align with Bendigo Bank strategies. And I would like to acknowledge founding Board member, Jenny Dawson, who stepped down this year. During her 13 year tenure, Jenny provided invaluable support, particularly during her time as Chair.

On behalf of the Board I would like to acknowledge the recent departure of Greg Peel. He played a very significant role in the development of Community Sector Banking since its inception. He has underpinned our value proposition, developed our differentiation through continued innovation and has driven a culture of social change. His leadership and enormous passion ensured not only the growth and success of Community Sector Banking but strengthened the sector as a whole.

We have a very bright and positive future, and look forward to helping more and more not-for-profits to manage and make best use of their financial resources. We are very proud to have helped so many organisations make their very important contribution to the common good in Australia.

David Thompson AM Chairperson

Our customer base is growing almost

exponentially as more people recognise our unique value proposition.

chairpersonfrom our

4

not-for-profit sectorfrom our

1 in 5 people in Australia have a disability

As of 2014,

48% of children aged 0-12 years usually attended some type of

childcare 105,237 Australians are homeless as at October 2015

25% of homeless people are Aboriginal and Torres Strait Islander Australians

270,559 of the Australian population aged over 65 years were in residential aged care at some point over the 2013-14 financial year

600,000 not-for-profit organisations in Australia

54,065 charities registered with the Australian Charities and not-for-profit Commission (ACNC)

$43 billion

not-for-profits contribution to gross national profit (4.1% of GDP)

$76.6 billion (49.6% was self generated)

not-for-profits income

5% of not-for-profits are over 100 years old

5

The average age of not-for-profits is 34

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

As at 15 November 2015

Community Sector Banking is under a profit sharing arrangement with Bendigo and Adelaide Bank. We generate income from deposits and loans that are managed by Bendigo and Adelaide Bank on behalf of our customers. As a franchisee of Bendigo and Adelaide Bank, our customer deposits are protected by the Bank’s regulatory framework and its A-credit rating with all three major agencies.

numbersour

6

We have over 10,500 not-for-profit customersand over 33,000 open accounts (loan and deposit)

total average funds under management(loans and deposits)

$1.09 billion Where our

customers are located

3% NT

11% WA

9% SA

26% QLD

11% NSW/ACT

38% VIC

2% TAS

It has been a huge year for Community Sector Banking. Yes, there have been challenges, but these have been offset by significant rewards. And it’s these rewards – in the form of real impacts within the not-for-profit sector and beyond – that keep us going from strength to strength.

One of our proudest achievements in 2015 was our B Corp certification. We are the first banking service in Australia to become B Corp certified, and it is a clear demonstration of our leadership in the impact investing market. Ongoing, our commitment to the B Corp culture will help to cement our mission-led values and guide the evolution of our business.

Another noteworthy achievement was this year’s round of our Social Investment Grants Program. We were delighted to award $100,000 to support nine very inspiring projects that will have great impact within the disability sector. Beyond the grants themselves, it is wonderful to see the continued growth of our Social Investment Deposit Account, which is a pathway by which customers can achieve a market-based return on deposits while knowing they can contribute to social change.

And then there is act. This remarkable initiative won Money Magazine’s 2016 ‘Best of the Best’ award for Best Innovative Banking Product – vindicating our crowdfunding business model that enables people to invest in social change. This year, act. raised more than $150,000 for various projects that will all have real impact within society.

It is our continued commitment to differentiation and value that has underpinned our growth. During this, our 13th year, we welcomed our 10,000th customer and enjoyed 20% year-on-year growth. We are now a one billion dollar business.

After much deliberation and with a heavy heart I have decided it’s time to hand over the reins. I am immensely proud of what we have achieved. We have a deep understanding of sector issues – whether it be within the disability space, or the affordable housing sector, or simply in helping not-for-profit organisations to grow their balance sheets.

I am leaving Community Sector Banking in a strong healthy position with a very inspiring future ahead. I would like to take this opportunity to thank the Board for their continued trust and faith in my leadership. The courageous commitment and tenacity of our shareholders has allowed Community Sector Banking to be innovative and progressive. And our customers, thank you for your ongoing support.

ceo and managing directorfrom our

As our unique, sector-specific products demonstrate, we

know how to create impact beyond core banking.

7

Finally, I extend heartfelt thanks to the Community Sector Banking team. You cannot become a one billion dollar business without the continued support of every staff member – ours all share a common vision of creating real solutions and delivering real impact.

Greg Peel CEO & Managing Director, Community Sector Banking

shareholdersfrom our

8

Community Sector Banking = Bendigo and Adelaide Bank + Community 21

13 years ago, Bendigo Bank joined with the Community 21 consortium of not-for-profits to form Community Sector Banking. Our unique history combines the knowledge and experience of the not-for-profit sector with the financial expertise of Bendigo Bank.

$423.9 600+

top60A- rating

1.6million in after tax profit million

customers

with all three ratings agencies (Standard & Poor’s, Moody’s and Fitch)

Exceeded the goal of one third women in senior management positions

branches nationwide

ASX business

volunteersof adult population

5.6 million

claimed by taxpayers in 2009

$2.09 billion donations

36% wage equivalentin work hours

$14.6billion

volunteer hours

713million

50%50%

Bend

igo

and

Ade

laid

e Ba

nk

snap

shot

bendigo and adelaide bankfrom our shareholders

In this, its 13th year, it was great to see Community Sector Banking welcome its 10,000th not-for-profit customer. With their recent certification as a B Corp and their 2015 $100,000 Social Investment Grant Program, it is clear that Community Sector Banking places shared value at the core of its business.

Greg Peel, CEO and Managing Director announced his departure in late 2015 from Community Sector Banking. Greg’s vision, determination and unwavering belief in purpose with profit has taken the business from start up to over a $1 billion in funds under management. His passion and commitment to social justice has built and strengthened Community Sector Banking’s position as the specialist in not-for-profit banking. On behalf of Bendigo and Adelaide Bank, I would like to thank Greg for his immense contribution.

Bendigo and Adelaide Bank values our investment in Community Sector Banking, both as a shareholder and a supplier, and we are excited to be building even stronger communities together.

Mike Hirst Managing Director Bendigo and Adelaide Bank

9

Bendigo and Adelaide Bank’s long-held vision is to be Australia’s most customer-connected bank. Our strategy focusses on the success of our customers, people, partners and communities; and we believe that to be truly successful, everyone connected with our business must feel fairly rewarded for their effort.

This concept of shared value is reflected in our joint venture partner and specialist not-for-profit banking service, Community Sector Banking. Together, and through our valued partnerships, we strive to deliver sustainability and prosperity for everyone connected to our business.

Our Community Bank® model is a great example of shared value. With 311 Community Bank® branches operating across regional, rural and metropolitan Australia, more than $130 million has been returned to communities, thereby building community balance sheets. We are extremely proud of the community partnerships that have made this social impact possible.

At Community Sector Banking, social impact is built

into business-as-usual. They are achieving remarkable results in the not-for-profit sector, with positive repercussions across the wider community.

community 21shareholdersThe Community 21 consortium of not-for-profits partnered with Bendigo Bank to create Community Sector Banking to cater for the unique needs of the sector.

Created in 2001 by not-for-profits coming together to invest in a different kind of company, Community 21 seeks profit for a purpose. The formation was a bold move; its founders (all not-for-profits) were prepared to risk their money to create a banking service that enabled the not-for-profit sector to increase its financial capacity, and benefit from the capital flows within the sector.

Community 21 supports the ongoing development of Community Sector Banking by providing governance and vital sector intelligence. It also supports not-for-profits to gain greater access to funds and control over their finances. Community 21’s vision is for a sustainable and effective Australian not-for-profit sector in control of its financial destiny.

10

from our shareholders

It is a great honour to contribute to the yearbook on behalf of Community 21. This organisation, which was created 14 years ago, continues to demonstrate a real passion for the not-for-profit sector and is now on an exciting new journey.

The NSW Council of Social Service (NCOSS), where I currently work, was one of the founding organisations of Community 21. Back then, it was a very brave move to join this new group. The 20 not-for-profits that formed the organisation all shared a common vision, but were yet to gain real traction within the sector. We knew that we could do something different – that we had the capacity to unite banking with other services.

Now, Community 21 and Community Sector Banking are absolutely flourishing. There are more than 10,000 in our sector using the banking products or leveraging the act. crowdfunding platform. The message is out there that this banking model clearly works.

And there are so many wonderful alignments. For example, NCOSS is committed to alleviating some of the critical issues in the social and affordable housing space; as is Community Sector Banking. To see this shared enthusiasm, and to work towards these common goals together, creates a heightened sense of possibility. A sense that we can all have a real impact within society.

community 21This year, our focus has been on expanding the breadth and depth of Community 21 through a capital raising project.

The Board has been very excited to watch the level of engagement and interest out there, and the diversity of new investors who are coming in. With all of this new support coming from such a diverse group of partners, the future looks very bright. The next 12 months will be shaped by the contributions of both new and existing shareholders; and we will continue to stick our neck out and create wonderful new solutions that are owned by the sector, for the sector.

Finally, I would like to extend my thanks to the whole Board of Community 21 for their warm inclusivity of someone new; and for their respect for a different approach. I would also like to acknowledge Peter Quarmby and the hard work he has undertaken in our capital raising project. Community 21 was his brainchild all those years ago, and here he is growing it still.

Greg Peel’s departure leaves a lasting legacy, his vision and commitment to social change have created solid foundations for Community Sector Banking to grow and expand into the future.

We all have a sense of responsibility for the future, and we take our roles here very seriously. We certainly look forward to what the coming years will bring for the sector.

Tracy Howe CEO, NCOSS Director, Community 21

11

With 18 new organisations now a part of Community 21,

there is a clear appetite to engage.

share offercommunity 21

Community 21’s share offer in 2015 raised almost three quarters of a million dollars. The offer saw 18 new not-for-profit shareholder organisations commit.

Community 21’s shareholders play a critical role in consultation, research and the development of products, projects and services for Community Sector Banking. Many of the new shareholders have been customers of Community Sector Banking for some time and were looking for new ways to get further involved.

The share offer aimed to develop new finance pipelines for social impact projects, to strengthen the not-for-profit sector’s financial sustainability and reduce their reliance on government funding.

Most of the capital raised provided an injection of funds into Community Sector Banking. A $600,000 investment from Community 21 was then matched by Bendigo and Adelaide Bank delivering Community Sector Banking with $1.2 million.

Further capital raising projects are planned. Interested organisations are encouraged to keep up to date via the Community 21 website, community21.com.au.

Hear from a selection of new shareholders

The Benevolent Society is proud to be a new investor and shareholder in the ground breaking

Community 21 consortium, which co-owns Community Sector Banking. We believe that Community 21 is a powerful catalyst for building the strength of social impact investing in Australia.

ACTCOSS is happy to join Community 21 because we believe in putting our money where our

mouth is and pooling sector resources to collectively strengthen our community.

If we are to continue providing a better life

experience to people in our community, we need a strong not-for-profit sector that is capable of meeting every individual’s needs. We are always looking for initiatives that contribute to the sector. We are confident that organisations like Community 21 have a significant role to play in meeting that goal.

12

The mix is fantastic and means Community 21 has a broad knowledge base to draw on for research and development in

our work advancing the financial future of the not-for-profit sector.

David Thompson AM, Community 21 & Community Sector Banking Chair

Brendan and Lynette from Able Australia

Now into its second year, our Social Investment Grants Program is having a strong impact across very diverse cross-sections of the community.

Community Sector Banking directly funds this grants program from an allocated 50% of net profit earned on Social Investment Deposit Accounts, account holders can also contribute.

The focus of this year’s program was on projects that benefit people with a disability. Just under one in five Australians have a disability, and we sought to support the vital work that not-for-profits do to help these people.

We were delighted to award nine not-for-profit organisations with grants totalling $100,000, and we look forward to seeing their inspiring projects come to fruition to help people around the country to lead more fulfilling lives.

With such a great response this year, we’re looking forward to the impact the Social Investment Grants Program will have in 2016.

social investment grants program2015

Many children with neurological disabilities like Cerebral Palsy cannot communicate without the help of a special device. A $13,040 grant will help Kids Plus to purchase devices for these children to test and use.

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DIAS is using its $11,640 grant to provide valuable life-skills training to people with intellectual disabilities, so they can make more informed choices about the way they live their lives.

The Windgap Foundation is using a $10,000 grant to continue its popular Making Airwaves project, which gives intellectually disabled men and women the opportunity to plan and produce community radio shows.

The Cora Barclay Centre is using its $10,000 grant to support and extend the WHISPA program, to help deaf children navigate the difficult transition to adolescence.

With the help of an $11,000 grant, Sing&Grow Australia is running a new music program designed for blind and low-vision infants and children, to stimulate brain function and increase awareness.

JSW were awarded an $11,000 grant to help people with a disability to gain confidence, improve communication and learn how to navigate contemporary issues like cyber safety and social media.

Windgap Foundation, NSW Making Airwaves

Disability Information Advocacy Services Inc, NSW Self-Advocacy and Rights Training

Holden Street is using its $10,120 grant to extend a popular weekly cooking group that equips people with basic skills such as shopping to a budget, preparing healthy meals and storing food safely.

JSW Training & Community Services, WA Life Lessons for Disabilities (LIONS program)

Sing&Grow Australia, QLD Music Therapy Project

Cora Barclay Centre, SA WHISPA Youth Mentoring Program

Holden Street Neighbourhood House, VIC Healthy Life Skills: Cooking Basics

Kids Plus Foundation, VIC Kids Plus Assistive Technology Hub

Congratulations to the following grantees and their inspiring projects.

1515

Seeing the grants being used for such a tangible

purpose – and to hear of such positive outcomes from this important program – is what it’s all about.

Bruce Argyle Chair of the Social Investment Grants Committee

With a goal of injecting fun and fitness into deaf people’s lives, Women’s Circus is using a $10,000 grant to kick-start a program in which members of Melbourne’s deaf community can join a unique circus program.

Araluen will use its $13,700 grant to run two key projects designed to empower people with disabilities to live in normal housing like other members of the community.

Women’s Circus, VIC Train the Trainer: Deaf Women in Circus

Araluen Centre, VIC Imagining Better Housing Support

Kate & Kylie from Araluen Centre and Amanda from Community Sector Banking

Our commitment to strengthening the Australian not-for-profit sector and the communities it serves is at the core of what we do.

Throughout 2015, Community Sector Banking has assisted in creating real impact by working with colleagues and sector leaders to share knowledge, examine outcomes and produce resources for the sector.

Owning our future

This year we again joined forces with our friends at Community Council for Australia (CCA) and other sector leaders to produce an extensive new report – Owning Our Future: Better Using Our Assets. The report highlights that Australia’s not-for-profit sector and charities have never felt poorer. It follows on from last year’s round of national CEO forums titled Better Using Our Assets, run by CCA and proudly supported by Community Sector Banking. The round of forums suggested that there is great potential to improve both effectiveness and efficiency within the not-for-profit sector by better leveraging assets. In order to do this, there are barriers that need to be addressed within organisations, across the sector and in broader policy settings.

Rental Affordability Index

Community Sector Banking partnered with National Shelter and SGS Economics and Planning to launch the Inaugural Rental Affordability Index. Designed to complement the existing housing affordability index, it tracks rental affordability against household income at capital, regional and local levels.

The report revealed housing affordability is a much bigger problem for renters than owner occupiers. The Rental Affordability Index will be published quarterly and will provide evidence based updates to ensure the situation is front of mind.

National Disability Services

Throughout the year we have supported and exhibited at National Disability Services conferences nationwide. They continue to provide a platform for hundreds of disability sector leaders to discuss developments in the sector, with a particular focus on the National Disability Insurance Scheme.

Our team in Queensland hosted their own round table discussion on the National Disability Insurance Scheme and the impact it will have on local not-for-profit disability groups.

partnershipsour

Supporting social enterprises

We provided continued support to our partner Social Enterprise Finance Australia (SEFA). SEFA was the first Australian financial services provider to focus their services entirely on social impact lending.

We share the same vision as our fellow B Corp, SEFA. We’re both committed to assisting and guiding our customers to build capacity to manage debt and become financially sustainable.

Our ongoing commitment

Throughout 2015, our teams have continued to:

• Join forces with Bendigo Bank branches to host not-for-profit information evenings for local community members and not-for-profit groups.

• Provide support and assistance to community groups with training and conferences.

• Support local not-for-profits by running, cycling and walking at events held around the country, achieving admirable fundraising targets and meeting personal goals.

16

17Sherralene and Sonya from Ngoonbi Co-Operative Society

reconciliationaction on

Australia is one of the world’s wealthiest nations, yet a disproportionate number of Indigenous Australians live with unacceptable gaps in health, income and living standards. Two years on from the launch of our Reconciliation Action Plan (RAP), Community Sector Banking remains committed to creating social change through the work we do with our Indigenous customers.

As 2015 draws to a close, Community Sector Banking’s RAP is being renewed. It has been a great opportunity to reflect on the achievements of our first RAP, which saw the introduction of an Indigenous Volunteer Policy, sourcing Indigenous candidates for our traineeship position, and extra dedication given to sourcing Indigenous suppliers. We are proud to be champions of reconciliation and have been working with our shareholders on ways that they too can introduce RAPs into their businesses. As we plan ahead, we will be identifying the ways we can work closely with our Indigenous customers to continue to create positive change.

Cultural competency training

In line with our RAP, we have ensured that all our staff have completed cultural competency training. Run by Corporate Culcha, the training will strengthen the cultural awareness of our team to help them successfully implement initiatives that create positive impacts for Indigenous communities and our Indigenous customers. New staff also complete cultural awareness training as part of their induction.

National Sorry Day

Community Sector Banking staff took part in National Sorry Day events around the country on 26 May. Each year since the 1997 tabling of the Bring them Home report, National Sorry Day has been held to remember and commemorate the mistreatment of Australia’s Indigenous population, including the forcible removal of Indigenous children from their families known as the Stolen Generation.

NAIDOC Week

Our staff took part in 2015 NAIDOC Week celebrations in the first week of July. The week is a time to celebrate Indigenous culture and history as well as a time to recognise the achievements and contributions Indigenous Australians make to our community. This year’s theme was “We All Stand on Sacred Ground: Learn, Respect and Celebrate” and coincided with the 30th anniversary of the Uluru handback.

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It’s about having a banking service

that actually supports and encourages community involvement.

Lionel Quartermain Ngoonbi Co-operative Society

Shanie and Jahan from Ngoonbi Co-Operative Society

social and affordable housingcreating impact through

There were 217,536 people on the social and affordable housing waiting list in 2013*. This worsening crisis is a significant issue in Australia, and a top priority for Community Sector Banking.

We are now a leader in building innovative financial models for the social and affordable housing sector, actively engaging with state and federal governments to stimulate investment in housing. We have invested much to boost the supply of housing; and we have facilitated the construction of 1,500 dwellings over several years throughout Australia.

Our commitment to creating impact within the sector was reinforced in 2015 with the launch of the Community Sector Banking Housing Impact Awards and the Rental Affordability Index. Our goal within the social and affordable housing space is to boost the availability of housing stock; putting a roof over the heads of more low-income Australians.

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Rental Affordability Index

We were proud to partner with National Shelter, the peak not-for-profit for housing policy and advocacy, and SGS Economics & Planning to deliver Australia’s first ever Rental Affordability Index. The aim of the report is to fill a major gap in housing data and to increase awareness about the level of rental affordability stress.

The index tracks household rent against household incomes in capital cities and regions across Australia. It reveals a deterioration in our rental affordability and that housing affordability is a much bigger problem for renters than owner occupiers.

The report reveals a staggering number of Australians are living in housing stress – with some families paying as much as 70% of their income to even rent a property. With data showing that demand far outpaces supply, we have a strong case to work with housing organisations to make a real difference within the sector.

The Index reveals:

Low income families earning $500 a week in New South Wales spend 65% of their income on rent. Queenslanders spend 54% of their income on rent, South Australians 59%, Western Australians 57% and Tasmanians 54%.

Australia now needs to build 180,000 new

affordable houses every year simply to keep up. That is not happening.

Joe Sheehan Head of Business and Product Development Community Sector Banking

*Referencehttp://www.shelternsw.org.au/publications-new/factsheets-new/226-housing-australia-factsheet/file

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Housing Impact Awards 2015

The Inaugural Community Sector Banking Housing Impact Awards were launched in 2015. The awards have been created to acknowledge housing organisations nationwide that are providing vital solutions to key problems - and are thinking outside the box. In deciding on the winners of the Housing Impact Awards, judges looked for organisations that show real innovation in housing projects; and that have a real impact on people’s lives.

For the 2015 award, there were two clear winners based on their collective impact and innovation – Haven: Home, Safe and St George Community Housing.

Haven: Home, Safe

This $7 million project by Haven: Home, Safe combine’s life-skills curriculum with a 23-unit medium term residential complex. Called the Sidney Myer Haven program – in recognition of philanthropist Sidney Myer, who experienced homelessness when he first arrived in Australia – the Bendigo-based housing development tackles homelessness head-on. The project will give people somewhere safe and stable to live while transitioning to other housing.

St George Community Housing

From humble beginnings 30 years ago, St George Community Housing has grown to become one of the most impressive housing organisations in Australia. Not only does it house 8,000 people in 4,300 homes around Sydney, but it demonstrates out-of-the-box thinking when it comes to tenancy management. Its Sustainable Tenancies Team responds swiftly to the complex needs of its tenants, with a goal of reducing low-income earners’ economic and social disadvantage.

1st

Community Sector Banking’s support enables

us to run meaningful programs like Art Therapy for people with multiple disabilities.

Ed Holmes General Manager, Corporate Services Able Australia

22 Raj and Allan from Able Australia

b corp certification

1,468 42 130worldwide

Countries

There are

B Corporations

In

Industries

Accross1st

Community Sector Banking is the first banking organisation in Australia to receive B Corp certification

This year, we were extremely proud to become the first banking organisation in Australia to gain B Corp certification. This voluntary, globally recognised certification reflects our unwavering commitment to do business in a better way, and to have a more positive impact on society.

B Corp companies willingly raise the bar when it comes to transparency, accountability and performance. They meet the highest standards of overall social and environmental performance, expand their corporate responsibilities to include consideration of stakeholder interests, and build collective voice through the power of the unifying B Corp brand.

We officially became a B Corp in May 2015, after undergoing a rigorous assessment process. This certification needs to be conducted every two years and we are already working on ways to improve our performance.

More than just banking

Community Sector Banking has always been about so much more than just banking. We exist to help make our society better by strengthening not-for-profits so they can make genuine impacts in their sectors. This is why we are such a natural fit with the B Corp certification.

Our vision and mission focuses on more than just profit and we demonstrate this in a number of ways. There’s our innovative capital raising and funding models, our annual grants for social investment; and our awards to

recognise achievement in social housing. Then there is act. – our world-first banking service that combines crowd funding with banking to transform the way individuals and organisations can invest in their communities.

Across the board, Community Sector Banking is passionate about change that enhances communities and finding ways to accelerate it.

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B Corp companies are those that are doing their very best for

the world, instead of simply striving to be the best in the world.

We chose Community Sector Banking because

they went the extra mile to help us. They have been amazing in their can-do attitude and their faith and support in all we do.

Pastor Malcolm Macleod South West Christian Church

Jim from Community Sector Banking and Karen from South West Christian Church

executiveourGreg Peel CEO & Managing Director until 14 December 2015

With over 30 years experience in creating innovative financial solutions for the not-for-profit sector, Greg’s vision and leaderships has steered Community Sector Banking’s policy, governance and strategic direction. Greg previously held various senior positions with international banks across the globe.

Maz Thomson Head of People & Culture

Prior to joining us in 2006, Maz worked within the community sector for over 15 years where she managed a rural and regional women’s health service and held the position of Executive Officer for a women’s health peak body.

Merindi Belarski Head of Customer Service & Engagement

Merindi has over 20 years leadership experience in customer service and operational teams in both the finance and telecommunications industries. She has a strong focus on business process improvement.

Wayne Trotman Head of Finance, Legal & Risk

Wayne, has over 22 years experience in the finance industry with more than ten of those at Community Sector Banking. His knowledge and understanding guide us in managing our assets and strategic direction.

Amanda Watt Head of Marketing, Communications & act.

Amanda’s energy, vision and determination over the last six years has shaped Community Sector Banking and its position as the not-for-profit banking specialist. Amanda’s strategy has also directly contributed to the early successes of act., a world first that combines banking and crowdfunding.

Ken Langston Head of Government & Sector Relationships

Ken is Head of Government & Sector Relationships. He brings over 15 years senior executive and directorship experience to the Community Sector Banking team. His expertise and relationships are integral to growing our business.

Joe Sheehan Head of Business & Product Development

Joe’s extensive financial experience plays a crucial role in creating the innovative solutions our customers love. For more than 35 years Joe has been working in the finance industry, including in international banks. He currently oversees our business and product development.

Jim from Community Sector Banking and Karen from South West Christian Church

From the earliest days, when the idea of Community Sector Banking was first floated, I had no doubt that it would work. Already on the Board at Bendigo Bank, I could see great potential in working with not-for-profit organisations to create a new model of banking that would support and extend this critical sector.

And so I joined the founding Board of Community Sector Banking in 2002, and have proudly watched the organisation go from strength to strength ever since.

Initially, we thought that Community Sector Banking would offer more ‘vanilla’ banking products. It soon became clear that there was great potential to use technology and differentiated products to better service the sector. The Social Investment Deposit Account and act. are two great examples of how we have evolved.

Our strength lies in our trailblazing yet trusted position. The crowdfunding space – within which act. lies – is becoming increasingly competitive. We have an advantageous and unique point of difference, in that we are backed by a trusted and credible bank, and we have real capacity to keep on growing.

We’ve made very tangible progress in helping social housing companies to leverage out their assets and provide more affordable housing for the disadvantaged and marginalised. It is a wonderful example of lending, and is perfectly aligned to Community Sector Banking’s broader goals.

It has been an honour to work with some remarkable people at Community Sector Banking. There’s Rob Hunt AM, who understands the power of reversing traditional thinking about banking like no other. There’s Greg Peel, who brings his great intellect to find solutions in complex financial spaces. And then there are our Community 21 partners, who bring their abundant passion and insights into the needs of the sector.

Of course, there have been challenges along the way. Many people and organisations embrace the idea of Community Sector Banking, but prove reluctant to change their existing banking relationships. For us to hit peak success, we need strong leaders in the not-for-profit sector; people who have strong convictions and beliefs and who are willing to act upon them.

I believe that significant changes are possible, and I look forward to following the Community Sector Banking story into the future.

Jenny Dawson Retired Director Community Sector Banking

jenny dawsonfarewelling

Our strength lies in our trailblazing yet trusted position.

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boardour

David Thompson AM Chairperson

David is a founding Director of Community Sector Banking, joining our Board in 2002. He is also the founding Chair of our 50% shareholder, Community 21. He is currently CEO of Jobs Australia.

Andrew Billing Director

Andrew joined our board in 2013, bringing skills in business diversification, strategic planning, financial management, cultural development and corporate governance. He is an Australian Institute of Management and Australian Institute of Company Directors Fellow.

Marnie Baker Director

Marnie joined our Board in January 2015. She has been with Bendigo and Adelaide Bank since 1989 and an Executive of the Bank since 2000. She has extensive industry experience in financial services and is a member of the Australian Society of Certified Practicing Accountants.

Robert Musgrove Director

Robert Musgrove joined our Board in July 2014. He has played a pivotal role in the development and expansion of Bendigo Bank’s Community Bank® model. He currently holds the position of Executive Community Engagement and joined the Executive Team in 2013 having been with the Bank since 1987.

Lauren Bean Director

Lauren joined our Board in 2013. She is also a Director of our 50% shareholder, Community 21. She is CEO of Cara Inc, a not-for-profit providing vulnerable young women with support and accommodation.

Greg Peel CEO & Managing Director

With over 30 years experience in creating innovative financial solutions for the not-for-profit sector, Greg’s vision and leaderships steers Community Sector Banking’s policy, governance and strategic direction.

Resigned 14 December 2015

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productsour

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Our specialised knowledge of the not-for-profit sector and our customers sets us apart from other financial institutions. This is reflected in our tailored range of financial solutions.

Our Cash Management Trading Account offers all the features and benefits of a regular operating account, but with the addition of a tiered interest rate meaning the higher your balance, the more interest you earn.

Customers also have access to a range of Bendigo Bank facilities such as branch and internet banking.

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The Social Investment Deposit Account creates social change. This account allows customers to donate some or all of their interest earned to the Social Investment Grants Program. Community Sector Banking funds the Grants Program from an allocated 50% net profit earned on these accounts.

Term Deposits and Gift Fund Accounts for organisations with Deductible Gift Recipient (DGR) status are also available.

Alongside our credit cards and overdraft facilities, we also offer commercial loans. In recent years, our specialist social and affordability housing team have helped not-for-profits finance over 1,500 homes around Australia.

Organisations with Public Benevolent Institution (PBI) status can access our Australian Taxation Office compliant b-packaged® debit MasterCard. b-packaged allows staff to make payments with their card as part of their allowable benefits, instead of their taxable income, whilst also keeping track of spending and managing tax requirements.

Our award winning crowdfunding platform, act. is banking that gives back. Account holders earn impact dollars that can be donated to charitable projects on letsact.com.au. act. offers a range of competitive accounts, credit cards, personal loans and home loans.

youthankFrom everyone at Community Sector Banking, thank you for your ongoing support.

We couldn’t have done it without you.

ReferencesFrom our not-for-profit sector: pg 5Australian Bureau of Statistics (2012). Survey of Disability, Ageing and CarersAustralian Bureau of Statistics (2014). Use of ChildcareAustralian Charities and Not-for-Profits Commission, website (accessed 5 Oct 2015)Australian Government (2013), Child Care in Australia, mychild.gov.au (accessed 5 Oct 2015)Australian Institute of Health and Welfare, Aged Care, website (accessed 5 Oct 2015)Australian Network on Disability, website (accessed 5 Oct 2015)Australian Productivity Commission (2010). Contribution of the Not-for-Profit Sector. Research Australians Together, website (accessed 5 Oct 2015)Homelessness Australia, website (accessed 5 Oct 2015)Knight, P.A. and Gilchrist, D. J. Curtin University FP Initiative Research Report, ACNC & Curtin University (September 2014)Oxfam Australia, Close the Gap, website (accessed 5 Oct 2015)Pro Bono Australia, website (accessed 5 Oct 2015)Salvation Army, Homelessness, website (accessed 5 Oct 2015)

Community Sector Banking Pty Ltd ABN 88 098 858 765, Authorised Representative No 265317. Level 1, Wing C, Innovation Campus, Squires Way, North Wollongong NSW 2500. Community Sector Banking Pty Ltd is an authorised representative of Bendigo and Adelaide Bank Limited AFSL 237879. Any advice contained in this brochure is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described in this brochure. Terms, conditions, fees and charges apply. All loans subject to normal lending criteria. (S53196) (12/15)

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letsac

t.com.au

Welcome to act.We couldn’t be prouder of our first year in operation, which has been both inspiring and rewarding for act.

Our mission is to change banking for good. And throughout 2015 we have done just that.

act. is the only financial institution in Australia giving choice and control to its customers - by allowing them to decide when and where their profit allocation is spent. 

act. is a unique blend of banking and crowdfunding, that empowers individuals to make a difference just by doing their banking.  We’re giving our customers the opportunity to bank with their heart. 

More than $150,000 has been successfully raised for not-for-profit and social enterprise projects ranging from $500 to $36,000. Project funding success rate is 72% which is well above the global crowd funding average of 44%. act. adopts the all or nothing crowd funding rule – where the project must meet its target to receive funds.

In our first year of operation, we’re ecstatic to have been crowned with the Money Magazine’s 2016 ‘Best of the Best’ award for Best Innovative Banking Product. This award validates what we already know – that act. is creating significant impact by combining innovative digital banking solutions and the ubiquitous crowdfunding model.

To those who have joined us on the act. revolution by taking out our banking products, or have supported projects, we thank you for being part of this fresh new way of banking.

Without doubt, our future is bright. With a strong pipeline of new banking customers and more critical social projects we are really excited about what 2016 will bring.

Amanda Watt Head of Marketing, Communications and act.

365 daysin the world of act. r p

2,0671,532 $165,120

72%

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act. transaction accountWrap it all into one with this feature-packed everyday transaction account.

act. online saver account One of our highest interest rates for an at-call account.

act. personal loan Enjoy flexible repayment options and great terms on secured and unsecured loans.

act. home loan Tell us what you need and we’ll find a competitive home loan package to suit you.

act. credit card

Your go to credit card with everything you need and nothing you don’t.

act. platinum credit card Step it up a notch with a platinum card without the hefty price tag.

A fresh way of banking – for goodact. gives you the opportunity to earn and donate banking profits to a whole range of inspiring, socially-focused projects, simply by doing something you already do.As well as being super easy and super rewarding, act. includes plenty of great products all backed by Bendigo Bank.

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Meet Steve – an act. customer Steve has a $400,000 act. home loan for his pad near King Street Newtown earning him $49.86 Impact Dollars per month

He also spends $3,000 a month on his act. credit card, earning him another $6 Impact Dollars monthly.

That’s $55.86 Impact Dollars per month Steve earns through his act. banking products which he gets to donate to any of the awesome projects on letsact.com.au

act. projects Funding positive change through banking.act. gives its customers (activists) the opportunity to earn and donate banking profits to a whole range of inspiring community focused projects. Each month, activists earn impact dollars which they can donate to any of the projects featured on letsact.com.au

In 2015 we were proud to launch over 38 worthwhile projects. Here is a snapshot.

ThankBank ThankBank is a mobile app that rewards and recognises people for doing good deeds, starting with blood donations. When donating blood and checking-in as a donor, the user is given 3 months access to discounts and coupons like movie tickets or food. ThankBank wants to reward people doing good.

To fund further development of the app, ThankBank raised more than $10,000 in their act. crowdfunding campaign in mid 2015.

241 Bondi RoadEver wanted to change the way you think of food? Transition Bondi did! Crowdfunding a community garden in Bondi, this team of activists are now creating a sustainable alternative to food production and providing local community engagement. Raising more than $20,000 the garden’s construction is well underway, and the first crop is expected in early January.

3

Help AbdulSalvos Legal Humanitarian helped Abdul apply for a partner visa so he could stay in Australia with his wife, Maria. Abdul is her primary carer and was facing difficulty getting a visa due to outstanding government debt received through immigration court costs. This project raised around half of its $11,500 funding goal within a week. It was act.’s first humanitarian project.

Piddington Justice ProjectIn just 46 days this project passed its goal amount and was funded to the tune of $36,210 – the highest amount for act. so far! The project solves two important challenges within the WA community of providing work placement for law graduates and provides desperately needed resources to Community Legal Centres. $10,000 of this campaign was match funded by the English Family Foundation.

AMRRIC(Animal Management in Rural and Remote Indigenous Communities) Having completed two hugely successful projects, AMRRIC is one of act.’s most supported organisations with a very worthy cause. The One Health Project supports an integrated animal health program which contributes to an improvement in human health. AMRRIC vets and education officers are committed to providing effective, culturally appropriate programs and are experienced in working in remote communities. They are dedicated to improving the health of dogs and the lives of their owners.

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Get into the groove with banking that gives backWhen you open a bank account with act., you’ll also receive an Impact Account. Each month, you’ll earn Impact Dollars into this account. You’re then ready to allocate these Impact Dollars to any of the great projects featured on letsact.com.au

Bank with act.All the banking

products and features you need but with

bonus heart and soul. Products issued by

Bendigo Bank.

Earn Impact DollarsEvery act. banking

product earns Impact Dollars in your Impact

Account monthly.

Fund Projects

You choose where your Impact Dollars go, how many, and how often. You can even top up your donation with

your credit card.

5

You can choose where your donations go, how much and how often. It’s your choice.

As well as being lots of fun and giving you an extra reason to feel great, act. puts you in charge of your banking and you decide where banking profits should go.

Impact dollars are allocated monthly and customers can view how much each of their banking products generate onsite at letsact.com.au/banking

act. offers a great range of online and telephone banking services, with bonus heart and soul. Opening an act. account is easy.

Call the act. team on 1300 ACT TODAY (1300 228 863) or visit letsact.com.au/banking to apply online.

Connect with act.

letsact.com.au

facebook.com/letsactau

twitter.com/letsactau

linkedin.com/company/act.

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Ready to bank with act.?

Any advice contained in this brochure is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described in this brochure. Terms, conditions, fees and charges apply. All loans are subject to normal lending criteria. You should also read the act. Terms & Conditions available at www.letsact.com.au. Community Sector Banking Pty Ltd ABN 88 098 858 765, Authorised Representative no 265317, Level 1, Wing C, Innovation Campus, Squires Way, North Wollongong NSW 2500. Community Sector Banking Pty Ltd is an authorised representative of Bendigo and Adelaide Bank Limited AFSL/Australian Credit Licence 237879. act. is a division of Community Sector Banking Pty Ltd. (S53196) (12/15)