FOUNDATION The Business & Spirit of Philanthropy in Canada May/June 2021 | Vol. 2 | No. 9
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INSIDE:
• Diversifying Diversity Part 2 • Acting On Purpose: Insights for Today’s Leaders • Eliminating Philanthropy Deserts
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THE LEAD IN
The World Around Us
Criccieth, Wales.
“Being told you don’t belong to a place that you’ve lived in for thirty years is pretty tough to listen to.” David Pawl* is a thirty-eight year old Welshman from Criccieth and had been experiencing homelessness for four years prior to the beginning of the pandemic. After leaving the army and following a relationship break down, he was forced into homelessness and moved between sofa surfing and sleeping in a tent. When he approached his local council for support, he was told he didn’t qualify due a lack of local connection, despite living in the area since the age of seven. David had a family address while he was in the army, but didn’t pay council tax, which meant he didn’t have a local connection to get services help. Then, the pandemic started and he was given a place to stay in a B&B. When he was asked to leave, he sought help to challenge the decision and was able to move into somewhere more permanent. “Having a place to live has helped me think about the future and start working towards that now,” he said. Sadly, charities in Wales say current legislation is leaving people like David stuck in a cycle of homelessness for longer, pushed further from support and more likely to experience multiple forms of homelessness because of legal tests meaning they cannot access vital assistance from local councils, according to new research. The No One Left Out report, published by national homelessness charity Crisis, shows that since 2015 one in 8 people (9,261) who went to their local council for help to end their homelessness were unable to access further support. In the last year alone, this meant 1,773 people remained homeless. The average age of death for people experiencing homelessness is 46 for men, and 43 for women, and Crisis research shows that people who are forced to sleep rough are almost 17 times more likely to be victims of violence. The Housing (Wales) Act 2014 was a landmark piece of legislation which placed a legal duty on councils to prevent homelessness from but Crisis’ new research shows that the Act does not work for everyone because of the tests they must pass before they can access support. These tests include whether someone falls within a ‘priority need’ category, such as whether someone has dependent children, whether someone has a connection to the local area and whether they can prove they have not become homeless intentionally. The study also found that the emergency response to the coronavirus pandemic has given local authorities renewed hope that ending homelessness is possible across Wales, as they’d been able to help people who would have otherwise been left out of support. The Welsh Government’s directive to help everyone experiencing homelessness to keep them safe during the outbreak saw more than 7,000 people who were previously sleeping rough, provided with self-contained temporary accommodation and support last year. Now, one year on from the introduction of the emergency measures, Crisis launched its No One Left Out campaign urging political parties to commit to changing the law. Jon Sparkes, chief executive of Crisis, said: “The bold and decisive action taken as part of the emergency response over the last year has shown us exactly what is possible with political will. Now, we must not go back. We can end homelessness for everyone in Wales.” *David Pawl is a pseudonym for an actual person whose story is told here. His experience is real.
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May/June 2021
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CONTENTS
ON THE COVER May/June 2021 | Vol. 2 | No. 9
FUNDRAISING
DAY 2021
www.foundationmag.ca
Twitter: @foundationmaga1 PRESIDENT / EDITOR-IN-CHIEF Steve Lloyd - steve.lloyd@lloydmedia.ca
Special Sneak Peak Issue
DESIGN / PRODUCTION Jennifer O’Neill - jennifer@dmn.ca PHOTOGRAPHER Gary Tannyan CONTRIBUTING WRITERS Malcolm Burrows Kathleen Provost Sarah Chamberlin Tanya Hannah Rumble Mark Halpern Stephen Shaw
Paula Speevak Sevetri Wilson Mariya Yurokova
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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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CONTENTS
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IN CONVERSATION
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Diversifying Diversity Women Well Represented in Nonprofit Sector, But What About Intersectionality?: Part Two
FEATURE
22 Acting On Purpose INSIGHTS
22 3 THE LEAD IN 6 SEEN, HEARD & NOTED COLUMNIST
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Increase the Disbursement Quota
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The True Profession of Fundraising
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The Power of Sponsors & Supporters
Wealth Management - Malcolm Burrows Leadership - Kathleen Provost
Marketing & Fundrasing - Sarah Chamberlin
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Fundraising In Challenging Times The Accidental Philanthropist - Mark Halpern
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How Nonprofit Capacity-Building Can Eliminate ‘Philanthropy Deserts’
HISTORIC PLAQUES
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Mina Benson Hubbard Ellis (1870-1956)
COMMENT
38 Non Profit Boards Emerging Stronger Post-Pandemic
Next Issue… Watch for the July-August Issue, with Guest Editor Paul Nazareth, who guides the magazine’s content as our first-ever outside editorial leader. Paul’s issue will reflect his own vision, his own choices for contributors, and his (always!) special and unique take on the world of philanthropy in Canada. As VP of Education and Development for CAGP, Paul is one of the most influential, most recognized, and most appreciate people in our sector. It will be a very stimulating and proactive issue. May/June 2021
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SEEN, HEARD & NOTED
Online Donations More Than Doubled in 2020 in Crisis Response CanadaHelps, the country’s largest platform for donating and fundraising online, has released the 2021 Giving Report, an annual report that provides an in-depth, data-driven look at the state of Canada’s charitable sector. Since the onset of the pandemic, the charitable sector has experienced significant challenges, including a projected decline in overall donations. There are, however, positive signs as 2020 saw a striking increase in online giving as well as newly engaged donors supporting environmental, Indigenous, and social justice charities. These were among key findings in the 2021 Giving Report, the fourth edition of the comprehensive study that examines the charitable sector and its impact on Canada. The Giving Report is available for download here. URL??? For the first time, CanadaHelps developed 6
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a projection to understand the impact of the pandemic on total giving, and is projecting that overall charitable giving declined by 10 percent, falling to 2016 levels. This projection uses all available data from the Canada Revenue Agency going back to 2007, as data reporting on 2020 giving is not anticipated to be made available until late 2022. In contrast, online donations continued to accelerate at record rates. In 2020, 1.1 million Canadians donated more than $480 million online through CanadaHelps, more than double the amount donated online in 2019.
Marina Glogovac, President and CEO of CanadaHelps
“It is clear that while the sector is struggling with circumstances beyond its control, online donations have been critical to keeping charities afloat,” said Marina Glogovac, President and CEO of CanadaHelps. “What is especially encouraging is the growing interest we are
May/June 2021
seeing in supporting smaller, local charities and social causes.” Findings also show a distinct giving gap between age groups. As seen in previous Giving Reports, Canadians aged 55 and older are giving at twice the rate of younger Canadians. However, in comparison, younger people donated more to social justice-related Cause Funds such as CanadaHelps’ Black Solidarity Fund that represents 70 charities supporting the advancement of Black Canadians. Introduced in 2020, Cause Funds are a new approach to giving, enabling donors to support a cause they care about by easily making a single donation to support a group of registered charities collectively working towards the same cause. “Young people have been moved to donate in response to social and racial justice movements. Their drive to donate is influenced by a particular cause — often pressing social issues — and not by a specific charity,” Glogovac said. “These new donors are culturally diverse, educated, reside in cities, and are comfortable donating online.” Other noteworthy findings include: ❯❯ Across the country, charities activated programs in response to the pandemic, and Canadians responded generously with significant increases in donations to hospitals, frontline healthcare workers, and health services. This includes donations of $5.1 million
to approximately 630 charities responding to the pandemic through two of CanadaHelps’ Cause Funds, the Healthcare and Hospital Fund and the Community Care Fund. ❯❯ The top four charitable categories in terms of fastest growth in online giving included charities supporting Indigenous Peoples, social services, and health. ❯❯ While charities supporting Indigenous Peoples saw the fastest online growth of any category in 2020, it continues to receive the lowest volume of donations. ❯❯ Online donations to environmental charities saw the fastest growth in the category in four years. The Giving Report 2021 was conducted by CanadaHelps in partnership with Environics Analytics. It features the Online Giving Index (OGI), which was first introduced in the 2020 report. Last year, 1.1 million Canadians, representing a good sample size of Canada’s population of approximately 3 percent, donated more than $480 million through CanadaHelps. This giving data provides a baseline for the OGI. Since the declaration of the pandemic by the World Health Organization in March 2020, the OGI shows online giving accelerating suddenly in nine of 10 charitable categories at the fastest rate in four years. “As many organizations across Canada have been foundationmag.ca
SEEN, HEARD & NOTED
Allen Davidov, Senior Vice President & Practice Leader at Environics Analytics.
hit hard by the pandemic, including not-for-profit and charitable organizations, it is encouraging to see younger generations such as millennials and Generation Z take action and speak out, while also leaning in with their wallets to give online,” said Allen Davidov, Senior Vice President & Practice Leader at Environics Analytics. “While the giving gap continues between older and younger demographics, the response of new, younger donors to innovative new giving vehicles that reflect the causes they care about brings new hope.” “Online giving has proved to be a saving grace for charities during the pandemic,” Glogovac said. “Many charities have focused on online fundraising and will continue to do so as they respond to increased needs during the pandemic, recovery, and as they further realize the advantages digital offers in both operational efficiencies and attracting and engaging donors.” ••••••••••••••••••• Givergy Unlimited is an innovative, cost-effective annual subscription service allowing clients unlimited use of Givergy’s award-winning fundraising platform. Givergy foundationmag.ca
Unlimited was created to help organizations minimize costs whilst maximizing fundraising returns. Clients will receive continuous access to Givergy’s online fundraising features including; online auctions, fund-aneed drives, promotional contests, selling tickets or simply as a platform to communicate with supporters. Includes worldclass customer support from a company with over 10 years experience, via the global community and support team, routine calls, live chat, educational webinars, and much more. Julian Sykes, CEO of Givergy said the company is on a mission to change charitable giving worldwide by making it easier and more affordable for organizations to host fundraising campaigns online and in person. They’re already a preferred platform to the world’s largest charities and has supported the likes of UNICEF, Human Rights Watch, Ronald McDonald House Charities Canada and SickKids. ••••••••••••••••••• New partnership champions sleep Sleep Country Canada is joining with Canadian tennis sensation and Grand Slam champion Bianca Andreescu with plans to transform the lives of Canadians by awakening everyone to the power of sleep. Sleep Country works with Canadian charities to donate new and gently used mattresses to families and children in need. Andreescu, now the chain’s brand ambassador, credits sleep as fundamental
Bianca Andreescu
to her overall health and wellness regime and vital to her success on the court. Sleep Country’s vision is to elevate sleep’s role within the wellness realm and mobilize Canadians to prioritize their sleep through small, attainable steps that will eventually transform into healthy habits. “Sleep is such a key part of my health and wellness which translates to my success on court. Whether it’s giving my body rest to recover from a match or keeping my mind sharp and focused in the moment and sleep allows me to stay at the top of my game,” said Andreescu. There’s no dream without sleep, they say. ••••••••••••••••••• A strong and vibrant women’s and equalityseeking movement is part of the foundation of a more inclusive Canada, where everyone has the opportunity to succeed. The Government of Canada continues to support organizations to ensure women and LGBTQ2 communities are given May/June 2021
the opportunity to fully participate in Canada’s social, economic and democratic life. Gudie Hutchings, Parliamentary Secretary to the Minister for Women and Gender Equality and Rural Economic Development, on behalf of the Honourable Maryam Monsef, Minister for Women and Gender Equality and Rural Economic Development, announced funding of nearly $7.3 million for nine organizations advancing gender equality in communities across Ontario. These organizations are: Connecture Canada - $1 million; Centre d'établissement des Nouveaux Immigrants de Peel (CENIP) - $850,000; Innovate Inclusion $750,000; The Platform $745,935 ; Plan International Canada - $1.5 million ; Federation of Canadian Municipalities - $1.5 million; Alliance des femmes de la francophonie canadienne $160,000; Families Canada - $274,511; and, Canadian Coalition for Women in Science, Engineering, Trades and Technology - $481,852. These investments are made to help organizations develop partnerships and strategies to promote equitable participation in the economy, advance women and underrepresented groups into leadership roles, foster self-esteem in girls and gender-diverse youth, and improve financial literacy education. Much work remains to be done in achieving gender equality. These investments will bring us one step closer to a better and more inclusive Canada for everyone. FOUNDATION Magazine
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WEALTH MANAGEMENT MALCOLM BURROWS
Increase the Disbursement Quota
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GARY TANNYAN
BY MALCOLM BURROWS
he 2021 Federal Budget announced the Government’s intentions to launch a consultation with charities about “potentially increasing the disbursement quota…beginning in 2022.” This consultation has garnered a mixed reaction from the charitable sector, but there are numerous reasons why the time is right to review the current 3.5 percent disbursement quota (DQ) rate. In advance of the April 19th announcement there was active debate on foundation spending. At one end, there is the group “Increase the Grants” led by John Hallward who says foundations are being allowed to “hoard tax-supported dollars”. They advocate for a 10 percent DQ rate. At the other end, there are sector professional associations that support the 3.5 percent status quo. They point rightly out that many foundations already exceed the minimum rate and change should be data driven. Charities, the entities that would benefit from increased grants, have been noticeably quiet. foundationmag.ca
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I occupy a middle ground. The value, norms and models shaping foundations in Canada have changed significantly over the last 15 years. As a result, an increase in the DQ rate to 5 percent per annum is both reasonable and responsible. Here’s why this moment is different.
“Endowment models evolved to keep pace with the investment environment.” DQ History Historically, endowments and DQ provisions of the Income Tax Act were based on trust principles. There was a separation of capital and income. Capital would be invested (land, bonds) and only income would be distributed annually in the form of grants or other charitable activities. This system enabled the concept of a perpetual or permanent endowment. Capital was sacrosanct. Only income could be used for annual funding needs. A trust-based rule in the old DQ regime was the “10-year” gift, which effectively stipulated that the capital of lifetime donations for endowment had to be held for ten years. This worked well in the era of high interest rates, but interest rates plummeted in the 1990s. Also, the stock market soared. Investment Models Endowment models evolved to keep pace with the investment environment. New investment practices were adopted. Modern portfolio theory reshaped the investment world and total return investing emerged. Total return investing is designed to produce a total annual return that was a mix of capital foundationmag.ca
gains, interest and dividends. The goal is to prudently invest for the best return to pay for annual charitable purposes, costs and to protect against inflation. On the spending side, chose a fixed payout rate that varies over time. Despite this shift in the investment and endowment world, in 2004, the Canadian DQ rate was lowered from 4.5 percent to 3.5 percent. This was due to major foundations concerned about low yield rates and the desire for perpetuity. The pendulum shifted towards capital preservation, despite generally robust capital markets and new investment models. In 2010, post financial crisis, the DQ was overhauled. The DQ provisions based in trust law were abandoned. The system moved explicitly to total return investing. Finally, the Income Tax Act had caught up with the investment world. And now the DQ rate is no longer dependent on annual income or yield rates alone. Increase in Foundation Asset Since the 1990s, the world has been experiencing a philanthropic “golden age” that is fuelled by enormous concentration of wealth. According to the Budget, private and public foundations collectively held $85 billion at the end of 2019. In 2021, it’s closer to $95 billion. These funds have already been donated, receipted and are tax exempt. Why not mandate that they be spent faster and at higher rate? The Budget suggests that a DQ boost could “increase support for the charitable sector and those who rely upon its services by between $1 billion to $2 billion annually.” In 2006, private and public foundations held $23 billion in assets. In 2020, 14 years later, foundation assets have increased by approximately 300 percent. One private foundation alone, the MasterCard Foundation has assets of $35+ billion and is not currently meeting the 3.5 percent minimum. There is huge build up of charitable capital system
wide. It is partly due to the generous donation tax benefits available to Canadian taxpayers. Philanthropic Models As foundation assets have increased, there has also been a shift in thinking about community needs and the concept of perpetuity. The world faces unimagined challenges. Under the circumstances does a “forever foundation” make sense? A new generation of philanthropists, with poster-philanthropists Bill and Melinda Gates, are embracing spenddown foundations. Urgency and impact define this new breed of foundation. Capital is for spending today, not just investing for tomorrow. This approach resonates with operating charities. More money now.
“A new generation of philanthropists... are embracing spenddown foundations.” The charitable sector needs longterm capital that can provide consistent funding, year-in, year-out. And money needs to be deployed wisely to support good organizations. An increase to a 5 percent DQ rate would raise the bar for all foundations, even those that currently exceed this rate on a voluntary basis. An increase of the DQ may result in some erosion of foundation capital, but capital is not the goal of charity. Public benefit is. A policy shift is needed to put more of that money to work in the community. MALCOLM BURROWS is Head of Philanthropic Advisory Services at Scotia Wealth Management. He writes this column exclusively for each issue of Foundation Magazine.
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LEADERSHIP KATHLEEN PROVOST
The True Profession of Fundraising
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BY KATHLEEN PROVOST
s a professional fundraiser, I have always been fascinated by my own profession, and wondered how is it that Fundraising can offer me so much potential to learn and evolve within my profession. In an attempt to better understand the profession of Fundraising, I turned my attention to the origins of the concept of charity, or charitable work. I found out that “charity” is referenced in many religions. Though these religions do not always name it as “fundraising”, each variation referenced “charitable work” and seem to have the same philosophical meaning — that is — to find means to provide something. The word philanthropy, which finds its origin in literature dating as far back as the 1600s, has its roots from late Latin and Greek, “philanthropia”, meaning “kindliness, humanity, benevolence, love to mankind”. So, I ask, what is really the Profession of Fundraising about?
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Defining fundraising as a profession When we look at history, some of us may believe the origin of “fundraising” as a recognized profession flourished in the later part of the 1900s, when the philanthropic activities of Andrew Carnegie (1835-1919), John D. Rockefeller (18391937), and others alike became more known and documented. In the United States, the National Society of Fund Raisers (NSFR) emerged in the 1960s, now called the Association of Fundraising Professionals (AFP), this association has adopted ethical standards to foster ethical behaviour for Fundraising Professionals (Code of Ethical Standards, 2020). But we can also look at fundraising as an economic activity. In 1997, some of us may have been involved in the Canadian roundtables set up by a group of 12 national organizations foundationmag.ca
COLUMNIST and funded by a cluster of leading Canadian foundations. The purpose of this pan-Canadian public consultation was to enhance the relationship between the charitable sector and the federal government and to encourage supportive legislation and regulatory framework for organizations within communities. The Broadbent Report (affectionately named after its Chair, Ed Broadbent) resulted in key recommendations prescribed in a five-year, $94.6 million Voluntary Sector Initiative launched in 1999. More recently, in a fascinating debate on the importance of language in philanthropy, Hilary Pearson referenced some of Rhodri Davies’ work and reminded us that the use of a word such as “philanthropy” may offer a sociopolitical perspective. In the Canadian context, Pearson talks of possible differences between English, French and Indigenous perspectives in which languages can reflect the underlying assumptions and ways we think about the world. "In French, the word “bienfaisance” is used as a translation of “charity” when it comes to applications of the federal law to the definition of what is charitable. But in practice, the charitable sector in Québec does not define itself around the term “bienfaisance” but more often around the term “communautaire”, putting the accent on collectivity, acting together to change or improve community or society. The idea of an “économie sociale”, of co-operative action for mutual benefit is more familiar to francophones than the concepts of charity or “bienfaisance”. These are more relational than transactional terms. Similarly, in Indigenous languages the term “philanthropy” would not be familiar; the Indigenous worldview and spiritual and cultural practice are based on reciprocal exchange of giving and receiving, of being in relation.” " Learning to be a fundraiser No matter where, or when, you place the origin of our profession our different journeys have shaped the fundraiser we have become today. For me, I became a Certified Fundraising Executive (CFRE) foundationmag.ca
in 2007, after a decade of practical experiences in numerous roles I held as a fundraiser. I have since recertified every three years as a CFRE, as per the accreditation process, whilst also adhering to a code of ethics. This accreditation sets the standard in philanthropy and upholds a valid and reliable certification in a formal adult learning process for all fundraising professionals. But I must still ask, is this the best way we learn to be a fundraiser? Learning to be a fundraiser through a formal learning process There are numerous examples of formal learning processes that have flourished over the last 50 years and presents fundraising professionals with a number of options to learn and develop within their own profession. One form of formal recognized learning for a fundraiser is the professional accreditation. In 1997, two leading professional associations who each had their own separate certification programs related to fundraising decided to merge their programs for the betterment of the entire profession. The Association for Healthcare Philanthropy (AHP) and the National Society of Fund-Executives (NSFRE) merged to form the independent Certified Fundraising Executive (CFRE) Professional Certification Board, now CFRE International. In 2017, the American National Standards Institute (ANSI) accredited CFRE certification under the ANSI/ISO/IEC 17024 standard for personnel certification programs, making the CFRE credential the world’s only accredited certification for philanthropic Fundraising Professionals. Individuals can also now access a number of academic programs around the world to help us become fundraisers. A Master in Fundraising is offered at the University of Bologna to prepare students to build a career in the nonprofit sector. In Switzerland, the School of Management and Law at the Zurich University of Applied Sciences offers to meet future demands of fundraisers and contribute to further development of the fundraising sector. There is also a Master
in Philanthropic Studies in the United Kingdom designed to build the student’s expertise in the areas of civil society, fundraising, philanthropy, the third sector and volunteering. Just to name a few. In the United States, a number of Master programs are also available. Columbia University in New York City teaches management and business techniques to help nonprofits thrive in a competitive environment; Bay Path University in Massachusetts offers strategies for building the knowledge, skills and talent of students to serve in leadership positions at universities, foundations, charities and other organizations; while other universities tailor more to build human and organizational relationships abilities whilst also attempting to develop written and oral communication skills, such as Michigan University. Closer to home, here in Canada, the Master and Graduate Diploma in Philanthropy and Nonprofit Leadership was recently developed at Carleton University to offer students who want to be leaders of change and who aspire to make our world better. It is the first of its kind in Canada. Located in Ottawa this program is housed in Canada’s oldest and largest School of Public Policy and Administration. So, is this how we learn to become a fundraiser? Learning to be a fundraiser through an informal learning process In our profession, fundraisers often serve as leaders or mentors by using knowledge and skills to strengthen the organizations and communities they serve, and they ultimately share best practices to grow the fundraising body of knowledge. We have all cross paths with such individuals and learned from them. Unfortunately, we have also lost some of these “gurus” of our profession. Recently passed away are Rosalie Courage (Halifax) and Simone Joyaux (Rhode Island). These are just two of so many who have had a profound impact on our profession; they have contributed
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MARKETING & FUNDRAISING SARAH CHAMBERLIN
The Power of Sponsors & Supporters
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BY SARAH CHAMBERLIN Sarah Chamberlin
“Sponsors and supporters still found ways to give, and that’s truly awe-inspiring.”
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t the Centre for Addiction and Mental Health (CAMH), we’re driven by a belief that Mental Health is Health and aspire to have mental health positioned at the centre of health care. Thankfully, our sponsors and supporters are driven by this purpose as well. With the level of stigma, shame and silence that still surrounds mental illness, public support from our sponsors and supporters for mental health initiatives is incredibly meaningful to the CAMH community, as well as the larger Canadian community. The fact is, the successes we have achieved and the progress we’ve made for mental health thus far would not be possible without our sponsors and supporters. In the same breath, the discoveries we anticipate achieving in the future won’t be possible without them either. Early in the pandemic, sponsors and supporters contributed to the charitable sector in remarkable ways as charities rushed to aid people in crisis. Of course, this isn’t uncharacteristic. Sponsors and supporters are often kind by nature and are driven to support causes and people in need. Still, when COVID-19 took so much away, sponsors and supporters still found ways to give, and that’s truly awe-inspiring. Take, for instance, a donation of more than 500 tablets that CAMH received for patient use. Last year, we had to restrict in-person visits to keep our patients and staff safe. This meant that patients went days without seeing their loved ones or engaging in activities through Gifts of Light (more on this amazing patient care program later). But, foundationmag.ca
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“They help foundations and other nonprofit organizations mobilize their belief and purpose.”
thanks to the Gifts of Light team, and the generosity of the Slaight family, we were able to purchase the tablets so that patients could have virtual visits with loved ones, participate in online programming, and receive virtual care from hospital staff. It’s moments and contributions like these that make me so proud of the CAMH community, and I’m sure you’ve witnessed similar kindnesses in your communities as well. Advocate for mental health As Canada’s largest mental health teaching hospital, CAMH relies on sponsors and supporters to help transform how the world views mental health. It’s their generosity that propels us to reach thousands of people every year. They enable the CAMH research that leads to the best patient-centered mental health care in the country. They get creative and lead their own individual fundraisers to support CAMH, which also help to raise the hospital’s profile. And they advocate for the importance of mental health at work, at school, at home, and wherever else they can. We value our sponsors and supporters, who like us, believe Mental Health is Health, and continue to live that belief out every day. Their support and their advocacy drive CAMH’s groundbreaking foundationmag.ca
research and education which both lead to life-saving discoveries. By raising CAMH’s national and global profile, CAMH sponsors and supporters have raised their profiles as some of the most dedicated in the world, as well. Our sponsors and supporters have inspired other businesses and Canadians to join our movement, further increasing the impact of our work. More people than ever before want to know how to take care of their mental health. They also want to know more about how to support their friends, families, employees and people in their communities and beyond. When there are 450 million people around the world experiencing mental illness, this inspired leadership is immensely important. Gifts of Life At CAMH, we’re grateful to have a wide range of sponsors and supporters who partner with us for various reasons, and in a plethora of ways. For example, executives who want to prioritize workplace mental health have partnered with us through CAMH’s Business Leaders for Mental Health Action, which is a coalition of leaders committed to improving the psychological health and safety of their employees advocating for businesses to take action. Gifts of Light,
CAMH’s 100 percent donation-funded program that aims to improve the patient experience, continues to receive overwhelming support from donors and volunteers. And CAMH’s new flagship fundraiser, the Sunrise Challenge, has given mental health supporters across various communities a chance to rise with the sun together and fundraise for something they believe in. Sponsors and supporters can help foundations and other nonprofit organizations mobilize their belief and purpose, and turn that passion into real action that creates a ripple effect of positivity. This has never been more critical as we enter what I believe to be a watershed moment for mental health. As we, hopefully, begin to emerge from the worst of the COVID-19 pandemic, I know that CAMH isn’t alone in its sincere appreciation for the good work that generous sponsors and supporters have enabled charities to do. 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. If you would like to learn more about CAMH’s movement for mental health and how you can join us as a sponsor or supporter, please visit https://www.camh.ca/en/get-involved.
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THE ACCIDENTAL PHILANTHROPIST MARK HALPERN
Fundraising In Challenging Times
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BY MARK HALPERN, CFP, TEP, MFA-P
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aising money during a pandemic requires tenacity, skill, and a measure of luck. But it can be done. Canadians are very charitable people, and our government has inspired more giving by introducing 29 pieces of charity-friendly legislation since 1995. During pre-COVID times (the olden days) we have typically donated about $10.6 billion annually, but the COVID-weakened economy changed that. Many charities have felt the sting, cutting costs, closing offices, and laying off staff. Now, more than ever, better communications with donors and supporters is essential. Over 30 years in the financial services industry, I have had the pleasure to advise many great charities, large and small. We currently assist SickKids Hospital Foundation, St. Joseph’s Hospital Foundation, St. Michael’s Hospital Foundation, Scarborough Health Network, TVOntario (TVO), Oakville Community Foundation, Jewish Foundation of Toronto, Bishop’s University, York University, and several others, including many lesser-known charitable organizations. While helping with their fundraising activities, I explain to charity executives and their colleagues the kinds of conversations we have with clients, and the options available to make their charity a magnet for generous Canadians. Charitable giving by parents and grandparents teaches children the importance of giving, promotes happiness and enables people to express their gratitude for a school, medical facility, or religious organization in synch with their beliefs. Many people donate to charitable causes to affirm their own values, like compassion for those in need, or a personal connection with a specific charity or cause. Donors often weigh foundationmag.ca
COLUMNIST the costs and benefits of giving, including intangible benefits for themselves, like the positive feeling one gets from being charitable, or looking good to others. Most generous Canadians know that giving can reduce their taxes, but the vast majority are unaware of several great strategies available to maximize their giving while minimizing their taxes. When they become aware of those structures, their gifting typically increases. Giving strategies No one has properly explained to most of them that donating by cash, check or credit card is the least cost-effective way to be generous. There are so many other ways for donors to be generous, including gifts and bequests in a will, donating appreciated securities owned personally or by their corporation, donating Life Insurance (an existing policy, a new policy, or a beneficiary change); beneficiary change or donation of the retirement income obtained from an RRSP or RRIF. More sophisticated giving strategies include the use of Flow Through Shares, RRSP/RRIF meltdowns, CPP Philanthropy™, private company share donations, setting up a private foundation or a Donor Advised Fund (DAF) at a Community Foundation, and others. No two situations are exactly alike so there are no cookie-cutter solutions. All the moving parts working in harmony allow donors to be both philanthropic and tax advantaged. Fundraisers need to improve communications with donors and prospective donors, since making them aware of better giving strategies makes giving easier. Not for profit executives and their colleagues in the marketing and donor development departments at charities and foundations will see a rise in transformational gifts when they improve communications and educate supporters on smart(er) giving strategies. We are experts in raising money for charity, usually by helping clients convert dollars that would otherwise go the tax department. Tax dollars become charitable gifts. foundationmag.ca
In 2020 our company helped raise a total $61 million (during a COVID-19 year). Our corporate goal this year is the creation of $100 million of new charitable gifts, working with clients, charities, foundations and allied professionals like accountants, lawyers, bankers, investment and insurance advisors. No insurance, little savings Earlier in this article I mentioned three decades in the financial services industry. My professional credentials include Certified Financial Planner (CFP), Trust & Estate Practitioner, and Master Financial Advisor – Philanthropy (MFA-P). But my real start in this business dates back to 1974, when my late father, of blessed memory, died of a sudden heart attack at the age of 50. There was no life insurance, and little savings. I was 11, the youngest of four boys. My late mother, of blessed memory, then 48, had to find a job to support us. In a sudden, shocking instant our lives changed forever, and that experience is the nucleus of my commitment to protecting other families. When dealing with clients in a philanthropic conversation, my first objective is to make sure they can live a long and healthy life and not run out of money, while ensuring their hard-earned money will not scooped up by the tax department when they die. That is accomplished by making sure their financial architecture matches up with their financial furniture and that it changes appropriately over time as situations evolve. I truly enjoy sharing with charities and foundations the tax minimization strategies that use tax exempt financial products that most people don’t know much about. Our team provides that educational wisdom and we act as a legacy process consultant when dealing with donors. Life insurance and philanthropy This recent case used marketable securities for philanthropy. A successful business owner had a $2 million income tax liability. Most of his
assets were illiquid and he didn’t want to use cash on hand to pay the taxes. He had a stock portfolio worth $10 million, with a very low cost-base, so he was ‘pregnant’ with significant capital gains and understandably reluctant to sell any shares as that would trigger an immediate and additional tax liability. We helped him establish a Donor Advised Fund (DAF) at a Community Foundation. He donated $4 million of the appreciated stock to his DAF which generated a charitable receipt of $4 million to offset the entire $2 million tax liability. Donating those securities to charity saved a further $1 million of capital gains taxes he would have incurred if had he sold the securities personally. His DAF is legally required to annually distribute a minimum of 4 percent of its value to any number of registered Canadian charities. The professionally managed DAF earned a return of 10 percent on $4 million last year, or $400K. The interest earned by his DAF is non-taxable. We used a portion of that interest income, $200K, to fund the premiums on a new $10 million Joint and Last to Die Life Insurance policy, owned by his DAF. Many executives at charities and foundations don’t know that Life insurance can be owned and paid for by a DAF. His $2 million tax liability was eliminated and became a charitable donation. Additional capital gains taxes payable of $1 million on the sale of the donated shares was turned into charity. A total charitable gift of $14 million was created. He will be remembered for creating a generous charitable legacy instead of giving a large sum to the tax department. Most people think the only benefit from a life insurance policy occurs when they die. But many a philanthropist can benefit from a life insurance policy when they are still alive. Harold, another client, is a retired accountant in his mid-60s who had a $500,000 life insurance policy he didn’t really need. He wanted to donate the
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DIVERSIFYING DIVERSITY
Women Well Represented in Nonprofit Sector, But What About Intersectionality?: Part Two
BY TANYA HANNAH RUMBLE, CFRE AND MARIYA YUROKOVA, MBA, CFRE
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n March, we introduced you to four nonprofit leaders who courageously opened up about their experiences as leaders with visible identities. In this issue, we present four more nonprofit leaders with a myriad of intersectional identities from across Canada. In order to fix a problem one needs to recognize there is a problem first. For too long, many have assumed there can’t be equity issues in the nonprofit sector, since more than 70 percent of staff identify as female1. This has led to complacency when it comes to leadership development programming for women, and to inclusive talent recruitment and a lack of examination of the reasons why many of the few female identifying folks with intersectional identities chose to leave our sector early in their careers or struggle to advance their careers. By shining 16
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a light on the inherent inequity issues in our sector while sharing the inspirational leadership stories that we hope will inspire the next generation of female and non-binary nonprofit professionals. We also hope more practically, that this will invite dialogue and generate ideas about how to break down systemic barriers so that our sector is truly representative of the communities we serve. We are grateful to Anjum Sultana, Meenakshi Das, Betty Lepp and Sanaa Ali-Mohammed for bravely share what they wish they had when they were new professionals. They also were asked who inspires them and what they are doing now to share their power and privilege with the next generation of emerging leaders in the sector.
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IN CONVERSATION If you were introducing yourself to a group of new colleagues what would you share? Anjum Sultana, National Director of Public Policy and Strategic Communications, YWCA Canada I would describe myself as a curious strategic thinker who is always interested in how to make a positive impact, in big and small ways! I am passionate about social justice and believe strongly in the power of storytelling and public policy to make a difference. By changing the public discourse and empowering more people to civically exchange, we can turn the tide on the issues that plague us as a society. This has been made abundantly clear during the COVID-19 global pandemic that has provided us striking examples of how the current way of doing things does not work. Within the charitable and nonprofit sector, there is still a fear of getting ‘political’. I would say — our work is inherently political and by virtue of how we do our work and with whom, we have a responsibility to speak truth to power. That means highlighting when we see the status quo in public policy not working for the communities we are serving. Our communities hold insights on not only the issues that impact them but also the solutions needed to advance systemic change — we need to do our part to amplify and create platforms for people to share their stories and perspectives. Meenakshi Das, Founder and Fundraising Analytics Consultant, NamasteData When speaking with a group of new colleagues, I would say, “I am Meena Das, Fundraising Analytics Consultant. I am speaking from Vancouver, BC, and an immigrant from India. I am passionate about building authentic relationships wherever I get the opportunity — mentoring immigrant women, offering pro-bono research foundationmag.ca
services, speaking at mini-sessions, or participating in Inclusion, Diversity, Equity and Accessibility (IDEA)-related volunteering.” I usually follow-up with things that I can find common with them, such as their interests, their work in data or with IDEA-related topics. By making this connection through my introduction, I enable the other person to feel comfortable sharing their story. Betty Lepps MA, Regional Director of Shelters and Supportive Housing, BC Housing I would share that my name is Betty Lepps, then share that I am so pleased to be here and meet all of them. I would enquire about all of them and ask them to share something with me about themselves and their roles in the organization. Then I would connect with them with some commonalities around what they shared with me, their values, and the values of their organization. I would probably add a joke in there and chuckle. Then offer my story of being a Black woman and immigrant, this story would include the adversities I have faced, challenges, strengths, and triumphs. This would give them a sense of how I work, my values, my curiosity, and my way of being. It is about building relationships, connecting, and being courageous to show up as you are. As Maya Angelou says “Courage is the most important of all the virtues because without courage, you cannot practice any other virtue consistently.” Sanaa Ali-Mohammed, Board Director, Urban Alliance on Race Relations I would describe myself as a community engaged researcher and advocate based in Dish with One Spoon Territory. I have an interest in bridging the gaps between policy-making and the people most impacted, informed by my own experiences of policies, programs and services. My grassroots community organizing background has given me considerable exposure to the worlds
We initially intended on making this a two part series, however were inspired by the abundance of leaders whose identities, lived and professional experience galvanized us to create space to share more of these stories with you. We are grateful to you for taking the time to read this article and having the privilege to glimpse into the lived and professional experiences of Anjum Sultana, Meenakshi Das, Betty Lepp and Sanaa Ali-Mohammed. As you reflect on the stories shared by these incredible we encourage you to reflect on the questions we asked our interviewees and how you might respond with an eye to equity and inclusion. ❯❯ If you were introducing yourself to a group of new colleagues, what would you share that would invite them to be authentic, engender empathy and signal that their whole self is welcome? What would you not feel comfortable sharing and why? ❯❯ Did you have role models to aspire to when you began your career? If so, what intersectional identities did they have? Was this part of what made them a role model for you? ❯❯ How do you relate to the idea of being a role model? What are the specific strategies you use to share your power and privilege with others in the sector? ❯❯ Beyond role models, what are the individual, organizational and system-wide changes that need to take place so that all levels of leadership in the fundraising sector have representation from diverse communities and intersectional identities? The third and final part of the article will appear in July/August edition of Foundation Magazine.
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IN CONVERSATION of politics, charities, and philanthropy, and also led me to my Board Director position with the Urban Alliance on Race Relations. This background has additionally shaped my decision to pursue doctoral studies at Ryerson University, where I hope to explore policy/regulatory reform addressing systemic racial discrimination in the charitable and philanthropic sectors.
“The question is, how connected are we to ourselves, our foundation, and our roots?” Did you have role models to aspire to when you began your career? If not, why? If yes, who were they and why did they inspire you? Das: Two factors influence my response: 1) I have worked with organizations and clients who are predominantly white; and 2) I am an immigrant who spent most of her life in a different country -India. When I started my career in philanthropy, I would often find myself struggling to “fit in” vs. “stand out”. Being the only one who looks a certain way and talks a certain way, there were days when I wished I could find someone like I speak so I could solely concentrate on the subject being discussed rather than thinking, “if I speak like a certain person they will accept my ideas more easily”. So, I would not say I had specific role models, per se. Over the years, I have had people I looked up to when I need project related fundraising analysis-related direction, ones who help me solidify my analysis, and I am thankful for them. I have learned long back to derive power from my own story — when I am with the immigrant women mentee group I lead I stress that their story is beautiful and powerful. The chances are that answers we seek outside already exist on some page from our life. The question is, how connected are we to ourselves, our foundation, and our roots. In the last few months, we have seen a significant shift in collective uproar against systemic injustices. As part of this social justice movement, I have come across some fantastic peers in the industry through their articles, webinars, websites, and other such resources. Seeing such voices getting strength feels validated, especially when it feels like being on an island. Sultana: I am fortunate that during my career, I had the opportunity to learn from Camille Orridge, an incredible change agent whose impact can be felt throughout Canada’s health care system and beyond. Currently, serving as a Senior Fellow at the Wellesley Institute, Camille has been relentless 18
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in advancing health equity for diverse communities. In her role as the CEO of the Toronto Central Local Health Integration Network, she spearheaded the very-much needed Language Services Toronto, an initiative to make health care linguistically accessible to patients across Toronto. She was also one of the people behind Pathways to Education, an award-winning program to support young people achieve their education goals that started in Regent Park. It has since expanded nation-wide and the model pioneered at Regent Park Community Health Centre has transformed the lives of thousands of young people over the last twenty years. What inspires me the most about Camille is her unwavering belief that through collaboration and vision, incredible things are possible. If you happen to have an opportunity to influence, do not sit on the sidelines. You deserve to be there and it is your responsibility to make sure there are more people in the wings to join the fight towards equity and inclusion. It will not be easy but when it is done, the communities will be enriched beyond measure and that is its own reward. Ali-Mohammed: My parents, first generation immigrant settlers to Dish with One Spoon territory, have always centred a community based and spiritual approach to philanthropy and advocacy. I think that shaped my career aspirations and direction early on. I have also benefited from the mentorship and sponsorship of so many inspiring Muslim women role models throughout my career, and I will name just a few. Rabia Khedr, former Ontario Human Rights Commissioner and now CEO of a charity serving people with disabilities, who taught me about the importance of tenacity in executing a vision. There’s also Ruby Latif, a government relations and inclusive policy-making specialist, who has shown me how research can be leveraged in service of equity, and also that when systems conspire against our success we need mentors and sponsors conspiring right back. Dr. Siham Rayale and MPP/Dr. Rima Berns-McGown, both of whom are scholar advocates working from multiple entry points to create better systems and futures for Ontarians. Gilary Massa, a labour and human rights advocate who has demonstrated that it is possible to challenge gender based employment discrimination and build back better, Farrah Marfatia, an educator and social innovator whose razor sharp solutions focus blows my mind, and Samiya Ahmed, a public health specialist, fundraiser and advocate whose analysis of complex programmatic and social challenges I always learn and grow from. How do you relate to the idea of being a role model? What are the specific strategies you use to share your power and privilege with others in the sector? Lepps: I love to be a role model; I enjoy the sense of being a guiding force to other Black lesbian immigrant women. I just stepped into the title of “role model” and I just began to embrace foundationmag.ca
IN CONVERSATION it. Because I believe this title supports other women that look like me to be who they are and hold senior leadership roles in their organization. A leader that influences, challenges, is creative, innovative, builds potential in people, and most of all carries out a service that supports people in our communities. The strategy that I use is storytelling, telling the stories that support the current situation, showing how one can move from adversity to success. To share with others and become a role model is a gift my mother would be proud of and a gift that I am proud of. Proud of my way of being in my career and in the world, a way that I am a role model for my nieces, and other young women that see me as they see themselves. Sultana: I am inspired by the next generation of leaders just starting their careers and have such a firm grasp on what they believe and how they want to contribute to the world. Right now, I am working with a dynamic group of 16 thought leaders through a partnership between YWCA Canada and the Canadian Council for Youth Prosperity. They have been contributing to our organization’s work on youth-focused pandemic recovery. One of my observations working in the public policy and strategic communications function in the broader charitable and nonprofit sector, there are not enough Black, Indigenous and racialized women in positions of leadership. That lack of diversity in leadership is not only lonely, but detrimental to our society’s collective wellbeing. Every year the leadership of our sector does not reflect our society, we are robbed of incredible insights, solutions and perspectives. It is also an egregious disservice given who the sector as a whole serves — we need to reflect the populations we work with and are in service to. For me, leadership is a mindset, not a job title. Do not wait till someone is able to fight to get into a management role, start now. My call to action everyone is to invest in the career journey of a high-potential leader and mentor, sponsor and coach them. Too many people feel alone, disenfranchised and do not feel a sense of belonging. Das: I am used to deriving power for different things from different sources. I feel the same for myself. I do not relate entirely to the idea of being a role model. However, I do see myself as someone empowering others to have faith in their own stories and realize that their potential is not defined by one job, career, or perception of some other people. I am figuring out, every single day, what and where my power and privilege lies. It is a journey of realizing what you bring and how you can use it to empower others around you. So, when it comes to supporting others: ❯❯ I write (almost consistently) on LinkedIn – everything from my experiences to learnings; ❯❯ I actively network with individuals from all backgrounds in philanthropy and welcome coffee chats if they are willing and interested (so I can build relationships with vulnerability); ❯❯ I participate in local and national level IDEA related groups foundationmag.ca
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and conversations (so I exchange ideas from people on the same journey); And, I offer pro-bono research services to those smallshops that do not necessarily have access to expensive memberships.
I am proud of my collaborations with small nonprofits outside North America that struggle with the lack of data or advanced techniques.
We can turn our attention to bringing on leaders belonging to diverse communities and intersectional identities. Beyond role models, what are the individual, organizational and system-wide changes that need to take place so that all levels of leadership in the fundraising sector have representation from diverse communities and intersectional identities? Ali-Mohammed: The greater representation of all diverse and intersectional identities at all levels of leadership within the nonprofit, charitable and philanthropic sectors is certainly important, but it is also one component of addressing a very large problem. There have been too many instances in the news of leaders from “diverse” backgrounds who have proximity to whiteness, and so uphold white dominant culture to the detriment of Black and racialized persons. For me, the first step would be organizational culture shift. There is an excellent resource by Kenneth Jones and Tema Okun that describes the characteristics of white supremacy culture within institutions. Before we start bringing in staff and leaders with diverse and intersectional identities, we must change the white supremacist norms and the institutional processes, policies, and practices informed by them, and that should involve a journey of reflection and action for an organization. I strongly believe journey should include creating accountability structures for an organization, because achieving anti-racism and equity are iterative processes. Next, we can turn our attention to bringing on leaders belonging to diverse communities and intersectional identities who have the skills, track record and commitment to the work of anti-racism, with particular attention given to members of diverse communities and intersectional identities that are particularly underrepresented. For institutions early on in their anti-racism journeys, they may require some assistance designing their outreach, recruitment and hiring assessment processes from established experts in the fields of anti-racism May/June 2021
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IN CONVERSATION and equity. And finally, it is ensuring that our organizational culture, policies and practices continue evolving in response to feedback from all levels of an organization to ensure talent from diverse communities and intersectional identities is retained and supported. From a systems level perspective, it might be necessary for policy making to ensure the organizational shift happens. Certain regulations encouraging organizations to implement targets for hiring members of groups like women, Indigenous people, racialized persons, and people with disabilities already exist in other sectors. Perhaps it is about learning from the success and challenges of those policies and creating something that does work for the nonprofit, charitable and philanthropic sectors.
Make sure there are sectorwide resources to support people in their leadership aspirations. Lepps: We need to keep sharing our stories and being role models to break down the old models that keep us in these places and situations. We must name the challenges of oppression, colonialism, racism, and sexism. It means we must continue to be courageous, vulnerable, and challenge employers to hear our stories and know the strengths of having diversity, and intersectional identities involved in their creative, innovative organizations. We all also need to believe that people are trying their best and want the best in the world. If we do not, we live in a world that is full of judgment and fewer role models that move the needle. I am proud to be one of those people that moves the needle and will continue to. Das: As a sector we acknowledge the lack of demographic diversity in senior leadership in general. So, most often, hiring is the natural solution I have seen where most conversations end. But at this moment, I want to share an often ignored approach in this endeavor of encouraging diverse representation in all leadership levels. That is promoting different leadership styles from junior staff members. Diversity means much more than different ethnicities. When we encourage our junior members to embrace their styles and cultivate that for their next roles, we encourage different identities to explore and work towards their potential. I have seen so many people struggle (including myself) to conform to the fixed bullets of annual evaluation to be considered for career advancement. Unless we uplift all to bring their whole (and not just the best) on the table, we will repeat the same (and only) thing — putting a metric around hiring diversity and then chasing that with appointing one or two people from different ethnocultural groups. foundationmag.ca
Sultana: Unfortunately, the current leadership in Canada’s landscape of charities and nonprofits overwhelmingly is White men later on in their career. How do we disrupt that? It means investing in the future of the sector now by creating pathways for diverse high-potential leaders to hone their leadership skills, foster a network of champions and actively learn what it takes to be hired to senior levels in an organization including Executive Director and CEO roles. What skills and experiences recruiters are looking for and sharing that with younger leaders now so they know how to drive their career. Let people know — what skills or talents are they looking for in those C-suite roles and be explicit about it. And then make sure there are sector-wide resources to support people in their leadership aspirations. I will also say a lot of BIPOC folks who are in positions of leadership are tired. They are tired of the micro-aggressions and the constant need to prove themselves that never really go away. The constant underestimation, undermining and undervaluing. They are also tired from the additional service they do that is seldom recognized. Out of a sense of justice and commitment to community, they go above and beyond the call of duty to mentor, coach and sponsor younger folks from equity-seeking communities. They do it because they see no one else committing themselves to the efforts, at the scale required. This is not only exhausting but this could be a relevant role that communities of privilege can participate in. This is necessary work, often unpaid but deeply vital, that can be distributed more equitably. We need diversity in leadership at all levels, including governance. Senator Ratna Omidvar has been pushing for board diversity to be measured through CRA adding questions on the T1044 and T3010. Part 3 Next Issue TANYA HANNAH Rumble, CFRE, MFA-P™, is a fundraising leader who has raised millions for some of Canada’s largest charities. Tanya is passionate about equity, diversity and inclusion; and power and privilege and how these intersect with philanthropy. Tanya holds an Honours Bachelor or Arts in Political Science from McMaster, earned a Graduate Certificate in Marketing Communications at NYU; she is also a graduate of the AFP Inclusion and Philanthropy Fellowship, and DiverseCity Fellowship. Tanya is a new mom, a voracious consumer of podcasts, and a baking enthusiast. Tanya gratefully acknowledges the traditional territories of the Mississauga and Haudenosaunee nations, whose traditional territory she lives and works with her husband and young son. MARIYA YURUKOVA, MBA, CFRE, is an experienced fundraiser and thought leader in the nonprofit sector. With over fifteen years of experience in fundraising, Mariya has raised more than $20 million for various organizations, working on gifts ranging from millions to direct marketing campaigns for first time donors. Mariya is an active voice and advocate for diversity and inclusion in the nonprofit sector, with publications in Hilborn Charity E-News, Advancing Philanthropy, CASE Currents Magazine and many more. Mariya. As a first generation immigrant woman and part of an interracial family, Mariya is keenly aware of systemic inequities in the nonprofit sector and works towards advancing social justice causes while acknowledging her own privilege. 1 https://theonn.ca/wp-content/uploads/2018/04/Decent-work-for-Women-Literature-ReviewMarch-2018.pdf
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KICKER
Acting
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KICKER
On Purpose C
BY STEPHEN SHAW
oming out of this pandemic the time has come for every company to take stock of the role it plays in the world and define its true social purpose. But that job cannot be left to marketing alone — it demands a top down commitment to a purpose-led vision and adoption of a new governance model that treats all stakeholders fairly. It has been called the “Great Reset”: the opportunity for humankind to do things differently in a post-pandemic world. Businesses are now expected to do their part in reshaping society — to be a “force for good”. But first they have to ask themselves a basic question: Just how far should they go in improving the lives of people? In the past, the answer would have stopped at “wealth creation”. But most people now concede that the single-minded pursuit of profitable growth does nothing to fix the systemic problems facing society — in fact, it may even undermine the quest for a more sustainable future. The vision should be broader and more inclusive with the nobler aim of advancing the human condition. A purpose-led vision can guide a company through times of extreme uncertainty by serving as a stabilizing force: the vision never changes — just the path to get there. But more than that, it can help to restore public trust in business now that the pandemic has exposed the deep contradictions in society, where a new billionaire is minted every day1, while ordinary people are having a tough time making ends meet. Without a strong moral compass, companies are free to act like pariahs, doing anything they please. When people see corporate foundationmag.ca
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FEATURE
bosses rewarded with excessive bonuses in the middle of a pandemic (defending their exorbitant pay by saying, “we should be paid what we’re worth”) — when they hear of global corporations paying zero taxes despite record earnings — when they learn that some large profitable companies padded their earnings using government wage subsidies — when they listen to reports of big business objecting to a modest increase in corporate tax rates that would put people back to work — they feel betrayed. Each fresh revelation of corporate wrongdoing — from Wells Fargo to Purdue Pharma to Goldman Sachs, all fined last year in the tens of millions of dollars for corrupt practices2 — deepens the level of mistrust. The public has always had a wary relationship with big corporations, going back to the Gilded Age, when industrial magnates were known as “Robber Barons” for their unscrupulous business practices. Their companies grew into conglomerates so immense, so monopolistic, that they eventually had to be broken up by antitrust action. But even in the mid-20th century, when companies were finally being run by professional managers instead of autocratic owners, corporations behaved as if they were above the law, using their lobbying clout to bend the will of government. It was left to
consumer activists like Ralph Nader to protect the public interest and crusade for stronger safeguards against wilful corporate negligence. From the 1980s onward, the Ayn Rand philosophy of unfettered self-interest was adopted as boardroom dogma and corporations abandoned any pretense of a social contract. Hard won labour benefits were whittled away — a gig workforce was favoured over salaried employees — high-paying manufacturing jobs were offloaded to lowwage countries — and working life became more precarious for everyone. CEOs went from earning 20 times the pay of an average worker to 300 times, making in a few days what the average worker earns in a year. In the aftermath of the Great Recession in 2008 the combination of slow job growth and wage stagnation inflamed social ills. And now, in this current K-shaped economy, the wealth gap is much more acute, where the greatest sacrifices are being made by the most vulnerable. Food insecurity is rampant — people are struggling to keep up with bill payments — many households are flirting with insolvency. Meanwhile, stock prices keep climbing, fuelled by an endless surge of investment capital. So, before their purpose statements can ever be taken seriously, corporations must give up their “win at all costs”
Total Shareholder Return suddenly became the only metric that mattered.
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foundationmag.ca
FEATURE these unprecedented times, coming from two of the preeminent capitalists in the world, they are now conventional wisdom, thanks to a reform movement that began around a decade ago calling for a more altruistic form of capitalism. Stakeholder capitalism, as it has come to be known, is a total repudiation of the “Greed Is Good” era. Until recently the doctrine of shareholder value had been an article of faith in every corporate boardroom. It was first advanced in 1970 by the neoliberal economist Milton Friedman in a landmark New York Times essay called, “The Social Responsibility of Business Is to Increase Its Profits”. All that should matter in running a business, Friedman decreed, is the pursuit of maximum profit, calling CEOs who think otherwise “unwitting puppets” of the “intellectual forces undermining free society”. Corporate social responsibility is akin to socialism, he groused, just a distraction from the real purpose of a business, to enrich its owners. The corporate elite now had all the justification they needed to ignore the common good. Total Shareholder Return soon became the only metric that mattered. Executive compensation was tied to stock options as an incentive for management to maximize short-term gain even at the expense of other stakeholders. Corporate management redeployed surplus cash to buy back stocks and boost the share price — money that might otherwise have been reinvested in job creation. The quarterly earning report became the CEO report card, with activist investors grading it, while hedge funds scooped up “undervalued” businesses in order to restructure and sell them. Thus began the unraveling of the “affluent society”. Over the last four decades, a massive transfer of wealth occurred between the upper and lower echelons of society. Despite a 70 percent gain in productivity, hourly wages increased just 12 percent. The top 1 percent of households increased their share of wealth by one third, while the bottom half saw their part cut in half3. The ensuing social blight — the vanishing middle class — the extra hardships imposed on the working poor — the growing “deaths of despair” — eventually became so untenable that it gave rise in 2011 to the “Occupy Wall Street” movement which placed the blame squarely on what it called “pathological” corporations. But it also led to dissension in the ranks of more progressive thinking corporate leaders who were so appalled by the irreparable harm being done that they began to agitate for a reimagining of capitalism.
“We’re going to see a new kind of capitalism — and it won’t be the Milton Friedman capital-ism, that is, just about making money.” – Marc Benioff (CEO, SalesForce) mindset. After decades of treating the consequences of their actions as someone else’s problem, a carefully worded statement of good intentions is unlikely to be very convincing, seen as “virtue signaling”, “woke capitalism”, “greenwashing”, or just empty rhetoric, rather than a heartfelt sentiment. Which is why the job of defining purpose cannot be left to marketing or it will come across as a public relations ploy — ending with a hyperbolic press release and a pretty wall poster. A meaningful purpose statement needs to be crafted with the same diligence as a constitution and the fervour of a manifesto. It has to be inspiring. It needs to be championed by corporate leadership. It needs to be brought to life with an activation plan. And it needs the company shareholders to give it their unconditional blessing. The common good Even the plutocracy recognizes the threat to social cohesion unless corporations become more accountable. In a nowfamous proclamation that shocked Wall Street three years ago, Larry Fink, the chief of Blackrock, the world’s largest investor, issued a written warning to CEOs: either they made more of an effort to help society, or they might be denied the support of his firm. “To prosper over time,” he wrote, “every company must not only deliver financial performance, but also show how it makes a positive contribution to society”. In his most recent annual letter to CEOs he said: “As we move forward from the pandemic, facing tremendous economic pain and inequality, we need companies to embrace a form of capitalism that recognizes and serves all their stakeholders.” Similarly, in his recent annual letter to shareholders, Jamie Dimon, the CEO of JP Morgan Chase, which enjoyed a record year in 2020, had this to say: “Shareholder value can be built only if you maintain a healthy and vibrant company, which means doing a good job taking care of your customers, employees and communities. Conversely, how can you have a healthy company if you neglect any of these stakeholders?”. He goes on to state: “Businesses must earn the trust of companies and communities by acting ethically and morally”. The fact that he had to remind shareholders that morality was important just goes to show how out of touch they must be with the mood of the public. Those words, spoken just 10 years ago, would have been shouted down by the investor class as blasphemous. But in foundationmag.ca
A new kind of capitalism The first acclaimed management strategist to challenge the Friedman model of shareholder primacy was Michael Porter who in a widely hailed Harvard Business Review article in 2011 wrote, “Profits involving a social purpose represent a higher form of capitalism, one that creates a positive cycle of company and community prosperity”. The purpose of a corporation, May/June 2021
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FEATURE Porter stressed, must be to create “shared value”, which “involves creating economic value in a way that also creates value for society by addressing its needs and challenges”. In short, corporations had a duty to be mindful of their social obligations, not just make a profit for its owners, a direct rebuttal of Friedman’s belief that corporate managers were “agents” acting solely on half of the shareholders. Porter’s call for an end to shareholder primacy was joined in subsequent years by a highly accomplished group of reform-minded business founders and executives. Corporate chiefs like Whole Foods founder John Mackey urged his peers to embrace a new credo he called “conscious capitalism”. SalesForce CEO Marc Benioff famously declared that, “Capitalism, as we know it, is dead”, predicting, “We’re going to see a new kind of capitalism — and it won’t be the Milton Friedman capitalism, that is, just about making money”. Klaus Schwab, founder of the World Economic Forum, who is credited with coining the term “stakeholder capitalism” in 1971, defined a company’s purpose as the creation of long-term value for society at large, taking his cue from the Nordic model of social solidarity. The official seal of approval for stakeholder capitalism came in 2019 when the Business Roundtable, an elite cabal of the largest corporations in the world, released a revised “Statement on the Purpose of a Corporation.” Signed by 181 CEOs, the new statement retracted its previous endorsement made almost a quarter century earlier of the Friedman model. “Each of our stakeholders is essential”, the Statement emphasized, “We commit to deliver value to all of them”. At the Annual Davos World Economic Summit in 2020, attended by corporate moguls from around the globe, a Manifesto was agreed to, declaring that “A company is more than an economic unit generating wealth. It fulfils human and societal aspirations as part of the broader social system. Performance must be measured not only on the return to shareholders, but also on how it achieves its environmental, social and good governance objectives.” Even Fortune Magazine, that venerable voice of capitalism, acknowledged in a recent issue devoted to corporate accountability that change is overdue, calling on business to meet higher ethical standards: “As far as society is concerned — foundationmag.ca
as far as a company’s customers, employees, and even investors are concerned — how a company behaves in the world is now as important as what it sells or produces”.4 Creating genuine value As calls for corporate reform escalated, marketing influencers began beating the drum for change as well, coming at it from a slightly different angle. Their perspective is similar to management guru Pete Drucker’s advice from long ago: “To satisfy the customer is the mission and purpose of every business.” Making money is only possible, they reason, if companies create genuine value for customers, not simply look for ways to increase efficiency. In 2010 one of the world’s leading management thinkers Roger Martin published an article in the Harvard Business Review called “The Age of Customer Capitalism” in which he argued that businesses do better when they put customers first, calling the deification of shareholder value a “tragically flawed premise”. A smarter “optimization formula”, he suggested, is determining what customers value and “focusing on always pleasing them”. In that same year Simon Sinek gained fame with his viral Ted Talk “The Golden Circle” in which he posited that people don’t buy what companies do, they buy why they do it. His mantra “Start with Why” became a war cry for many marketers. “Why” is what inspires people, he said — “why” is the reason people would miss the company if it disappeared — “why” gives work a higher order of meaning. Phil Kotler, the “Father of Modern Marketing”, called for a socially responsible approach to business, where the focus is on creating a better world — what he called the “4Ws”: Wealth, Wellness, Well-being, Wisdom. The job of marketing, he said, is to link the needs of customers and society with the commercial needs of the business. “Marketing’s job today is to sell materialism and consumption. Tomorrow’s marketing will be markedly different.” Jim Stengel, the former CMO of Proctor & Gamble, proved in his 2011 book “Grow” that brands which improve people’s lives grow three times faster than competitors, and outperform the market by a wide margin, basing his conclusions on a Millward Brown study of company performance over a 10-year period. May/June 2021
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FEATURE
Countless other research findings since then have confirmed his thesis that companies with strong brand ideals — who are clear in what they stand for and why they exist — who put the needs of customers first, and share their values — do much better than those that don’t. These days the concept of brand purpose has gone mainstream. Yet in spite of a growing stack of literature on the subject, an expanding network of advocacy groups, and a cottage industry that has sprung up to help companies get it right, marketers struggle to elevate purpose from a messaging strategy to a company-wide set of operating principles. Which is why brand purpose needs the involvement of senior leadership, with the CEO cheering them on. Paragons of purpose The companies that do get it right consistently top the charts in every measure of brand health, such as trust, reputation, loyalty and credibility. One of the first companies to prove that purpose can pay off is Unilever, the giant packaged goods company whose portfolio of brands dominate their respective categories, such as Dove, Ben & Jerry’s, Lipton, Hellmann’s and others. Its purpose statement: To Make Sustainable Living Commonplace. Select brands are given license to improve health and wellbeing as well as champion a social cause related to their category. According to the company, its 28 “Sustainable Living Brands” have grown 69 percent faster than the rest of the product portfolio. The CEO Alan Jope has said, “We have extremely strong data on the link between purposeful communication and short and long-term growth”. To showcase its commitment to social progress, Unilever has even built a dedicated marketing platform called “Every Day, U Does Good.” Dove is Unilever’s star example of a purpose-led brand. By 28
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taking the lead on the issue of women’s lack of self-esteem, Dove succeeded in reaching the pinnacle of brand purpose by creating a self-sustaining movement. Dove’s Campaign for Real Beauty struck an emotional chord with women who felt they did not measure up to the media depiction of beauty, fostering a public discussion that continues to this day. Dove is now Unilever’s largest brand, the beneficiary of all that spillover talk. Proctor & Gamble is another packaged goods company that has pledged to be a responsible corporate citizen, taking an unequivocal stand on issues of racial justice and gender bias, and flexing its massive media muscles to get the message out with award-winning video content, storytelling platforms, TV campaigns, and social media. All of the brand teams are expected to own a specific societal challenge which they must bake into their strategies, aligned with the P&G purpose of “making each day a little bit better for people, families and communities around the globe”. A global brand that companies have leaned on heavily during the pandemic is Cisco, the leading provider of networking and collaboration technology, and well respected for its “walk the talk” commitment to humanitarian causes. In June of last year, the CEO Chuck Robbins announced a new mission statement, “Power an Inclusive Future for All”, explaining that, “We know our responsibilities don’t end with technology. It’s now about making the world we envision possible”. The company is dedicated to four main social goals: helping the underprivileged segments of society; extending care to families and their surrounding communities; accelerating healthcare innovation through technology; and enabling educational and healthcare institutions to adapt more quickly to change. Here in Canada the communications technology giant TELUS is on a similar mission, stating that its “longstanding commitment to putting our customers first fuels every aspect foundationmag.ca
FEATURE
Marketers struggle to elevate purpose from a messaging strategy to a company-wide set of operating principles.
of our business”. Its long-time CEO Darren Entwistle is a true believer in what TELUS calls “social capitalism”, saying “it is important that we lead by example and action”. His advice to other companies is to “leverage your core business to improve the social, economic or educational outcomes of your community”. That’s exactly what TELUS has done in setting up a $100 million social impact investment fund for socially conscious start-up businesses; in starting up a new agricultural business to improve the food system through technology; in creating an IT company to transform the healthcare system; and in devising a series of community-based programs to give disadvantaged Canadians equal access to technology. These four corporations are exemplary models of acting on purpose, simply because the impetus for change came directly from the top. While many corporations have opened up their wallets for COVID-19 relief aid, philanthropy is not the same as making good citizenship an intrinsic part of corporate purpose. The real test is whether publicly traded corporations are prepared to put purpose ahead of profits. There are very few brands like the activist apparel company Patagonia willing to say “we’re in business to save our home planet”. So how do companies make that trade-off? How far do they go? How do CEOs convince their boards that the future health of the business means giving up the sugar high of short-term boosts in share price in exchange for steadier long-term gains? And how do they even decide which social causes to throw their weight behind?
Purpose planks The starting point is to connect how the brand creates value for customers — what it does better than anyone — with how it can make the most meaningful impact on society at large. That is not a marketing exercise — it is the job of executive management. Marketing can clarify what value really means in the minds of customers — it can reach out to customers to get their perspective on how things should ideally work. But it is up to corporate leadership to pick the right social causes to pursue. In arriving at the right purpose statement, there are four “purpose planks” to consider, all of which need to be thematically linked through a higher order expression of intent — how the company plans to make the world a better place. The first and most important purpose plank is Customer Value: How the company is uniquely positioned to serve the needs of customers, now and in future. What does the company do best? What does it want to be famous for, not just today, but far down the road? These are tougher questions than they appear because value creation is a constantly shifting equation: What someone values today may not be the same tomorrow. Clues may be found in the company’s origin story — why it was foundationmag.ca
founded in the first place. The definition of value marks the playing field where the company is best positioned to win. From there, a cascading set of questions: What are the core values and beliefs of our best customers? What kind of world would they like to see? What gives meaning to their lives? The answers can frame the discussion around the next plank which is Social Progress: How the company can be “a force for good” by helping solve systemic global challenges like climate change, poverty, racial injustice, and the like. The nonprofit group JUST Capital, which tracks and measures the social performance of companies, offers a scorecard which can be used as a starting template. The next couple of planks are closely related. Community Development covers local relationship building — like infrastructure upgrades, help for the disadvantaged, or sponsorship of cultural and recreational activity — which might otherwise be left to government to fund. And then you have Responsible Citizenship: acting with integrity, treating employees fairly, respecting the law (even if it’s a constraint on profit-making), and proactively seeking consensus amongst everyone who has a stake in the outcome. That last bit may be hardest of all, given the acrimonious clashes of the past with organized labour, consumer rights groups and save-the-world movements. But it’s called stakeholder capitalism for a reason: social harmony can only be achieved through compromise and reciprocity. Making extortionist threats to kill job creation is no longer a socially acceptable bargaining strategy. The one saving grace of this past year is that it has given progressive businesses an excuse to put the idea of shareholder primacy behind them once and for all — to move on to playing a more constructive role in society as opposed to constantly appeasing shareholders. Everyone has witnessed first-hand how fragile society becomes when the privileged take advantage of the underprivileged — when society splits into the haves and the have-nots. Building a fairer society that rewards all stakeholders will restore trust in business. But that depends on business being more generous in spirit. As Virgin owner Richard Branson says, “The brands that will thrive in the coming years are the ones that have a purpose beyond profit”. Now companies just need to find the right balance between purpose and profits.
STEPHEN SHAW is the chief strategy officer of Kenna, a marketing solutions provider specializing in delivering more unified customer experiences. Stephen can be reached via email at sshaw@kenna.ca. 1 2 3 4
In 2020, 493 people joined the Forbes list of new billionaires. See GoodJobsFirst.org, “Violation Tracker”. Scott Galloway, “The Great Grift”, January 2021 Fortune Magazine, “Trust and Consequences”, April/May 2021.
May/June 2021
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CHARITY PROFILES
The Animal Guardian Society
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t’s been over 30 years since Kathy Asling found an 8-weekold puppy on the street. She immediately called every possible link to the pup’s owners and ran an advertisement in her local newspaper. A reporter who saw the ad called Kathy to write a cover story. Although no owner was ever located, she received almost 200 calls to adopt the puppy. She instinctively screened prospective adopters and conducted home visits. Kathy decided on a home but had names and numbers of several families she felt would provide a loving home to a dog. The next day she visited the local shelter and started ‘match making’ by contacting the people who had called her looking to adopt. Identifying the need for someone to step up and save the lives of good dogs from being put to death, Kathy and her daughter created the name The Animal Guardian Society (TAGS). In March of 1987 the first Durham Region based rescue was formed. Kathy set out to meet with individuals who could mentor and guide her into developing a program that would operate with integrity and ethics that would promote humane education to our community and find homes for displaced animals.
Perhaps the most difficult task in the early days was creating relationships with Animal Controls. Rescue in those days was a foreign word, and the constant struggle to save animals from death and research labs became a task that proved to be emotionally and physical draining. It soon became evident that this was not the job for one person. Kathy needed help. Now 30 years later and thousands of dogs successfully re-homed, she has yet to stop! Kathy and her corps of volunteers work closely with animal shelters, humane societies, and the community to improve the lives of canine citizens. Today, TAGS is a charitable nonprofit organization and does not receive any government funding. We are entirely reliant on public donations for funds. Other than monetary donations, TAGS needs other pet care items like good quality dog food, dog beds and blankets, leashes and collars, winter coats, dog toys, etc. We also need other items like building materials and services. To donate visit our website at www.animalguardian.org or see our donation information at Canada Helps https://www.canadahelps.org/en/dn/13492
We welcome your feedback and your questions. Please feel free to contact us with any questions or comments you have. General information about our program or volunteering: tagsinfo@animalguardian.org Telephone:
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May/June 2021
905-263-TAGS (8247) foundationmag.ca
CHARITY PROFILES
How Will You Leave Your Mark on the Community You Called Home?
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n 1902, James Ross donated funds to build and equip a much-needed hospital to care for people in the Kawartha Lakes. Five generations later, with every gift, our donors continue to touch patients’ lives by supporting vital hospital needs that are not covered through government funding. Through their generous support for medical equipment, lifesaving technology and priority projects, donors help the Ross Team provide 24/7 care, and inspire brighter tomorrows. You can make a lasting impact on patient care with a legacy gift. The Ross is the heart of the community and ensures exceptional care for our residents, seasonal residents and regional patients. By naming the Ross Memorial Hospital Foundation in your Will, you join generations of caring people in creating a legacy that supports the entire community. We are honoured to be considered in your legacy plans and are here to answer your questions. Let’s talk about the role you want to play in advancing health care for people in the Kawartha Lakes. How will you touch the next generation? Erin Coons, CFRE, CEO, RMH Foundation 705-328-6113 | ecoons@rmh.org | www.rmh.org/foundation
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The Animal Guar dian Society
I
t’s been over 30 years since Kathy Asling found old puppy
on the street. an 8-weekShe immediately As an animal possible link to rescue group called every the pup’s in her local newspaper. owners and ran an advertisement microchip pets. You cannot we know how important it is to predict what will A reporter who Kathy to write happen in the saw the ad called future so we always advise a cover responsible pet an appointment Although no owner story. owners to for was ever located, procedure. It’s better this quick and painless 5 minute make calls to adopt the she received almost puppy. (or less) to be safe than 200 options sorry. With other adopters and conducted She instinctively screened out there, we also expensive prospective know that home visits. Kathy not to proceed but had names decided on with micro-chipping many pet owners decide and provide a loving numbers of several families she a home price. That is why their pets because TAGS initiated home to a dog. felt would saving of the a cheap way to The next day she local shelter and a good amount microchip, visited started ‘match of people who had making’ by contacting the The revenue goes toward money (instead of paying $90 called her looking and up). a good cause the need through to adopt. The Animal Guardian – helping dogs & cats in Society. How We Use Your Money 100% of your donations goes to helping the program as we animals have in our far is the veterinary no paid staff. TAGS’s largest expense by bills. We want are healthy, and to be sure that sometimes this all our dogs means expensive or surgeries that medications cost hundreds or even thousands In addition, all TAGS dogs are of dollars. spayed and microchipped prior to adoption. or neutered, vaccinated to receive some While TAGS is donations of dog fortunate purchasing quality food, we also spend Identifying the dog food to feed need for someone money Other expenses to our dogs in of good dogs from to step up and include the production foster care. save the lives being put to death, and promotional created the name of training, educational material. The Animal Guardian Kathy and her daughter To donate visit of 1987 the first Society (TAGS). Durham Region our In March org based or see our donationwebsite at www.animalguard Kathy set out to meet with individualsrescue was formed. ian. information at https://www.cana guide her into Canada Helps dahelps.org/en/dn developing a program who could mentor and /13492 integrity and ethics that that would promote would operate with our community humane education and find homes to for displaced animals. Vision Statement Perhaps the most relationships with difficult task in the early days ❯ To sustain the was creating operation of our Animal Controls. a foreign word, program and Rescue in those continue to serve and the constant days was and protect the from death and our community. animal citizens research labs becamestruggle to save animals of emotionally and ❯ To never see a task that proved physical draining. any animal abused, to be this was not the It abandoned or unwanted. job for one person. soon became evident that left ❯ To continue Kathy needed Now 30 years help. to provide medical later and thousands homed, she has care and training animals in our of dogs successfully yet care. to rework closely with to stop! Kathy and her corps ❯ To construct of volunteers a shelter that will animal shelters, community to provide safe housing humane societies, for animals until improve the lives permanent homes and the of canine ❯ To ensure that Today, TAGS is a charitable non-profit citizens. our shelter offers are found. not receive any a centre for learning and education organization and government funding. to does public donations ❯ To see no animal our community. We are entirely for funds. Other reliant on put to death in TAGS needs other than monetary municipally run shelters because donations, pet care items like they are overlooked beds and blankets, good quality dog of space. or due to lack leashes and collars, food, dog We also need other ❯ To encourage winter coats, dog those items toys, etc. The Animal Guardian like building materials and dedication to animalswho profess their love and services. Society’s microchip to take a stand a popular tradition, participate in the to educate and offering inexpensive clinics have become pet owners in the ❯ To see the day cause of rescue. Toronto and Durham microchip services for when rescue will no longer be necessary, as all Region area. animals will have 2 safe, loving homes. 2021 GTA Giving Guide
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The Animal Guar dian Society
We Please feel free welcome your feedback and your questions. to contact us with any questions General information or comments t’s been over 30 you have. years since Kathy about our program Asling found an old puppy on or volunteering: the street. She 8-weektagsinfo@animalg Perhaps the most immediately called possible link to Telephone: uardian.org difficult the pup’s every in her local newspaper. owners and ran an advertisement relationships with Animal task in the early days was creating Controls. A reporter who Kathy to write saw the ad called a foreign word, and the constant Rescue in those days was a cover from death and Although no owner story. research labs becamestruggle to save animals was ever located, emotionally and calls to adopt the a task that proved she received almost physical draining. puppy. to be 200 this was It soon became adopters and conducted She instinctively screened not the job for evident that prospective one person. Kathy home visits. Kathy Now 30 years but had names needed help. decided on later and thousands and provide a loving numbers of several families she a home homed, she has yet of dogs successfully to stop! home to a dog. felt would work reThe next day she local shelter and closely with animal Kathy and her corps of volunteers visited started ‘match shelters, humane people who had making’ by contacting the community to improve called her looking the lives of canine societies, and the the Today, TAGS is to adopt. Identifying the a charitable non-profit citizens. need for someone not receive any of good dogs from to step up and organization and government funding. save the lives being put to death, does public created the name We are entirely reliant on The Animal Guardian Kathy and her daughter TAGS donations for funds. Other than monetary of 1987 the first needs other pet Society (TAGS). donations, Durham Region care In March beds based and blankets, leashes items like good quality dog food, Kathy set out to meet with individualsrescue was formed. dog and collars, We winter coats, dog guide her into also need other developing a program who could mentor and items like building toys, To donate visit integrity and ethics materials and services.etc. that our website that would promote would operate with org at www.animalguard our community or see our humane education and find homes ian. to https://www.cana donation information for displaced animals. at Canada Helps dahelps.org/en/dn /13492
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We welcome your
feedback and your questions. Please feel General information about our program free to contact us with any questions or volunteering: tagsinfo@animalguar or comments you have. dian.org Telephone:
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The Animal Guard ian Society
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foundationmag.ca
t’s been over 30 years since Kathy old puppy on Asling found an the street. She 8-weekimmediately called possible link to the every in her local newspaper. pup’s owners and ran an advertisement A reporter who to write a cover saw the ad called story. Kathy Although no owner was ever located, calls to adopt the she received almost puppy. 200 adopters and conducted She instinctively screened prospective home visits. Kathy but had names decided on and provide a loving numbers of several families she a home home to a dog. felt would The next day she local shelter and visited started ‘match people who had making’ by contacting the called her looking the to adopt. Identifying the need for someone of good dogs from to step up and save the lives being put to death, created the name The Animal Guardian Kathy and her daughter of 1987 the first Society (TAGS). Durham Region In March It is our mission based Kathy set out to to companion animals provide re-homing and medical meet with individualsrescue was formed. care to displaced and guide her into education, behaviour to support the community developing a program who could mentor and in areas of humane counseling, the integrity and ethics that promotion of ownership, and that would promote would operate with the needs of animals.responsible pet our community humane education and find homes to for displaced animals. To donate visit We welcome your feedback and Please feel free our website your questions. to contact us org or see our at www.animalguard donation information General information with any questions or comments ian. https://www.cana about our program you at Canada Helps dahelps.org/en/dn or volunteering: have. tagsinfo@animalguar /13492 dian.org Telephone: 905-263-TAGS
The Animal Guard ian Society
(8247)
I
t’s been over 30 years since Kathy old puppy on Asling found an the street. She 8-weekimmediately called possible link to the every in her local newspaper. pup’s owners and ran an advertisement A reporter who to write a cover saw the ad called story. Kathy Although no owner was ever located, calls to adopt the she received almost puppy. 200 adopters and conducted She instinctively screened prospective home visits. Kathy but had names decided on and provide a loving numbers of several families she a home home to a dog. felt would The next day she local shelter and visited started ‘match people who had making’ by contacting the called her looking the to adopt. Identifying the need for someone of good dogs from to step up and save the lives being put to death, created the name The Animal Guardian Kathy and her daughter of 1987 the first Society (TAGS). Durham Region In March It is our mission based to Kathy set out to companion animals provide re-homing and medical meet with individualsrescue was formed. care to displaced and guide her into education, behaviour to support the community developing a program who could mentor and in areas of humane counseling, the integrity and ethics that promotion of ownership, and that would promote would operate with the needs of animals.responsible pet our community humane education and find homes to for displaced animals. We welcome your To donate visit feedback and Please feel free our website your questions. to contact us org or see our at www.animalguard General information with any questions or comments donation information ian. about our program https://www.cana you at Canada Helps or volunteering: have. dahelps.org/en/dn tagsinfo@animalguar /13492 foundationmag.ca
dian.org Telephone: 905-263-TAGS
(8247)
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INSIGHTS
How Nonprofit CapacityBuilding Can Eliminate ‘Philanthropy Deserts’
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BY SEVETRI WILSON
he nonprofit sector has always been a vital pillar of support for communities around the country, and its role continues to deepen as we emerge from COVID-19. In many cases, nonprofits are responsible for the provision of basic services — healthcare, education, and the delivery of essentials like food, clothing, and shelter. Meanwhile, nonprofits are at the forefront of the renewed push for equality in the United States. These responsibilities, coupled with the pandemic and recent economic contraction, have put unprecedented pressure on nonprofits. Many organizations were pushed to the brink as their revenue fell off but the demand for their services only increased. Across the country, there are philanthropy deserts: areas where nonprofits are doing critical work, but without meaningful assistance from philanthropists, grant makers, or government support. These nonprofits lack sophisticated fundraisers, well-connected boards, or savvy communications professionals — and just like any business, they can’t scale their work without the resources. Lost in the philanthropy desert, these nonprofits are unable to connect millions of Americans with the help they need during a once-in-a-generation economic and public health emergency. No matter how nonprofits improve their operations and attempt to scale impact, it’s clear that the infrastructure of support they provide is only becoming more important to communities across the country. How philanthropy deserts threaten communities The role of the nonprofit sector in the United States is much more significant than many people assume. According to the 2020 Nonprofit Employment Report published by Johns Hopkins, the 32
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INSIGHTS sector is the third-largest employer in the country, accounting for almost 12.5 million jobs (for reference, that’s more than the entire manufacturing industry). Even more critically, nonprofits comprise a vast proportion of private employment in several key fields: education (71 percent), social assistance (41 percent), and health services (43 percent). As the first wave of COVID-19 infections crashed down on the country, 55 percent of nonprofits said they saw an increase in demand for their services, 16 percent reported that demand stayed the same, and just 29 percent reported a decrease. Even before the pandemic, 57 percent of nonprofits said they were unable to meet demand for their services. Meanwhile, many nonprofits saw substantial reductions in revenue, which required them to cut staff, reduce programs, and even take out lines of credit. And the nonprofits that are undercapitalized and already understaffed are far more likely to serve people of color. Although the sector proved to be more resilient than the grimmest projections anticipated, there’s no doubt that many organizations suffered last year. This means the communities these organizations serve had nowhere else to turn in the middle of one of the worst crises we’ve faced in decades.
the ratio between its spending on programs and operations was. Over the past year, we’ve seen what happens when underfunded and under-equipped nonprofits experience a financial shock — communities have to go without vital services. This is why a nonprofit’s top priority should always be the health and sustainability of its operations — the best services in the world can’t function without a robust organization to support them. The role of technology in delivering essential services Although investments in capacity-building are increasing, nonprofits still want to keep costs low, especially during this economic rebuilding period. This is where technology can play a major role — many of nonprofits’ most resource-intensive operations (such as fundraising, tracking and reporting outcomes, capturing data, and compliance) have become more efficient and affordable thanks to digital platforms. However, survey after survey has found that nonprofits aren’t able to take full advantage of the technology at their disposal. Nonprofits are limited by time, resources, knowledge, access, and a lack of digital savvy in a sector that has historically lacked access to newer tools and technology. The organizations that prioritize technology have many advantages over their peers. For example, Accenture reports that, “More than 90 percent of nonprofit workers believe that digital collaboration platforms have improved their efficiency.” Techpowered nonprofits are also better able to collect and share data on their effectiveness, which allows them to attract more support from grantors and increase their revenue. These are all forms of capacity-building that ensure organizations will be capable of strengthening their commitments to communities over the long term — the key to shrinking and eliminating philanthropy deserts.
“The organizations that prioritize technology have many advantages over their peers.” Eliminating philanthropy deserts For many years the nonprofit sector had to contend with what has become known as the “overhead myth” — the idea that high-performing nonprofits invest only in programs, avoiding expenditures in salaries, infrastructure, or the basic operational systems that many in the corporate world take for granted. The “overhead myth” is part of an overarching narrative that funders will only invest in direct support for programs. If we ever needed conclusive evidence that this myth is, in fact, a myth, we wouldn’t need to look any further than 2020. Nonprofits were in such a difficult position last year because they lacked the ability to absorb a significant drop in revenue, maintain (let alone increase) the services they provide, and position themselves to get through the crisis with minimal disruption. These are all areas where capacity-building — which refers to the process of strengthening internal operations, improving financial management, up-skilling nonprofit staff, etc. — can make a significant difference. Take financial planning, for instance: 92 percent of nonprofits have budgets of less than $1 million, while 50 percent have less than one month of cash reserves. This is an extremely untenable position for organizations, especially during a crisis. Grantors are increasingly investing in capacity-building for a reason: if a nonprofit shuts its doors, it won’t matter what foundationmag.ca
SEVETRI WILSON is the Founder and CEO of technology startup Resilia, founded in 2016. She is a 2010 recipient of the Nobel Prize for Public Service, the Jefferson Award; and her work was featured in the U.S. Senate report to the White House on Volunteerism in the U.S., under President Obama.
CYNTHIA J. ARMOUR CFRE Facilitation Training & Coaching • Strategic Planning • Change Management • Executive Coaching • Conference Speaker
• Board Governance • Fundraising • Communications • Rural Retreat
cja@elderstone.ca • (705) 799-0636 May/June 2021
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COLUMNIST The True Profession of Fundraising CONTINUED FROM page 11
to the field of fundraising as practitioners, actively engaged in our profession. Is it possible then to develop skills to become a fundraiser through an informal learning process, through a lived experience? A few years ago, this is what I attempted to explore when I decided to embark on my Master in Adult Education. I consulted a few of my peers and explored the likelihood that the informal learning process of an adult may contribute to the development of soft skills, specifically skills needed in the field of Fundraising. Looking at a self-study on the informal learning process of an adult, I used a reflective practice to look at critical incidents throughout my career. I wanted to better understand if a specific soft skill was developed by a workbased experience. Understanding work-based knowledge and its impact on the informal learning process of an adult could provide a model to complement existing theories with regards to the development of a specific skill from work-place experience. Hence, my original question above. How many of us, as professional fundraisers, have built up our self-composure by attending a challenging donor meeting? How many times have we worked to problem-solve a situation where the donor’s intent did not match the organization’s needs? Or has anyone ever needed to refrain from completing the planned appeal to a donor because our empathy dictated the immediate need to get funds did not supersede the challenging moment or situation this donor was experiencing? Does this sound familiar? Formal learning has a place in the profession of fundraising, and it is being further developed and becoming more accessible. However, Fundraising remains a relative new profession. It is possible, that as adults, we also learn through an informal learning process by looking at our lived experiences. Traits like critical thinking, teamwork, flexibility & adaptability, professionalism, or a positive attitude may not come from a textbook. It is possible that other factors in our life, and other leaders before us, help shape how we developed these fundraising skills.
is a need for fundraisers to comprehend the transferability of skills and acquisition of abilities from experiences through an informal learning process for adults (Smith, 2010). These soft skills or abilities often referred to as interpersonal skills or non-technical skills, may enable the fundraiser to build trust in the relationship, an essential skill for a fundraiser to hone.
Formal learning has a place in the profession of fundraising The answer is within our reach. We ought to look at the informal learning taking place in our workplace experiences and determine if we become aware of any skills we are acquiring, improving, or needing to eliminate. As professional fundraisers, it is possible to learn from both formal and informal process. As adult learners, we can continue to expand our knowledge and develop our own skills. We have the power. 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). As a recognized leader, Kathleen has tailored presentations and workshops for French and English audiences at various events including AFP-Nova Scotia, AFP-Ottawa, AFP-National Congress, Coady International Institute and the Canadian Council for the Advancement of Education. Kathleen is a McGill University graduate and holds a Master, Adult Education from St. Francis Xavier University. She has received numerous recognitions during her career, including the Queen Elizabeth II Diamond Jubilee Medal for her contributions to the charitable sector. She writes this column exclusively for each issue of Foundation Magazine. Phillips, S. D. (2003). In accordance: Canada’s voluntary sector accord from idea to implementation. In K. L. Brock (Ed.), Delicate dances: Public policy and the nonprofit sector (pp. 17–62). Kingston: McGill-Queen’s University Press. Smith, Z. A. (2010). Assessing educational fundraisers for competence and fit rather than experience: A challenge to conventional hiring practices. International Journal of Educational Advancement, 10(2), 87-97. Hilary Pearson Blog: The Deep Importance of Language in Philanthropy (May 10, 2021) McKinsey Organization Blog: Are hard and soft skills rewarded equally?
Maybe, just maybe, we have the power to expand our knowledge In a recent study (2017-2019), McKinsey & Company (USA) examined 10.2 million job postings by the skills required for the job. They detected that soft skills — non-technical skills necessary within organizations — are much harder to replicate via automation and Artificial Intelligence, underscoring the importance of better understanding the development and acquisition of such skills. There is a need to place further emphasis on experience versus formal education when hiring professionals, hence there foundationmag.ca
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COLUMNIST CONTINUED FROM page 15
Fundraising In Challenging Times
policy to his alma mater, so we arranged for an independent actuary to determine its current value. Because Harold was now uninsurable (due to some health issues), the actuary valued the policy at $290,000. Harold donated it to the university, received a charitable donation receipt for the entire $290,000 value, and saved about $145,000 in taxes. Going forward, he could have continued paying the insurance premiums and received charitable tax receipts for the amounts paid, lowering his taxes in the future. But he really did not want to continue paying the premiums on his gifted policy, so the school (as happens in many such situations) found another generous donor who agreed to pay all the future premiums. The donor paying those premiums receives an annual charitable receipt for his donations, and along with Harold, was recognized by the university for their generosity. If your donors have invested in the stock market over the past 10 to 15 years, they undoubtedly have some appreciated securities with ‘pregnant’ taxable gains. If you suggest to them that they simply donate some of those shares they will receive a charitable receipt for their full (appreciated) value and pay zero capital gains taxes on them. Megadonors often prefer to donate funds corporately because they can get a 100 per cent corporate deduction. The gains on the donated funds are credited to the corporation’s Capital
Dividend Account (CDA) and can now be withdrawn tax-free and used for whatever purposes they want. Greatest opportunities for legacy gifts Many charities with substantial (or small) lists of current donors, prospective donors and supporters ask us ‘where’ to focus their fundraising efforts. Who should they approach, where can they raise the most money efficiently, and what messaging will resonate best? The answer to that question falls into 3 categories: 1. Singles, Widows and Divorcees Most people in that cohort do not know that upon their death, the government will scoop as much as 54 percent of their accumulated savings in Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). Married people, in contrast, enjoy a tax-free transfer to those assets to a surviving spouse. Several strategies are available to preserve that hardearned money for charity and family. 2. Business Owners who have completed an Estate Freeze - can make substantial charitable gifts using the Private Company Share Donation Strategy that minimizes tax liabilities, facilitates charitable giving and leaves more for family and loved ones. 3. People who have Sold a Business or Disposed of a Major Asset - If they have sold or are about to make a
major disposition, this will be the year they will probably have their largest tax bill — the perfect time to consider making their largest charitable donation. A donation will offset all or part of their tax bill and create a credit in the Capital Dividend Account. They can donate generously, reduce or eliminate their taxes, ensure that their family is covered and fully reimbursed for all of their charitable good will. Create your own family legacy Supporting favourite charities can be emotionally fulfilling and financially rewarding, reducing donors’ current and/ or future tax load. It also enables them to save more for loved ones while creating a family legacy that will carry their name for many years to come. Not a DIY project Many of the strategies described above require professional help from accounting, legal and estate planning professionals. They are not “all or none” propositions, nor are they designed for do-it-yourselfers. MARK HALPERN is a well-known CFP, TEP, MFA-P and 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” on the event site or YouTube. Learn more at www.wealthinsurance.com
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HISTORIC PLAQUES
STEVE LLOYD
PHOTO COPYRIGHT 1908 BY MRS. LEONIDAS HUBBARD JR.
PHOTO BY CARL YOUNG (RIDINGWITHCARL.COM)
Historic Plaques Which Honour Philanthropy
Mina Benson Hubbard Ellis (1870-1956) The Royal Geographical Society (with the Institute of British Geographers) is the UK's learned society and professional body for geography and one of the oldest non profits in the world. Because they advance geography and support geographers across the world, one of Canada’s most unusual and ambitious explorers came to their attention at the turn of the 20th century. Explorer, surveyor, and exploration writer Mina Hubbard led an expedition to survey the last unmapped area of eastern Canada. Her daring 1905 expedition through unexplored eastern Labrador resulted in notable advancements in geographical knowledge. Taking continuous measurements of latitude along the 900 kilometre journey from North West River to Ungava Bay, Hubbard established the correct positions of the Naskaupi and George Rivers and associated lakes and tributaries. The map she produced was immediately recognised by both the American and British Geographical Society and remained definitive until the advent of aerial photography in Labrador in the 1930s. Mina Benson Hubbard Ellis was born in 1870 on a farm in Ontario, near Bewdley. She worked as a teacher from 1886 to 1896 before training as a nurse in New York. One of her patients there was Leonidas Hubbard, Jr., a former teacher turned journalist. They married in 1901, but two years later he died of starvation and exposure while exploring Labrador. In 1905, Mina Hubbard set out to finish her husband’s work and led an expedition through the interior of northeastern Labrador. She travelled with four skilled woodsmen and also brought cameras, meteorological instruments, and survey equipment. Though she was neither an experienced wilderness traveller nor a geographer, her well-planned expedition was completed in record time and she compiled a valuable set of observations. Hubbard’s photographs represented the first such record of the interior landscape and its people, the Innu. Her map of the region’s rivers and lakes, published in 1906, was the basis for official maps of North America for decades. Hubbard was also an author of a classic of Canadian exploration literature. Her 1908 publication A Woman’s Way Through Unknown Labrador and her field diary are unique departures from standard exploration writing of the day. Instead of focusing on themes of endurance and contest, her written work reveals an openness to the perspectives and opinions of her Indigenous and Métis four-man crew. This ensured that their values and sensitivities, rather than European paradigms, determined the comfortable nature of the trip and its success. The earliest Canadian woman to launch and complete an expedition with explicitly scientific goals, Hubbard was recognized for her scientific contributions and made a Fellow of Britain’s Royal Geographical Society in 1927.
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COMMENT
Non Profit Boards Emerging Stronger Post-Pandemic
I
n the Spring of 2020, as we were managing the early stages of the COVID-19 crisis, Volunteer Canada’s blog identified key information on the Board’s role in a crisis and questions around risk management. As we move from crisis management to recovery, both in the short and long term, there continue to be key topics that should be front and centre for boards as they lead and so organizations emerge stronger.
Financial, human resource stability remain precarious Imagine Canada 2021 Sector Monitor Report indicates that: ❯❯ more than 40 percent of charities have applied for at least one of the three major emergency supports that the federal government introduced in response to COVID-19 ❯❯ 1 in 5 charities have applied for the Canada Emergency Business Account ❯❯ 68 percent of survey respondents note that donations are much less stable ❯❯ 60 percent of organizations seeing decline in volunteers and half of the charities are reporting that their staff have decreased ability to maintain a work-life balance This creates an immense strain on an already lean sector and calls for leadership, innovation, new strategies, partnerships, collaborations and deep resilience. In a post-pandemic world, the need remains for scenario planning, risk oversight, business continuity and disaster recovery. CPA – Chartered Professionals of Canada lists additional areas including the following that should be top of mind: ❯❯ Cybersecurity oversight ❯❯ Technology risk ❯❯ Privacy considerations related to COVID-19 38
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Employment standard changes and managing work refusals.
In addition, board’s may be reviewing insurance such as Volunteer Canada’s Under Our Wing, looking at a social enterprise, exploring a merger as we move onward; a proactive 360 degree view is integral. Understanding the board’s roles and responsibilities are essential; from recruitment and onboarding to evaluation, board members are bound to: ❯❯ Diligence. Act reasonably and in good faith. Consider the best interest of the organization and its members ❯❯ Loyalty. Place the interest of the organization first. Don’t use your position to further your personal interests ❯❯ Obedience. Act within the scope of the law. Follow the rules and regulations that apply to the organization A volunteer director who fails to fulfill these duties may be liable. Volunteer Canada offers a resource to inform board members of their legal duties. It includes a “prevention checklist” to help reduce liability. Make sure you check the Directors’ Liability Insurance: A Discussion Paper, which you can find on our website. As we emerge from the pandemic, we are not the same as we were, nor should we be. We have learned from both success and failure as the community benefit sector continued to adapt and creatively meet the evolving needs; nonprofits and charities are adept in many ways but as Maya Angelou says, ‘when you know better, you do better”. The past year has shown more clearly than ever that we need to do better. Systemic issues and inequities need actionable change. Actionable change with a fresh lens. Stanford Social Innovation Review (March
2021) article ‘Four Principles of PurposeDriven Board Leadership’ explores the need for boards to change from traditional ways to embracing: ❯❯ Purpose before organization ❯❯ Respect for ecosystem ❯❯ Equity mindset ❯❯ Authorized voice and power What does this mean? Here are a few questions to spark thought: ❯❯ Do organizations consider what is best for the organization or what is best for the purpose? ❯❯ Are organizations aware of the ecosystem that they exist within both formally and informally and how their actions may impact? ❯❯ Are organizations actively seeking to learn, unlearn and address inequities? ❯❯ Does board composition reflect the values, beliefs and the communities they serve? Emerging stronger means a higherlevel view of the landscape and viewing through the magnifying glass to look at our structures, systems and ourselves. Careful analysis, devising strategies to understand and address issues but also the opportunity to emerge and forge ahead with intentional change. Are we ready? Yes. We need to be. It is time to ask the bold questions, take the bold steps and the bold action. Strong and resilient boards will tackle difficult conversations, challenge traditional ways, and prioritize a new commitment to change. It is only the board that has the power to change itself. The time for change is now. PAULA SPEEVAK is the president and CEO of Volunteer Canada.
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