Foundation Magazine January/February 2022 by Lloydmedia Inc

FOUNDATION The Business & Spirit of Philanthropy in Canada January/February 2022 | Vol. 3 | No. 12

Disruptive Philanthropy

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The World Around Us IN LOVING MEMORY OF MAGAWA

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It is with a heavy heart that we share the sad news that HeroRAT Magawa passed away peacefully this weekend. Magawa was in good health and spent most of last week playing with his usual enthusiasm, but towards the weekend he started to slow down, napping more and showing less interest in food in his last days. Magawa had recently celebrated his birthday in November, reaching the grand old age of 8. All of us at APOPO are feeling the loss of Magawa and we are grateful for the incredible work he’s done. During his career, Magawa found over 100 landmines and other explosives, making him APOPO’s most successful HeroRAT to date. His contribution allows communities in Cambodia to live, work, and play; without fear of losing life or limb. In September 2020, he was formally presented with a PDSA Gold Medal — the highest award for gallantry an animal can receive. Last year when Magawa retired, HeroRAT Ronin took up the baton as the new adoption rat. Every discovery he made reduced the risk of injury or death for the people of Cambodia. Magawa is an African giant pouched rat (Cricetomys ansorgei) that was born in Tanzania at Sokoine University of Agriculture (SUA) in November 2013. Since 2000, APOPO has developed its operational headquarters, training and breeding center at SUA where all the landmine detection rats are born and trained. This is also home to APOPO’s Innovation department that researches and develops the innovative applications and advanced techniques used in existing operations. This is where he learned how to find explosives using his amazing sense of smell. Magawa moved to Siem Reap in Cambodia in 2016, where he began his career. Over 60 million people living in 59 countries from Cambodia to Zimbabwe, do so in daily fear of landmines and other remnants of past conflict. Landmines are still inflicting pain and fear to a new generation of Cambodian people, a generation that

A hero is laid to rest.

Magawa died during retirement at the age of eight. He bravely sniffed out dozens of land mines over the course of his career in Cambodia. He is believed to have saved lives and has been widely lauded as a champion of volunteer selflessness. Though he technically didn’t volunteer, his tireless efforts and dedication to his work made him a model of what a difference even the smallest among us can make to those around us. “His contribution allows communities in Cambodia to live, work, and play; without fear of losing life or limb,” the nonprofit APOPO said.

wasn’t even born when these mines were laid. Clearing minefields is intense, difficult, dangerous work and demands accuracy and time. This is where APOPO’s animal detection systems can increase efficiency and cut costs. It is thanks to all of you that Magawa will leave a lasting legacy in the lives that he saved as a landmine detection rat in Cambodia. Thank you all, from the bottom of our hearts, for your support during this difficult time. January/February 2022

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CONTENTS

January/February 2022 | Vol. 3 | No. 12 www.foundationmag.ca

Twitter: @foundationmaga1 PRESIDENT / EDITOR-IN-CHIEF Steve Lloyd - steve.lloyd@lloydmedia.ca ACCOUNT EXECUTIVE Laura Tyson - laura.tyson@lloydmedia.ca DESIGN / PRODUCTION Jennifer O’Neill - jennifer@dmn.ca PHOTOGRAPHER Gary Tannyan CONTRIBUTING WRITERS Steve Allan Michael Brooke Jennifer Alldred Malcolm Burrows Yannick Archambault Sarah Chamberlin Mark Blumberg Arundel Gibson

Mark Halpern Kathleen Provost John Young

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302-137 Main Street North Markham ON L3P 1Y2 Phone: 905.201.6600 Fax: 905.201.6601 Toll-free: 800.668.1838 EDITORIAL CONTACT: Foundation Magazine is published bimonthly by Lloydmedia Inc. Foundation Magazine may be obtained through paid subscription. Rates: Canada 1 year (6 issues $48) 2 years (12 issues $70) U.S. 1 year (6 issues $60) 2 years (12 issues $100) Foundation Magazine is an independently-produced publication not affiliated in any way with any association or organized group nor with any publication produced either in Canada or the United States. Unsolicited manuscripts are welcome. However unused manuscripts will not be returned unless accompanied by sufficient postage. Occasionally Foundation Magazine provides its subscriber mailing list to other companies whose product or service may be of value to readers. If you do not want to receive information this way simply send your subscriber mailing label with this notice to: Lloydmedia Inc. 302-137 Main Street North Markham ON L3P 1Y2 Canada. POSTMASTER: Please send all address changes and return all undeliverable copies to: Lloydmedia Inc. 302-137 Main Street North Markham ON L3P 1Y2 Canada Canada Post Canadian Publications Mail Sales Product Agreement No. 40050803 4

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January/February 2022

KPMG’s deep-dive report illustrates a new picture of philanthropy

3 THE LEAD IN 7 SEEN, HEARD & NOTED COLUMNIST

Too Many Charities?

The Great Awakening: After the Storm

Wealth Management - Malcolm Burrows Leadership - Kathleen Provost

Turning Our Reasons into Action Marketing & Fundraising - Sarah Chamberlin

Maximize Your Footprint: Becoming an Entrepreneurial Philanthropist The Accidental Philanthropist - Mark Halpern foundationmag.ca

CASE STUDY: FUNDRAISING

HISTORIC PLAQUES

The Holiday Fundraising Mailer 2021

PROFILE

What It Means to Turn Caring into Lifelong Action

SECTOR RESEARCH

Disruptive Philanthropy

Spencer Wyatt House

OUR STORY

How Oxfam Goes Beyond Charity

REGULATORY AFFAIRS

In Case You Missed It: The Public Inquiry Final Report

Anti-Alberta Energy Campaigns

Shaping Tomorrow’s Donor Strategies

FINANCE

LANA SULLIVAN

ISTOCK/ DILOK KLAISATAPORN

ISTOCK/IMAGINEGOLF

FABEHA MONIR/OXFAM

COURTESY OF ONTARIO REAL ESTATE ASSOCIATION

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CONTENTS

Insights on the Dramatic Reduction in CRA Charity Audits

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Next Issue… Coming in the March/April Issue... The Power of Graphic Design. It’s not just for fundraising. Iconic images tell stories and build brands. Special Report.

January/February 2022

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SEEN, HEARD & NOTED How does the world get to the point where a survey finds one third of students in North American question whether the Holocaust actually happened? That’s what a survey of 3,600 North American students revealed, demonstrating a shortcoming in Holocaust education. The survey found that social media is a significant source of information for the students—one third of whom questioned whether the Holocaust even happened. The study was commissioned by Canadian charity Liberation75 and led by Dr. Alexis M. Lerner of Western University. Students in Grades 6 to 12 were surveyed twice — once before a two-day virtual conference focused on Holocaust education, and once after — to assess what they know and think about the Holocaust and antisemitism. Students from Canadian classrooms made up 78.6 percent of respondents. These recent findings, combined with the growing influence of “fake news,” underscore the importance of requiring fact-based instruction about the Holocaust in schools. No Canadian province or territory mandates Holocaust education as part of their secondary school curriculum. In the United States, 22 states require Holocaust education as part of their secondary school curriculum. “It’s terribly concerning to see so many young people questioning the very existence of the Holocaust and getting their information about the Holocaust from social media,” said Marilyn Sinclair, Founder of 6

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Liberation75, an Ontariobased charitable organization committed to Holocaust education and remembrance. “We are calling on provincial and territorial governments across Canada to mandate teaching of the Holocaust and antisemitism within curricula to ensure our youth know about the dangers of what happens when hate goes unchecked and we don’t stand up for each other.” Yet, 42 percent of students said they have unequivocally witnessed an antisemitic event, even though the vast majority of study participants self-identified as non-Jewish. In addition to the traditional antisemitic tropes, examples included hearing jokes about Jewish people being put into ovens, celebrations of the Pittsburgh synagogue shooting, and hateful comments on social media or gaming platforms. After experiencing the educational treatment, students were 9 percent more likely to intervene if they observed an antisemitic event occurring. The survey also showed a desire among students for more facts, with 92 percent wanting to know more about the Holocaust. “Our study shows that providing Holocaust literacy to our students has the potential to prevent bullying, discrimination, and intergroup conflicts. It’s up to us to give our youth the tools to build a strong, peaceful and educated society,” said Sinclair. ••••••••••••••••••• Marking its 40th anniversary year, global nonprofit Operation Smile announced a 10-year commitment today to increase access to care

January/February 2022

for 1 million patients who need cleft care and other essential surgeries. Entering its 40th anniversary year, the organization will scale up its investments in underserved remote areas around the world. The announcement marks an evolution for

Operation Smile, which will continue to work as the leading global nonprofit specializing in expert cleft surgery and care and will focus more intensely on transforming local health systems. The organization’s new vision includes creating expanded opportunities for women in medicine, investing significantly in research, innovation, surgical education, and youth empowerment, all of which are factors that impact cleft care. “As we enter our organization’s next decade, we are deeply focused on increasing the number of high-quality cleft surgeries, which requires strengthening local health systems,” said Operation Smile Co-Founder and CEO Dr. Bill Magee. “We’re committing today, to transforming lives by challenging inequities in the health system head-on to serve a million people who need care.” Founded in 1982, Operation Smile has provided free, lifechanging surgical and dental care for more than 326,000

patients, enabling them to eat, breathe, speak, and live healthier lives. With each surgery, the organization has seen how gaps in health care infrastructure create barriers to access and perpetuate inequities in health care systems. Over the next 10 years, Operation Smile will collaborate with local partners, including ministries of health, donors, corporations and academic institutions to bolster in-country health systems to reach its goal of increasing access to care for 1 million patients. ••••••••••••••••••• Broad Reach Foundation for Youth Leaders, a charity supporting equity-deserving youth, has broken another systemic and historical barrier: Charles D. Waterman is the first Black sailor leading a youth sail training and leadership organization in Canada. “There are hardly any BIPOC kids sailing in Canada, despite the longest coastline, the multitude of vessels, clubs and initiatives. Broad Reach is leading the way to equity and inclusion, engaging young people in the development of skills, knowledge and social belonging through sailing. I am that Black sailor who will animate the community for change to broaden access, to engage the young talent, optimism and energy, and to bridge the gap between people with and without privilege.” Our youth-led Ships2Shores project, funded by the government of Canada, facilitates youth access to marine education and employment while growing youth attachment to Canada. In 2021, our Sailing foundationmag.ca

SEEN, HEARD & NOTED

Access Fund supported youth in accessing sailing and tall ship sail training. Young people led collaborations with organizations in Ontario, Quebec, British Columbia and Nova Scotia, creating a vibrant pan-Canadian network of 3,000 youth engaged in marine sector activities including the arts, civics, heritage and economy. “Canada’s youth benefits greatly by discovering the value of our marine sector where workforce shortages are looming large and youth lack information of the opportunities. We celebrate and take pride in our oceans, rivers and lakes and the wealth of opportunities they present for the youth and the country,” says Marguerite Pyron, CEO at BRF. “We are proud, enthused and inspired by the government’s recognition of the value and potential of youth. BIPOC, Anglo- and Francophone, newcomers to Canada and youth experiencing socio-economic disadvantage, engage with and benefit from the marine sector and the opportunities that our country holds within its coastlines. These will be the kids at the helm. This is their time to lead the change” says Charles Duncan Waterman, President, Broad foundationmag.ca

Reach for Youth. The project is delivered by Broad Reach Foundation for Youth Leaders in collaboration with BRIGS Youth Sail Training, Tall Ships Expeditions and Bytown Brigantine, ON, EcoMaris, QC, Nova Scotia Sea School and Picton Castle, NS, and Sail And Life Training Society, BC. ••••••••••••••••••• The Definity Insurance Foundation, a new Canadian registered charity planning to make a difference in the lives of Canadians in marginalized and underserved areas, announced the appointment of Arti Freeman as its founding CEO. Freeman has close to 20 years’ experience in the philanthropic sector leading granting programs and strategies, organizational change initiatives, and business process improvements. Most recently, she was the Manager of Partnership Investments at the Ontario Trillium Foundation (OTF), one of Canada’s largest grant-making foundations, where she led the successful re-building of the Partnership Investment program that connects the non-profit, public, and private sectors to build a stronger non-profit sector in Ontario. “We are delighted to welcome Arti as our founding CEO. She has a proven

track record in non-profits, as well as working with diverse communities and other partners to help drive systemic change,” said Willy Robinson, Board Chair of the Definity Insurance Foundation. “The Board believes Arti will establish a solid base for the Foundation as she grows our support for charities doing community-based work that reduces social inequities in health, opportunity, and climate-related challenges.” “Helping to establish and lead a new major philanthropic foundation in Canada that is committed to advancing equity and justice by building trust and working with communities is truly a privilege,” said Freeman. “My personal philosophy and values revolve around building institutions and systems that are responsive, relevant, and mindful of recipients of our services. As such, it is important to me that we reflect the voices of the people we are serving and work with community.” The Definity Insurance Foundation was established as a result of the demutualization of Definity Insurance Company (then known as Economical Mutual Insurance Company), which was completed in November 2021. The Foundation was the recipient of $100 million from the proceeds of this demutualization and is a registered charitable entity in Canada. ••••••••••••••••••• PwC Canada unveiled its inaugural Canadian ESG reporting insights study, analyzing the current and trending challenges Canadian organizations face with their ESG reporting practices. January/February 2022

Canadian ESG reporting is falling short, leaving organizations at risk of missing opportunities for increased long-term value creation and goodwill for their brand. This comprehensive analysis explores ESG reporting maturity across 150 of Canada’s top organizations. Relying exclusively on publicly available information, PwC assessed elements such as strategy, materiality, metrics, assurance and other key components of ESG reporting. The data collected will help companies improve where they fall short, and strategize to successfully include ESG, considering the growing significance it holds with investors and stakeholders. In a PwC Global ESG Investor Survey, nearly 80 percent of respondents said ESG was an important factor when making investment decisions. Employees, lenders, customers, regulators and other stakeholders are also using ESG information to inform their decisions. And yet, more than half (59 percent) of the organizations reviewed are not including sustainability-related information in their annual report beyond a dedicated corporate social responsibility section. “Individuals and organizations are dealing with a growing trust deficit, due to fundamental economic, environmental and societal changes in the world,” said Mike Harris, Partner and ESG Practice and Net Zero Leader, PwC Canada. “Organizations that take a more holistic view of incorporating ESG in their business strategies will be able to build brand value and longterm trust, as they look to deliver sustained outcomes.” FOUNDATION Magazine

COLUMNIST

WEALTH MANAGEMENT MALCOLM BURROWS

Too Many Charities?

BY MALCOLM BURROWS

Malcolm Burrows 8

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GARY TANNYAN

oes Canada have too many registered charities chasing too few dollars? This is a complaint that is often heard. There is simply too much competition and not enough entities with scale that are effective. Or so goes the narrative. I think it’s the wrong question to ask. Those asking are big funders, efficiency experts, fiercely competitive fundraisers, and policy wonks. It reflects a profound misunderstanding about charities and their role in society. In January 2020, Canada had 85,756 registered charities. That one big number tells us very little. We need to understand how charities are organized, why they are important, and how the numbers are trending. Trends The trend line is clear. The number of registered charities had been climbing since Federal registration was introduced in 1967. It peaked at just fewer than 87,000 in 2017, and for the last two years has been declining. foundationmag.ca

COLUMNIST

“At a macro level...most charities are volunteer organizations serving a specific community.”

The charitable sector researcher Don McRae has been tracking the ins and outs for a number of years. In his 2019 report, McRae noted there were 2,146 revocations, with only 12 due to audits. Some of the trends he observes are the decline in the number of Christian churches, reorganizations to meet funding and logistical challenges, and the difficulty in finding volunteers. Poverty and education were over represented as categories. Revocation for failure to file a T3010 is also a major category that often indicates underlying organizational exhaustion. Failure to file charities totaled 958 in 2019. A few organizations will reapply with Canada Revenue Agency to regain their status. In 2019, Canada also welcomed 1,558 new registered charities. One upward trend is the increase in private foundations, one of the three categories of registered charities. On January 22, 2020 there were 5,974 private foundations. These charities are typically set up, funded and controlled by an individual or family. In contrast there are 4,963 public foundations. A decade ago public foundations outnumbered private. Is Canada losing its traditional social backbone of religious organizations, seeing a shrinking pool of volunteers (who were often involved with religious organizations) and an increase in private philanthropy? Are we in a world of more funders and fewer doers? The answer to these questions is “yes”.

Too many charities? The big trending numbers don’t, however, answer the “too many” question. At a macro level, it’s essential to remember that most charities are volunteer organizations serving a specific community. Two-thirds of charities have foundationmag.ca

revenue under $100,000 per annum and no staff people. They are small! Look at Sydney Mines, Nova Scotia. The Cape Breton community of 14,135 people has 11 charities, including 6 churches, 3 social service organizations, a scholarship trust and a heritage organization. All are privately funded, none are flush with money, and all address local needs. Down the road in Sydney, population 29,904, there are some new charities addressing new needs, such as a palliative care, sexual health, the spiritual needs of the Muslim population and autism. At the other end of the registered charity “hockey stick” distribution curve are large educational institutions and hospitals. They receive the majority of their funding from government. They also have service fees and often significant donations — either directly or through a parallel fundraising foundation. Annual budgets can range from $50 million to $2 billion or more. Yes, that’s billion, but these entities are rare. The middle, which is actually the sector’s top end, has charities with revenue of $1 to $10 million. This group has more fundraising needs and often greater geographic service reach. There are about 6,000 charities in this revenue band. Mergers There is no question that some charities could benefit from mergers. A number of major national health charities, such as Heart and Stroke Foundation, have done this in the past decade. These national organizations inherited a grassroots network of local chapters, which served another time. Another group of charities in the system that dates from another time is

testamentary (established by will) charitable trusts that have been registered as standalone private foundations. There are, for example, 71 registered charities with “estate of” in the name. This structure has largely been replaced by legacy donor advised funds within public foundations. Expectations Criticizing charities for being too numerous reflects mistaken expectations. Charities are imperfect, human organizations. Some are highly effective and have huge ambitions. Others are grassroots, volunteer-run, and have modest goals and resources — and are important community organizations. Both ends of the spectrum are essential to Canada. This is also true in the business world where similar inequities exist among entities. But no one says there should be fewer small businesses. New businesses emerge to address new opportunities and, frankly, most don't thrive. Charities are a structure for caring individuals to come together to address community needs. This process has been formalized in charity law and the Income Tax Act, but at the most basic level it’s a grassroots process to organize collectively to produce public benefit. There is no cap on public needs to address. And there is no requirement for charities to be big, efficient and impactful. If such a requirement existed, local organizations addressing local needs would be stymied. We need a diverse and open charitable sector, and that’s what we have in Canada.

MALCOLM BURROWS is Head, Philanthropic Advisory Services for Scotia Wealth Management. He is also a volunteer director of CanadaHelps. He writes this column exclusively for each issue of Foundation Magazine.

January/February 2022

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COLUMNIST

LEADERSHIP KATHLEEN PROVOST

Kathleen A. Provost

The Great Awakening: After the Storm

BY KATHLEEN PROVOST, CFRE

s a professional fundraiser, I always try to look at life with a “glass halffull” perspective; but I remain tentative as to what is next after this world pandemic — after this “storm”. In an attempt to keep a positive outlook on our profession and our sector, I remain inquisitive as to what can be learnt after weathering this storm. What professional and personal growth can come from this? Hilary Pearson, in her January 2022 article entitled Hopes, Fears and a Wild Guess, did remind me of very important questions we need to explore as we embark on this journey and end up on the other side of this pandemic, on this new post-pandemic path. She asked: “How do we add flexibility, responsiveness, and adaptability to our funding practices; How do we support new leadership pipelines and ladders, and more effective systems of governance; How do we educate ourselves, develop awareness of bias, racism and exclusion…?” 10

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COLUMNIST These are a few of her questions; but they remain essential to ponder as fundraisers. These questions are necessary to better understand our profession and our sector as we look at the horizon, at the other side of this storm. Beyond our responsiveness I remind myself of an article I wrote last October 2021, Volunteering: Past, Present and Future, in which I take a look at volunteering and how it looks different for different individuals. Now, 2 years into this pandemic, I question if it is really the “purpose of volunteering” that is changing or if it is “us”, the individual and our changing priorities? Volunteering, fundraising and the not-for-profit sector have not changed its purpose; it is us, who are changing in response to the last 20 months of increased challenges and isolation. We have been adapting and are trying to adjust within each of our communities, professional and personal. Hence, the real question is how different are we as individuals? Are we trying to take control of who we are and the place and role we want within our communities? In 2016, Michael Brand (michaelbrand. org) published, Why Our Service Organizations Are Dying (and 6 ways to fix them), in which he explored areas we should consider if we want to re-invent ourselves. He challenged us to: 1. Think of tribes and not communities, in which people desire most an opportunity to connect with one another in groupings of people founded on shared ideas and values — ending traditional mass communication and replacing it with an ancient human social unit: the tribe, giving ordinary people the power to lead and make big change. 2. Emphasize time over treasure by spending vastly more time in what might be a type of “structured leisure activity”. This means time is more prized than talent or treasure by adding what we perceive as quality to our lives. foundationmag.ca

3. Build an informal atmosphere in which rituals make sense to today’s generations by creating fundamentally social, conversational and less formal environments. So really, if we juxtapose the pressures we have experienced these past months in a global pandemic, is it possible that it has empowered us to “Re-Think” how we do things to have the desired impact we want to have for ourselves? Is it possible to envision the world differently by stimulating our ability to identify and problem-solve creatively, hence awaken our curiosity to new, inspiring ideas and alternatives? Shaping the “Great Awakening” We talk about a “Great Resignation” but that is really only from the perspective of the employer. The pandemic has given licence to businesses to discard employees as disposable assets and variable expenses. This has then become the turning point for individuals who may have had issues with the existing “working-force contract” between employers and employees.

which people decide they want to find greater meaning in their work and lives. I want to argue that there is no shortage of talent or skill to invest in a community, the issue is rather the need to belong to a community with a sense of purpose. This explains the natural reaction of individuals “exiting” the workforce in which they do not identify. People crave communities in which they can build connections, where they feel valued as engaged employees. What is happening is not a “Great Resignation” rather what is happening is a “Great Awakening”. Workers are seeking meaningful reasons for gainful employment. The next workforce revolution The charitable sector is no different than the private sector in many ways. Organizations, associations and other not-for-profit entities must respond to this change in our workforce. In the fundraising world the donors’ behaviour is a key indicator of our community’s health. Shelley Hoss, President & CEO of the Orange County Community Foundation, recently stated that since

“Individuals who comprise the workforce are asserting their personal agency by questioning the status quo.” I believe we are experiencing a “Great Awakening”, by which individuals who comprise the workforce are asserting their personal agency by questioning the status quo. In a survey conducted by Workhuman, Co-founder and CEO, Eric Mosley talks about “a salary arms race”. Yet, four out of every ten workers interviewed, who planned to look for a new job in the next 12 months, stated that the reasons for such a change were as psychological as they are material. This pandemic has triggered a further complex change in employee sentiment. Mosley calls this a wave of “pandemic epiphanies” — in

the COVID-19 pandemic began nearly 75 percent of Millennials provided financial support to family, friends or nonprofits — the highest rate among any generation polled. In this example, younger generations of philanthropists are mobilizing rapidly to support causes they believe with the same conviction that individuals are leaving the workplace and taking control over their employment. In December 2021, Christy Somos, of the CTV National News reported that younger people were more likely to increase charity donations during the

January/February 2022

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COLUMNIST

MARKETING & FUNDRAISING SARAH CHAMBERLIN

Turning Our Reasons into Action Sarah Chamberlin

BY SARAH CHAMBERLIN

wo years into a pandemic that some hoped would only last two months has left many of us are tired, annoyed, and understandably angered. Though, what I’ve noticed most is that we’re stubbornly resilient as well. We’re also experts at enduring and, as a result, the mental health movement is stronger than ever. Everyone has a reason for supporting the movement, whether through personal lived experience or that of somebody we know. As a leader in mental health research and treatment, CAMH’s goal is to create a world where mental health is health for everyone. In 2021, here’s how we turned our reason into action: Supporting working Canadians CAMH’s Business Leaders for Mental Health Action is a philanthropic coalition of business leaders and companies committed to improving the psychological health and safety of employees. We hosted two major virtual events where attendees learned about practical ways to manage anxiety, how to best support themselves and other employees, the power of vulnerable leadership, managing diverse teams, developing workplace mental health strategies, and more. 12

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COLUMNIST

Committing to equity and equality womenmind is CAMH’s community of philanthropists committed to closing the gender gap in mental health. It fuels philanthropy focused on discovers that lead to better mental health outcomes for girls and women, and supports femaleidentifying researchers to become leaders in the sciences. Last year, the community proudly welcomed Dr. Daisy Singla, its first-ever womenmind scientist who is working to advance research in women’s mental health. Tackling the most complex mental health issues From discoveries that could prevent PTSD, to dietary supplements proven to prevent baby blues from progressing into postpartum depression, CAMH’s Today campaign highlights how mental health research is saving lives today. The campaign gives a more prominent voice to people with lived experience, empowering them to share their stories, and showing how donors can drive real change. Rising together for mental health The Sunrise Challenge, CAMH’s new flagship fundraiser, encouraged people to rise with the sun and do something positive for their mental health for one foundationmag.ca

“We will continue to supporting our loved ones and people in our communities. CAMH’s commitment health remains unchanged. As share our gratitude...” towe’vemental done since 1998, we will continue week, while also raising funds to support mental health programs and research. More than 4,600 people participated and more than 23,000 donated. Every donation helps CAMH lower suicide rates, reduce the disability caused by mental illness, and empowers more people to reach meaningful recovery. Moving forward, together The past year is further proof that tumultuous times can’t stop passionate people from turning their reasons into action. Collaboration and generosity continue to enable us to accomplish so much. From hospital staff working tirelessly to ensure patient safety and recovery, to community members donating what they can, to people providing listening ears to others in need — 2021 might not have been the year we had hoped for, but it was definitely a success in many regards, and that’s thanks to every member of this mental health movement. As we wade through these pandemic waters, it’s vital that we continue to take care of our mental health while

to solve the world’s biggest mental health challenges by advancing mental health care through research and discovery. We will continue to share stories of clinical breakthroughs and the patients they serve. We will also continue to be a beacon of hope for Canadians, as we emerge on the other side of the pandemic stronger, together. Most of all, we will continue to share our gratitude, knowing that people like you are turning your reason into action as part of the mental health movement in 2022 and beyond. If you would like to learn more about CAMH’s movement for mental health and how to support our work, please visit https://www.camh.ca/en/get-involved. SARAH CHAMBERLIN is Vice President of Marketing and Donor Experience at CAMH Foundation. The Foundation supports the philanthropic efforts of CAMH, Canada’s largest mental health teaching hospital and a world leader in mental health research, treatment, and advocacy. Please visit CAMH.ca to read more about the important work CAMH is doing with the help of our communities or email Sarah at sarah.chamberlin@camh.ca. She writes this column exclusively for each issue of Foundation Magazine.

January/February 2022

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COLUMNIST

THE ACCIDENTAL PHILANTHROPIST MARK HALPERN

Maximize Your Footprint: Becoming an Entrepreneurial Philanthropist

BY MARK HALPERN, CFP, TEP, MFA-P

Mark Halpern, CFP, TEP, MFA-P 14

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January/February 2022

’ve written before about “Accidental Philanthropists™” — people who discover, through working with us, that they can choose to leave less of their hard-earned money to the tax department and more of their legacy to their families and the charities they care about. This article will introduce you to five different types of generous givers I’ve met over the years and provide a step-by-step guide to help them become an intentional philanthropist, even if they started out as an accidental one. Let’s meet the giver types first. foundationmag.ca

COLUMNIST

“More than ever, business owners know that customers prefer to deal with companies that are good corporate citizens.”

Giver #1: Keep me anonymous Some givers want to keep their donations private. Maybe that’s because they don’t want to publicize the fact that they have wealth. They may also believe that staying anonymous keeps their gift pure since it’s made for no other reason than generosity. Giver #2: I’m setting an example Givers may be primarily motivated by encouraging others. They may want to instill the values of philanthropy in the next generation. Or they may want to rally people in their community to change lives for the better together. Giver #3: I want my name to live on These are the givers who provide large donations that allow them to add their names to hospital wings, university buildings and prestigious awards. They understand that public philanthropy provides a kind of immortality. Giver #4: I want to reduce my taxes Giving to charity, especially when done strategically, can be an excellent tax minimization strategy. Donations can be integrated with other corporate and personal tax planning to provide the greatest possible relief from taxes. Giver #5: It’s great for business Now, more than ever, business owners know that customers prefer to deal with companies that are good corporate citizens. Demonstrating a commitment to a charitable giving program can give a boost to your brand and your business.

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Give more with an entrepreneurial philanthropic strategy for your business We have worked with so many clients who were surprised by how much more of a difference they could make with some simple restructuring of their assets. By minimizing taxes, they freed up money and could leave substantially larger sums both to their families and to the causes they support. Young clients in their 20s and 30s have created donations of a million dollars or more for pennies on the dollar using Life Insurance along with appropriate planning. The steps that follow are geared towards business owners, but many work well for individuals too. And, whichever type of giver you are, this kind of strategic approach to philanthropy can help you give more than expected and transition from success to significance. Define your “Why” What are you passionate about? Do you want to lift people out of poverty? Help children reach their full potential? Accelerate research into a specific disease? Protect the environment? Support animal rights? Decide what resonates with you and where you want to have a meaningful impact. Dream BIG If you had the means, what audacious sum of money would you like to donate to charity? For example, think about the difference you could make to

your favourite causes with a $100 million donation. Shoot for the stars and we can end up on the moon. It all starts with having a philanthropic financial goal. Make it real Start making it happen by committing to allocate a certain percentage of net or gross revenues or annual profits to charity. Aim as high as you can and promote the fact that the more your business earns, the more you’ll donate. Put structures in place Establish a charitable foundation or Donor Advised Fund (DAF) to manage your charitable gifts. A charitable foundation is a standalone structure that has initial set up costs and annual reporting. You invest the funds. A donor-advised fund is an account within a public charity eg Toronto Foundation, Jewish Foundation, Oakville Foundation, Burlington Foundation, Canada Gives, and is much simpler to set up. You can use either for your business and/or personally. Contact us to obtain a copy of our one pager “Donor Advised Funds and Private Foundations. What’s the Difference?” Gift assets strategically Consider whether it makes the most sense to donate cash or to be more strategic and give appreciated securities, flow-through shares, and life insurance. It can be the difference between donating at .50 cents per dollar

January/February 2022

FOUNDATION Magazine

COLUMNIST

“Share your charitable goals with the businesses you work with and explain how they can help” to as a low as .05 cents per dollar. As a business owner, re-examine your estate plan to see if there are ways you can convert taxes into a charitable legacy after death. One of the best ways is to donate an old life insurance policy that you don’t really need or that would not move the dial on your family’s inheritance. It can generate a large tax receipt today and going forward premiums are considered charitable donations to save you more taxes. Contact us to obtain a copy of our one pager “More Than 20 Ways to be Generous. Donations are Not All the Same.” Get staff engaged Identify champions who can share your charitable vision widely across your organization and get your board, senior leadership team and employees excited about contributing to a larger goal. Matching programs can work extremely well, where the business matches employee contributions to the charities everyone chooses, or to charities that are selected through an employee survey. The business could even match the premiums employees pay on donated Life Insurance set up to create even more transformational gifts to charity. Talk to your suppliers Share your charitable goals with the businesses you work with and explain how they can help you achieve them. We ask many of our own suppliers to give a percentage of what they make from us to our charitable foundation. They get the charitable receipt, and we direct the funds towards the causes we care about. Suppliers who would once have given us gift baskets and sports tickets prefer to thank us for doing business with them foundationmag.ca

through charitable donations and are happy to redirect those funds towards a gift that really matters. Tell your clients Promote what you are doing to your customers and clients. Tell them that simply by choosing your products and services they are contributing to your revenues and therefore your charitable giving campaign. You may want to make the link even more direct by donating a percentage of each client’s business revenue to a charity or a flat dollar amount for every transaction, or direct those funds to their favourite charity, charitable foundation or donor advised fund. Communication Get some help to determine the best way to communicate above internally and externally. Your messaging should be clean, clear and elegant. It should be unified and unifying. Each segment of your charitable strategy needs to be integrated. This part of the planning should be a lot of fun to produce. Integrate it all Charitable giving shouldn’t be an afterthought, or a sporadic cheque here and there. It should be planned. That way, you can make a bigger impact, channeling money that would otherwise have gone to taxes towards your favourite causes instead. Fundamentally, an approach that integrates your business and personal financial planning with a charitable giving strategy enables you to contribute to the social good more efficiently and effectively.

Enjoy the emotional rewards of your generosity Generous people often tell me how wonderful they feel after making a charitable gift. They savour an undeniable and palpable sense of achievement. We walk the talk At WEALTHinsurance.com, we’ve taken each of these eight steps as we continue to work towards our own corporate goal of creating $100 million in charitable contributions every year. Beyond knowing that we’re making the world a better place, this initiative has created stronger relationships with our team, our suppliers, our clients, professionals many of whom are actively participating in helping us achieve our vision. Don’t do this alone. We look forward to helping you maximize your philanthropic footprint. There are many great ways to help reduce taxes now and, in the future, but putting them together requires comprehensive estate planning and knowledgeable people. Proper planning will ensure you are not only on the right side of CRA, but also for your plans to work effectively. Our advisors across Canada are available to help you preserve your hardearned money on the phone, Skype or through Zoom. Please be in touch to arrange a personal, no-obligation consultation. MARK HALPERN is a well-known CFP, TEP, MFA-P is a Certified Financial Planner, Trust & Estate Practitioner, Master Financial Advisor – Philanthropy. He was honoured to speak in the Disruptors Category at Moses Znaimer’s most recent ideacity conference. His talk generated high interest and comments. Watch “The New Philanthropy” at bit.ly/MarkHalpernTalk. Learn more at www.wealthinsurance.com. He writes this column exclusively for each issue of Foundation Magazine.

January/February 2022

FOUNDATION Magazine

CASE STUDY: FUNDRAISING

The Holiday Fundraising Mailer 2021

oundation Magazine spoke with Brea Blight, Development Officer, Annual Giving and Communications for the Ontario Shores Foundation for Mental Health. This year’s campaign was examined and explored. Here’s the conversation. Is this campaign part of your annual fundraising strategy? Yes, like the majority of charitable organizations our big direct mail piece we do every year is our holiday direct mail appeal. The last couple of years, this campaign has also been supported by an email campaign to our email house list, paid social and digital ads, as well as organic social ads. How long has this particular mailing piece been part of the program? The Ontario Shores Foundation for Mental Health was established in 2009, and began mailing a holiday appeal in 2015.

Brea Blight, Development Officer, Annual Giving and Communications for the Ontario Shores Foundation for Mental Health

Who developed this particular mailing package? What it in house, or an agency / consultant, and if so whom? Typically, this is a piece that is created internally by the Development Officer of Annual Giving & Communications, but this year we collaborated with an outside agency who has assisted us the last two years with our yearly awareness campaign that launches in October, Blakely Fundraising. Do you have versions of this mailer which are used for other specific times of the year, other holidays etc? If so, please describe. We don’t have other versions of this exact piece. We did deploy e-mail versions through December to accompany the mailer. Our holiday mailer is a stand-alone piece. We do other direct mail initiatives throughout the year, but they will tell a different patient story, or focus on a program or research initiative at Ontario Shores, or a particular fundraising goal. 18

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Organization Name: Ontario Shores Foundation for Mental Health Contact: Brea Blight, Development Officer Annual Giving & Communications Name of Campaign: Holiday Giving Direct Mail Appeal Timing: Mailed on November 19, 2022 – Match offer until December 31, 2021 foundationmag.ca

CASE STUDY: FUNDRAISING Why is direct mail used as the fundraising channel for this effort? In the past direct mail was one of the only ways to send an appeal! And, although it is obvious direct mail is not used as frequently due to cost and the expansion of digital, a holiday direct mail appeal is still a piece that many people expect to receive. It is something that you can not ignore! And, most of our holiday donations still come in from mail–72 percent of our holiday donations came in by donors mailing back the BRE with a cheque or their credit card info. I think using direct mail for this appeal as an asset in a crossmarketing strategy that includes email, digital and social media contributes to the overall success of the campaign. Who is the target donor and where is this campaign mailed, or how is it distributed? This year we sent this direct mailer to our in-house database and we also purchased a householder list from Canada Post based on our Canada Post audience profile we had conducted a couple years ago. Can you share the mailing numbers, geography, target demographic, etc? Do you rely on a personalized version of this letter being mailed to individuals directly? We mailed to just over 25,000 people. Approximately 1,500 were from our house list that is comprised of people from across Ontario, with the majority being in Durham Region. We also purchased 24,000 addresses from the Canada Post Householder list across the GTA. Householder lists are not personalized but were based on our Canada Post Donor Profile report. Do you use testing versions of the same mailer which have a different offer, different donation levels, etc, for the purpose of determining future mailings? Yes, we do segment our house list where we do variable messaging and offer different donation levels based on their donor profile and giving history. How would you describe the results of this type of campaign? Over the last couple years our holiday giving campaign revenue has increased by almost 50 percent as we have gotten more familiar with our donor database and as our awareness in the community has increased. Working with an outside agency on strategy and creative has definitely allowed us expand on our direct messaging and segmenting and also implement the cross-channel marketing I mentioned above. What percentage of recipients use the QR code to scan and watch the video, and how to you follow up with those individuals who take that step? Do they receive a special or unique offer, for example? I have not yet received the QR code results from this campaign, but we did not attribute any special offer to this piece. The foundationmag.ca

QR code directed them to the video that was uploaded to our YouTube account. For anyone that is a first time donor and provides their email address, they do receive a Welcome email from our CEO within the first week of making a donation. And after that the new donor fall into our retention communication plan. Do you feel that direct mail like this has a specific advantage over other channels, and what percentage of your marketing-fundraising budget goes into direct mail? Definitely, I think direct mail still targets an audience who appreciates communicating (whether personal, business or through donating) via the mail as opposed to other nontraditional means. Also, people are not receiving as much mail as they used to, so it can tend to stand out now and maybe cause a bit of excitement in the recipient! Direct mail takes up about 55 percent of our fundraising budget. What else would you like to say about the campaign and about Ontario Shores’ direct mail fundraising efforts and about the organization’s plans for future campaigns. Any other comments or thoughts you’d like to add? We are a fairly small team of five people wearing many hats, and as a foundation we are still in the growing stages. We’re constantly testing and exploring new strategies and because of that and the efforts of our energetic and dynamic team, we are definitely beginning to evolve and connect with our donors as never before!

Key Credits In House Strategy|Tactics: Brea Blight, Development Officer Annual

Giving Communications Content|Copy: Brea Blight, Development Officer Annual Giving Communications and Shannon Stuart, CEO Design: Brea Blight, Development Officer Annual Giving Communications Data: Brea Blight, Development Officer Annual Giving Communications and entire Foundation team who reviewed and contributed

Agency|Consultant Strategy|Tactics: Blakely Fundraising Content|Copy: Blakely Fundraising Design: Blakely Fundraising Production: Blakely Fundraising Data: Blakely Fundraising Other: Blakely Fundraising – updating of social media ad to reflect holiday giving message

January/February 2022

FOUNDATION Magazine

PROFILE

What It Means to Turn

Caring into Lifelong Action T

BY MICHAEL BROOKE

he desire of Michelle Francis to do philanthropic work is rooted in her earliest childhood memories. “I was the youngest daughter of four and the first to be born in Canada,” she recalls. “From the time I can remember, I was my dad’s shadow.” Michelle says her father, Henry Francis, was always taking her to places where he would fix things for people. “My father was larger than life and had this extraordinary presence in people’s lives.” Michelle says that people could rely on him for assistance and support. “I could never tell the difference between my father socializing or helping. His helping was an extension of who he was.” One gets the same impression from Michelle. She has managed to seamlessly fuse her business career with her philanthropic work. “Every time I advocate or every time I’m helping, it’s not a separate activity, it’s just a part of what I do.” In perhaps one of the most striking examples of the impact that Michelle’s father had on her life, she recounted the time when he helped save someone’s life at the scene of a car accident. “A young man had been hit and my father rushed into action. He told me to go and get a pillow and blanket from the car. I remembered feeling so empowered at the time knowing that my dad was going to save someone!” At that moment, Michelle says she really understood what it meant to be protected and cared for and she was immensely proud of her father. Michelle’s first official volunteer experience was at an exercise event at the Heart & Stroke Foundation. This opportunity eventually led to her first corporate job working with the very same foundation as a 20

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January/February 2022

provincial coordinator in Cause Marketing for Fit & Hoops. As Michelle explains, “back then, the not-forprofit world was where your passion lived and your income died.” Her move to the for-profit world coincided with the birth of her first son. The reason she moved into the business world was because she couldn’t afford to take care of her son while working in the not-for-profit world. Fast forward a number of years and Michelle believes that things have changed. “Consumers are starting to ask pointed questions like ‘does this product or service that I am buying align with my value system?’” Michelle has also worked in continuing education at George Brown College and was a professor at Durham College in Fund Development in Sports Management. Michelle’s initiatives encourage and empower young people to take charge of their lives. The Henry Alexander House was created in honour of her father who along with being a community leader was also a recipient of the Government of Canada Jubilee Award. The Jubilee Award award recognizes and honours significant contributions and achievements by Canadians. The house is both a performance and healing facility that endeavours to provide a blend of therapeutic modalities, life skills and business. It has offered a wide range of programs and services for families in Durham Region. This includes counselling, mediation and business performance training. The Alexander House also does intensive group outreach support for black youth, black youth at risk and BIPOC youth. It works with teens and young adults (ages 16 to 21) who are navigating emotional challenges and those trying to navigate a future career path. foundationmag.ca

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January/February 2022

FOUNDATION Magazine

COURTESY OF ONTARIO REAL ESTATE ASSOCIATION

Michelle Francis

COURTESY OF ONTARIO REAL ESTATE ASSOCIATION

PROFILE

Michelle Francis receives the Ontario Real Estate Association’s Real Heart recognition award. Her work in Durham Region includes as a volunteer, a fundraiser and establishing programs that help youth find employment in the skilled trades.

Besides supporting individuals, the house also provides a place for nonprofits and charities to work and spread their message. As the pandemic started to change the way people interacted, Michelle realized that she had to offer the community something that went beyond what the Alexander House could offer. Michelle retired as President and Chairwomen of Durham Family Court Clinic at the end of her term. This coincided with the COVID-19 pandemic, to focus on the transformation of The Henry Alexander House to launch a new venture to help youth. “Through speaking with my own kids, I started to understand that there was a whole gender and age group that was displaced from their employment. It was males who were visibly diverse and were really hanging on trying to see what kind of impact COVID-19 was going to have on their employment prospects. Many were left with nothing.” It was at this moment where Michelle created a new program called L.E.O.N. “I always felt that young people were powerful, they just weren’t empowered. The world sees them as troublemakers or a pain in the neck. But I know they are looking for guidance and mentorship.” The L.E.O.N. program was named after Michelle’s nephew who had passed away. It stands for Leadership, Entrepreneurship, Opulence and Nobility. “I saw the writing on the wall some years ago and I knew that the traditional 30 year job would dissipate. I wanted very much for young people to embrace an entrepreneurial spirit. I wanted to engage young people’s passions.” L.E.O.N is an all-encompassing youth enrichment program that helps to build a positive future for youth and young adults. It offers support along with a number of tools for success. These include life skills development, entrepreneurship, networking, financial literacy training and conflict resolution training. Additionally, it offers personal fulfillment and discovery platform, workplace preparedness and mentorship. The benefits of the program include the fostering of personal accountability, a transfer of skills to the business world and an improvement of communication skills. Graduates of the program find they have an enhanced self-worth, evolved self-pride along with an improved ability to cope with life’s challenges. This leads 22

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Francis’ Real Heart story comes from being a transformative leader in her community.

to the creation of a healthy mindset that in turn creates healthy families and communities. The lion motif speaks to the idea of one’s pride being their inner roar. “A lion can be present and not roar — it’s almost like a silent power” explains Michelle. The fact that leon is lion in French is also a nod to her family. “Both my sons are in French immersion and are bilingual.” Part of Michelle’s philosophy of work is the idea of philanthropy being welded with entrepreneurship. “I’ve always looked at business as being an extension of myself. What are your values? Who are the people leading that business?” As Michelle explains, starting a non-profit organization comes from the heart. As you move forward, you have to ensure there is an entrepreneurial spirit attached to the movement so that it can walk in parallel with the corporate world. “It’s important not to lose your integrity and it is indeed a fine balance between nonprofit and for-profit enterprises.” “I am very focused on solutions, and commercial real estate is all about analyzing the data and providing solutions,” says Michelle. “But I also have experience in investing and I’ve been able to teach my clients how they can profit from investing in properties.” Michelle has been able to get clients to understand the value of providing space to those who don’t have homes. “For the twenty years that I’ve been a landlord, I’ve been an affordable landlord because I understand that people need somewhere to live.” Another initiative that Michelle launched was something called The Wall. It grew out of the L.E.O.N. project because she was concerned about what kids were going to do as the colder months approached and the pandemic continued to wage war on people’s plans. Michelle wondered how she could keep youth busy and engaged. “I thought to myself, ‘what can young people create that comes from their sorrow or confusion that someone else could appreciate?’” Michelle approached a real estate broker that she knew and asked about opening up a new location. After some deliberation, Michelle was given a 20’ x 25’ wall inside the actual real estate broker's office. Originally, the intention was to put the Henry Alexander logo on this canvas but Michelle felt she could do more. foundationmag.ca

COURTESY OF ONTARIO REAL ESTATE ASSOCIATION

PROFILE

The Henry Alexander House was founded as a cooperative space that facilitates the elimination of barriers to success, through the forging of partnerships of like-minded corporate, socially-responsible business professionals and practitioners to the success of the community through TheSkinni™ programs.

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When humans give back and help one another, it can lead to extraordinary moments and insights. When Michelle was in her late 30’s, she spent time volunteering with Habitat for Humanity. Michelle found the work fulfilling because she could immediately see the impact of her contributions. At an event, Michelle listened to a lady’s story who had been helped by the charity. “This woman had 6 children and was leading a pretty good life with no real issues. One day, her husband suddenly died and this started her trajectory of becoming homeless.” As Michelle recalls, everyone in the room was crying and her heart was breaking. Michelle confided that she too had to deal with some very traumatic experiences in her life. “When this woman told her story, I was finally able to see and hear an actual recipient of my work with Habitat for Humanity and it had a profound impact on me emotionally.” Michelle sees the power of the not-for-profit world and its ability to transform lives. “It is a great place for people to explore their capabilities and to really connect with individuals and communities. There are so many opportunities out there that someone can contribute to. It doesn’t have to be a random position, it can in fact be a strategic career building opportunity that helps boost your trajectory.” Over the last several years Michelle has been recognized for her work in the community of Durham Region. In the fall of 2021, her tremendous efforts were showcased by the Ontario Real Estate Association in their Real Heart Initiative. The initiative highlights the good work done by Ontario realtors in their communities. The members of OREA are committed to making the world a better place and inspiring others to do the same. By telling stories that inspire and by providing the tools needed to become community champions, they aim to help build stronger communities across Ontario. Michelle is featured in a video that highlights some of her activities. https://realheart.ca/video/michelle-leong-francis/ MICHAEL BROOKE is a Toronto based writer, author and entrepreneur and currently principal of Time For My Story, a publishing venture.

January/February 2022

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RAWPIXEL.COM

Michelle took a chance and contacted a young and upcoming artist and gave him an opportunity to create whatever he wished on the canvas. Watching the process was magical for Michelle. “It was amazing to see our artist find himself as he created this artwork. You didn’t know what twists or turns it would make.” The Wall has been a resounding success and every quarter, a new artist gets a chance to put their work on canvas. Each piece of art is for sale and Michelle has even launched her first non-fungible token (NFT), a digital form of ownership verified by a decentralized online ledger The project has even inspired other realtors to step up and get involved in bringing canvases into their offices. “I envision these places as local tourist spots. These are places where people can go to see amazing art and every brokerage will have a different concept.” During my conversation with Michelle, I was struck by the number of ideas that flow from her mind. When discussing the idea of giving young people a space to share their art, she immediately pivoted to something I’d never considered before. “One of my former tenants worked in the mental health field and was the art director at Ontario Shores. She asked me about bringing in artwork from some of the clients who were mentally challenged and I said ‘of course!’” Michelle avidly believes in this cause because she recognizes that people with mental health issues are underrepresented when it comes to showcasing their art. I asked Michelle about how she’d convince her fellow realtors along with anyone who worked in the business world to join in the world of philanthropy. “I think the community needs to demand it. Not just of their realtors but of all the businesses they transact with. The question is ‘what are you doing in the community above and beyond a business transaction?’” Michelle firmly believes that businesses really need to ask themselves ‘what are we doing to contribute to the greater good?’ As she explains, there is a lot of mending that needs to be done. When a realtor becomes part of the Wall programme, there is a certificate that is created. It is an acknowledgment of the donation that indicates the realtor has given to the community. “When a business gives back, they are part of an elite group and this recognition makes them stand out” explains Michelle.

SECTOR RESEARCH

Disruptive Philanthropy Shaping Tomorrow’s Donor Strategies

BY YANNICK ARCHAMBAULT AND ARUNDEL GIBSON

or centuries, the philanthropic activities of successful individuals and families have played an important role in societies in Canada and around the world. This becomes even more important in economically and socially challenging times. The pre-COVID-19 world saw increased public interest in personal wealth, wealth equality and, by extension, increased philanthropic activity. As the world transitions to the new normal and societies seek to recover from the economic impact of COVID-19, the desire among many individuals and families to create impact and leave lasting legacies in their communities and beyond remains. KPMG is seeing the emergence of a new wave of modern philanthropists, adopting innovative approaches to philanthropy. During 2021, KPMG Global Family Office conducted surveys and in-depth interviews with select philanthropists in Canada and around the world to uncover how they support various causes, the approaches they adopt as well as their successes and lessons they have learned along their journeys. This report provides insight into different ways successful individuals and families are approaching giving. Some of the themes covered include what drives this new wave of philanthropists and how they collaborate; the strategies and structures behind their activity; the impact on both those that benefit from their activity and those who give, and the role philanthropy can play in bringing families closer together. 26

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KPMG chose a select number of philanthropists from around the world to show what they are doing in the philanthropic space and share lessons and insights from them, which may help others seeking to maximize their impact through philanthropic activity.

A New Wave of Disruptive Philanthropists The relationship between private wealth, philanthropy and society is as complex and personal as it is rewarding. Philanthropists typically sit outside the confines of government and business and are often free to direct wealth and influence in ways of their choosing. Yet with wealth comes responsibility, and it is not something worn lightly, according to most philanthropists KPMG interviewed. Global philanthropy is changing Global philanthropy is changing. The simple act of giving money to deserving causes, while still at the heart of philanthropic endeavour, is not enough. New ways of giving are emerging, with philanthropists taking the very best of key lessons from the corporate world to help add rigor and discipline to philanthropic activities in ways that can maximize impact. foundationmag.ca

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ISTOCK/ALPHASPIRIT

While today’s philanthropists may be driven by the same desires as their forebears — wanting to give back to society — they differ in the confidence of their ambition, their international reach, the structures adopted and the discipline of measuring impact. Just as many of these philanthropists have emerged as disrupters in the business world, so too they are looking to drive innovative new approaches to philanthropy. They are in many ways social entrepreneurs. Philanthropists continue to face considerable challenges, some old and many new. The call for support from all corners of the world and society remains as loud as it always has, and the effects of COVID-19 have highlighted greater inequalities. Choosing the right causes to support takes time, consideration and research. Adopting the right structure is critical, but too rigid a structure can hold a philanthropist back from achieving desired goals. Time and expertise are as important as cash, and yet often in limited supply. Measuring the impact of activity, often over many years, if not decades, demands a different approach to that of the corporate world. Among the philanthropists interviewed, the rewards are self-evident. The passion and hunger to make the world a better place drives activity. The enthusiasm and enjoyment that these philanthropists gain from their activity is clear to see. KPMG heard time and again how philanthropy can bring a family together under a common banner and can be a valuable vehicle to help younger generations accept and manage the wealth they may eventually inherit. This report seeks to explore the key themes and insights gleaned from the quantitative 2021 KPMG Global Philanthropic Practices Survey and a series of qualitative interviews KPMG professionals conducted with philanthropists around the world in the following areas: ❯ what drives philanthropists ❯ the strategies and structures behind their philanthropic activity ❯ the impact it has on both those that benefit from their activity and on those who give ❯ how philanthropists collaborate ❯ the role philanthropy plays in bringing families closer together. January/February 2022

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SECTOR RESEARCH

The journeys of leading philanthropists and the lessons they have learned are shared in greater detail in the full report, available from KPMG.

“Head, Heart, Hands”: The Passion Driving Philanthropy Philanthropic activity is a very personal journey characterized by passion, belief, duty, responsibility and, sometimes, frustration. Whatever the drivers, there is often the shared desire of wanting to give back to communities, society and neighbours across the world. There is an overwhelming energy and urgency to effect lasting change. For some, giving is an opportunity to honour the lives of lost loved ones, and for others, it is born out of childhood experiences. For all, there is the recognition that they have been given the unique opportunity to leave the world in a better place. The notion that wealth and privilege come with responsibility is a recurring mantra. According to many of the philanthropists interviewed, the journey starts early in life, inspired by parents, grandparents or other role models and driven by a strong sense of duty. Typical of the stories heard is that of the cofounder of a mjor African not-for-profit. “My mom was a philanthropist. 28

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If someone lost their parents, they came to stay with us. If they needed help, they stayed. It takes one action to change the narrative, one dollar to change the story. That is true philanthropy”. It is echoed repeatedly by those philanthropists participating in this study, many of whom remarked that philanthropy was natural, something they didn’t think about, they just did. For those starting their philanthropic journeys later in their lives, or where it is tied to their commercial success, that sense of responsibility and desire to leave lasting change burns just as brightly. Many philanthropists KPMG talk to speak of starting a ‘second career’; of turning entrepreneurial energy and experiences of corporate life into successful philanthropic endeavours. Many of the philanthropists emphasized the need to find something about which you are passionate. The founder of a foundation, which works to support disadvantaged and vulnerable children, says, “Find something that excites you, that makes you angry and then do something about it.” Another foundation co-founder KPMG spoke to, notes that successful philanthropic impact requires use of “head, heart and hands”. Philanthropists are united in wanting their time, effort and money to be directed where it will have the greatest impact, taking considerable time to research and evaluate areas of interest and focus. Those turning to philanthropy following foundationmag.ca

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successful careers often take many months, sometimes years, researching, visiting projects, joining boards of not-for-profits and spending time with other philanthropists before starting their own journeys. That need to demonstrate impact is fundamental to the success and enjoyment of philanthropic activity, shaping the projects philanthropists choose to support. According to the 2021 KPMG Global Philanthropic Practices Survey, almost threequarters (71 percent) of philanthropists place measurable impact at the top of the list when selecting causes to support, with good governance (58 percent) and an innovative approach (42 percent) cited as strong influencing factors. That same discipline is adopted by seasoned philanthropists who have been active for decades. The desire to find the right cause, the right project and then the right approach can be a fundamental difference between charitable giving and impactful philanthropy. Ambition and enjoyment The passion of philanthropists can be matched equally by ambition. The scope and scale of projects extends beyond immediate neighbourhoods and national boundaries, driving change across continents. The desire to lift communities out of poverty, to improve early years’ education, to empower women in developing nations, to increase access and to promote medical innovation, or to support the arts, is often truly global. As a sample of philanthropists globally, those surveyed and interviewed are making an impact in vastly different ways. They are transforming early-year education in developing nations, empowering women in war-torn countries and communities across India one village at a time, nurturing artists across an entire continent and developing frameworks for family businesses which in turn create wealth for communities across Africa. As readers of this report can explore the passion, variety and reach of philanthropists through Philanthropists in Action, a series of stories looking further at emerging trends in the philanthropy landscape as successful individuals and family offices increasingly prioritize the ESG agenda and the desire to make a social impact. Wide-reaching as their activities may be, most are also seeking to make an impact in their own backyards. What are obvious from our discussions are the enjoyment and the sense of deep responsibility and fulfilment that, without exception, they derive from their activity and action. While the simple act of a cash donation often makes a significant difference to a charity or cause, according to philanthropists, the real rewards come when they are actively involved beyond the writing of that cheque. A major U.K. foundation leader, captures this perfectly, saying: “I don’t think people understand the enjoyment that one gets from giving. There is a lot of fun and satisfaction in seeing that what you have built up in a business, over many years, is being used to improve the lives of others.” foundationmag.ca

ESG and Philanthropy Responsible investing is a spectrum of investment philosophies including ESG integration, negative and positive screening, themed investments, and impact investing. Responsible investment is growing rapidly globally. This growth can be attributed to a better understanding of how responsible investing can reduce risk by illuminating issues not found on financial statements and can also lead to better long-term financial performance while contributing to positive societal and environmental change. To illustrate, in Canada, all charities both public and private are required by federal law to annually disburse 3.5 percent of invested assets. However, the remaining 96.5 percent can be utilized, for double the impact, through responsible investing. A 2018 report titled “The State of Responsible Investing at Canadian Foundations” published by the Canadian Environmental Grant Makers Network revealed 83 percent of the foundations surveyed reported they were following some type of responsible investment strategy, primarily screening, ESG integration or impact investing. For families with private foundations, responsible investing allows them to activate the invested assets for further impact in alignment with their philanthropic values. For families with DAFs, there can be the opportunity to invest in a DAF that does responsible investing or to use a DAF that permits the family’s investment manager to invest the capital in responsible investing. While philanthropic capital will always be an important source of funding for the important work charities do, responsible investing is redefining how we can achieve environmental and social impact. The Toronto Foundation’s Social Impact Investments asset allocation is one example, with a US$1.5 million loan to Habitat for Humanity in the Greater Toronto Area. - Arundel Gibson, Family Advisor, Philanthropy & Impact, KPMG in Canada

January/February 2022

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Cornerstones of Philanthropic Activity: Time, Expertise and Money Philanthropic activity is rarely about providing cash alone. Money is, of course, important, but it is the addition of time and expertise that makes for a potent mix. Philanthropists are increasingly smart in how they leverage that mix to make finite resources extend further. As stated, KPMG’s research suggests that, for many philanthropists, philanthropic and charitable activity is ingrained in individuals from an early age, yet it is in middle or later years that it takes on greater importance and sophistication. The adage ‘with age comes wisdom’ stands true, with successful philanthropists investing their time and expertise and utilizing their network to build successful programs. This happens at a neighbourhood level, with families coming together in ‘giving circles’ providing hands-on support to local charities, at a national level through the joining of boards of charities and not-for-profits, and globally, with philanthropists acting as ambassadors for a cause or organization, and at all levels through various family foundations. Time, money and expertise are the very cornerstones of philanthropic endeavour. Sometimes, writing a cheque is exactly what is needed, but most philanthropists prefer to be a bit more strategic in how they give, according to our research. Many highlighted that philanthropic experiences are less rewarding when it is cash alone that is invested. The philanthropists see the giving of time as an investment, which can also make a significant positive impact for both the philanthropists and the organizations they support. But with time a finite and precious resource, they also pointed to the importance of choosing wisely, where there is the most opportunity to make a difference. This sentiment is evident also in our survey research, with just over half (54 percent) of philanthropists supporting causes important to them through giving their time. Equally, half (50 percent) turn to their network and contacts to help support a cause. The channelling of expertise has in many instances become a powerful philanthropic endeavour in its own right. through Global Access Partners has built a network of more than 4,000 senior business, political and academic leaders that are addressing the most pressing political and social issues facing Australia today. It is a model common around the world Giving Women brings philanthropists, businesses, NGOs and grassroots campaigners from around the world under the banner to empower women and girls in need. It is, however, in the financial and investment space where disruptive philanthropy is gathering pace. 30

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Money, put simply, is being made to work harder and with greater impact. Impactful finance The investment landscape has changed dramatically over the past decade and continues to do so. Where money is held and how it is used can equally damage reputations or increase its potency. There are, of course, a myriad of regulations across the globe that shape the way funds are held and used, but clear trends are emerging. The ESG agenda is naturally important and will continue to lead investment decisions. It is perhaps the rise of donor-advised funds (DAFs), often designed to maximize philanthropic impact from retail investors, that are attracting the greatest interest. Grant-making charities and foundations with large investment portfolios that can have a negative impact on society at a greater rate than the good they do are, completely untenable. That is why a private bank in the same family ownership for many generations launched its first social impact investment fund, with the aim to change the way the charity investment market operates. It is, about harmonizing grant making and investments, where both grants and investments are set out to do intentional good. Anecdotal evidence suggests that the appetite for impact investing from grant-making foundations is there and growing.

Strategy and Structure: Taking the Best from the Corporate World Passion rules the heart, yet it is structure and strategy that rule the head. Today’s philanthropists recognize the need for a formalized framework for their activity if it is truly to make a lasting impact. In KPMG’s research, it was clear that the framework for effective giving will naturally vary from country to country and person to person, but the important common thread is that a strategic framework is necessary to provide direction to activity, to provide the basis for measuring impact, to enable meaningful collaboration, and to provide a sustainable forum to engage immediate and extended family members for the longer term. Structures include family foundations, DAFs, corporate foundations, private ancillary funds, think tanks, not-for-profit organizations and even profit-making businesses. Philanthropists recognize the need to take time to consider the right vehicle that will support their activities and goals, applying the same disciplined thinking as they would in the corporate world. Just as return on investment and return on effort are key measures to business, so too are they for effective philanthropic activity. foundationmag.ca

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Choosing the right structure for activity is dependent on many different factors including local regulations, tax regimes, cultural norms and historical activity, as well as whether it is pursued personally or via a business. The ultimate purpose for giving will factor in that decision-making. Corporate experience also plays a role in choosing structures. Philanthropists with their roots in private equity, for example, adopt structures where they can bring about the most effective change and that enable levers to be pulled to ripple change over a much wider area, whereas those from a venture capital background choose structures that allow them to stay close to projects in which they invest and see first-hand how the money is used. Yet the corporate and philanthropic worlds are very different, and in some instances, some of what is learned in industry needs to be unlearned in the philanthropy landscape. Philanthropy is often slow in pace compared to the corporate world, taking years to change mindsets and behaviours and to empower individuals and communities. The philanthropists interviewed frequently noted that not all things are measurable, and not all measures are helpful. Family foundations and charitable trusts are some of the most commonly adopted philanthropic structures, and for good reason. They provide clarity on where to direct funds and how to respond to requests for funding. More importantly, they provide the vehicle to engage with family members over

many generations and collaborate with other foundations, philanthropists, governments and NGOs. For one family, philanthropy is used to bind together the 2,400 living direct descendants of the founder. For another, an Australian entrepreneur and philanthropist, a foundation is to be a perpetual vehicle for family connectedness and for building social capital within the family. But a word of warning: A structure that is too rigid or too broad can hinder decision-making and ultimately the impact philanthropy seeks to make. Just as every family is different, so too are the drivers behind philanthropic activity. Families should take time and seek advice on the structure that suits both the family and the aims of their philanthropic activity. Disruptive philanthropy The approach to philanthropy is as varied as the causes supported. There is, however, a clear emerging trend for successful philanthropists to do more than just support a cause; there is a desire to create long-lasting and impactful change. Sitting alongside traditional philanthropic structures are a new wave of social entrepreneurs, disrupting the philanthropy landscape and creating a lasting legacy. These include not-for-profit organizations, think tanks and social enterprises that often blur the boundaries of what was once considered philanthropic activity. Examples of this can be seen within a foundation, that does not make grants, but

Choosing the Right Structure The needs of philanthropists will quite naturally change at different stages of their philanthropy journey, making it important that structures adopted offer flexibility over time. Sometimes a formal structure can get in the way of activity, whereas other times the formality increases impact. Take, for example, an individual who wants their philanthropic activity to bring the family together under a common purpose but wants flexibility in the form that philanthropy takes, with children wanting to give cash and others wanting to make social impact investments. A charitable foundation, with its regulatory and legal requirements, may restrict the ability to invest in riskier social impact investments, leaving the family with little choice but to split philanthropic resources and potentially go their different ways. In this instance, a family council to direct philanthropic purpose might be more suited in keeping the family together while enabling them to agree to a collective strategy, asset allocation between investment and grant making, and measure collective impact. Successful entrepreneurs often want to give back in terms of money, time and expertise. They also want to be able to demonstrate the impact of activity. To illustrate this, a client wished to help start-up businesses struggling to obtain financing following a similar experience at the beginning of his career. Initially, credit facilities were provided on an ad hoc basis, but without a strategy or clear plan of what he wanted to achieve, it proved difficult to measure the impact which took away some of the passion. This is where some formality in terms of the criteria for helping start-ups, the services to provide and what is expected in return, are key in ensuring that the philanthropist created maximum impact. In this instance, a not-for-profit company was suggested to provide some separation from him personally too. There is no ‘one size fits all’ in terms of choosing the right structure for philanthropic activity. So rather than jump to the solution, it is important to understand the ‘why’ to help get to the best ‘how’. - Jo Bateson, Partner, Family Office & Private Client, KPMG in the UK

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January/February 2022

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nurtures and mentors charitable organizations led by women across the globe. These are capacity-building organizations that democratize philanthropy, connect philanthropists with projects, share expertise, learning and mentoring, and make connections that enable charities to deliver better on-theground support. It is mobilizing social capital. In South Africa, one foundation exists to support and facilitate the continuity of African family businesses across multiple generations. Despite sitting at the economic heart of the continent, creating wealth for communities and driving philanthropic activity, African family businesses are largely overlooked, under documented, and often unsupported. In Nigeria, a successful art fair aims to raise the profile of artists and the value of African art both at home and overseas. The visual arts are a nexus point, a conversation starter. It is providing a refreshing narrative about Nigeria, bringing different communities together, and international visitors to the city of Lagos. Whichever way you look at it, the philanthropic landscape is evolving. Where to turn Philanthropy is not a solitary activity. It is a journey defined by collaboration, continuous learning and advice. Many philanthropists turn first to their family members (50 percent) for advice on philanthropic strategy, to other philanthropists (29 percent) and business colleagues (33 percent). Just 21 percent said they turn to their accountant and 17 percent to their lawyers for advice, suggesting that the professional community could be doing more in the philanthropy advisory space. In many instances, a structure for philanthropic activity will already exist and perhaps will have done so for many generations. That can provide the continuity needed to ensure longevity and scalability but can also hold back activity in a more uncertain world. In some instances, a foundation will have served its useful purpose — the example of a foundation to support ‘widows and children from the First World War’ can no longer meet that aim and should be wound-up or embraced into other structures. KPMG research suggests that most philanthropists recognize the need to regularly review philanthropic structures and do, at times, turn to the advisory community to help review and refocus foundation aims and strategy. Strategic reviews can open doors to greater collaboration, increased transparency, to scalability and to more impactful giving. Irrespective of structures and strategy, it is interesting to note the role of direct giving. It continues to remain popular and effective, allowing philanthropists and their families to support more personal projects, often in communities and causes near to them. It is, importantly, a valued way to engage a younger generation, giving them a route to support causes important to them within the structure of a family foundation, reinforcing the need for flexibility and openness of those structures. 32

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According to the survey, philanthropists view an important distinction between charitable giving and philanthropic activity, with 79 percent of respondents continuing to make direct donations to charitable organizations outside of their philanthropic programs.

Measuring Impact One of the most significant changes to emerge from today’s philanthropists is the recognition of the need to measure and demonstrate impact. The nature of today’s disruptive philanthropists, embracing societal and cultural change across multiple jurisdictions and often over many decades, presents unique challenges. Fifty-six percent of philanthropists participating in the 2021 KPMG Global Philanthropic Practices Survey say that measuring impact is one of the greatest challenges to being an effective philanthropist. The influence of commercial enterprise and the greater discipline adopted by philanthropists are changing the way activity is measured and evaluated. It is not, however, a perfected art, with philanthropists only now beginning to explore the role that increased amounts of data available to them can play. Sixtyseven percent of philanthropists believe the increasing amounts of data will make the measuring of impact more meaningful. Philanthropists talk confidently of adopting both short term ‘output’ goals, measuring the immediate impact an interaction can have, together with much longer-term ‘impact’ goals for their philanthropic vehicles. Strategic thinking with data-driven decision-making is needed and increasingly commonplace. Forty-two percent of philanthropists participating in the KPMG survey noted that structured feedback from beneficiaries is required with 38 percent establishing key performance indicators for their activity. Structured feedback is happening in many different and novel ways. In South Africa, a focus on improving literacy skills through technology. An online quiz for over 50,000 participants quickly points to the impact it is having. This becomes a ‘datafocused NGO’ that echoes the approach of business where ‘data informs decisions on where money is spent’. Hands-on measurement Despite increasing amounts of data at their fingertips, philanthropists find that the often-rigid measures that underpin corporate life do not easily translate into philanthropic activity — flexibility is required with philanthropists reporting the need to ‘unlearn’ some of the disciplines of corporate life. “The single biggest return on investment is advocacy and policy change, but that is amorphous,” says one philanthropist working on changing early years of education. It is difficult to put a hard measure on changing a national mission. Philanthropists need to be comfortable that some of the most important things cannot be neatly measured and are quick to point out that if foundationmag.ca

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donors are too focused on what can be measured, ‘you may have focused on the wrong things’. It is not entirely unsurprising, therefore, that a wide range of measures are adopted depending on the scale of support being offered. These typically include site visits and director briefings, established KPIs, formal reporting structures from beneficiaries and external validation from third parties. Choosing the right measures is often a decision that takes time and consideration. A philanthropic goal to transform the civil service in Nigeria will require a very different set of measures than furthering scientific research into the brain, yet they will share a common approach. That will often mean adopting key milestones and long-term impact goals. It is interesting to note that many of the measures philanthropists adopt enable them to meet and engage with the causes they support. The desire to visit projects, project staff and beneficiaries, whether in a local neighbourhood or overseas, is a clear demonstration of the emotional investment and enjoyment that philanthropists gain from their activity. Storytelling Activity channelled through business-led foundations, NGOs and through organizations working with a local government typically adopts more structured approaches to measuring activity than family foundations. Yet here too they share a commonality. The powers of anecdotal feedback, of storytelling and of the voices of individuals who have benefited are all valued and important measures. This is done in many ways and is often a valuable source of learning, such as when a foundation successfully embraced the value of sharing often very personal stories at its annual conference. Sharing failures can be an amazing springboard to learn and improve. Philanthropists rarely bring that part of the foundationmag.ca

toolkit to bear. There is, however, more that philanthropists believe they can and should be doing. Just 21 percent of philanthropists participating in the survey believe their efforts are making a ‘very significant impact’. Collaboration is often the answer.

The Power of Collaboration Philanthropy has never been a solitary pursuit. Harnessing the economic power of business, the influence of politicians, the technical knowledge of academia and advisory communities, alongside the passion of other philanthropists and community leaders is a potent mix to bring about real change. The survey also reveals 63 percent of philanthropists ‘agree’ or ‘strongly agree’ that collaboration needs to happen to deliver true impact. Given the scale of ambition of today’s disruptive philanthropists, collaboration is arguably the only way to deliver that change effectively. “Philanthropy is a marathon, not a sprint,” says one prominent African philanthropist, adding that, “collaboration is the only way to achieve scale and achieve goals quicker”. She compares philanthropy to creating a blockbuster film. “Imagine,” she says, “trying to create a film and deciding to produce it, direct it, act in it, do the sound, the lighting, the costumes … it would be ridiculous. But that is what a lot of people try and do in philanthropy.” Collaboration is often planned and deliberate but also happens organically, with individuals working together on a common cause. Forty-two percent of philanthropists say they regularly work alongside other donors. The sharing of ideas and the pairing of synergies can open doors to new opportunities. “When you come to philanthropic circles, everyone becomes January/February 2022

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Excellence in Fundraising in Canada Newly revised, updated and expanded A collaboration of thought and ideas from Canada’s most experienced and respected fundraising professionals, for over a decade Excellence in Fundraising in Canada has helped fundraisers learn about best practice and put their ideas into action.

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your partner and not your competitor,” explains founders of an institute that is focused on advancing brain science. “We get excited when other philanthropists choose to focus on the same challenges.” The power of collaboration is illustrated by a not-for-profit established in the late 1990s that today brings together more than 4,000 philanthropists, government officials, business leaders and academics to address the most pressing issues facing Australia and her neighbours. Formal and informal It is common for philanthropic foundations and individual philanthropists to collaborate with other foundations and philanthropists formally and informally. There are obvious reasons: The combined effort is often greater than the sum of its parts. The opportunity to learn, to refocus efforts and to adopt a more strategic approach is often equally as valuable. Sixty percent of philanthropists participating in our survey say that they learn from other philanthropists. When looking to scale the impact of their philanthropic activity, one philanthropist was inspired by the structured form of one major foundation’s giving, they partnered to create a new fund that focuses on global health. It was the ability to leverage their expertise, know-how, and their due diligence on a global scale that has been so exciting. foundationmag.ca

For philanthropists that continue to lead successful businesses, commercial and philanthropic activity may remain linked. It is, however, a considerable step up from what is labelled ESG and is often a driving force of a business. For example, one group looked to turn the eyes of the world once again on Nigerian art and support artists through a commercial enterprise. The large family foundation receives 10 percent of one bank’s profits every year alongside its DAF and informal forum for philanthropists to share their experiences. KPMG research has suggested the simple act of donating, while still commonplace and needed, is not always where philanthropists wish to focus all their efforts. Foundation structures often allow the making of grants and donations without the need for oversight, giving philanthropists the opportunity to focus their time and energy on the communities and causes they most care about. Collaboration with those communities and causes is natural and often the only way to create lasting impact. It is often time-consuming, often onerous, but, ultimately, a more rewarding journey. A clear theme to emerge from the KPMG research is the desire for philanthropists to collaborate with regional and national governments to embed long-lasting meaningful change in areas such as education, healthcare, and the arts and/or in social reform. It allows philanthropists to do things that are perhaps too risky and experimental for governments to get involved in. A January/February 2022

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practical example of this in action is a foundation established in Nigeria with the aim of transforming the public sector in Africa. It is often collaboration over many years, if not decades, and requires a deep understanding of many different connected ecosystems. “You need to be an ecosystem player”, explains one prominent Indian philanthropist, and that might mean dropping the “competitive mindset” often associated with ambitious business leaders. Without government backing, many societal programs simply will not get off the ground. Whether looking to improve early years’ education in India, student literacy in Australia, social care in Scotland, or empowering rural communities in India, where an end goal might be 20 or 25 years away, collaborating with policymakers is often the only answer. Looking to the future, philanthropists are united in their recognition that collaboration is needed in all its forms to make an impact.

Philanthropy: The Ties That Bind a Family Together Philanthropic activity is broadly a family affair that may involve carrying the reigns and building on the activity of previous generations, creating programs for close knit family units, equipping the next generation with the habits and skills they will cherish, or creating a sense of identity for large and disparate family groups. Indeed, 77 percent of philanthropists noted that strengthening family bonds was one of the primary benefits of philanthropic activity. Whatever the driving ambition, philanthropists are willing to go to extraordinary lengths to ensure family members are actively engaged, invested and informed. It is often an important benchmark of a family’s philanthropic success. One family trust looks to embrace all 2,400 direct descendants of the founding member through a trust with family members able to submit requests for charitable donations of their choosing online. Another foundation is a perpetual vehicle for family connectedness and building social capital within the family. One founder has challenged himself and his family to give away their wealth he has generated within his lifetime. Family members bring new perspectives, ideas and learning to philanthropic activities that can and do further their aims and objectives — 50 percent of philanthropists say they turn to family members when seeking advice. Individual family members may, understandably, also wish to pursue their own passions and interests — the concerns of grandparents and parents may well be very different to those of their children and grandchildren. It is important to achieve 36

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consensus whatever the approach. Philanthropic structures need, however, to offer flexibility if they are to survive generations, and foundations with aims or mission statements that are too tightly focused can find themselves restricted at a time of national emergency. How many foundations could have predicted COVID-19 and its global effect? External advisors are often a valued resource when reviewing the activity of family foundations and setting giving guidelines. They can sit above family politics and passions, helping achieve consensus by turning ‘high minded philosophical views into something actionable’. Family members, who continue their father’s philanthropic activity through their foundation, recommend that foundations and their giving guidelines are reviewed approximately every seven years. Families with inherited or entrepreneurial wealth are enormously aware of the position and responsibility they find themselves in, both to society and their children and grandchildren. Philanthropy is often a powerful tool in helping the next generation prepare for the lives ahead of them. Philanthropists share stories of their own children embracing giving back from a young age, ‘pushing themselves outside of their comfort zones’, wishing to ‘stretch themselves’ and using philanthropy to ‘seek new experiences’. In one example, 10 families in one Australian city have come together to form a ‘giving circle’ where their children determine charitable giving and volunteering activities. Legacy is undoubtedly a factor in philanthropic activity — 65 percent of philanthropists cite it as being very important, but it is rarely the primary driver. Many philanthropists, while delighted if their children were to carry on the mantle of philanthropic activity, rarely expect them to do so. Sowing the seeds for a future life of philanthropic activity is often enough. Those philanthropists that wish to see their organizations or foundations flourish when they are no longer around to recognize the need to scale activity.

Scalability: A True Legacy One of the emerging themes from the KPMG research is the ambition of today’s philanthropists. Giving, of course, happens at a local or neighbourhood level, but the longer term goals of philanthropic activity are towards national, continental and global change. This ambition is rarely driven by the desire to leave a personal or family legacy, but in recognition that many of the problems facing the world today can only be addressed at a state or trans-national level — and that can only be achieved through sustainable, multi-generational philanthropy at scale. Achieving scale, particularly when looking at national or worldwide challenges, requires a more strategic approach. Scale is not achieved by making ever-larger donations, opening another school or healthcare center. foundationmag.ca

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“It is”, says a founation leader, “rarely possible to compete with governments or the private sector that spends. When looking at ‘system reform’, focus on those ‘high points of leverage’ that often only philanthropic activity can reach”. The recognition for the need for scale is often designed into philanthropic activity from its outset. A foundation, established by a South African in 2017 with a focus on improving education through the use of technology set a target of reaching one million learners by 2024. The main reason for such an audacious goal, was more to set a tone for what they wanted to do. It was a clear statement of the need to design for scale. The need for scale is recognized by many philanthropists and has created extraordinary philanthropic endeavours. In recognizing the role family-owned businesses play in sustaining families, friends and neighbours, a not-for-profit supports and facilitates the continuity of African family businesses across multiple generations. And in Nigeria, another is working to professionalize the country’s civil service over a 20-year window.

The need for structure, transparency, accountability, collaboration, and the greater use of data in measuring impact provides, philanthropists believe, the building blocks for scale. Here too the lessons of corporate life are transplanted into philanthropic activity. Philanthropists speak of ‘change management’ of ‘corporate philosophy’, ‘mission and values’ and ‘philanthropic brand’ when building structures to facilitate scale. The need to get the ‘internal plumbing’ right, to bring ‘rigor and best practice’ to activity will likely enhance and scale activity over the longer term. The philanthropists KPMG spoke with say it’s exciting to see the next generation of philanthropists, ‘the internet billionaires’ approach philanthropy in the same way as they run business. They believe they will achieve scale by leveraging and maximizing social impact much in the same way they have successfully monetized online services. The future of philanthropy is dynamic, disruptive and driven. YANNICK ARCHAMBAULT is National Leader – Family Office, KPMG in Canada. ARUNDEL GIBSON is Family Advisor, Philanthropy & Impact, KPMG in Canada

We Create Accidental Philanthropists™

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January/February 2022

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ISTOCK/ DILOK KLAISATAPORN

FINANCE

Insights on the Dramatic Reduction in CRA Charity Audits

BY MARK BLUMBERG

recently read on a blog with some statistics relating to the number of audits that the Charities Directorate of CRA was conducting each year. Frankly, I could not believe the numbers, so I wrote to CRA to ask them for up-todate information. Here is the response I received from the Charities Directorate: Please find attached a table containing the number of completed audits of registered charities for the 2020-2021 fiscal year, as well as the completed audits for the last ten fiscal years. These audit statistics are reported by fiscal year, from April 1st to March 31st. As you will note, the number of completed audits for the 20202021 fiscal period differs from the audit statistics you referenced. This was an oversight on our part and we have shared the revised table with the other implicated parties. While you may note a decrease in formal charity audits, the CRA has actually increased its compliance coverage through other initiatives. As part of its ongoing efforts to ensure charities meet the requirements of registration, the Charities Directorate uses a multi-streamed approach to compliance. This involves various audit and non-audit interventions, depending on a registered charity’s risk of non-compliance: ❯ Non-audit interventions focusing on early education provide charities with the opportunity to resolve lower-risk cases of 38

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❯

non-compliance before they get worse. Audits are reserved for isolated cases where charities demonstrate a risk of engaging in more serious non-compliance.

Balancing its compliance program in this manner allows the CRA to: ❯ increase the overall number of registered charities with which the Charities Directorate interacts before enforcement action is required; ❯ address lower-risk non-compliance among a broader segment of the charitable sector through education or compliance agreements; and, ❯ dedicate its audit resources to those registered charities that demonstrate a higher risk of engaging in more serious noncompliance. In addition, all charity audits were put on hold on March 16, 2020, due to the COVID-19 pandemic. In line with the CRA’s business resumption plan, high-risk audits, meant to address the most serious non-compliance, resumed in July 2020, with remaining charities-related compliance activities having fully resumed in September 2020. For more detailed information and statistics about the CRA’s Charities Directorate’s programs, go to Reports on the Charities Program. foundationmag.ca

FINANCE

Fiscal Year

Audits

Charities Education Program

Non-Audit Interventions

2010 – 2011

751

N/A

2011 – 2012

713

N/A

2012 – 2013

799

N/A

2013 – 2014

845

N/A

2014 – 2015

781

N/A

2015 – 2016

726

N/A

2016 – 2017

652

38 (Pilot)

122

2017 – 2018

341

277

207

2018 – 2019

279

452

263

2019 – 2020

208

424

188

2020 – 2021

142

117

108

Audits Above is the number of completed audits from the 2010-2011, to 2020-2021, fiscal periods. Note, the number of completed audits is reported by fiscal year (April 1st to March 31st) and not by calendar year. Let’s cut through this: 1. Typically, CRA had done in the past about 800 audits per year (perhaps 600 in-person audits and 200 office audits where CRA just asks for documents to be sent). That is the first column. With 86,000 registered charities that means that they were auditing less than 1 percent of charities each year. Put a different way if you were randomly assigned to a charity and you are a teenager the likelihood is that you would die of old age before CRA audits the charity. That is pretty bad. I remember dealing once with a class of foreign graduate students studying non-profit finance and financial controls — when I mentioned these stats they started laughing. I was not sure why. They explained that auditing 1 in 100 groups every year seemed very funny. But unfortunately, it gets worse. Much much worse. 2. If you look at pre-COVID April 2019 to March 2020 (as COVID changed a lot of things) that number had dropped to 208. So no more 700-800 charity audits per year. Now your charity would be from a statistical point of view likely to be audited every 400 years. 3. I should emphasize that CRA does not really randomly audit charities. They take a risk-based approach to audits and focus on higher risk concerns. But if you are auditing 1 foundationmag.ca

in 400 charities per year, no matter what system you have developed to conduct your risk-based audits it is going to leave a lot of charities out that are doing some very bad things and CRA is not auditing them. CRA piloted the Charities Education Program in 2016. It takes CRA charity auditors and pairs them with new charities that have been recently established to “educate” them early on about appropriate practices. It certainly sounds like a nice idea. However, it is a Cadillac program in that a group that has just received charity status gets to meet with a CRA officer. Many charities would take CRA up on this program in their early years if they could — but you cannot request participation. It is conducted by auditors — not necessarily trained to be educators. Most of these charities I am going to guess tend to be relatively small and low-risk groups. I had reservations about the Charities Education Program because it is so expensive and now appears to have in part resulted in a massive reduction in the number of actual audits being conducted by CRA. CRA should immediately cancel that program and focus on more audits and more general educational and capacitybuilding programs, rather than one on one ‘consulting’ with a few lucky small charities. It is not clear what the non-audit interventions counts. CRA has often done special programs that don’t involve audits. For example, they would sometimes write to thousands of charities to let them know that there are some obvious mistakes on their T3010 annual charity return and they should try harder next time. That sort of program is helpful but a hundred or 200 non-audit interventions are not going to make up for the precipitous decline in audits. As you can see COVID had a very limited impact. Audits were only suspended from March to July 2020. Therefore, the 2020-2021 number of 142 probably would have been closer to the 2019 number of 208 audits. So, one cannot blame the precipitous decline in audits on COVID. Some may think that the reduction in audits is esoteric and unimportant. Keep in mind that the charity sector has

January/February 2022

FOUNDATION Magazine

FINANCE revenue of over $300 billion per year. About $20 billion in official donation receipts are issued by registered charities. Registered charities pay no income taxes on the $300 billion in revenue or the appreciation of their $500 billion in assets. Different levels of government are providing over $160 billion in funding to the charity sector. You can see more statistical information in our Blumbergs’ Canadian Charity Sector Snapshot 2019. 8. Provinces have made it clear that they generally don’t want to be involved in the regulation of charities and to be fair it is far better for most charities that operate nationally or in more than one province to have 1 regulator rather than 14 different charity regulators with different rules. With the very negative media coverage over the last few years about charities, including but not limited WE Charity, it appears that we did we not learn anything. Public trust in charities has gone down significantly over the last ten years and if we don’t do something to limit the damage of a small number of questionable or bad charities at some point there will be almost no public confidence in the charity sector left. 9. You might say that I am being overly negative. So let us end on a positive note. If you are a libertarian and don’t believe that government should have any involvement in your life, then you will be very pleased with this news. “My body,

FOUNDATION Magazine

January/February 2022

my choice”. In this case ‘my charity, my choice of which laws I will comply with’. If you are a charity scammer now may be the golden age for you to operate in Canada. Little likelihood you will ever be audited or face consequences for abusing the charity system in Canada. The National Post on January 21, 2022 published an article by Christopher Nardi “Charity sector worth $300B per year, but CRA audits have dropped four-fold since 2010“. It discusses the dramatic decline in CRA audits which were previously raised in December 2021 in our blog note at Dramatic changes to charity audits by CRA over the last few years. Hopefully, in future years, CRA will come up with a truly risk-based strategy for audits that provides enough funds to audit a sufficient number of charities so that the public can have some confidence when they donate to registered charities that these registered charities are complying with basic compliance requirements. MARK BLUMBERG is a lawyer at Blumberg Segal LLP in Toronto, Ontario. He can be contacted at mark@blumbergs.ca or at 416-361-1982. This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.

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HISTORIC PLAQUES

LANA SULLIVAN

Historic Plaques Which Honour Philanthropy

Spencer Wyatt House | Charlottetown, PEI While no specific plaque exists yet on the house, the heritage value of the Spencer Wyatt House lies in its association with the Spencer and Wyatt families, its interesting saltbox architectural style, and its role in supporting the Hillsborough and Dorchester Street streetscapes. Wanda Lefurgey Wyatt was a philanthropist whose donations have contributed to the arts, culture and education of the Province. A native of the City of Summerside, she was the first female law student in the Province and became an astute businessperson. In 1966, she contributed funds to begin the Wyatt Foundation to support non-profit organizations across Prince Edward Island. The first house at 42-44 Hillsborough Street was located on its site as early as 1833 when George Wright surveyed Charlottetown. It is believed that the home was built as early as the late 1700s. Originally constructed as a storey and a half log cabin, the home was renovated in the early 1800s. At this point, two rooms were added on to the back and the roof was extended giving the building its saltbox shape. Saltbox houses were named for their resemblance to a wooden box used to store salt in Colonial times. A brick chimney and stone firebox were added at this time as well. The house was renovated again between 1825 and 1840, and another section was added, as well as a central dormer. It is apparent that efforts had been made to maintain symmetry on the facade. Beaded trim, mouldings and cladding common to the early 1800s were installed. Local butcher, James Spencer, was the first documented owner of 42-44 Hillsborough. Unfortunately, he died intestate in 1839, which made the ownership of the home unclear for the next twenty years. In 1841, a newspaper advertisement offered the home to let stating that Mrs. Spencer had most recently lived there. The ad noted that the home featured a stable, outhouses, fruit trees and a garden. A short-term tenant of the home was a Mr. Ridge. The local newspaper, the Royal Gazette, carried an auction notice in June 1842 that indicated Ridge’s belongings would be auctioned off at 42-44 Hillsborough Street. Another tenant of the home was Samuel Gurney, the operator of the first fulling mill on Prince Edward Island. The actual mill was located outside of Charlottetown but according to an advertisement in the 23 August 1842 edition of the Royal Gazette, vats had been installed in the home for the dyeing of all varieties of materials. Fulling mills were places where wool was cleaned of oils, dirt, and other impurities in the process of cloth making. By 1858, the Spencer estate had been settled to the point that the property could be divided. James Spencer’s daughter, Randal and her husband, shoemaker, William Wyatt took possession of the home. In a recent renovation, the current owner found small nails used for shoemaking, as well as old newspapers, bones, shoes, coins, bottles and even old beaded rosaries under the windows. In approximately 1870, Randal and William built a new Mansard roofed home nearby that still stands to this day. The Spencer Wyatt House continued to be part of the Wyatt family for a number of years until 1946, when William and Randal’s granddaughter, Wanda Lefurgey Wyatt (1895-1998) sold the home and all of its contents, as well as the Mansard roofed home next door, to Mary B. Trainor at a public auction. Today, this old home continues to support the Hillsborough and Dorchester streetscapes. Sources: Heritage Office, City of Charlottetown Planning Department, PO Box 98, Charlottetown, PE C1A 7K2

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January/February 2022

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OUR STORY

How Oxfam Goes Beyond Charity ofereti and Mkulila work at a solar-powered peanut butter cooperative, a food security project supported by Oxfam in Lilongwe, Malawi. At Oxfam, we know charity isn’t enough. Delivering food and essential supplies is critical and indeed lifesaving. But we know that to end poverty and injustice, we must tackle their complex root causes. We also know that transformative change comes from understanding power and putting it in people’s hands. We work alongside community partners in cities, towns, and villages worldwide. With the support of our compassionate supporters, we strive to change attitudes, norms, and behaviours and influence the policies that affect people’s lives. TACKLING COVID-19 WITH A COMMUNITY APPROACH “Forty thousand people per square kilometer,” says Oxfam’s Enamul Hoque. “That’s twice the population density of Dhaka. You can’t imagine how crowded the camps are.” Hoque is Oxfam’s coordinator for water, sanitation, and hygiene (WASH) in the Rohingya refugee camps in Cox’s Bazar, Bangladesh. When thousands of refugees, fleeing unspeakable violence, arrived from Myanmar in 2017, he helped establish water tanks and taps, handwashing stations, latrines, and a fecal sludge processing plant. Rohingya refugees use contactless handwashing devices in Rohingya camps in Bangladesh to prevent the spread of COVID-19. Though effective against diarrheal disease, existing handwashing facilities could be contagion vectors for the COVID-19 virus. So Hoque and his team set out to create a safer design. Oxfam uses “social architecture” to design water and sanitation facilities, meaning local communities are part of the design process.

FOUNDATION Magazine

January/February 2022

Refugees use contactless handwashing devices in Rohingya camps in Bangladesh to prevent the spread of COVID-19.

“We installed a prototype of the handwashing station and then interviewed dozens of people after they used it,” says Hoque. “Based on what they told us, we altered the design.” Foot pedals replaced hand-cranked water fixtures. Hoque is especially interested in what women and girls have to say “because they have so many responsibilities related to water and keeping their families clean.” Girls suggested installing features in handwashing stations such as hooks to hang things and mirrors. “It’s important that a handwashing station be something you like to use,” says Hoque. “We invited girls to think like architects and design something that would benefit them and their families. This process helped them take charge of a piece of their lives.” CHANGING LAWS TO END VIOLENCE AGAINST WOMEN AND GIRLS Central to our Creating Spaces project is its support to movements demanding laws and legislation that protect women and girls from violence and early marriage. It also champions survivor-centred services, economic empowerment for women and girls, and movement building alongside influencers and local partners. For instance, in Indonesia, Creating Spaces and its implementing partners were pivotal in ratifying the country’s

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FABEHA MONIR/OXFAM

BY JENNIFER ALLDRED AND JOHN YOUNG

OUR STORY marriage law, which raised the minimum age of marriage for girls from 16 to 19. And, in the Philippines, thanks to the tenacity of the Creating Spaces team and its allies — like the youth-led #GirlDefenders — the Girls Not Brides Act, outlawing marriage below the age of 19, has been approved by the Senate and the House. It will soon be presented to the President for approval. SECURING THE RIGHTS OF DOMESTIC AND GARMENT WORKERS Women and girls from Bangladesh’s rural and coastal areas, pushed by factors like poverty, dowry, divorce, climate change, and family debts, move to cities seeking work and a better life. However, they find few employment options, such as domestic work or garment factory work, which deny them decent working conditions, living wages, and legal protections. We’ve been supporting women domestic workers to fight for their rights through our Securing Rights project. Last year, it created more than 200 domestic workers’ groups, where women learn about advocacy for labour rights. Also, over a thousand women in Dhaka, the country’s capital, received technical training to use an app that helps them secure employment with fairer pay and better working conditions. On the other hand, Canadian fashion brands keep the Bangladeshi women who make our clothes in poverty by paying as little as 60 Canadian cents an hour. We’re mobilizing supporters to hold Canadian brands accountable through our What She Makes campaign.

ADVOCATING FOR CLIMATE JUSTICE One of the most unjust aspects of climate change is that it impacts those countries that are the least responsible for creating it. That’s why Oxfam Canada’s experts press for solutions crafted by the people and communities most affected by the climate crisis. A key priority is advocating for the Canadian government to meet its global climate financing commitments. Climate finance can be used to support farmers’ transition to drought-resistant crops, establish early warning systems in communities prone to typhoons or cyclones, or install renewable energy sources so children can study and women can start businesses. It’s critical to help vulnerable communities deal with the impacts of a crisis that they did little to create. With projects like Camino Verde — The Green Way — we support Indigenous women and youth in Guatemala to start socially and environmentally responsible small businesses. Working with five local partner organizations, we supply them with solar panels, commercial roasters, water collection equipment and greenhouses. Camino Verde also works with women’s rights and other groups to influence policies and programs that support economic empowerment, human rights and climate justice for Indigenous women.

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CREATING A WORLD WHERE HER FUTURE IS HER CHOICE Globally, complications during pregnancy and childbirth are the second cause of death for girls aged 15 to 19. We support organizations to provide essential sexual and reproductive health services and advocate for changes in policy and social norms that women and girls to make decisions about their bodies. Our Sexual Health and Empowerment (SHE) project in the Philippines reaches people in Indigenous communities, conflict-affected, disaster-prone and rural areas. Through mobile clinics, women and girls receive dignity kits to support menstrual hygiene and family planning services. The project mentors local women’s rights organizations to promote sexual and reproductive health and rights. Our Her Future Her Choice project in Ethiopia, Malawi, Mozambique and Zambia trains young people to be peer educators in their schools and youth clubs to raise awareness about sexual and reproductive health and rights. For example, one of our partners in Ethiopia, WE-Action, purchased airtime from local radio stations to broadcast weekly one-hour sexual and reproductive health and rights programs and COVID-19 safety measures in local languages. SUPPORTING HUMANITARIAN ACTION WITH CASH Sometimes, when people are in crisis, the best support we can offer is financial. Emergency cash vouchers have the most impact on community members made vulnerable by environmental disasters, displaced by conflict and war, or experiencing gender-based violence. These vouchers place power and decision-making into people’s own hands. They’re also solid assets in disaster preparedness, as seen with Oxfam’s Typhoon Rai response in the Philippines. Through digital cash transfers, humanitarian groups quickly and effectively distributed funds to over 2,500 families in the Philippines before Typhoon Rai hit. Oxfam Pilipinas Country Director, Maria Rosario Felizco, explains that communities can recover much sooner by shifting how and when aid organizations deliver cash aid. “To strengthen Filipinos’ disaster resilience, we need to move from a post-disaster response mechanism,” Felizco says. “Instead, we must anticipate disasters and support vulnerable groups such as low-income families, elderly people, single women with children, and people with disabilities.” When you support our Emergency Response Fund, you enable Oxfam to quickly and effectively respond to humanitarian crises even before they hit. As you can see, at Oxfam, we don’t just do charity. We root our actions in community, advocacy and justice. Support our life-changing work.

JENNIFER ALLDRED is Integrated Marketing Communications at Oxfam International and JOHN YOUNG is Director of Communications and Outreach, Oxfam Canada. January/February 2022

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COLUMNIST

The Great Awakening: After the Storm CONTINUED FROM page 11

pandemic. With a poll from IPSOS, in which 1,000 Canadians over the age of 18 were surveyed, twelve per cent increased their donations to charity during the pandemic, providing some insight into how Canadians have balanced their charitable donations amid the COVID-19 pandemic. In my opinion, the motivation behind our donors’ behaviours mirrors the motivation behind the shift we are experiencing in the workforce. First, donors look for hands-on engagement and involvement with the organizations they support. Donors also seek to be an integral part of achieving social impact. Additionally, donors want to see the direct impact of their philanthropic involvement. Just like employees, philanthropists want to get behind a cause that is meaningful to them, something that will foster innovative solutions for a positive impact in their community. Today’s donors are looking as eager as the previous generation to leave their unique mark on the world; hence, forcing philanthropy to be more impactful, engaged and connected. A call to action An article in the January 13, 2022 edition of McGill Health e-news entitled “Searching for Calm in the Tsunami: Mindfulness in the Rehabilitation Professions”, by Sarah Marshall, PT, MSc, summarized the points made by Elizabeth Anne Kinsella, the newly appointed Director of the Institute of Health Sciences

Education, which she delivered at SPOT’s annual Edith AstonMcCrimmon Lecture. Using the metaphor of a “tsunami”, Kinsella highlighted the workplace stressors that threaten to overwhelm health care practitioners, and how these have been amplified by the pandemic. According to her, some contributing factors include heavy workloads, workforce shortages, complex job environments, discrepancies between demands and resources, technological changes, stigmatizing attitudes, microaggressions, which play a part in this workplace “tsunami”.

“A result of this global pandemic...we may become more aware of professional or personal stressors in our everyday lives.” The “Great Awakening” I am referring to is the response individuals are having towards this global pandemic because these stressors have reached a point of saturation. Our societies are therefore witnessing a consciousness or, an awareness of definite priorities for individuals. Maybe Kinsella’s argument that mindfulness can help mitigate these stresses merits attention. Mindfulness practices have the potential to help view stressful situations in relationship building. Kinsella also discusses how mindfulness can occur while engaging in an activity with full attention and presence, as a kind of “being while doing.” If there is any learning as a result of this global pandemic, it may be that we are becoming more aware of these professional or personal stressors in our everyday life. As a result, we are witnessing how this “Great Awakening” is making us rethink our actions and our choices, which is necessary for us to grow as individuals. Being mindful of our professional or personal actions will dictate what we do, as individuals and the place we want to occupy in a supportive community. The “Great Awakening” actually means that individuals are taking control and making choices to support the purpose they have identified as a priority; in their professional, personal and philanthropic choices. KATHLEEN A. PROVOST, CFRE is currently the Director, Campaign Initiatives at St. Francis Xavier University, in Antigonish, NS. She brings over 25 years of fundraising experience within the charitable sector. She has been a Certified Fundraising Executive (CFRE) since 2007, and a long-time member and volunteer for the Association of Fundraising Professionals (AFP). She writes this column exclusively for each issue of Foundation Magazine.

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REGULATORY AFFAIRS CONTINUED FROM page 46

governments — in a way that could constitute an attempt to directly or indirectly delay or frustrate the development of Alberta’s oil and gas resources. For example: LeadNow’s 2015 Vote Together campaign “connects people who want change with the tools and information they need to select and support the best local candidates to defeat the Harper conservatives.” ❯ In 2016, the Corporate Ethics website stated: “This strategy is successful to this day. All the proposed pipelines in Canada have effectively been blocked, as have the proposed in the U.S. … The Tar Sands Campaign … also played a role in helping to unseat the Conservative Party in Alberta and nationally.” ❯

Following the money The commissioner identifies three categories as participating in an antiAlberta energy campaign: participants, funders, or re-granters. 1. Participants are defined as being determined to have participated in anti-Alberta energy campaign, a campaign designed to delay or frustrate Alberta’s oil and gas industry. 2. Funders are organizations that made grants to various participants (as identified above) and others where the commissioner has identified individual grants, the description of which contains language that indicates support of an effort to delay or hinder the development of Alberta’s oil and gas resources in a broad and general sense. For example: ❯ In 2016, the Georgia Strait Alliance received $30,000 from Global GreenGrants to “focus its efforts on its goal of delaying/ stopping progress of the Kinder Morgan pipeline expansion by demonstrating community opposition and lack of social license. The Commissioner notes that, of foundationmag.ca

those entities he found as funders, all but one are headquartered in the U.S. 3. Re-granters, where funding is not always provided by a foundation directly, but oftentimes goes through a re-granting or intermediary organization. For example: ❯ In 2011, the Tides U.S. Foundation provided $380,000 to Corporate Ethics International “for expenses associated with coordination, meetings, advertising contracts with vendors and with small groups involved in the Tar Sand Campaign.” The role of the re-granter may involve much more than a consolidation of funders. As the Deloitte report noted, certain ENGOs that received foreign funding appear to act as an intermediary and the funding — or a portion of the funding — was either re-granted to other Canadian ENGOs or charities, or the funds are retained as “donor advised funds” to be distributed in the future based on the instructions of the granters. ❯ The Commissioner identifies 21 participants, 13 funders and two re-granters. Participants U.S Participants ❯ Corporate Ethics International ❯ National Resources Defence Council ❯ ForestEthics (now Stand.Earth) ❯ 350.org ❯ Oil Change International Canadian Environmental Non-Government Organizations ❯ Pembina (Pembina Foundation and Pembina Institute) ❯ The David Suzuki Foundation ❯ Greenpeace Canada ❯ Equiterre ❯ Western Canada Wilderness Committee ❯ Sierra Club Canada Foundation ❯ Sierra Club of British Columbia Foundation ❯ Raincoast Conservation Foundation

❯

❯ ❯ ❯

❯ ❯ ❯ ❯

International Institute for Sustainable Development World Wildlife Fund Canada Makeway, formerly Tides Canada West Coast Environmental Law and Research Foundation Environmental Defence Canada EcoJustice Canada Society Dogwood Initiative LeadNow

Funders Rockefeller Brothers Fund ❯ Gordon and Betty Moore Foundation ❯ Pew Charitable Trusts ❯ William and Flora Hewlett Foundation ❯ David and Lucille Packard Foundation ❯ Oak Foundation ❯ Wilburforce Foundation ❯ The Marsla Foundation ❯ Global Greengrants Fund Inc. ❯ Sea Change Foundation ❯ Energy Foundation ❯ Brainerd Foundation ❯ The Bullitt Foundation ❯

Re-Granters New Venture Fund ❯ Tides U.S. Foundation ❯

STEVE ALLAN, is a leading forensic and restructuring accountant with more than 40 years experience in the field. He is a Fellow of the Chartered Professional Accountants of Alberta and holds the ICD.D designation with the Institute of Corporate Directors. He currently serves as the board chair for Calgary Economic Development and is a respected volunteer and community leader who advocates for economic development, poverty reduction, sports and the arts. Allan’s accomplishments include being recognized by the Turnaround Management Association for his work in helping to restructure the Calgary Philharmonic Orchestra, serving as Chair of the Canadian Tourism Commission, and receiving the Alberta Order of Excellence. Read the Full Report here: https://www.alberta.ca/public-inquiry-into-anti-albertaenergy-campaigns.aspx ©2021 Government of Alberta |Energy Classification: Public References in this summary are drawn from, and available to review at, the Executive Summary of the Report, Deloitte Report (Schedule F), Divestment Campaigns, Executive Summary, Deloitte Report Recommendations, (Participants); (Funders) and (Registrants).

January/February 2022

FOUNDATION Magazine

REGULATORY AFFAIRS

Anti-Alberta Energy Campaigns

BY STEVE ALLAN, COMMISSIONER

he report confirms the existence of well-funded foreign interests that have been waging a decade-long campaign of misinformation with the goal of landlocking Alberta’s oil and gas. The inquiry used freelance writer and researcher Vivian Krause’s materials as a foundation, or starting point for conducting its work. As part of its undertaking, as instructed by the commissioner, Deloitte — who provided forensic accounting analysis to the inquiry — reviewed material gathered by Krause in respect of financial assistance from foreign organizations and assessed the materials’ accuracy. According to Deloitte, its research led them to find there were actually several additional entities beyond what Krause provided. As a result, the final inquiry report provides a one-stop shop for piecing together the full picture of what was happening over the last decades, and demonstrates this isn’t just about one or two campaigns, but a broader movement of which all Albertans and Canadians should be aware. The report provides significant and wide-ranging evidence of these campaigns. For example: ❯ After years of targeting oil and gas infrastructure projects, and the financial and insurance companies which backed them, beginning in 2012 proponents claim it has achieved more than 1,000 divestments representing $8 trillion. This includes seven campaigns specifically targeting divestment in the Alberta oil sands. For example, the SumOfUs campaign targeted the Trans Mountain Pipeline, Keystone XL, and the Teck Frontier Mine. The report identifies that there are large amounts of foreign funding flowing into Canada, which has the potential to influence matters of public interest to Albertans and Canadians. ❯ In 2018, registered Canadian charities received almost $2.5 billion in foreign funding. ❯ According to Deloitte, it appears millions of foreign dollars is received in Canada and held and/or re-granted with no ability to trace its ultimate destination. It appears that once this funding arrives in Canada, it loses its character, and certain aspects are no longer traceable. The commissioner found that, in terms of reporting and accountability, there is an uneven playing field between notfor-profits and charitable organizations compared to regulated public companies. 46

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January/February 2022

❯

Industry is highly regulated, closely monitored, and must be open and transparent, but many of the same requirements do not exist for not-for-profits or charities. Total foreign funding of “Canadian-based” environmental initiatives was $1.28 billion between 2003 and 2019. The commissioner states that these figures are likely significantly understated. This includes: ❯ $925 million in foreign funding reported by Canadian charities for “environmental initiatives” ❯ $352 million in foreign funding of “Canadian-based” environmental initiatives, such as anti-pipeline campaigns, that remained in the U.S. ❯ Of this funding, grant descriptions specifically prescribing funds for “anti-Alberta resource development activity” was $54.1 million.

Foreign funding of Canadian-based environmental initiatives is likely understated for a number of reasons, including: ❯ There are many charitable organizations and not-for-profits that receive foreign funding for environmental initiatives, but only the 31 largest ENGOs (by total revenue) and six Envirolegals were considered by Deloitte. ❯ It is possible for Canadian ENGOs to either: ❯ Re-grant funds they receive from foreign sources, or ❯ Maintain them as donor advised funds for distribution in subsequent years. When these funds are re-granted, they are not accounted for by the recipient entity as foreign funds received. These funds have essentially “lost their character” as foreign funds, which means the total foreign funding to Canadian ENGOs is likely more widespread than is reflected in either U.S. or Canadian opensourced materials. The commissioner references a “broader campaign” and says that networks of ENGOs seem to work in concert, collaboratively advancing an agenda. They function “like an industry,” attracting various sources of funding and employing large personnel and capital to promote their objectives. While many ENGOs are driven by honest concerns, the commissioner found they are also focused on their own financial sustainability, which is ensured by adapting to emerging markets and trends and jumping from cause to cause. The commissioner identifies several attempts to influence decision makers — including those in federal and provincial CONTINUED ON page 45 foundationmag.ca

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In Case You Missed It: The Public Inquiry Final Report

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Articles inside

In Case You Missed It: The Public Inquiry Final Report

Spencer Wyatt House

How Oxfam Goes Beyond Charity

Insights on the Dramatic Reduction in CRA Charity Audits

Disruptive Philanthropy

What It Means to Turn Caring into Lifelong Action

Too Many Charities?

Turning Our Reasons into Action

The Holiday Fundraising Mailer 2021

The Great Awakening: After the Storm

Maximize Your Footprint