Social entrepreneurs against poverty
Canada is a rich nation, yet more than 4.7 million people are poor, including nearly one in six children – a serious socio-economic challenge for communities.

Recognizing that the problem-solving skills of business can be applied to help fight poverty, RBC became a national supporter of the Tamarack Institute’s Vibrant Communities initiative in 2004, with a four-year pledge of $250,000.

This national network unites 250 non-profit organizations and government agencies, 100 community leaders and 100 businesses in 15 cities to share and start poverty-reduction plans.

One vibrant community is Saint John, New Brunswick, where businesses have stepped up to the problem-solving plate. RBC’s Tom Gribbons chairs the Poverty Reduction Leadership Roundtable convened by the Saint John Business Community Anti-Poverty Initiative, founded by RBC pensioner Bill Gale, to lead a strategy that aims to guide 2,000 people out of poverty over the next three years.

Resources to promote self-sufficiency
Social and Enterprise Development Innovations (SEDI) is a charitable organization that runs programs to enable low-income, unemployed and under-employed people to become self-sufficient.

For the fourth year, RBC was a national partner in Learn$ave, the world’s largest asset-building project, helping low-income Canadians save for the future. We provide a modified savings account, an Individual Development Account, that allows deposit of matching funds from Human Resources and Skills Development Canada, while participating agencies can track individual goals.

To date, over 3,600 Canadians have saved more than $2.3 million through this program.

In 2004, RBC was also a sponsor of the first SEDI Awards, a celebration of the entrepreneurial spirit of people faced with adversity – the poor, the jobless, people with disabilities and those in damaging home environments – who, through SEDI’s programs and their own tenacity, have become independent. SEDI’s self-employment programs have created 1,900 jobs over the past decade.

Financial literacy
How to budget, what to save, when to invest: these are basic concepts in financial literacy. Yet, for some low-income people, the sheer complexity of the banking and financial system can be intimidating and a barrier to making good financial choices. To reach these people, community programs will play an increasingly important role, building on trust and local knowledge.

In 2004, RBC seconded an employee to work with Toronto’s Yonge Street Mission, a social services network that serves the city’s poor, to help assess the financial literacy needs of this diverse community. Over the year, Fred Hayes helped the mission research possibilities for a community-run literacy program and other financial services that could be introduced in the future. In 2002, in a partnership with St. Christopher House, RBC introduced Cash & Save, a neighbourhood financial services centre that offers lower-cost cheque cashing and other basic banking services. A second location opened in 2003.

As a member of the Federal Home Loan Bank of Atlanta, RBC Centura helped client Buddy Owen (right) secure low-interest Economic Development Growth Enhancement (EDGE) financing to build a sewer line and waterworks in Dillsboro, North Carolina, in the Smoky Mountains. The new development created jobs for more than 20 people in 2004, including Pam Frady, who is manager of a new convenience store on the site.

Community development
In the U.S., the Federal Community Reinvestment Act (CRA) requires the Federal Reserve Board to evaluate our performance in helping meet the credit needs of our communities.

RBC Centura’s Community Development Lending Group works with community leaders, government agencies and funding sources to achieve common goals, such as affordable housing, area revitalization or bringing services to low-income communities.

We help communities access public and private financing sources for economic development. One example is the revitalization of the historic downtown district and the new Imperial Centre Arts Complex in Rocky Mount, North Carolina, which draws on the banking and financing expertise of several RBC businesses. Three projects in Port St. Lucie, Florida, contribute to the state’s fastest growing economy.

Through the Federal Home Loan Bank of Atlanta, RBC Centura also arranges below-market rate development loans to projects, such as the Cumberland County Association for Indian People in Fayetteville, North Carolina, for a new childcare centre and cultural museum.

Wealth through homes of their own
When renters become homeowners, the tax base grows and families can build equity – the foundation for prosperous communities. In 2004, RBC Centura launched a home ownership initiative to reach out to lower-income people who assumed they could not qualify for a mortgage or were afraid to try.

RBC partnered with local economic development agencies, community leaders, real estate experts, credit counsellors and others, to offer home ownership workshops in Virginia and North Carolina, where people could apply for a mortgage or loan assistance programs on-site. As a result, over 30 per cent of RBC Centura’s mortgages were to lower-income people in 2004.

RBC Royal Bank eliminated the biggest barrier for would-be homeowners in Canada by introducing a no-down-payment mortgage.

RBC also supports home ownership through donations to Habitat for Humanity, and employees participate in community builds all over North America, including Houston, Denver, Seattle and Minneapolis. A donation of $120,000 helped Habitat construct 10 homes across Canada in 2004.

The currency of new ideas
The ability to commercialize new ideas helps to create high value companies and jobs for the future.

With this in mind, RBC has taken a leadership role in supporting innovation and commercialization. For example, we are involved in a number of leading-edge initiatives, including the Medical and Related Sciences (MaRS) project, the National Angel Organization and the Canadian Institute for Advanced Research.

We have made direct investments in a number of promising early-stage ventures across North America th rough RBC Technology Ventures and its partner funds.

We also support universities as the heart of the knowledge-based economy, and made a number of donations in 2004 focused on innovation.

For example, a $600,000 endowment to Simon Fraser University in Vancouver will allow the RBC Professor in Technology and Innovation to work with research centres and MBA students to manage innovation in emerging technologies.

Our contribution of $750,000 to the University of Ottawa created a professorship to study ways to commercialize science and technology ideas. We directed $800,000 to help create the first Professorship in Entrepreneurship at the University of British Columbia. And, recognizing the role of family-owned businesses, RBC donated $1.5 million to the University of Alberta for its Centre for Entrepreneurship and Family Enterprise.

Luz Elena Piedrahita moved to Canada from Colombia with a master’s degree in finance and years of banking experience, but no place to prove herself. The Calgary Immigrant Women’s Association (CIWA) played matchmaker, securing an internship for Luz Elena with RBC, which led to full-time employment with our main branch in Calgary.

A place for skilled workers
Gabriel Rosales landed in Toronto from Venezuela in 2003 with a resume that included an MBA and hands-on marketing know-how. But, his lack of local experience meant no job or chance to contribute to the economy. He landed an eight-month internship in an RBC Royal Bank marketing department in 2004, thanks to Career Bridge.

This program, designed and managed by Career Edge, helps recently arrived, skilled immigrants earn the local job experience so often demanded, and helps employers find qualified workers. RBC took part in a 2003 pilot project, in which 40 employers provided internships for 132 people. In 2005, the goal is to place 150 people, including 10 at RBC. We support Career Bridge as a model for opening a world of needed talent: new Canadians account for about 70 per cent of the growth in today’s labour force, and are expected to represent all growth by 2011.

Bridge to trade and productivity
Through industry partnerships, RBC promotes economic growth, access to markets and co-operative development.

We are a member of the Canadian American Business Council, which raises awareness of the value of the Canada-U.S trade relationship and the importance of keeping the border open for business.

In 2004, RBC Centura sponsored a “Team Florida Canada” trade mission led by Enterprise Florida, opening cross-border opportunities for our clients. Canada is Florida’s second-largest export market.

Our employees are also active members of local Chambers of Commerce in many places where we do business.

RBC Royal Bank was also the premier sponsor of the Commercial Real Estate Women’s Network (CREW) conference in Toronto. Nearly 1,000 delegates explored cross-border networking opportunities and real estate trends.

For more information on RBC’s support of community economic development, visit rbc.com/community

Help in times of crisis
Without the basics of life, it can be nearly impossible for people to achieve their full potential or for communities to thrive. RBC supports programs that help people in need, such as food banks, a cause that is close to the heart of thousands of RBC employees. They hold bake sales to raise money for local food banks, donate money earned through dress-down Fridays, engage in friendly competitions with neighbouring branches to see who can collect the most food items and encourage clients to support their efforts.

In 2004, RBC gave over $300,000 to replenish food banks and soup kitchens across Canada.

We also believe that having a roof over your head is a basic human right, and we invest our resources in a number of initiatives to fight homelessness, including our ongoing support for Raising the Roof, whose mission is to find long-term solutions to homelessness. For the sixth year, RBC employees took part in the charity’s annual fundraising campaign in Canada, raising close to $75,000 for local agencies, while the RBC Foundation donated an additional $50,000.