Foundation Magazine. The Business and Spirit of Philanthropy in Canada by Lloydmedia Inc

FOUNDATION The Business & Spirit of Philanthropy in Canada November/December 2019

Premier Issue

THE

Celebrity EDGE

Christine Sinclair: Canada’s Greatest Soccer Star Turns a Challenge into Charity Power Inside: • AI & Philanthropy: What’s Next? • Speaking Out on Sexual Misconduct in Philanthropy • The Fundraising Report

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Contents

November/December 2019 | Vol. 1 | No. 1

www.foundationmag.ca

Twitter: @foundationmaga1 PRESIDENT / Editor-in-chief Steve Lloyd - steve.lloyd@lloydmedia.ca EDITOR Brendan Read - brendan.read@lloydmedia.ca DESIGN / PRODUCTION Jennifer Oâ&#x20AC;&#x2122;Neill - jennifer@dmn.ca CONTRIBUTING WRITERS Adam Aptowitzer Neil Gallaiford Paula Attfield Brady Hambleton Kimberly Blease Phil Hills Malcolm Burrows Dr. Jan Hux Martha Chomyn Leanne Kaufman Nithin Coca Debbie Major Doug Ettinger Dean McJannet Steve Falk Nicole Nakoneshny

Gail Picco Kathleen Provost Brendan Read Les Ross Gena Rotstein Erik Rubadeau Christine Sinclair

LLOYDMEDIA INC. HEAD OFFICE / SUBSCRIPTIONS / PRODUCTION:

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 bi-monthly 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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November/December 2019

Cover Story

The Celebrity Edge How the MS Society of Canada Scores Big with Soccer Star Christine Sinclair

6 Seen, Heard and Noted Columnist

Are Canadians Actually Becoming More Generous? Wealth Management - Malcolm Burrows

The Fast-Changing Landscape of Not-forProfit Marketing Inside Analytics - Brady Hambleton

What Kind of Leader Are You? Leadership - Kathleen Provost

My Story

Spending the Last Season of my Career at Diabetes Canada foundationmag.ca

Contents

44 Why Legacy Giving is the Ultimate Donor Connector

46 Benefits of Using a Private Corporation for Charitable Donations

Legal Foundations

48 Don’t Ask a Question Unless You Know 26

the Answer

FAMILY FOUNDATIONS

48 “Speak up, I can’t hear you!”

What is family foundation governance and why do we need it?

54 52 Going Digital. Are You Truly Ready?

Features

20 AI, Machine Learning and Philanthropy

How Close Are We to Making the Connections Work?

24 How Healthcare Can Leverage AI for Fundraising

26 Connecting the Dots on Sexual Misconduct in the Philanthropic Sector

Part One: When Women Speak Out

30 Case Study: Taking the Right Track

How Toronto’s Rail Museum Plans Expansion Amid Renewed Financing

Fundraising Report

36 Changing the Fundraising Narrative 37 Discovering The Power of (Printed) Gratitude

OPERATIONS LEADERSHIP

54 How Greenpeace is Shifting its Thinking About Campaigning

To nurture internal buy-in toward designing more mindset change campaigns, Mindworks has created participatory trainings that put local office leaders in the driver’s seat.

DONOR INSIGHT

57 Curating Knowledge

The Age-Old Question: What Factors Lead to Giving?

CHAPTERs REPORT

58 AFP - British Columbia 59 Foundation Magazine Chapter Editorial Advisory Board

A LEADER’S VIEW

39 The Real Secrets of Analyzing Data

62 Doug Ettinger, President,& CEO, Canada Post

42 The Well Informed Donor

Next Issue…

for Success

Have You Planned Your Digital Legacy?

43 Three Ways to Leave a Lasting Legacy foundationmag.ca

In Our World, Caring and Giving Still Matter

Coming in late January 2020. Great columnists, top features, bold reporting. Plus...Part 2, the conclusion of the examination of misconduct in the philanthropic sector. Plus visit our website daily for breaking news. www.foundationmag.ca November/December 2019

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SEEN, HEARD & NOTED Royal Canadian Legion Digital Poppy Campaign,

Ardwell Eyres, 95, dedicated his digital poppy to Sgt. Major John Copeland, a friend who didn’t come home.

The Poppy went digital in November. Did you miss that? The 2019 Royal Canadian Legion Digital Poppy Campaign, sponsored by CHIP Reverse Mortgage by HomeEquity Bank, gave Canadians another way to donate, and at the same time, share Veterans’ stories of bravery and courage. The Digital Poppy, which was obtained at www. MyPoppy.ca, was created to complement the traditional lapel Poppy that millions of Canadians wear each year from the last Friday in October to Remembrance Day on November 11. The Digital Poppy could be personalized and dedicated to anyone who served, and then shared on social media. As time passes, so do many Veterans and their stories of bravery and courage. This year, to help ensure their legacy endured, the digital campaign focused on reaching the next generation of Canadians. Hope it worked, it’s an interesting 6

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Charlie Foran

concept. The Writers’ Trust of Canada name Charlie Foran as the organization’s new Executive Director. He will replace Mary Osborne, who will leave at the end of 2019 after seven years with the Writers’ Trust. Foran assumes the role in January 2020. Foran is a Member of the Order of Canada, a senior fellow at Massey College in the University of Toronto, and an adjunct professor in the Department of English at the University of Toronto. He is the author of 11 books of fiction and nonfiction, and has won many awards and

November/December 2019

honours, including the Hilary Weston Writers’ Trust Prize for Nonfiction, Governor General’s Award, the Canadian Jewish Book Award, the Charles Taylor Prize, and the Writers’ Trust Fellowship. He joins the Writers’ Trust after completing his term as CEO of the Institute for Canadian Citizenship in early 2019. Co-founded by the Right Honourable Adrienne Clarkson and John Ralston Saul, the national charity realized a period of exceptional growth under his guidance. FAIR Canada has returned $2.4 million to the Jarislowsky Foundation because it was unable to meet the 200 percent matching condition, as governments, securities regulators and self-regulatory organizations have been generally unwilling to provide adequate support. FAIR Canada has applied to governments, regulators and SROs over the years

to support its mission of enhancing the interests and rights of the everyday Canadians who comprise the retail investors and financial consumers in this country. The Jarislowsky Foundation provided $2 million in 2012 for an Endowment Fund for FAIR Canada in support of its public service mission. The donation came with a 200percent matching condition and a deadline of September 30, 2014. FAIR Canada was able to obtain $2 million in endowment funding from the Ontario Securities Commission (OSC) in 2014 but has been unable to secure the remaining $2 million. The deadline has been extended several times with a final deadline of September 30, 2019. FAIR Canada has directed the return of the funds in the Endowment Fund (approximately $2.4 million) to the Jarislowsky Foundation. Stephen Jarislowsky (who is 94) stepped down from our board of directors at the same time. Canada’s 2019 Operation Christmas Child shoebox collection season starts today, as thousands of individuals, families, churches, businesses, sports teams, and community groups begin packing shoeboxes with toys, school supplies, and hygiene items, plus personal notes and photos. Operation Christmas Child is an annual initiative of Samaritan’s Purse, an international Christian relief organization that works in more than 100 countries. Thanks to all the items that foundationmag.ca

SEEN, HEARD & NOTED Canadians lovingly put in their shoeboxes, and the $10-per-box they donate to cover shipping and other program costs, Samaritan’s Purse is able to deliver the boxes to children around the world living in the midst of poverty, disease, war, and natural disaster. Last year, Canadians filled more than 517,000 shoeboxes with gifts that “shared God’s love and hope” with struggling children in West Africa and Central America. Since 1993, Operation Christmas Child has collected and distributed more than 167 million shoebox gifts in over 100 countries.

materials and raise awareness across the country. TD will also contribute to 300 acres of naturalization projects in eight ALUS communities across Canada: ALUS Lac Ste. Anne, ALUS Red Deer County, ALUS Saskatchewan Assiniboine Project, ALUS Little Saskatchewan River, ALUS Elgin, ALUS Middlesex, ALUS Peterborough and ALUS Montérégie. Kitty Scott is the new Deputy Director and Chief Curator of the National Gallery of Canada effective January 6, 2020. With 25 years of major museum and gallery experience across Canada and

including the iconic sculpture Maman (1999) by Louise Bourgeois. If you’re a committed donor with a nice nest egg, take note: Qtrade Investor, part of Aviso Wealth, partnered with Wealthscope, a leading portfolio and planning analytics provider, to launch ‘Portfolio Score’ on its platform. This portfolio analysis tool — the most comprehensive available from a Canadian online brokerage — enables investors to quickly analyze their portfolio holdings so they can make wellinformed trading decisions.

ALUS Canada’s New Acre™ Project

TD Bank Group named as launch sponsor for ALUS Canada’s New Acre™ Project, an innovative corporate sponsorship program that spurs investment in naturalization projects across Canada. ALUS Canada, A Weston Family Initiative is delighted to announce TD Bank Group (TD) as the launch sponsor of ALUS’ corporatesponsorship program. With a two-year commitment of $220,000, TD will help ALUS roll out the New Acre Project, expand its bilingual foundationmag.ca

internationally, Scott brings her expertise and a global network of artists, scholars, collectors and museum professionals to the Gallery. Most recently the Carol and Morton Rapp Curator, Modern and Contemporary Art at the Art Gallery of Ontario (AGO), Scott will be returning to the National Gallery of Canada (NGC), where she was Curator of Contemporary Art from 2000 to 2006. During her previous tenure at the Gallery, Scott acquired several of the collection’s highlights,

It provides an objective, holistic picture of how a portfolio is built and how it can perform in all market scenarios. Portfolio Score is a portfolio health check that helps investors find a better understanding of their risk exposures by comparing their portfolio’s performance against domestic and global benchmarks. The tool also evaluates investors’ securities — Canadian/U.S. stocks, ETFs and Canadian mutual funds — and grades overall portfolio performance across five key dimensions.

Costco Wholesale has already made a significant donation to ensuring that children will be starting every morning on a full stomach. Thanks to the generous contributions of their members and the dedication of their employees, a total of $1,000,000 has been raised as part of the Add a Breakfast to Your Bill campaign by early November. These funds help to provide nutritious breakfasts for over 243,000 children. Breakfast Club of Canada is a charitable organization that provides funding, equipment, training and support to school breakfast programs across the country. The Club is dedicated to ensuring every child starts their day with a nutritious morning meal, in a safe and secure environment. Founded in Quebec in 1994, Breakfast Club of Canada is present in 1,809 schools from coast to coast feeding over 243,500 children every school morning. The 13th annual Movember campaign in Canada is almost over. Canadians from coast to coast committed to Grow, Move or Host to raise funds and awareness for prostate cancer, testicular cancer, mental health and suicide prevention. To kick-off this year’s efforts, first responders from across Toronto were shaved clean in Movember’s Mobile Barbershop, stationed at the Toronto Fire Academy, all in the effort of changing the face of men’s health. Any observations about the best moustache, beard or mutton chops you saw this year? A great idea continues to grow. Er, pardon the pun.

November/December 2019

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Columnist

Wealth Management Malcolm Burrows

Are Canadians Actually Becoming More Generous?

T Malcolm Burrows 8

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November/December 2019

Gary Tannyan

By Malcolm Burrows

he words “generous” and “generosity” come up a lot in the world of charity. But there is little discussion about what influences generosity in Canada. Is it growing or shrinking? And is nature of generosity changing? It is a slippery and fascinating subject. Let’s first ponder the generosity supply question. In 2017, donations reported by Canadians on their taxes totalled $9.6 billion, up 7.7 percent from 2016. So far, so good. Dollars aren’t, however, the only measure. foundationmag.ca

Columnist Are donors disappearing? Statisticians and pundits have been commenting on the presumed disappearance of the Canadian donor since 1990. In that year, 30 percent of taxpayers claimed a charitable donation on their annual return according to Statistics Canada. In 2017, that number was a shockingly low 20 percent. Where did all the donors go? The answer isn’t fully known, but the loss may not be as bad as the tax data implies. Theories include a shrinking middle class, decline of organized religion, and increased social isolation. One rarely mentioned factor is a change in the way taxes are filed. Now that 88percent of Canadians file their taxes electronically, software automatically merges the giving of spouses to offset the effect of a graduated tax credit rate. Two donors, for the purpose of the tax system, become one. The tax system is our major source of data on giving, but it’s unreliable. It tells us that seniors are the most generous donors. Tax filers age 65 and older represented 30 percent of all donors in 2017 and 42 percent of the amount donated. What nobody ever mentions is this data includes both lifetime and estate donations.

donation tax receipts. Another sign that tax is not a primary motivator of giving is the huge growth of crowd funding. The Humboldt Broncos’ bus crash tragedy spontaneously generated over $15 million in donation in a few weeks. None of these gifts received tax receipts, and technically, they weren’t even charitable donations. Instead they were gifts to individuals in need, which is benevolence, not charity. Hence no tax savings. This surge in online generosity may be eating into charity revenue. GoFundMe, an international crowd funding platform, now handles approximately $200 million in donations each year in Canada. If GoFundMe was one of Canada’s 86,000 registered charities, it would lead the pack in number of donors and donations — as well as dollars. Personal philanthropy I’ve spent the last 30 years working with a different type of donor. She, and the majority of these donors are women, gives some or all of her life savings to charity. Typically this happens at the end of life through a gift by will (estate), but increasingly she gives during life. And the dollar numbers are impressive. This type of giving from savings or asset is hard to track through traditional

“The surge in online generosity may be eating into charity revenue.” Does tax matter? Contrary to popular belief, tax savings matter little for most donors and donations. The latest statistics report that 84 percent of Canadians donate to charity each year, and the majority give without receiving or claiming a receipt. Could be at a store checkout or a holiday kettle. More curious: almost $2 billion of donation receipts are issued annually by registered charities and not filed. Taxpayers need a better shoebox for their foundationmag.ca

methods. Estate donations, for example, are not reported separately from lifetime donations by Canada Revenue Agency. Yet the growth “major gifts” and “planned gifts”, as they are called by fundraisers, is clear. For the charities that are lucky enough to receive big donation — mostly the big, established ones — they are the difference between success and failure. Campaigns have become increasingly reliant on major gifts. The rule of thumb from the last century was that 20 percent of donors would give 80 percent

of donations to a campaign. That rule is now closer to 0.1 percent of donors giving 99percent of donations. This certainly points to a world where the wealthiest have sprinted ahead of majority of the population, which for better or worse fuels big philanthropy. In 2019, so far, there has been four donations over $100 million announced in Canada — all to universities and hospitals in Ontario. Charity insiders know there are another 20 or so $100 million donations and foundations that have been made over the last decade. There has also been a massive increase in $1 million+ donations, especially in estates. Certain established charities now receive 10 percent or more of donations from estates. But are these donors more generous than earlier generations? Or is there much more money concentrated in fewer hands? There is more to these big donations — and to the seeming increase in “generosity” — than wealth alone. Big asset donations are being affected by societal factors such as increase in housing values, aging population, population mobility, smaller families, increase of the number of couples and individuals without children, and the increased awareness of philanthropy. Since 1996, Canada’s system of donation tax incentives has become the most generous in the world. (Yes, you read that correctly.) Ordinary people — typically age 60+ — with real estate, some savings and no kids are becoming million dollar donors. And it’s not because they are more generous than previous generations, but because they have the opportunity due their personal circumstances. So the question of generosity in Canada is hard to resolve. The factors that trigger, count and enable giving are changing. Rest assured, the desire to help others remains strong. Malcolm Burrows is Head, Philanthropic Advisory Services at Scotiabank Wealth Private Client Group. He writes this column exclusively for each issue of Foundation Magazine.

November/December 2019

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Columnist

Inside analytics Brady Hambleton

The FastChanging Landscape of Notfor-Profit Marketing

By Brady Hambleton

hen Steve approached me earlier this year to gauge my interest in joining the advisory board for Foundation Magazine, I did not hesitate to say yes. I sincerely believe that as an active member of the not-for-profit sector, I have an inherent responsibility to engage in and contribute to the dialogue that will help continually improve and shape how we can work more efficiently and effectively. And while time seems to be a scare commodity for many of us, I see 10

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Columnist

this as an opportunity to surface some of the big issues and opportunities that keep me up at night. Over the course of the next few issues, I plan to explore some of the broader issues and opportunities that are shaping the current and future marketing landscape for charities and not-for-profits. And while my selection of topics is by no means exhaustive, here are some of the most some common themes I experience in my day-to-day work: The ability for charities and not-forprofits to stand out In an increasingly competitive and crowded space, how do charities and not-for-profits survive and thrive? Let’s face it — we don’t have the deep pockets that for-profit companies and brands have, nor is it likely that we ever will. And despite that, we are seeing a trend with organizations of all sizes making the shift away from asking for support up-front and engaging stakeholders with and as a part of their story. We will explore case studies and models that have worked well, and some hard lessons learned through trial and error. Chief among these case studies and real examples will be the underlying question that plagues virtually every charitable and not-for-profit marketer — “why should we invest in telling our story when there is no direct correlation in funds raised?” The increasing trend of corporations to develop and implement CSR strategies in alignment with UN sustainability goals What was once a fairly obscure framework (not entirely understood by our sector) has now become increasingly commonplace among corporations and organizations of all sizes. But what exactly are these 17 goals, and what relevance do they have in shaping how new and existing partnerships evolve? Perhaps more importantly, what impact will these goals have on how our own organizations plan, develop and deliver impact? foundationmag.ca

We will hear from several sustainability experts on how these goals are more than just a list of abstract aspirations, and how critical it will be for all of us to understand how to incorporate them into our own work. In addition, we will provide a quick reference summary of the goals themselves, and the most common areas within a not-for-profit or charitable organization impacted. The hysteria around “Big Data” and it’s potential to unlock new opportunities for organizations of all size – but at what cost? I have no shame in admitting I am a selfproclaimed data geek. In fact, enterprise data strategies occupy a significant share of my day job. The power and potential of well structured and smartly used data is equivalent to a high performing investment portfolio — provides significant ROI when the best knowledge and expertise is applied. But what are the necessary steps an enterprise needs to take before it can claim it is leveraging strategies like machine learning and artificial intelligence? From my perspective, the increasing “buzz” around big data presents some risks in managing the expectations of senior leaders and boards, where there is often a gap in understanding the investments and internal alignments necessary to implement such strategies. Drawing on the experience of several technology experts, I will explore some of the imperatives necessary to set your organization up for data-driven success. And drawing on my own experience, I will share some of the practical lessons I have learned in setting up, managing and transforming data-driven marketing ecosystems. Measuring and articulating impact – what really matters to your stakeholders? Expectations by supporters to create real and meaningful change is on the rise, regardless of the size of their contributions. And while we know that personal connections to cause often

drive the highest loyalty and affinity, what are we doing to evolve how we measure and report on the impact their support has on a cause or mission? How has the often-traditional approach of the generalized stewardship reports evolved, or has it? With a new generation of supporters on the rise, new outlets for making charitable contributions, and a vastly different channel-based landscape —how we are preparing our organizations to ensure the collective impact of contributions is well understood? We will explore some recent examples of organizations carving new paths in an effort to differentiate between outcomes and impact, and the growing trend for corporations and brands to do the same through CSR strategies and activations. Your marketing technology stack – what is the best mix? Technology, and its promise to continually improve the way in which we engage with our constituents has become a major focus of investment and resourcing in virtually every organization. But with tens of thousands of new platforms and a growing number of SAAS (software as a service) providers, what is the best mix for your organization? Definitely not an easy question to answer and at the risk of being overly subjective, I’m going to turn to a fun and trustworthy source to present some really cool examples — The Stackie Awards. Each year, the annual MarTech conference incorporates awards for companies of all types and sizes, recognizing innovative ways that marketing technology “stacks” (hence the “Stackie”) are created and the work they empower. I will be hand picking the three most compelling winners across various categories, and exploring how we could apply similar thinking and innovation to our sector. Brady Hambleton is Vice President, Marketing, Engagement & Analytics, Canada’s Children’s Hospital Foundations. He writes this column exclusively for each issue of Foundation Magazine.

November/December 2019

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Columnist Leadership Kathleen Provost

What Kind of Leader Are You?

By Kathleen Provost

s a professional fundraiser, I value honesty above all. It is with honesty, that I have built meaningful relationships throughout my career. In my opinion, the profession of fundraising is about building relationships between a project, cause or need, and interested parties with the objective to attain a common goal. Our role, as fundraisers, is to facilitate this engagement between said cause or project, and the individuals or corporations that are willing and able to support it. This common goal however must always be reached by having a genuine concern for each one’s interest. Some may call this the basis of ethics for fundraising; as “ethics” is defined as the concern of an individual’s moral judgements regarding a right and a wrong. I should remind you that there exists a Code of Ethics for fundraising professionals, and this code helps guide how we build respectful relationships. But the honesty I am talking about is more of a personal “skill” or a disposition we have as individuals. The honesty I refer to here, is about the style of leader you are. It’s all about Authentic Leadership. Humans have created societies to assemble individuals into groups or units that look and operate within a prescribed set of norms and practices. In such societies we identify individuals as pacesetters, as those who rise to the occasion and demonstrate an expertise in key areas of norms and practices. These individuals are referred to as leaders. But what if being a leader was not about being a pacesetter. What if, leadership was defined by a capacity to legitimize an individual’s thought, idea or action? foundationmag.ca

Kathleen Provost November/December 2019

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Columnist George Bill (2003) defines Authentic Leadership as “an approach to leadership that emphasizes building the leader’s legitimacy through honest relationships with followers which value their input and are built on an ethical foundation”. Hence, Authentic Leaders. I truly understood how “honesty” became a leadership style when I had to sit down in front of a group of donors, and explain to them that we were not planning to use the funds they gave us for the reason we told them we were going to use these funds. They were not upset about the change of the purpose, but they commended me for coming to them and explaining why there was a change of purpose. They commended me for my honesty. More specifically, they commended me for my honest leadership. That day, I learnt the true meaning of leadership. I have had the pleasure to meet some

Authentic Leaders in my professional career and I have been privileged to work with some. These are the types of leaders that inspire me. So, ask yourself. What type of leader are you? What type of leader do you aspire to be? Is your leadership style one of positive disposition, with a positive outlook on life and on individuals in general? Are you the type who sees that glass half full or half empty? What is your predisposition when you meet an individual for the first time? Authentic Leaders are usually individuals with truthful self-concepts who promote openness. This kind of leader must be honest and genuine to engage in a meaningful relationship. It is much more than getting the job done, much more than making the “ask” and getting a cheque. At times, ineffective leadership can mean getting into the bad habit of focusing only on getting the job

done, only cashing the cheque. Authentic Leaders will hone their honesty and integrate it in all of their interactions and in all of their donor stewardship approaches. The concept of honesty is not new, it has been around since humans have interacted with each other and has been influenced by numerous religions, cultures, norms and value systems, and it continues to shape our civility today. Our personal definition of honesty, will vary, evolve and be influenced by many factors. Yet, the end goal should remain the same for the professional fundraiser: to build meaningful relationships. Just imagine for a moment what has influenced your own experience with the concept of honesty. Think of your own interaction with individuals, how have they shaped your definition of honesty? Because honesty is what we bring to relationships, so we must be aware of its foundation and we must take a good look at how we define honesty. The value of honesty is unique to each of us, and we will interpret honesty to be what we think it is. There is no right or wrong when it comes to defining honesty. Its subjective to your own perspective. Being genuine, as an individual, or as a professional, is therefore a style of leadership you can refine, if this is the type of leader you aspire to be. When looking to hire someone, Warren Buffet says: “Look for 3 things in a person — intelligence, energy and integrity. If they don’t have the last one, don’t even bother with the first two.” And the major component of integrity is honesty. For a fundraiser, true leadership success therefore comes as a result of attaining a common goal, in a fair and honest exchange between a donor and a worthy cause. This is the true kind of leadership we find at the heart of philanthropy and the entire voluntary sector in our society. This is Authentic Leadership. Are you an Authentic Leader? Kathleen A. Provost, CFRE is the Campaign Director at St. Francis Xavier University. She writes this column exclusively for each issue of Foundation Magazine.

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My story

Spending the Last Season of my Career at Diabetes Canada

By Dr. Jan Hux

don’t quite recall if I was ever asked the question ‘where do you see yourself in five, 10 or 20 years?’ early in my career, but I do know that an unlikely response would have been leading a national health charity. And this doesn’t mean that my role as President and CEO hasn’t been one of the most rewarding, demanding, sometimes frustrating and motivating times of my professional career. It’s not a career that one chooses, rather I believe it chooses you or perhaps circumstances align to the opportunity. Having spent more than 20 years in diabetes health services research, I had an opportunity to truly investigate this insidious disease and the impact it has on the individual, the economy and society. It’s through my research tracking the diabetes epidemic in Ontario at a population level that I initially appreciated the benefits of a population impact approach — to shift focus from one-to-one interventions to a system that will improve the health of an entire population to curb the diabetes epidemic. This approach is reflected in Diabetes Canada’s advocacy for public policies that affect the health of all Canadians as we continue to urge the governments to support Diabetes 360° — a nationwide diabetes strategy that will enhance the prevention, screening and management of diabetes to achieve better health for all Canadians. This strategy will reduce unnecessary healthcare spending by billions of dollars, protect Canada’s productivity and competitiveness, improve the lives of millions of Canadians and provide equity and access to care across the country. Diabetes has correctly been called the public health emergency of our time. More than double the number of Canadians live with this disease than did just 15 years ago. To end the epidemic of diabetes will require a coordinated, multipronged effort. We need to establish mutually agreed targets and then tracking our efforts to ensure that all Canadians have access to the right health care practitioner at the right time and achieve optimal outcomes. And we need the support and foundationmag.ca

Dr. Jan Hux

leadership of governments, corporate Canada, and individual donors to change the trajectory of this disease. A departure for a charity like ours With federal government support, implementation of this national strategy could begin early in 2020 so that real progress is evident by 2021 — a milestone year that marks the 100th anniversary of Dr. Banting’s discovery of insulin. This would allow Canada to mark the occasion with another critical achievement in the prevention and management of diabetes, and once again improve the lives of millions of Canadians. I am looking forward to seeing this vision and strategic priority continue to be a focus of Diabetes Canada and am confident my colleagues will continue the momentum being gained with this initiative. The engagement of a broad coalition of stakeholders to develop the framework for Diabetes 360°, and the multifaceted advocacy work to drive its implementation is quite a departure for a health charity like ours, with its roots in local community service and education. But it has been an essential shift if we are to effectively confront a diabetes epidemic that has outstripped our capacity to address it at a local level. We also need to demonstrate impact on a larger scale if we are to win the interest and trust of a new generation of donors. While their parents might have been drawn to the local presence and flagship stability of a traditional heath charity, today’s young adults are looking for something quite different. They may value the nimbleness and responsiveness of a small organization over the stability of a large one. They recognize that uncoordinated, individual efforts will not shift the needle Continued on page 60 November/December 2019

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THE

Celebrity EDGE

How the MS Society of Canada Scores Big with Soccer Star Christine Sinclair

By Brendan Read

Christine is joined by teammates Melissa Tancredi (right) and Robyn Gayle (left) in a photo session with fans. Allen Lulu has been acting since he was seven years old. As a veteran of over 150 commercials. Allen is most recognized as the “A&W Guy” in Canada in the long running campaign. He is married to Beth Lulu and they have two children, Zoe & Zachary. His daughter, Elizabeth, passed away from Cystic Fibrosis in 2006 and he and Beth created and run a scholarship for college bound kids with CF called the Elizabeth Lulu Scholarship Foundation. 16

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magine one day waking up and not being able to move in the way that you used to. You feel fatigued and may be experiencing muscle weakness and trouble with your memory. Your life turns on a dime. That’s the reality for more than 77,000 Canadians who live with multiple sclerosis (MS). It can be a debilitating and potentially disabling autoimmune disease that attacks the central nervous system, interfering with the communications pathways between the brain and the rest of the body. The unpredictable and episodic yet progressive nature of MS makes it challenging for those who are diagnosed. foundationmag.ca

courtesy Rethink Canada

A&W’s Alan Lulu gets stiff-armed by Christine Sinclair.

Moreover, MS strikes people in the prime of their lives. More than half of adults diagnosed with it are between 20 and 49 years old and women are three times as likely to be diagnosed than men. Then there is the economic as well as the personal toll. By 2031, total annual health sector costs for MS are estimated to reach $2 billion in Canada. MS is a disease that hits home with Canadians; Canada has one of the highest rates of MS in the world according to MS Society of Canada president and CEO Pamela Valentine. But researchers are not certain why. Yet the toll continues with some 11 Canadians diagnosed with the disease every day. These factors help drive the need to find treatments and hopefully a cure for MS. But they require public awareness and fundraising efforts. This can be challenging when there are many other charities and organizations that require funding and support. “The challenges we face are similar to other charities,” says Valentine. “How do you create a sense of urgency in order to move people to take action?”

touches many lives and each of these acts of greatness brings us closer to a world free of MS.” The campaign’s donations will help ensure researchers have the resources to learn more about the disease and uncover new treatments and one day a cure. The funding will also help cultivate the next generation of researchers. To accelerate the pace, the MS Society has been encouraging collaborative research and strategic partnerships both nationally and internationally. It is facilitating and encouraging knowledge and data exchange with partners across the globe to drive new and better solutions. At the same time the donations help fund a critical resource for Canadians called the MS Knowledge Network — a resource where “Navigators” provide consistent, quality MS information and support for anyone in Canada — over the phone, online or via email. “We are living in a ‘GoFundMe era’ where people who are donating to a cause — no matter the amount — want their donations going to someone they see themselves in,” explains Valentine. “We want to share the impact and the stories of the people and places these donations are going to. We want to show the difference each person makes with each dollar they give.”

“ Christine has been active in several MS Society awareness and fundraising programs.”

The Acts of Greatness campaign The MS Society is striving to achieve just that, to drive public involvement and fundraising with its ambitious Acts of Greatness campaign. Launched November 2018, its goal is to raise $75 million by the end of 2020. The Acts of Greatness campaign was developed to boldly define what’s next in treating and ending MS, through every act of greatness and the collective power of the MS community. Its meaning is derived from the fact that every act of greatness — no matter how big or how small — will accelerate, empower and mobilize the community of researchers and people affected by MS bringing us one step closer to a world free of MS. The campaign includes many elements such as a video series, which included spots in Cineplex movie theatres across the country, marketing activations featuring text-to-donate in Calgary, Montreal and Toronto earlier this year, and supplements in both the National Post and the Globe and Mail. The Acts of Greatness campaign also involves sharing the impact stories of people affected by MS as well as donors and fundraisers. This includes sharing stories over social media using the hashtag #ActsofGreatness as well as creating shareable content on the MS Society’s blog. “We hope that by educating people about what MS is and how it affects Canadians, people will understand the critical need for all of us to do more,” says Valentine. “And that ‘more’ can be many things — volunteering your time, making a donation, learning about a research project, becoming a member — MS foundationmag.ca

Engaging star power To move the Acts of Greatness closer to the goal line, Canadian soccer player Christine Sinclair accepted the role as honorary chair of the campaign. In this position, she gives visibility to a disease that is not well understood and often invisible. She lifts awareness and inspires others to donate and contribute their own acts of greatness. For Christine, it’s also deeply personal. Her mother and childhood soccer coach, Sandi, lives with MS and she currently resides in a long-term facility (see her blog). Christine became involved with the MS Society following her speaking at the Women Against MS Vancouver luncheon in 2016 (she hails from nearby Burnaby, B.C.). There for the first time, she publicly shared her connection to MS. “From there Christine began to engage with us in hopes of becoming more involved with the organization to help increase awareness of the disease,” says Valentine. Since then Christine has been active in several MS Society awareness and fundraising programs, most notably and visibly with the A&W Burgers to Beat MS campaign, which she joined in 2017. The campaign, having just completed its 11th year, takes place throughout the summer, culminating on Burgers to Beat MS Day, where Canadians can eat good and do good by grabbing a Teen Burger® from any A&W restaurant and $2 from each November/December 2019

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purchase will be donated to the MS Society of Canada. Canadians can also show their support by rounding up their bill on any A&W purchase, giving through in-restaurant donation mugs or donating online at BurgersToBeatMS.ca. At the same time hundreds of MS Society volunteers and ambassadors fan out across the country, stopping by A&W restaurants and talking about the disease, its effects, what is being done and how customers can help. This is supported by more than 970 restaurants and 20,000frontline A&W staff working together for the MS community. In 2019, Burgers to Beat MS Day was held on August 22. Throughout her time with the campaign, Christine joined Pamela Valentine and Susan Senecal, president and CEO, A&W Food Services of Canada Inc. greeting and talking to customers in places including Toronto, Montreal and Vancouver in the days leading up to and including Burgers to Beat MS Day. In 11 years, the Burgers to Beat MS campaign has raised more than $15 million, making A&W the single largest annual corporate fundraiser for the MS Society of Canada. The campaign still continues throughout the year, with some restaurants collecting donations year-round with in-store donation mugs. With Burgers to Beat MS and Acts of Greatness, Christine shares her personal connection and makes the MS story real and in doing so breaks down the isolation and consequently the invisibility of the disease. In turn, her storytelling has inspired others to come forward with their experiences, and that of their loved ones. But what resonated the most with the MS Society CEO was seeing firsthand the impact Christine and her story has on people through the lineup of hundreds of parents and children, mostly young girls, at various Burgers to Beat MS events. Her influence has also extended to social media. Burgers to Beat MS and the MS Society were trending on Twitter in Canada on Burgers to Beat MS Day from 9am to 7pm ET. “Christine really takes the time to get to know everyone, especially her young female fans,” says Valentine. “It’s easy to forget how instrumental she has been in elevating women’s soccer in Canada to a point that it transcends age and gender, that’s star power and that’s influence. At any event we’ve been a part of you can see the admiration in the eyes of those who are around her and you can tell that Christine genuinely wants to share her story, but she also provides a certain feeling of freedom for others to share theirs as well.” Christine’s story hits close to home with Nancy Love, who is chair of the MS Scientific Research Foundation. Her son lives with MS and knows how sharing a personal connection resonates with the community and helps move people to act

— whether it’s a donor, a fundraiser, a researcher, a volunteer or a staff member. Christine’s story has contributed to a momentum of awareness and philanthropy that the MS Society will continue to build on. “At the core of the work we do, is creating awareness about MS and doing whatever it takes to help find answers,” says Love. “Christine was already a Canadian icon when she first started speaking about her mother. She had an immediate impact with A&W’s Burgers to Beat MS. We crossed our fingers and hoped she would take on Acts of Greatness. We are very grateful that she did!” Now Christine’s involvement has come full circle. As honorary chair of the campaign she was the honouree of this year’s Women Against MS event in Vancouver on November 22. “Without Christine, we wouldn’t be able to generate the broad media coverage we do now, whether it’s nationwide breakfast shows, syndicated radio interviews or national sports broadcasts, “says Valentine. “There’s an audience now who knows what multiple sclerosis is, that may never have known as much about the disease a few years ago.”

“ Without Christine, we wouldn’t be able to generate the broad media coverage we do.”

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Impact and results The Acts of Greatness campaign is well on its way of meeting its goals. It has raised over $56 million at press time. There has been some positive news on the research front; Valentine reports that “we’re on the cusp of game-changing discoveries”, with Canada being home to some of the world’s leading MS researchers. Equally, if not more significantly, Acts of Greatness has inspired many others to dig deep within themselves and take action to fight the disease. This includes acts like fundraising, volunteering and sharing personal stories. The MS Society is now readying itself for its next Acts of Greatness through its latest strategic plan that includes “bold ideas” as Valentine describes of where the organization wants to be. This includes working toward the impact goals of advancing treatment and care, enhancing well-being, understanding and halting disease progression and preventing MS. And she wants the community to be a part of that. “People are looking at our new strategic plan and they’re saying: ‘that’s brave and ambitious and I want to help achieve that’,” says Valentine. “Giving people the freedom to do the things they want to do — for the community — and for the greater good — that is what will result in community building. Having people like Christine Sinclair on board brings visibility to the organization and helps build our network of people who are set on taking collective action.” foundationmag.ca

My mom: the fiercest competitor I know

By Christine Sinclair

hen I was a young girl, my mom started using a cane. I never understood why. It wasn’t until the first time I saw her cry that the answers began to unfold in front of me. I was no older than 12 when I found out my mom was living with multiple sclerosis (MS). When you’re a kid, your parents are indestructible, and that’s what my mom was to me. Indestructible. But as years went by, I watched MS chip away at aspects of her life, and her fight against the chronic disease became more strenuous. As an athlete, it broke my heart to watch my mom, who was so physically active, and seeing that slowly stripped away from her. My mom was an athlete, just like me: my first soccer coach. She played all kinds of sports and coming from a family of athletes, it was routine for us to go to the park every week and play outside. But as her MS progressed, her

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mobility deteriorated. Eventually, she went into a wheelchair, and never came out. My mom was always a fierce competitor, but never had I seen her battle a hurdle as immense as MS, where her biggest opponent is herself. Because of that, it took her some time to come to grips with her situation. I don’t think you’re ever okay with MS, but accepting the reality, and making the best of that has been the biggest journey for her, and the rest of my family. Seeing the struggle my mom has gone through, I wanted to help. I’m at a point in my career where I feel like I can make a bigger difference beyond just what I do on the soccer field. Obviously, that’s something I’m passionate about, but this is about truly being able to help make a change and impact people’s lives. With the effect that MS personally has had on my family, I knew I needed to use the platform, I had to do something more.

This inspired me to get involved with the MS Society of Canada. My journey with the organization began in 2016 when I spoke at the Women Against MS event in Vancouver, and then the next year, joined the Burgers to Beat MS team to help raise awareness and enact change for the tens of thousands of Canadians living with MS. Most recently, I was humbled to become the honorary chair for the Acts of Greatness campaign. To me, the campaign is about the million little things that people do daily which make the biggest difference, but typically go unrecognized. An act of greatness I’ve seen is the support that my mother has received from her friends and family over the years. I’ve personally seen firsthand what a difference these kind acts can make, and I want to do my part. MS hits close to home, and I want to do everything I can to help people, just like my mom, enjoy life to the fullest.

November/December 2019

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AI, Machine Learning and Philanthropy How Close Are We to Making the Connections Work?

By Erik Rubadeau

on’t panic, artificial intelligence isn’t here. Yet. There is no denying that artificial intelligence has arrived as a topic of conversation in our sector. But will AI and Machine Learning be the next evolution of the nonprofit organization or will it simply be a shiny new object that will distract us from more important (but less shiny) priorities? In my opinion, the answer is both. Attend any conference these days and you will no doubt see sessions on artificial intelligence, machine learning, chatbots and more. I myself held a session on the potential of chatbots at the DMAW Digital Day earlier this year. From keynotes to masterclasses, many thought leaders in our sector have started to pontificate on the arrival of artificial intelligence, some going as far as to say that organizations that fail to harness artificial intelligence soon will be left behind. Personally, I’m not convinced about this doomsday prophecy, and frankly I think it only goes to further destabilize the priorities of organizations who are already trying furiously to keep up with the near instantaneous expectations of the modern consumer. Yet I do believe that organizations need to start opening internal dialogue about artificial intelligence sooner rather than later. In order to properly leverage any new technology you need to have a plan for it, and a well considered technology plan that is tailored to your organizational needs is not crafted overnight. Just like the recent technology waves that have come before it (responsive websites, mobile payments etc.), AI will begin as an opportunity for those organizations who are in a position to experiment with early adoption. Some of this is happening already. And from the groundwork of these early adopters will come the learnings of potential applications for AI for the rest of the sector. Yet, if the integration of AI into our existing daily life is any cue, it seems unavoidable that AI will weave itself into the fabric of fundraising over the coming decade. As someone who believes very passionately in the power of technology to move the nonprofit sector forward, I can also acknowledge that technology has the capacity to be an active

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hindrance to this goal. When technology is implemented poorly, be it a CRM, an email marketing platform or an artificial intelligence toolset, it will cause more harm than good. Even more disappointing is when organizations don’t invest in training or hiring the right staff to manage a new technology. Gone should be the days of tossing your digital keys to the newest hire or youngest person in the office and expecting them to sort out all your technology problems. If you follow Avinash Kaushik (analytics genius and all around smart guy), you will be familiar with his concept of 10/90 when it comes to technology and people. Technology costs (subscriptions, licenses, etc) should be 10percent of your budget, and with the other 90percent you should be prepared to spend it on the people required to effectively use and maximize your technology investment. Tools, after all, are just tools without hands to use them. Unless you invest in training your staff, hiring new staff, or partnering with an agency to support your technology needs, your new technology investment can end up slowing your organization down, or worse, sending it backwards a few steps. For these reasons, you have to have a well considered plan for new technology adoption, and with artificial intelligence, the gap between those who prepare and those who don’t will be even more pronounced. So how do we go about crafting a plan for a technology we may not fully understand? The first step is to get away from all of the surface level generalizations that are being tossed around and to begin to deepen our understanding about the basics of AI. Let’s take a minute to more clearly define what we mean when we say artificial intelligence. According to a 2018 paper by the Brookings Institution, artificial intelligence systems contain three characteristics: intentionality, intelligence and adaptability. And you may also recognize these three characteristics as somewhat human. This is what artificial intelligence is aiming for. One definition defines AI as the simulation of human intelligence processes by machines.

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Any way you cut it, AI is a computer program trying to make a decision about the question it has been asked based on the data that is has to work with. As the program gets positive and negative feedback, it will learn from these results and from the context in which the feedback was provided. Over the course of millions of simulations it can get pretty good at learning all about the specific task or theme. Sounds impressive, and it is. Yet it’s important to know that AI has clear limitations: just because the program has become an expert on riding a bike doesn’t mean that it will ever know anything about skateboarding or driving a car.

specifically machine learning, rely on large sets of data to help find patterns, opportunities and predictive next steps from your fundraising database. If your data is no good, then your predictive outcomes will also be no good. Google’s Avinash Kaushik has a simple phrase to describe this phenomenon: ‘garbage in equals garbage out’. Data hygiene is the key reason why the AI conversations need to start happening in your organization sooner rather than later. If your data house is not in order, and you’d like to (over)

“Any way you cut it, AI is a computer program trying to make a decision about the question…” In its current format, artificial intelligence is not a replacement for human fundraisers and won’t be any time soon. The robots are not coming for our jobs. AI is not an overarching software overlord, or a massive and expensive technology initiative that needs to be rolled out across the entire organization in order for your nonprofit to survive the impending evolution. It is also not a silver bullet to solve your existing technology or data issues. If it’s not a silver bullet, what is it and what benefit can it actually be for your organization? Artificial intelligence can be used to solve repetitive or data intensive problems at the individual level. Every role in your organization is filled with tasks that would benefit from automation, predictive insights and computer assisted analysis. Essentially by helping to solve for the problems of the individuals inside the organization, AI will help to further the overall efficiency of your organization by freeing people’s time from repetitive tasks, or improving their efficiency by mining their data sets and providing predictive analysis or promoted next actions based on identified patterns. On the flip side, AI can also improve your customer service and donor experience interactions by reducing friction and increasing the speed of response to a host of regular actions and questions. Perhaps now we can begin to see how AI will help improve our organizational efficiency. There is however one very important barrier to entry to these benefits: good, clean data. Data is the lifeblood of artificial intelligence. AI, and more

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Features be in a position to benefit from AI advances over the coming years — there is no greater short term priority than getting your data in order. The key to your AI success will hinge on the quality and quantity of your data. In a world where we are now able to capture so many data points, the primary barrier to action is no longer acquiring the data itself, but rather the analysis paralysis that comes from being so overwhelmed by the size and depth of these massive data sets that you will otherwise have to sift through by hand to try to identify a new opportunity. This is where artificial intelligence in its current format can really shine. You only have to look at the nonprofit tools like Wisely, boodleAI, Gravyty, Accessible Intelligence and others to see some of the interesting artificial intelligence products and tools that are currently pointed in the nonprofit sector.

“This is where AI in its current format can really shine.” Here’s a few of the tools I’m watching with interest: Wisely is a prospecting tool that makes it easy to find and assign compelling donors to a gift officer’s portfolio. Full disclosure, I know these guys and I think they are doing really cool work. Wisely’s Prediction Engine sifts through your database looking for your next opportunity and prompts you with who you should be speaking with and what giving level they might best be suited for. This is the kind of insight that can really drive new value for mid-level and major giving. boodleAI leverages proven AI and machine learning to rapidly model the untapped data sitting in your nonprofit database along with billions of third-party data points to help you achieve significant lifts in donor acquisition, retention, and engagement rates. Essentially, they drill into your prospect audiences and look for potential donors based on a set of interests and ideal

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donor traits. They help you identify prospects who stand the best chance of being your next donor. Accessible Intelligence is an AI spin-off from the team that brought you Engaging Networks. I’ve seen Graham speak on the work they are doing a few times now and am quite excited by the potential. Their tools will look to help you write the right kind of copy and provide the right offers to the audience segments at the right times in your lists. Gravyty has a suite of AI tools for non profit organizations. The one that caught my eye was the ‘First Draft’ tool which identifies the best donors at the right time for discovery, cultivation, solicitation, and stewardship. It then provides a draft email for you to edit and send to the donor. It learns your tone and style, adjusting to match your unique organizational voice. The tool sends new suggestions daily directly to your email, no matter which service you use. Each of these tools focus on a specific pain point of the fundraiser’s role. Yet, the thing to realize is the very singular focus of each of these tools. They each solve for a very specific task. Additionally, these applications are only the tip of the iceberg. This list doesn’t even begin to touch the realm of chatbots, guided digital assistants or even what can be done to improve workflows in other areas of your organization. Over the coming decade I have no doubt that artificial intelligence will slowly work its way into the fabric of everything that we do as fundraisers. Yet until then, there are opportunities to begin to leverage now. Perhaps the most important initiative to undertake in the near term is to enhance the quality of your data. Do I believe that artificial intelligence can solve all of our problems? No. But I do believe that the application of artificial intelligence tools in well considered scenarios can lead to positive outcomes that help to solve for the perennial pain points of capacity, money and time. Erik Rubadeau is CEO of Yeeboo Digital, a data driven technology and full service online fundraising and technology agency.

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How Healthcare Can Leverage AI for Fundraising

By Martha Chomyn

or healthcare organizations that need to increase charitable giving, artificial intelligence (AI) can change the game. AI programs handle tedious data searches and analysis faster and better than humans, giving people more time to make face-to-face connections. And the technology points fundraisers to the right donors, for the right ask, at the right time. Here’s how to make AI work for you: Find high-potential donors quickly. In many healthcare organizations, most of those who give $25,000 or more have made a smaller donation in the past. So most of the people a fundraiser wants to spend time with are already in the customer relationship management (CRM) system. It’s difficult, however, to comb through all previous contributors and figure out who are the most likely to donate next. Wes Moon, co-founder and COO of Wisely fundraising software, notes that “AI is making an impact in this regard because it can systematically identify using a pattern who would be an excellent likely major gift donor and potentially who would be an excellent mid-level giving donor.” Here’s how it works: The AI software will assess all the data in your CRM and with sophisticated algorithms, identify patterns which major donors share. Then it can find other people, who haven’t yet made a large gift but are likely to because they show similar patterns of behaviour and have the net-worth required for a considerable gift.

“AI means..gift officers can prioritize time with people who are closest to making significant donations.” Spend the Right Time with the Right Donors Meeting prospects. Once the AI program has selected the best candidates, they can be assigned to a gift officer’s portfolio. However, officers still need to prioritize their meetings. They want to spend the most time with the most promising prospects. AI programs help officers decide how to spend their time by 24

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predicting how much patrons are likely to donate. The software picks up characteristics of people who give at the mid-level and those who make major contributions; then it forecasts how much someone will give based on how closely they fit the model. AI will predict when people are most likely to give, as well. For example, in some healthcare groups, major contributors follow a trend. They first give a small amount. Then about seven years later, they donate around $1,000. Then about 2.5 years later, they make a major gift. Each healthcare organization is a little different, but AI learns from the data so it defines the typical timeline for each group and uses it to position prospects within the journey. With that insight, gift officers can prioritize time with people who are closest to making significant donations. Make the Right Ask With a good sense of how much a donor is likely to give, fundraisers can more effectively match prospects with campaigns that fit their interests and their budgets. For example, a donor who is likely to make a mid-level donation and supports the organization’s brain research would probably love to help purchase new equipment for that department. While a major gift donor might want to leave a legacy and would prefer to fund a new wing. This intelligence helps gift officers know which prospects want to hear about building plans and which want updates about innovations in research. And when the time comes, they can ask for a donation the patron is both willing and able to give. It also helps reduce donor fatigue because officers can hone their outreach to a prospect’s interest. Patrons receive fewer requests, but each request aligns with their motivations so they’re more likely to respond. Manage the Donor Journey Not only does AI suggest which people will donate how much and when, it will also update the predictions based on recent interactions. Each day, as fundraisers enter the details of meetings and events into the CRM, the AI application will reanalyze the information. Gift officers don’t have to spend hours elbow-deep in data to know how well prospects are moving toward a donation. The software will let them know each day who’s getting closer and who’s lost interest so they can adjust accordingly. Start Relationships With Donors Early Thousands of people make small donations to a healthcare organization and fundraisers cannot follow up personally with foundationmag.ca

Features each of them. But some of those people will become major donors in the future. The AI system can pinpoint those small donors who have a high net worth and high probability of making a mid-level or large contribution going forward. For example, the software may highlight a patient who recently had life-saving cancer treatment and has made a small thank-you gift but has the capacity for a major donation. Based on this insight, gift officers can add the donor to their portfolios, respond with personal thanks to their initial gift and begin developing a relationship. With early attention, high-value prospects will never fall through the cracks.

for donors’ dollars, those who simply work harder will not keep up. Giving USA reports that planned giving dropped 2.3 percent in inflation-adjusted dollars from 2017 to 2018. Non-profits have to work smarter if they want to find and nurture the highpotential donors that will grow their

programs. AI makes working smarter easy. It takes the guesswork out of fundraising and helps ensure that weeks, months and years of gift officers’ efforts will benefit donors and healthcare organizations alike. Martha Chomyn is a writer with Wisely.

“Non-profits need to work smarter if they want to find and nurture highpotential donors.” Adopt Reality-Based Planning Donation calculations. Organizations set new fundraising goals each year, and everyone wants to improve over last year. But often the new goals are arbitrary numbers, such as a 10 percent increase in contributions or a 20 percent increase in mid-level donors. There’s no data to suggest whether those targets are too high, too low or just right. However, AI analysis of the organization’s current donors helps directors anticipate how many are likely to give in the coming year and how much income they’ll represent. Leadership may discover that it’s reasonable to expect only a five percent increase in donations or that 15 percent is within reach. Either way, with AI support, they have a reality-based plan with a higher probability for success. Work Smarter As more and more groups compete within healthcare and across the board foundationmag.ca

416-505-5414 Ask for Allison. November/December 2019

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Connecting the Dots on Sexual Misconduct in the Philanthropic Sector

Part One: When Women Speak Out

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November/December 2019

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By Gail Picco

n April 2015, Elise Maxwell (a pseudonym), a seasoned fundraiser, flew 2,500 kilometers to interview for a senior development job at a large Canadian charity with an international reputation. It was a big opportunity, and she would be spending the day in meetings with the department head and other prospective colleagues. The morning interviews went well and after lunch, and more introductions, Maxwell was walking single-file down the stairs with the department head behind her on the higher step. “As we were walking down, the department head put both his hands on my shoulders, squeezed them and said, ‘Elise is going to bring a suitcase of money with her when she comes’.” Maxwell later told her husband about the department head squeezing her shoulders. She was surprised a man would do that in this day and age, in what was essentially part of the job interview. “But this was a great opportunity,” she says. “And I was excited. It wasn’t just great for me. It was great for my family.” Maxwell’s husband was working on his Ph.D., and they had two sons, a 12-year-old and an 8-year-old. And Maxwell says it wasn’t as though she hadn’t been exposed to sexual innuendo or harassment in her career. She says her first experience went back to the 1990s, and an incident at a donor dinner in the early 2000s stands out especially in her mind. “A visibly intoxicated donor — a button-down lawyer — was calling out, ‘Where is Elise? I want to sit next to Elise,’ as he began putting his arm around me.” She says she didn’t think of it as harassment back then, although it made her feel awful. But her exposure to sexual misconduct — and the garden variety “more sexism than harassment” type of behaviour she encountered while working at other charities — did not prepare her for what she was about to experience. And although she was moving into the zenith of her career, in other ways she was about to be at her most vulnerable. She just didn’t realize it at the time. That awareness came later, after a debilitating experience that lasted for three years — and after many hours of counselling. My Story: At a Donor Dinner Working at the other end of the country from Elise Maxwell, Liz LeClair, CFRE, then a senior development professional for a prominent charity in Atlantic Canada, was navigating her own donor dinner. “It should have been a business dinner where I could connect with high-profile donors for the charitable organization I represented,” she wrote in a Point of View piece for the CBC on January 2, 2019. “Instead, I was sexually assaulted in my seat. An executive at a multi-national corporation put his hand up my skirt — not just on my thigh but between my legs, where his fingers touched my underwear. foundationmag.ca

“We were sitting at a table of his peers. Discreetly, I tried to remove his hand. I crossed my legs to ensure he could not touch me there again. In the weeks to come, he would send me emails that included both a proposition and the promise of a substantial donation. Like some of the powerful men I work with, he mistook my professional interest in him as a sign that I was ‘open for business’.” My Story: First Day at Work Elise Maxwell was offered the job she interviewed for at the large Canadian charity with an international reputation. “It wasn’t only that they wanted to hire me. It was the pace at which they moved to do it,” she recalls. On her first day of work in July 2015, the interim VP who had interviewed her picked her up at her hotel to give her a ride to work. When they got to the office, she was surprised the department head greeted the interim VP with a hug. Later that morning, Maxwell was receiving an orientation from a colleague, who said to her that the only issue with this department head was with him and women. “Did you notice him with the [interim VP] this morning?” A few days later, Maxwell says she was meeting with another new colleague in her office. The department head dropped by to say hello, and she says, “he stared at my breasts like he was lost in thought.” “My antennae were up, for sure, but everybody loved him,” she continues. “And I could see it. He was charismatic, smart and had a strong presence. He was tall and fit, young, but distinguished. He was well known for his leadership skills and had moved up the administrative ladder quickly.” My Story: A Colleague Beth Ann Locke, a former member of the board of AFP Foundation for Philanthropy - Canada, was inspired to tell her personal story in 2014 — three years before the high profile revelations about Harvey Weinstein — as part of the #YesAllWomen campaign, a grassroots movement of women created in response to the #NotAllMen hashtag. That hashtag gained traction after six people were killed and 14 injured in Isla Vista, Calif., by 22-year-old Elliot Rodger, who also killed himself. The Isla Vista killings are notable because the killer emailed a 141-page “autobiographical document” before the rampage to more than 20 people saying he wanted to punish women for rejecting him and punish sexually active men because he envied them. Elliot Rodger, thus, is viewed by an internet sub-culture of incels (involuntary celibates) as a martyr of some sort. On April 23, 2018 in Toronto, 25-year-old Alek Minassian used a rented van to kill 10 people and injure 16. Prior to the attack, he posted on Facebook, “The Incel Rebellion has already begun! All hail the Supreme Gentleman Elliot Rodger.” It was in the context of those killings, and in an act of solidarity, Locke decided to reveal her experience of sexual November/December 2019

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“Women do not want to say anything in fear it may harm their career or charity.” misconduct in the philanthropic sector by tweeting: “#YesAllWomen B/c at 33, my office, a colleague grabbed my wrist & tried to put my hand on his erection. Supposed to be a ‘compliment’.” “He said, ‘This is what you do to me,’ as he pulled my hand toward his crotch,” Locke recounted in her blog on May 27, 2014. “I was shocked and horrified. This did not feel like a compliment.” “For me, my story happened a longer time ago, and it was egregious and became more all-encompassing,” Locke says today. “At the time I was a single parent and had no support system. And the reporting relationship I had was completely dysfunctional.” Locke’s account was of sexual misconduct was published in an issue of Advancing Philanthropy in October 2017, just before the Harvey Weinstein story broke. She presented at the 2018 AFP Fundraising Conference in New Orleans: Sexual Harassment and Bullying – Is the Nonprofit Sector Safe for All? My Story: The Department Manager Elise Maxwell recalls that from the day she started work, her department head came to her office daily. He mentioned in passing that ensuring they connect daily was his commitment to ensuring a smooth orientation. “But, as time went on, he continued to come to my office almost every day,” says Maxwell. “He mentioned once, during a meeting, that we should set aside an hour a week and just reflect on some of the common values, ideas and observations we share inside and outside the work context. “His behaviour was more pronounced now that I see it in hindsight,” she continued, “I’d never had anyone show this much interest in me and my work. He asked thoughtful questions and complimented my work so much. And it’s occurred to me, this is not the first time. He’s done this before. I felt like I was being groomed. One day, in reference to a group meeting that had been held a month or so earlier with a donor about prospective investment opportunities, he told me that he was a ‘private dancer.’” Maxwell mentioned the private dancer comment to her husband, who replied, “Where does he get all these lines? No one without practice has all these lines.” (A private dancer is 28

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usually considered to be a prostitute or a stripper who will perform sexual favours in a private setting.) For the next two years, Maxwell’s work life was a roller coaster. She was directing the development program premised on bringing forward new approaches in tandem with the department head. All the while, the department head cultivated a highly sexualized work environment and behaved in an emotional manner with her — sometimes tearing up — even as he supported her work professionally. “I can pinpoint when it crossed the line,” she says. “We had an administrative council meeting every two weeks with senior department representatives. Afterwards, I was behind my desk wearing a tunic with leggings. I didn’t realize it, but the tunic had a vee neck and as I was bent over my desk, a part of my right breast was exposed. He looked at my breast, down at his genital area, opened his palms, looked at my breast, back at his genital area again and went on talking.” At the same time, donors and volunteers were behaving badly. One day, Maxwell said she “had a volunteer coming at me at me “like he had a knife and fork,” I’m thinking I need to manage this, and I did. We ended up hugging and agreed that the customary French greeting of kissing on either cheek was acceptable.” But the inappropriate behaviour had become commonplace. Maxwell says that at a donor reception, a different volunteer introduced her as “his wife.” Then, after the reception, she asked the department head if he was happy with how things had gone. He said he was happy and would “demonstrate that physically” if I allowed him. “It took me a while to add this all up, and only over time I realized what a sexualized environment I was in,” she says. My Story: At a Conference Sarah Lyon, CFRE, who has been on the board of AFP Foundation for Philanthropy - Canada for the past two years and works out of Halifax, says she’s been concerned about what she sees happening to women in fundraising for some time. “I was at a conference where a younger fundraiser asked what to do if you’re in a meeting with a CEO and you’re feeling a little intimidated,” she says. “The response was ‘you might have to bat your eyelashes a bit more’.” Thinking the comment inappropriate, Lyon believes it feeds into a stereotype about women using their ‘sexual wiles’ to raise money. For her, the results of the AFP/Chronicle of Philanthropy survey were not a surprise. She too has experienced a donor touching her inappropriately. And she’s concerned about women who have experienced sexual misconduct but do not want to — or don’t feel they can — say anything about it because they believe it will harm their career and their charity. “There are so many people out there who have experienced this,” Lyon says. “Almost every female fundraiser has talked about this. Some people have figured out strategies like ‘never foundationmag.ca

Feature be alone with a donor’ or ‘only go to a public spot.’ It’s so hard because people struggle without disclosing it. They don’t want to do anything to hurt their charity.” Lyon wanted these issues to be talked about out in the open within AFP, so she talked to Sheena Greer, a writer and facilitator, who has worked in with the sector for many years. They came up with the idea of a Tough Topics track for the AFP Congress in Toronto in 2018, a series of talks about issues of particular interest to women. She approached the chair of the Congress, Ann Rosenfield. Rosenfield recalls the request. “Sarah Lyon asked to bring a Tough Topics session to Congress and I said, that we can give you a safe space, but not a therapeutic space. We did make a point of having it in a room where nothing was booked afterward. My job was to say yes, and make sure the execution happened in a way that it needed to.” One session, Fundraising, Feminism and Disruption: Stories, Conversations and Creating True Change Together, moderated by Beth Ann Locke, Jen Love, Beate Sorum and Mimosa Kabir, shook loose the pent-up stories of women’s experience. My Story: Taking Action Liz LeClair attended the Tough Topics session tracks at Congress in 2018 and called it the “genesis” of her decision to tell her story publicly. “We discussed some really difficult topics at that session, and there was a lot of conversation around inappropriate behaviour. I was like, ‘Oh, my God, yeah, this is not news to me. And that sounds crazy at 39. But all of a sudden, there was somehow this ‘aha’ moment’.” It was after the Tough Topics session and hearing a plenary speaker at Congress talk about people with privilege needing to speak up that LeClair returned to Halifax with a mission. She contacted a friend who works at CBC about doing an op-ed piece

on the sexual misconduct she’d experienced. She wrote about a number of things, but CBC decided to focus on the “particularly hideous” experience of being sexually assaulted by a donor at dinner, which was published in January 2019. In addition to outlining the sexual assault she’d experienced in her CBC Point of View piece, Liz LeClair recently wrote about dealing with harassment that she received at the hands of a very significant prominent philanthropist in Halifax for roughly six years, including emails full of sexual innuendo and propositioning. Speaking to an ethics panel entitled #MeToo? Yes, Charities Too on October 18, 2019, LeClair says that the donor “would write emails to tell me that he was at the physiotherapist in nothing but a towel. And how did I feel about that? He made a proposition for sex. At the end of the day, I’ve had senior leaders tell me that ‘we’re doing what we can, but you really need to focus on moving on with your life and getting back to focusing on the right things, which is your job’.” And after an investigation into the allegations, when she asked a board member if they were going to continue to work with this donor, the board member replied that, “his donations have done more good…than the harm he’s done…and I can live with that decision.” My Story: Anxiety & Depression By the beginning of 2018, Elise Maxwell found that her anxiety around her work environment was turning into depression. She was crying on the way home from work and had to take medication in order to sleep. In March 2018, she says she finally went to the appropriate office with concerns about sexual harassment by the department head. An investigator was appointed, who said he found the complaint credible. Maxwell agreed to write it all down. Continued on page 60

Sexual Misconduct A survey released in April 2018 by the Chronicle of Philanthropy and the Association of Fundraising Professionals began to quantify the amount of sexual misconduct experienced by people working in the philanthropy sector, revealing that: ❯❯ 25percent of female fundraisers have experienced sexual harassment in their careers; ❯❯ 7percent of male fundraisers have experienced harassment; ❯❯ 96percent of perpetrators were men; ❯❯ 65percent of people harassed said a donor was the culprit in at least one incident; ❯❯ 39percent of fundraisers said the offenders were co-workers, managers, executives, or board members; and ❯❯ More than half of the sexual harassment involved unwanted touching or physical contact. Conducted online in February 2018 by the Harris Poll, the survey confirmed what many women in the sector have experienced for many years. Some are speaking out now — anonymously, for attribution or, quietly, among trusted friends and colleagues. foundationmag.ca

November/December 2019

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Features

Case Study: Taking the Right Track

How Torontoâ&#x20AC;&#x2122;s Rail Museum Plans Expansion Amid Renewed Financing

FOUNDATION Magazine

November/December 2019

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Features

By Brendan Read

useums are a train of exhibits and events, with dedicated crews in the locomotives to move them forward and in the passenger cars to look after the customers. And they require the fuel and water of financing and funding to keep them going. The Toronto Railway Museum (TRM) offers a literal example. Opened in 2010, the TRM tells the story of Toronto’s railways through a display showcasing its collection of artifacts, preserved locomotives, rolling stock and buildings, including a local railway station that serves as its gift shop, to over 50,000 visitors annually. It also offers guided tours, sophisticated diesel locomotive simulators and as well it features a miniature train ride. The TRM occupies the building and site of the preserved exCanadian Pacific Railway (CPR) John Street Roundhouse in downtown Toronto, ON now in a park. Opened in 1929 it was where locomotives, passenger cars and work equipment were maintained until its closure in 1985. The TRM shares the roundhouse with the Steam Whistle Brewery and Cineplex’s The Rec Room entertainment and eating experience. The centrepiece of the roundhouse is an operating turntable, Canada’s largest. The TRM uses it to move its equipment and also to provide turntable rides on Saturdays: to the delight of park visitors and Steam Whistle and Rec Room patrons. Located adjacent to the CN Tower and the Rogers Centre, and close to Union Station, the John Street Roundhouse is one of the last remnants of a sprawling network of railway yards and maintenance facilities, known as Toronto’s Railway Lands. The Rogers Centre itself is located on the site of the former Canadian National (CN) Spadina roundhouse. Development has landlocked the museum from the railway network; all exhibits are trucked in. While most of the rail yards and facilities are away from the downtown, the museum is a few steps from the rail corridor that serves Union Station, Canada’s busiest transportation terminal. foundationmag.ca

But as the TRM approaches its tenth anniversary it is faced with moving from a start-up to a sustained operation in order to stay relevant with visitors. It is planning to improve existing rails and lay down new tracks in operations, marketing and revenues. “TRM has established good programming, visitor experience and value for admission,” says Phil Spencer, who is chair of the TRM’s board of directors. “We have accomplished a lot and now want the museum experience in the park and in the museum display to be upgraded with new attractions and more interactive displays and activities and events on a year-round basis.” At the controls The TRM is a working partnership between the not-for-profit charitable organization Toronto Railway Historical Association (TRHA) and the City of Toronto. The city owns the John Street Roundhouse, accompanying buildings and the rail equipment stock collection. The TRHA was established to operate a railway museum in the roundhouse and the surrounding park in accordance with a resolution of Toronto City Council requiring it to interpret Toronto’s railway heritage. Under an operating agreement with the city, the TRM occupies three stalls of the 32-stall roundhouse for artifact display, interactive exhibits, locomotive and rolling stock restoration and working space for its management. The city’s Economic Development and Culture department is responsible for the roundhouse, along with all other city cultural assets while the Parks, Forestry and Recreation department handles park development, maintenance and upkeep. The TRM is governed by a 10-member board who are responsible for museum organization, operation and development. The board is elected by TRHA members. Taking care of the TRM’s day-to-day work are three teams. An executive team, made up of board members, senior volunteers and management staff, is responsible for operations. The Attractions Evolution Planning Group advises on exhibits and programming for volunteers and staff to develop. The restoration team works two days a week year-round restoring, maintaining and improving TRM’s locomotive and rolling stock exhibits and the miniature railway cars and locomotives. The TRM also has a marketing committee. It is focused on driving paid traffic to the museum by increasing awareness and on opportunities to enhance visitor engagement. The museum is open year-round; in winter months the display portion, located inside the roundhouse, is open to the public. The largest portion of the exhibits: an array of locomotives, railcars and buildings are outside and have interpretive plaques. The TRM has three full-time staff, including the museum’s manager who is a professionally trained curator. They maintain November/December 2019

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Yellow cautionary signals On railways yellow signals indicate caution. As the TRM moves forward it is observing trends and issues that may slow it down. As programming, exhibit display expansion and restoration have increased in scope to attract more visitors the museum is seeking additional revenue from rentals and events. But here it faces unique and not-so-unique challenges. The TRM’s highly visible downtown location in a major city like Toronto is atypical for railway museums, which tend to be located in the suburbs and in rural communities and smaller cities. But while this is a blessing in terms of visibility and appeal — the TRM draws from a wider audience than just railway enthusiasts — it too sometimes struggles to make itself heard and seen amongst the other attractions. November/December 2019

Courtesy Geovanni Badiola

All aboard! To bring visitors aboard the TRM has a strong marketing program focusing on the web, social media and signage. It has built active social media channels: Facebook, Twitter and Instagram (@torailwaymuseum). It has public web sites to attract their attention. It also issues regular bulletins through a large public mailing list and exhibits at model train shows. As one of nearly two dozen railway museums in Canada, the TRM is a member of HeritageRail Alliance. For example, it has been cross-promoting fall and winter events with the Halton County Radial Railway, which is a streetcar and electric railway museum located west of Toronto. The TRM also belongs to the Toronto Attractions Council, Tourism Toronto, Attractions Ontario, Toronto Historical Association, Ontario Museum Association, Toronto Entertainment District BIA and Heritage Toronto. With the Fairmont Royal York, originally a CPR hotel that also opened in 1929, the TRM tapped their shared histories and promoted the special anniversaries for both sites. “As both a heritage site and a tourist attraction we can leverage our membership in tourism, museum and heritage associations,” says Spencer.

Courtesy Geovanni Badiola

Paying the freight The TRM is in an enviable position where 90 percent of its current revenue is generated through admission fees, miniature train rides and gift shop sales. The balance is through a combination of individual donations, fundraising and government grants. “Because of our location in the heart of the downtown entertainment centre, we benefit from piggybacking on visitors that come before or after events or visiting other attractions in the neighbourhood,” says Spencer. “These include the Blue Jays games, the CN Tower, Ripley’s Aquarium, the Metro Convention Centre, Harbourfront Centre and the many city festivals in Toronto, as well as park visitors who see the museum exhibits and visit our artifacts display.” The TRM partners with Metrolinx, the provincial government agency that manages the GO Transit commuter rail and bus network. GO Transit donated and restored a firstgeneration commuter passenger car to mark its 50th anniversary in 2017. A snapshot of the 1960s it is displayed a few footsteps away from later-generation GO trains rumbling on the nearby tracks. The museum also works closely with adjacent businesses. “Our neighbours, including Steam Whistle, The Rec Room, CN Tower, Ripley’s Aquarium and Maple Leaf Sports and Entertainment have all been very supportive of the museum,” says Spencer. “They have provided us with promotion for our events, space for our own activities, giveaways to our visitors and much more. We are actively planning joint events and promotions with

Steam Whistle and will be doing so with The Rec Room as well.”

Courtesy Geovanni Badiola

the collection, develop exhibits, organize attractions and events, handle social media and external relations and manage a summer staff team of 11. Seasonal staff are responsible for operations of the museum, including driving the miniature train, selling tickets and providing tours to visitors. Making the TRM move is a team of approximately 120 volunteers. They are involved with restoration and support the TRM’s programming and the visitor experience. The museum also has internship programs with universities locally and nationally. “Volunteers are the heart of TRM,” says Spencer. “They have built the museum and they work in areas of their choosing.”

A wide range of activities allowed and invited visitors and guests to participate in the Roundhouse 90th Anniversary celebrations. FOUNDATION Magazine

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Brendan Read

For example, there are few signs telling visitors there is a railway museum in the area. The TRM is seeking better signage from the park entrances on Bremner Boulevard, which connects the Rogers Centre and Scotiabank Arena, and on Lower Simcoe Street, which leads from the downtown to the waterfront, as well as wayfinding in the park itself. “As with most museums, we are also challenged to get our value proposition out there with a small marketing budget amongst significant competition for the leisure time of Canadians,” says Spencer.

The Toronto Railway museum is entering into a phase of growth.

Getting to the TRM can be difficult for particularly car-using families as there is limited parking availability and high prices. On the other hand, the museum is easily reachable by Toronto’s extensive mass transit and network and VIA Rail intercity trains. A covered walkway system leads from Union Station to the museum. But there is no signage in it informing people about the TRM and how to get there. The TRM is also being braked by having to find ways to stay relevant to a changing population and country. Railways have shrunk in visibility and importance thanks to the rise of automobiles, trucking and air travel. According to members of the TRM’s marketing committee, when people say “I’m off to THE museum” most think its Royal Ontario Museum or the Textile Museum of Canada. At the same time the museum has limited space, which restricts what it can offer. There is no room to house additional exhibits and there is no event or meeting space. Switching to (and with) green To move forward the TRM’s board is the process of refining for greenlighting a 10-year strategic plan to expand facilities, exhibits and programs. It has a target to grow visitors by 30 percent over the next few years. The TRM is exploring the feasibility and cost of expanding the 34

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November/December 2019

museum exhibit space, increasing display areas for artifact and interactive experiences as well as providing visitor washrooms, a meeting and a small event area and management office space. In the short term, the museum is reorganizing its exhibit space to create a more coherent path for visitors exploring the museum. New exhibits include an interactive model of the Railway Lands, which will help visitors imagine what the area looked like at the height of railway development. These expansions and programs will be enabled by a strategic focus on marketing to heighten attention and relevance. To make them happen the plan focuses on fundraising in order to diversify revenue streams away from receipts. The fundraising plan calls for seeking more income from government, foundation, corporation and individual sources. The TRM has developed a “Case for Support” that board members will use to approach individuals and corporations interested in and aligned with the work the museum is doing. The TRM is already moving to these goals. In 2019 it piloted a very successful docent program which allowed it to the museum to open its artifacts in Roundhouse Park to thousands of visitors in the 2019 summer season. It is now planning to expand the number of programming volunteer roles for 2020 and beyond. The TRM has also developed and has been piloting an audio guide app. Trialed first for the outdoor exhibits in late 2019 it is now being refined and looked at for use inside the museum. The TRM is also surrounded by a large residential community who live in adjacent high-rise buildings. To strengthen those ties, it supported the launch of the Friends of Roundhouse Park in October 2019. This program will foster connections between residents and their neighbourhood park, which is also the home of the museum. On October 5, 2019, the TRM celebrated the 90th anniversary of the opening of the John Street Roundhouse that served to market the museum and as a fundraiser. This event was promoted through its social media channels and its neighbours and partners. Tickets of $20 per person allowed visitors to participate in many exclusive activities for the day, such as turntable and hand car rides, a scavenger hunt, behind the scenes tours, live music and crafts. The TRM will be having a major fundraising event in spring 2020 celebrating TRHA and TRM’s 10th anniversary. The museum will be hosting other events for the public on a regular basis as well as continuing children’s programs and activities. “The Toronto Railway Museum is entering into a phase of growth,” says Spencer. “To make this happen we want to feature our special collection of artifacts and experiences in different ways, expand our promotional calendar for yearround activities and create the Toronto Railway Museum as a destination for local and out of town visitors to connect with Toronto’s railway heritage.“ Brendan Read is the Editor of DM Magazine and an enthusiastic supporter of the Toronto Railway Museum. foundationmag.ca

Features Talking with Phil Spencer, Chair of the TRHA Board of Directors Q&A with TRMâ&#x20AC;&#x2122;s Phil Spencer Phil Spencer is chair of the board of directors of the TRHA and its Toronto Railway Museum. He recently completed six and a half years as volunteer president of TRHA and TRM. Foundation Magazine wanted to find out more about Phil and his involvement. Foundation: What got you interested in railway history? Phil Spencer (PS): This has been my principal hobby since my early teenage years. I was fortunate enough to develop the interest as the Canadian railways transitioned from steam locomotives to diesel motive power in the mid to late 1950s. It was a time to see hear and experience the last years of the steam locomotive. That strengthened my interest and it has continued since that time. Interest in railways, both Canadian and U.S. necessarily requires gaining knowledge of railway history as well as railways. Foundation: Outline your involvement with the TRM. What has given you the most satisfaction? Provided you with the most challenges? PS: I started as a member of the TRHA Founding Committee by invitation in 2004 and continued my involvement from then to the present. The opportunity to work on the establishment of a new railway museum was what drove me to get increasingly involved. The opening of the museum in 2010 and its development and the continued progress in evolution with more visitors and families enjoying the museumâ&#x20AC;&#x2122;s displays in the roundhouse as well as significant restoration of major artifacts by a large group of volunteers has given me the most satisfaction. Developing a downtown museum ensuring that all the moving pieces area still there and change and improvement continues is the most challenging. Foundation: Where do you see your role going? PS: I have enjoyed the challenges and opportunity to contribute. We have a skilled and effective Museum Manager and Curator who has taken on much of the administrative management role I have fulfilled. With our welcome focus on growth, marketing and fundraising my role now is Chair working with the Board. We are striving and succeeding in taking TRM to the next level as a museum.

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November/December 2019

FOUNDATION Magazine

Fundraising Report

Changing the Fundraising Narrative

By Neil Gallaiford and Paula Attfield

s Canada’s federal election kicked into gear, Senators Ratna Omidvar and Terry Mercer of the Special Senate Committee on the Charitable Sector issued an open letter to the major party leaders calling on them to commit to a renewed relationship with Canada’s 180,000 charities and not-for-profits. The impetus for the letter, presented in September, was what the senators described as “a slowly intensifying crisis” in which Canadian charities are increasingly facing shortfalls in bringing in enough revenue to provide the essential services they do. In fact, citing national charitable support organization Imagine Canada, the senators drew attention to the prediction that Canadian charitable sector organizations will require an additional $25 billion in revenue by 2026 to avoid a costly “social deficit” across the country. Recognizing the clear public policy implications of this problem, the senators called on all the potential government parties to “invest in the programs, services and innovations being led by sector organizations”. But they also made a point of stating that “Canadians must continue to be encouraged to volunteer and give generously.” The “less cost” problem From a marketing perspective, this means that more than ever fundraising marketers need to change the longstanding narrative in how potential donors are spoken to and in how charities talk about where fundraising dollars are directed within the charitable ecosystem. For the last number of years, Canadian charities have been brow-beaten — largely due to bad press brought on by a few bad apples in the sector — to adopt an apologetic stance on exactly where they’re spending the money they raise, especially in regard to the costs of fundraising and administration. We all know, if we think about it, that it takes investment to launch effective fundraising campaigns. But somehow Canadians have been led to believe that the best, and often the only, measure to be applied to fundraising organizations is the so-called cost of “overhead”: the less cost, the better. People don’t just wake up in the morning and suddenly declare, “Despite not ever having done so before, this is the day I’m going to make a donation to charity X!”. Even less likely is that individual waking up and deciding to commit to a long36

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November/December 2019

term giving plan with any specific charity. As nice as it would be, things just don’t work that way. Thus, what is an absolute necessity in the charitable and notfor-profit fundraising space is for these organizations to create dedicated teams of marketing and fundraising specialists. They are to put their heads together to develop ongoing strategies to articulate the often-complex needs of the people they serve, define attainable paths towards meeting at least some of those needs and then press their shoulders to the wheel to make those things happen. None of these things happen for free There are real costs associated with developing and telling the stories about how charities benefit their clientele and in reaching out to potential donors through such tried and true methods as direct mail marketing. Digital marketing is growing in use throughout the not-for-profit sector, but it isn’t free either and it generally works best when done in conjunction with more traditional marketing methods. Building the brands And, of course, there’s the issue of brand-building. Certainly no one in the packaged goods, financial services or IT sectors would ever suggest that commercial success could possibly be achieved without a significant investment in brand building. Yet not-for-profit organizations, no matter how big or national in scope, are routinely expected to rise above the din and make themselves heard among potential donors without any money being put into brand-building. Frankly, it’s silly and unrealistic to expect charities to raise money without making significant investments in marketing, like brand-building, and fundraising. It’s time for a change in everyone’s attitude toward charities and how they spend money on these activities. The demand for the programs and services provided by Canadian charities is growing all the time, as are the costs for providing them. If charities are not freed to do the fundraising activity required to support the provision of these services, the social deficit crisis envisioned by Senators Omidvar and Mercer will be upon us much sooner than anyone could imagine. Neil Gallaiford is CEO and Paula Attfield is President, Stephen Thomas Ltd. foundationmag.ca

Fundraising report

Discovering The Power of (Printed) Gratitude

By Steve Falk

ow many times have you received a “thank you” in response to writing a thank-you note? I’m always surprised at how meaningful those little notes can be. I often get the grateful nod back when I send one. Is gratitude is undervalued? It seems we underestimate the power of this kind of gratitude, according to a July 2018 New York Times article titled “You Should Actually Send That Thank You Note You’ve Been Meaning to Write”. For fundraisers, this means lost dollars. The most fundamental steps, like a thank-you note, are often poorly executed or just missed. Shouldn’t a “thank you” just be an automatic response to a gift? It is not uncommon for 30percent of donors to lapse each year. And we know how much more valuable a monthly donor is versus an occasional donor. So why don’t we give a bit more attention to the initial response to a gift? Automated thank yous effective? Automated email replies are something we’ve all experienced by now. Within seconds of giving online, or even in a store, your email “pings” with the lightly personalized Arial font of gratitude and with a .pdf of the tax receipt. It’s the equivalent of a robot voice phone call: efficient but not very engaging. Many donors say they get no thank yous at all. An email at least hits the lowest bar of acceptability and effectiveness. I’m guessing the spam filters and hasty email viewing chew up a fair number of these before anyone sees it. Goodbye tax receipt. Farewell expression of gratitude. The Manulife/Heart and Stroke Ride for Life in Toronto, ON understands the impact of physical stuff when showing gratitude to riders. Although the sign-up and “sponsor a rider” process is all online, the riders get a nice package in the mail if they register in advance. Here is the response from a rider I spoke with recently: “When I opened the package I was overwhelmed and surprised with the content and all the thoughtful items that included. It wasn’t only the items that brought me joy, but the simple note. It said the items don’t cost that much, but the donations that we contribute mean so much to the people who need them. I will continue to ride every year, but the thoughtfulness that went into the package was extremely touching and appreciated.” Could you ever replicate that kind of response with a purely digital thank-you to a rider? foundationmag.ca

Printed notes translate better This brings me around to printed paper thank-you notes. Their physicality translates into better engagement, open rates and often lasting value. That’s because they sit around the house on a shelf or on the fridge, in your donors’ hands. Canada Post has published a white paper, Breaking Through the Noise, that shows the power of printed mail. The tax receipts, on paper, don’t get misfiled or lost in the email jungle. And many more people send a gift back when it’s paper versus an automated email.

One U.S. organization that sends paper thank yous with reply envelopes gets 20 percent of their income from gifts they receive from the thank-you card. A Canadian charity I work with says that the response to about 30 percent of their thank-you notes is another gift. November/December 2019

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Fundraising Report Mirroring digital strategies What if you could combine the automation of an email thank you with the power of a printed mail piece? Now you can. Automation with the printed mail channel is growing easier and more effective. You may know it as automated direct mail, programmatic DM or triggered DM. This technology is also good for other uses, like variable digital print and mailing. It’s grown out of the kind of automation we’ve come to expect from digital strategies. We do almost anything online now and we expect to get an email string, banner ads and mobile ads in response.

Now you can mirror the best of your digital strategies with print ones to boost results. It’s not a replacement of digital but an enhancement of things that already work but can work better.

Success story: Wayfair and Sephora In a recent test I worked on with Wayfair, Sephora and Canada Post, we simply added a triggered postcard. It went out the next day, with some product photos when a customer abandoned something in a shopping cart. There was a surprising lift in revenue from this simple addition to the marketing stack. “The direct mail retargeting response rate was about double the digital-only retargeting response rate,” says Davinder Singh, chief marketing officer, Wayfair Canada. As fundraisers, this lift shouldn’t surprise us. But what can we learn from this retail eCommerce sector lesson? The immediacy is the key We automate the process so that the card is sent immediately and arrives as a timely reminder among the other digital nudges that are standard these days. Seizing the “now” is important. But that was not always easy in print. We all understand the importance of a prompt thank you. Saying thanks, or other important messages to donors in their journeys can be most powerful when all the available channels work together. New secure data exchanges, the speed of digital printing and even faster mail delivery have all contributed to the ability to deliver personalized messages to homes in print, as never before. Testing boosts results You can even use digital print to seamlessly execute A/B testing of copy and images. You can test and prove taglines, images and timing like you would in digital channels. Print can truly mirror some of the best of what digital strategies have to offer and boost the results. Automated, triggered email and print messages offer innumerable opportunities to engage with donors. Conversions to monthly donors can benefit from this. You’ve probably witnessed how deftly charities who have annual children’s support programs navigate this. They use multiple triggered communications throughout the year to keep donors from dropping off and to sign them up to support another child the following year. Automated donor communications add a discipline and rigor to the process that sometimes lags when not given this structure. Just remember that huge number of donors who say they never received a thank-you message. You won’t forget to reach out or miss important milestones in your donor engagement. It has never been easier to boost your digital automation with a bit of powerful print. Steve Falk is President of Prime Data Inc.

(Check out his short video “N for NOW” for more on why immediacy is important.)

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November/December 2019

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Fundraising report

A Philanthropic Marketerâ&#x20AC;&#x2122;s Wish List

By Debbie Major

ifty more grams and 1 millimeter thicker! Is this Canada Post code talk or a dream world for the not-for-profit and the not-for-profit agency? A special postage rate for the charitable and Not-For-Profit world is not a new thing. It has been mentioned, brought up, and talked about for as long as I have been in the industry. What would the not-for-profits like to see? Our first recommendation and starting point to Canada Post would be to move the Personalized Mail Standard Machinable and Standard Special Handling mail to a maximum of 6 millimeters in thickness, up 1 millimeter from 5 millimeters. Our second recommendation would be to move the machinable mail to 100 grams from 50 grams within the Personalized Mail category. How it is working around the world today? A quick look around the world and you see how some of the other post offices manage their different classifications of mail. There are definitely options and ideas that could be brought forth to Canada Post to consider from an industry forum perspective. We would get the end users, the not-for-profit agency and the industry customer service bureaus such as ourselves together to discuss. For example USPS created the Publication 417, Non-Profit USPS Marketing Mail Eligibility: Non-profit and Other Qualified Organization guidelines in order to create a charitable postage rate. USPS created an eligibility process as well as a definition which includes that the organization is not organized for profit, and is organized and operated for a qualifying primary purpose section 2-1 of the Publication 417. Canada Post and industry would have to build similar rules and regulations which for USPS include the: standards, eligibility, the application, what qualifies as a mailing and what the contents can contain, along with any restrictions. With service bureaus being the back bone to the industry this is completely doable as we work so closely with Canada Post, the agency and the end user every day. We also see that Royal Mail Market Reach Price Guide for March 2019 has a number of options for the advertising mail. First as it relates to the delivery speed of 1st class, 2nd class and economy mail as well as the sort and density: low sort with mail mark, low sort OCR (Optical Character Recognition), high sort density and high sort residue. It is interesting to note that foundationmag.ca

advertising mail at Royal Mail starts at 100 grams where in Canada we start our Personalized Mail at 50 grams. Canada Post would understand the things that are working well for both USPS and Royal Mail in consideration of what a charitable postage rate may look like here in Canada. Why this would be needed in Canada? This not-for-profit industry relies heavily on the mail for its funding to provide services to their end users. This need does not go away during times of a recession. During these hard times not-for-profits are still mailing to their donors to solicit funds. Typically the acquisition programs are the first to fall by the way side during these times. We would like a way to help this from not happening. We feel with a few well-placed November/December 2019

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Fundraising Report incentives this will assist the fundraiser with budget and also stimulate new mail for Canada Post. Here’s what we are thinking? The first thing to compare would be the cost of a stamp at USPS, Royal Mail and Canada Post to see if there is a reasonable starting point for comparison. We compare the best rates from all three post offices and mention they are all rates before taxes. In Canada the not-for-profit pays $0.485 for personalized mail that is machinable and standard up to 50 grams and the piece must be less than 5 millimeters in thickness. Personalized mail special handling takes this to $0.54 up to 50 grams and $0.59 for 50-100 grams both of which must be less than 5 millimeters in thickness. The Royal Mail looking at the category of Advertising Mail up to 100 grams using the delivery speed of economy we see a low sort mail mark at 20.2 pence and high sort residue rate at 23.7 pence. For conversion sake 100 pence is roughly $1.64 Canadian making the comparison at $0.33 cents Canadian and $0.39 cents Canadian. For this rate you must mail at least 4,000 pieces. Our Canadian rate is 47 percent higher when comparing the $0.485 to the $0.33. We then look at USPS to see what they are offering. The charitable rates are not easy to locate so we are using the Non-

profit marketing mail (formerly known as standard mail for our comparison) provided by PMGDirect.Net4. Rates here are for up to 3.5 ounces which is 100 grams for 200 pieces of mail up to 50lbs of mail at $0.138USD each. At a conversion rate of 40 percent this makes it $0.19 Canadian each. The regular marketing mail in the USA for 200 pieces up to 50lbs of mail is 0.186 USD or approximately $0.25 cents. Our Canadian rate is 155percent higher when comparing the $0.485 to $0.19. The USPS also starts at 100 grams, we could look to follow suit and increase the personalized mail both machinable and special handling standard to start at 100 grams as well. For these different rates from each country we must also take into account the geography of each country. Canada has great geographical landscape to cover compared to volume and density of population for the USA and the smaller size of the United Kingdom. Certainly this has to be taken into account. We would also have to look at the impact to Canada Post for making the piece thicker as well as the impact to the post person who carry the mail and the overall process this involves. When a piece is 5 millimeters in thickness as a service bureau we are able to put approximately 125 to 150 pieces of mail in each tray for this product type. Adding one millimeter to the thickness of the package will make fewer pieces in each tray and therefore more trays. Canada Post has moved to a system where all mail and parcels go out with a driver and a vehicle. Yes there may be more mail in the truck and the person delivering the mail may have to go back to their truck more often but the amount of mail that they each person carries at one time remains the same. Allowing the mail to take one extra day to reach the end user would be another way to assist the post person giving them and extra day to divide the mail up and get it to the end user’s mail box would help from an operational point of view. Win – Win benefits all around At the end of the day if the fundraisers get more funds to do their critical work this would advance their game as well as being a boost to the Canadian economy as more workers are needed to do the critical work. For the fundraiser they would also yield a higher ROI as the largest part of the budget the postage just got more economical. The fundraiser could also have more premiums/freemiums in the envelope with the additional weight to tug on our heart strings for more donations. Canada Post and the service bureaus realize larger volumes of mail inducted and processed and also come out ahead. We see this as a win - win for this industry and collectively we have a vested interest to make this happen. I am definitely looking forward to sitting round table, rolling up our sleeves and making this come to fruition for the Not-For-Profit’s instead of just taking about it or mentioning it. The time has come for postage rate for the charities. Marketing your world your way, today tomorrow and always!. Debbie Major is President of Data Direct.

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November/December 2019

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Fundraising report

The Real Secrets of Analyzing Data for Success

By Dean McJannet

cquisitions are among one of the biggest concerns for fundraisers today. An aging demographic, list trade saturation and fatigue, and the growing difficulty to procure new and productive lists, are at the forefront of fundraising challenges. As concerning as these challenges may be, they also present opportunities for datasavvy fundraisers to take these problems head on and drive new and innovative success! There are a few issues that really attract the attention of our peers in fundraising: program cost, revenues, net revenues, donor attrition and acquisition. The most important of these is acquisition. Without acquisition, without replenishing those donors who have left (or will leave) we fundraisers face paramount consequences to the success of our programs. Is acquisition really the concern? There are two sides to acquisition. Pure acquisition is one. Retention is the other. Our need to acquire is rooted in the fact that we lose a certain number of donors during the year. Typically, we look to our list trades and list rentals and base our selections on the past performance of these lists. We use highest response rate or highest average gift as the “go-to” performance metrics for this. But are we missing something? The short answer is…yes. By evaluating the quality of a list by only looking at its ability to acquire a new donor we are missing quite a bit. We are sacrificing the short-term outcome of a superficial response rate and average gift size for establishing meaningful long-term relationships that will not yield better lifetime donations, but can have greater systemic benefits, such as engaged advocates for your organization. If you are like most organizations, you have a reasonably deep history on who you have traded with (or lists you have rented), and the associated performance of these trades or rentals. Here is a simple analysis that would redefine how you could enhance your list trade or rental program. IDing quality donors Start by identifying those list trade and rental sources that produce some of your best donors. You want to identify lists that bring on quality donors. Let me define what I view as a quality donor. These are donors with great LOA (length of association), a high performing LTV (lifetime value), a better-than-average second-gift conversion rate and among the lowest attrition rates. foundationmag.ca

In other words, donors who stay longer, give more and are more easily retained in-program. It’s interesting to note that these individuals may not necessarily be the best performing out of the gate. In fact, the trade or rental list that produced these donors may have had an initial lower response rate and or lower average gift size at acquisition versus other trades and rentals, but in the long run they produced higher quality donors. Using these criteria, you can now identify and select your best donors, mapping them back to their original trade or rental sources that initiated their first gifts. This will help you identify which trade lists or rentals have yielded the highest percentage of these great donors! With this metric at hand, you can incorporate other list factors such as cost, availability, etc. to create your organization’s “List Trade and Rental Priority” ranking. Achieving results Now here is where it gets fun. I like to model the impact of this year’s acquisition using this new ranking and its indicators to forecast the impact of my current acquisition program across the next three years. Typically, I see an increase in the net cost to acquire donors in year 1ne. However, as these donors come from lists that generate quality donors, their three-year performance projection more than justifies the initial investment. Even if these lists have potentially lower response rates and average gift size at acquisition. Why is this? 1. These donors have lower churn rates. So, providing you have adequate source volume, your donor file is now growing more significantly, not because you are increasing your acquisition efforts but because you are holding on to more of your newly acquired donors. 2. Net revenues improve because these donors have a better LTV. You are spending the same money on a donor but acquiring one who gives more and stays longer. Better ROI, same cost! Explore new trades and rentals, as well as continuing to trade and rent with some of your traditional list sources. You will need these smaller volumes as the “control” for your program and monitor your new trading list and rental priorities. Data holds such wonderful opportunities for fundraisers. Managed and used properly it will provide the answers to solving some of our most challenging problems. Dean McJannet is president and chief strategist, iNFORMED. November/December 2019

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Fundraising Report

The Well Informed Donor Have you planned your digital legacy?

By Brendan Read

omplications from digitalization are anticipated to grow over time as more people stop keeping important information in an easily accessible place. Digital access drives nearly every activity in the world — from the way people manage money, to the way they keep in touch with family and friends. It’s no wonder technology is impacting estate planning as well. Today, making arrangements for your digital legacy may be almost as essential as preparing a Will. “For the past several years we’ve been talking with our clients about how, as executors, we can identify and take control of their digital assets,” says Leanne Kaufman, head of RBC Royal Trust and president and CEO, Royal Trust Corporation of Canada and The Royal Trust Company. From a practical perspective, people are shifting from keeping their personal information in a file folder at home to storing everything digitally, says Carmela Guerriero, Quebec regional vice president, Royal Trust at RBC Wealth Management. “We’re starting to see the difficulty for executors if they’re not aware of how things are stored and don’t know how to access them,” says Guerriero. “People are uploading documents to the cloud and storing things on a USB or an external hard drive.” Complications from digitalization are anticipated to grow over time as more people stop keeping relevant contact information, account information and safe deposit box keys in a place easily accessible to their executor. “Someone recently mentioned that the best gift his fatherin-law left for his family was an accordion file with everything meticulously laid out for everyone,” says Kaufman. “It’s essential that people put everything together, store it securely and have it accessible to an executor. It doesn’t matter whether that’s on paper, a USB, an external hard drive or in the cloud. It just matters that it’s there and accessible.” Types of digital assets A list of passwords and answers to security questions for all relevant sites is a good place to start gathering your digital assets, but they include more than just online bank and investment accounts. “Your digital assets could include intellectual property stored only in digital form such as unpublished literature or photos that could have monetary value or sentimental value to your heirs,” says Kaufman. “We need to understand what happens when someone passes away who owns bitcoins and find out how to take control of that account or transfer ownership.” Social media accounts are also part of your digital legacy “There’s a virtual imprint of the deceased on sites like Facebook, 42

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Twitter, Instagram, LinkedIn and YouTube,” says Guerriero. “Each site has different rules about how you can give someone authority to close your account. There’s no way to close that off without following through on permission and authorization options.” “Another question with social media accounts,” adds Kaufman, “is whether the governing law over the account is where the company is located, such as California for Facebook, or where the account holder lives.” These questions about governing law become even more important when something is monetized, such as YouTube channels that make money for their owners, says Kaufman. “Google has been marketing something they call an ‘inactive account manager’ that allows you to designate someone to be notified if your account is inactive for a specified amount of time,” says Kaufman. “The question is who will have authority over that account: your executor or your designated account manager? If it’s not the same person, that could be an issue, especially if it’s a monetized account.” Check the settings on your social media account to determine how they may be handled after you pass away. Reward points on credit card accounts and frequent flyer miles can also be an issue. Sometimes they can be worth thousands of dollars. Yet not everyone keeps track of them or thinks ahead to include the information for their executor to access those accounts. “We tell our clients ‘you need to inform your executor of what’s out there and how to access it,’” says Guerriero. Video and digital messages left by people for their friends and relatives are becoming more common, including sending birthday wishes far into the future. “Those videos are kind of like a modern-day letter to be read after someone dies, but it’s not really our role to advise people on the emotional side of their planning,” says Kaufman. “However, we do want to make it clear that we don’t encourage anyone to articulate wishes in a video that would contradict their written Will. If it’s just a sentimental message or an explanation of why they decided on specific legacies, then we have no opinion on that.” Digital Wills are gaining acceptance One hot topic in many jurisdictions is the debate over what constitutes a Will, says Kaufman. “For centuries, an essential requirement of a Will is that it be written,” she says. “Now there’s digital disruption in that definition, too.” Continued on page 60 foundationmag.ca

Fundraising report

Three Ways to Leave a Lasting Legacy

By Leanne Kaufman

he holidays are fast approaching, and for many of us, that means gift-giving season. Gifts of course can take many forms, and often extend beyond our family and friends, to include gifts back to our communities. Whether you contribute to your office ‘toys for tots’ campaign, volunteer your time at a local organization, or make a financial donation to a charity, the holidays showcase the tremendous generosity of Canadians, on many levels. Throughout the year, though, there are many ways to make a meaningful gift to a cause close to our hearts, either in the near term or as part of a longer term estate plan. Here are three ways you can leave a lasting legacy:

Make immediate giving part of your daily life through cash donations or donations of Non-Registered Securities.

Cash donations are the most common way to make an impact on the communities you care about and it has never been easier. Many employers offer automatic payroll deductions and charitable organizations can set up pre-authorized debit options through your bank account or credit card. Not only does pre-planned giving help charities do their work; it also helps you plan your own monthly budget. And don’t forget, when making a donation to a registered charity, you will receive a tax donation receipt which can be claimed on your tax return as a credit. Alternatively, if you are holding publicly traded securities which have appreciated in value in your non-registered account (e.g. not held in a RRSP or RRIF) consider donating them “inkind” to a charity. In return, you’ll get a tax receipt equal to the fair market value of the securities donated, and you will not be taxed on the capital gains accrued on those securities, as you would if you sold the securities during your lifetime.

Arrange future gifts through your estate planning

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Deciding how to distribute your estate in advance helps ensure your loved ones or important charities will be taken care of at your passing. There are many ways to achieve this goal. You

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can leave a set cash legacy, direct specific assets (publicly-traded shares or land, for example) or bequeath a share of the residue of your estate. Outlining your charitable wishes through your will has benefits. You can enjoy the use of your assets while you are alive, knowing that charities that are important to you will benefit in your will. Enhanced charitable tax credits are also available at this time. Another way to do this is to consider a Charitable Remainder Trust. Individuals who are comfortable living off the income produced by assets may want to take advantage of the tax benefits that a living trust can provide. You receive the income from the trust throughout your lifetime, but upon your death, the remainder will pass directly to the charity you name as the beneficiary.

Think about the long-term benefits of creating a donor advised fund

If you want to establish a legacy by donating a lump sum now, but spread it among various charities or distribute it over several years, consider establishing a donor advised fund. This effectively creates a pseudo foundation for a fraction of the cost of setting up a private foundation. You receive the tax receipt when you make the donation and can then allocate the funds to any of Canada’s registered charities. Charitable donations attract both federal and provincial nonrefundable tax credits. On the federal side, you get a credit of 15 percent for the first $200 of annual charitable donations. The federal credit rate jumps to 29 percent for additional cumulative donations above $200. Regardless of what, or how, you choose to give, generosity never goes unnoticed by those in need. With proper planning, professional advice, and a big-picture view of the opportunities that exist, we do all have small ways to make our own kind of difference.” Leanne Kaufman is Head of Royal Trust with RBC Wealth Management. A version of this article was originally published in the Financial Post in May 2018. November/December 2019

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Fundraising Report

Why Legacy Giving is the Ultimate Donor Connector These are the kinds of gestures which grow into brand new life for the recipients.

By Kimberley Blease

he most common question I hear among fundraisers is “What are the new and evolving trends in fundraising?” Most people are focused on finding a new “ice bucket challenge” or new ways to find new supporters. And everyone is looking at digital. It might be hard to believe that the first place I go to is legacy giving. It’s the trend in plain sight, given how long we have been marketing and fundraising legacies in Canada and around the world and how entrenched many organizations are in legacy giving strategies. So, you might ask, why are we turning to legacy when we talk about an emerging trend and new opportunities? The reasons are simple and profound First, the market is changing. Huge demographic shifts are taking place as Baby Boomers age. Over the next 30 years, people will live longer, there will be many more of them and they will be wealthy. Plus, as is widely publicized, this will be the largest generational transfer of wealth in human history. Second, this generation is the most “reachable” ever. Technology and integrated channels are abundant, and these new and existing donors are embracing these channels. Lastly, their behaviour and motivations are better understood, and legacy giving has better insights on these drivers today than ever before. And more people know about legacy giving. They are considering it and they are actually doing it. This is the primary trend that we need to understand and maximize. Against this backdrop, our approach to fundraising is developing and changing. We want to be ahead of what our donors want, not catching up. We are seeing our world move from service-based engagement to one built on experience (and frankly we find that donors are not loving the current experience with many organizations). 44

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But while donors are changing our marketing isn’t always matching their needs or behaviour. Baby Boomers want more from their value-based giving. People want to leave a lasting legacy and make the world a better place through the alignments of their values and connections with you: the organizations doing the work they care about. This trend and need will only accelerate. Experience matters more than ever For these donors, experience matters, and it impacts legacy gifts long term. One bad experience might be forgiven, but ongoing negative experiences means donors are looking for other options. A strategy and a mission to build an integrated and powerful experience over time will be the transformational difference in our ability to attract and keep donors long-term. Our new insights are challenging the way we do things. What we say and how we say it will matter more, so we need to challenge ourselves: is it about us or about them? Inspiring people differently Here are some truths we need to grasp. People don’t want to be driven to tell you about their wills early in the engagement process. They may not ever tell you that they have included you in their future planning. Not everyone wants to sign the form your CFO is insisting upon, to demonstrate that they are committed. They definitely don’t want to be seen as cash machines where all we ask for is money. And our experience (and donor behaviour) tells us that donors often want more from you than the content and experiences we are willing to deliver. Experience will determine feeling and feeling will determine gifts and longevity. Donors want to connect and be inspired, they want relevant content about your cause and the outcomes foundationmag.ca

Fundraising report their gifts can make, and they want communications to be relevant and authentic. There is a big opportunity to connect with supporters differently and meet their needs in a different way by truly giving donors what they want in order to engage in a deeper way with your organization. This will also allow for it to be delivered to more supporters than is possible using major gift strategies of one on one personal solicitation. It sounds easy, but clearly, it’s not. The truth is you can do more for the success of long-term legacy revenue by creating great experiences now for your core donors: annual, tribute, mid-level and monthly all included! Engagement challenges We’re finding that organizations are struggling to see the opportunities to shift to a wider engagement of supporters using legacy giving as a driver for long-term relationships. Here are four examples. First, there is managing cause and effect. Legacy giving is in many ways a long-term high-value relationship program and because the income is long-term, people don’t understand or trust the relationship levers that can influence giving in the future. But we need to take action today that will create connections and long-term engagement. In short: we are not investing enough now. Second, we are measuring legacies in a way that often only focuses value on confirmed expectancies, which is just not the only way legacy outcomes are driven. We need to shift our focus to hand-raisers (that group of people who ask for more information, say they will be interested in the future, look information up or ask a question on wording) who are key to our success. These people need to be highly valued and we need to measure their value differently in order to influence investment.

“We need to use legacy marketing to engage people...” Third, many donors who we nudge, excite and inform will never tell us we are in their wills until we receive a gift. Your own metrics support this reality. Some of our organizations have up to 90percent of actual fulfilled legacy gifts that come from people who are either not on file at all OR who are on the database as a donor, but who have not told them about the gift in the will (the lowest we have seen is 63percent and that is exceptional). Last, and perhaps most important, we are not recognizing the incredible opportunity to use legacy fundraising and engagement to bridge between general awareness and direct response marketing. We need to use legacy marketing to engage foundationmag.ca

people, align with their values and build a lifetime of giving, which is something very special and enduring. It’s something major gift fundraisers have been doing forever: but we need to do it with greater numbers of people. Real growth opportunities We have the opportunity to do all of this and more while realizing immense growth in our organizations but not with old thinking, old measurements and old strategies. We need organization-wide involvement and leadership, full integration of the legacies into everything we do, and we need brave creators and innovators. In fact, we can see a world where legacies can lead on the relationship connections, not follow, and we need people to understand what truly drives their donors and turn everything they do to that. Some people make trends. Some follow. Some miss them completely. Some don’t care. We believe that legacies, long-term relationships and great experiences are the trend that we can put fuel in and take to another level. It’s going to take brave new approaches to realize the potential. And we couldn’t be more excited to be on this journey. What about you? Kimberley Blease is Executive Vice President of Blakely.

@EASE is the focal point of all fundraising activity. It has been designed to bring together a complete collection of data and resources used by FD staff. Donors, prospects, advocates, professionals, media…everyone important to telling your story, donating or speaking on behalf of the charity become its community as defined and recorded in @EASE. Cloud or Installed Solutions

To help us find out more about your needs please contact us: 1(877) 489-9911 ease@batschgroup.com

@EASE We are Batsch Group Inc

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Fundraising Report

Benefits of Using a Private Corporation for Charitable Donations

By Les Ross

ased on a recent survey released in 2018 by the Rideau Hall Foundation [link to https://www.rhf-frh.ca/wpcontent/uploads/2018/04/RHF_30years_Report_ eng_FNL.pdf], Canadians donate $18.5 billion to charity per year, with $14.3 billion coming from individuals and $4.2 billion donated by corporations, both privately and publicly owned. The report concluded that the greatest motivators to give are personal and ideological reasons, with tax savings ranking as a very low motivator for giving. However, among those who give, the one factor that had the greatest impact on the size of donation, is tax savings. Before jumping into the tax discussion, let’s acknowledge that many companies choose to make a difference by supporting charities in Canada for reasons other than tax savings. Imagine Canada [link to https://www.imaginecanada. ca/caring-companies/list ] recognizes “Caring Companies” that give at least 1percent of pre-tax profits back to their communities”. PearTree Canada is proud to be one of those Caring Companies. Just like individual donors, companies receive a charitable donation tax receipt for the value of their gift. In both instances the donation tax receipt can be carried forward for up to five years to reduce future years’ income tax payable. The income tax rates for individuals and companies vary by province, so for the purposes of this discussion, I will focus on our most populous province, Ontario, and assume a Canadian Controlled Private Corporation (CCPC) to be a donor. For an operating company earning over $500K of income in Ontario, the income tax rate is 26.5 percent, so a $100 cash donation would generate $26.50 in tax savings. For a holding company earning passive investment income, the [usual] income tax rate is 50.17 percent, so a $100 donation would generate $50.17 in tax savings. For an individual paying tax at the top rate of 53.53 percent in Ontario, a $100 cash donation would generate tax savings of 50.41 percent, or $50.41. So the order of tax efficiency for the donor making a cash donation is: 1. Holding company; 2. Individual; and 3. Operating company. However, consider the significant savings that could be achieved if the donation was made through PearTree’s Flow Through Share Donation (FTSD) Format. When looking at the savings achievable with a corporate FTSD, we calculate the integrated after-tax cost of giving, which takes into account tax savings available to both the shareholder and the corporation. 46

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Here is a comparison of the after-tax cost of a cash donation and of a FTSD in Ontario, assuming a $100,000 donation. After-tax Cost of Giving Comparison in Ontario using $100,000 Donation (assumes donors are subject to the highest marginal income tax rates) Cash Donation

PearTree Donation

After-Tax Savings

Personal

$49,590

$19,950

$26,640

Corporate Active Income -

$44,590

$33,930

$10,660

$42,340

$6,814

$35,526

Fully Integrated Yr. 1

Corporate Holdco Income Fully Integrated Yr. 1

Because the tax rates for individuals in the top tax bracket are so punitive, many accountants suggest that business owners generating active business income pay out sufficient T4 income or dividends to fund lifestyle expenses and invest the balance of the corporate earnings in a holding company. As a result, many very successful business owners are not in the top tax bracket personally and therefore not in a position to obtain maximum tax benefit from a personal donation. In addition, Alternative Minimum Tax (AMT) is a constraint that needs to be addressed. With a FTSD, the $100,000 donor would need almost $900,000 of T4 income in order to realize all of the tax savings in the current taxation year. However, AMT is very rarely a constraint on corporations making donations with a FTSD, so the same $100,000 donation by a corporation would require less than $400,000 of taxable income. It is worth noting that less than half of the flow through share deductions relating to a corporate FTSD, are able to be written off in year one. The remaining pool of deductions are available to write off against future years’ income to continue to reduce the integrated after-tax cost of giving. Another significant benefit of the corporate donation format is the creation of almost $2 of Capital Dividend Account (CDA) room for each $1 of donation. Continued on page 61 foundationmag.ca

Legal Foundations

Don’t Ask a Question Unless You Know the Answer

By Adam Aptowitzer

uccessful associations know that continued achievement requires an unrelenting focus on the obvious ingredients for success. Unfortunately, concentrating an organization’s efforts on day to day success sometimes results in neglecting the group’s foundational documents. Too often, these documents are ignored until there is a conflict amongst the members and someone remembers that the bylaws exist to help deal with these situations. But bylaws need to be reviewed and maintained so that they continue to serve the organization and are relevant in times of crisis. The question then is how and when does an association approach bylaw change? Perhaps the most important step that can be taken is to create a Governance Committee that is tasked with continuous review of the governance documents. The key role of this committee must be to think strategically about the ongoing health of the organization and consider the changes which might be important — before they become critical. The long term goal of such committees is to ensure that any mission creep does not extend beyond the organization’s stated purposes and that the bylaws continue to meet the immediate and future needs for such things as term limits, member discipline, and holding meetings. The suggestions of this committee are forwarded to the board for consideration and any amendments to the documents must be approved by the members. Typically, the people populating such a committee are those with corporate memory and an understanding of the organization’s culture. From time to time the association may decide that amendments to the bylaws are required. Indeed, there will be times where a complete overhaul of the bylaws will be necessary. An association wishing to undertake changes to the bylaws must be strategic as to its timing. Given that bylaws are imperative for the governance and power structure of the association, people can be very sensitive to changing them. This is especially true when members are disenfranchised, or their power to stir the organization relative to other members is diluted. For this reason alone it is important to judge the relative political acceptability of any amendment. Obviously, an amendment to a relatively minor provision may pass relatively easily, and even an amendment to a major provision that is commonly agreed will be easy to pass in a relatively calm atmosphere. However, larger amendments or those that may be key to the organization’s structure, may need to be peddled to the association’s members prior to deciding whether or not that is the right time to approach such changes. This is another reason that a governance committee can be a sensible testing ground for potentially divisive bylaw amendments as members will have the satisfaction of foundationmag.ca

knowing that they were studied and thought through by people with experience in the organization who can presumably defend their decision to support the proposed change. Another related factor is that bylaw amendments are typically easier to swallow when there is a history of strong and stable leadership in the boardroom. In situations where the leadership has been tenuous, it may be difficult to sell the membership on a bylaw change which could have a fundamental effect on the organization’s governance. For this reason, association management may wish to either push through an amendment under the term of a strong leader or wait until such an individual presents themselves. Bylaw changes dictated by relative need Perhaps obviously, one of the most important aspects of approaching a change in the bylaws is the relative need for such changes. When the changes are dictated as a matter of law the question as to whether or not to amend the bylaws is moot and the debate centres on the nature of those changes. However, bylaw changes can be necessitated as a result of the organization’s future business plan and therefore the need for the change subject to the judgement of the voters. Timely changes could, in fact, save the organization from potential failure. On the other hand, contentious changes may hasten such failure, and the leadership of the organization must understand the political will to make the changes. A membership that is approached with changes that are both unnecessary and with the potential to undermine the association’s ongoing mission could also have the unintended consequence of destabilising the board and by extension the association’s entire leadership. Of course, the most critical factor in timing a change to the association’s bylaws is understanding the members’ willingness to adopt proposed changes. It must be remembered that all corporate statutes require ratification of the bylaws by the members prior to their official adoption by the association. Under these circumstances, the intent of the board could be subverted by members who are not thoroughly convinced by the need for the change, or worse incite a mild rebellion by an activist membership. Not only could either of these circumstances leave necessary bylaw amendments by the side of the road, but it could significantly weaken confidence in an organization’s leadership. The wise course is to assess the membership’s temperature before presenting the amendments — as they say of litigators, don’t ask a question unless you already know the answer. Adam Aptowitzer is Managing Lawyer at Drache Aptowitzer LLP. November/December 2019

FOUNDATION Magazine

Family Foundations

“Speak up, I can’t hear you!” What is family foundation governance and why do we need it?

By Gena Rotstein

amily foundation governance is as much about how decisions are made as it is about communicating the decisions made. This article outlines the key components around family foundation governance. Even if you don’t have a formal foundation structure, you can use many of these concepts around family philanthropy conversations. In the book entitled, Managing the Family Business by Thomas Zellweger he identifies three reasons why family firms need governance. These same reasons apply to family foundations, family councils or granting committees for Donor Advised Fund (DAF) accounts: 1. Articulating the motivations of the founder. 2. Help with decision making, especially around “sticky” challenges like engaging spouses and in-laws. 3. Moving beyond the traditional mechanisms associated with family foundation governance (block voting v. individual voting) — for families with multiple branches allows for individual voices to be heard. In Canada there is more than $1 Billion tied up in multigenerational family foundations where by the inheriting 48

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generation is struggling to either meet the funding objectives of the founder, or have become disinterested in the family philanthropy program resulting in those funds being managed by a third-party with limited or no input from the family. Imagine what would happen if that $1B of trapped capital was unlocked? One way to prevent this number from increasing is to set up the family inheritors for success from the outset. Focusing on the key factors associated with family foundation and family philanthropy governance and decision making we begin the exploration by understanding the lifecycle of a family foundation moving into the overall governing structures and ending with managing family dynamics. The lifecycle of the foundation: The first step is to understand the lifecycle of the family foundation. Just like any organization, there is a natural timeline for a family foundation. For some families, foundations are established to be run in perpetuity. The ongoing nature of this type of foundation means that it will continually cycle through a re-birth stage as the needs of the community and the decision makers’ values evolve. For other family foundations the intention is to sunset the foundation after a specific foundationmag.ca

Family Foundations

period of time. Regardless of your timeline, establishing some guidelines for giving and decision making will make the job of future generation(s) easier. In the figure below (adapted from CentrePoint Non-Profit Management) shows the lifecycle of the foundation. It is not about how long the foundation has been in existence, rather it is about the infrastructure that supports or encapsulates it.

A foundation may be in the start-up phase for multiple generations because of how decisions are made and projects are executed. As the foundation takes on more structure it foundationmag.ca

goes through an evolutionary cycle. Another thing that affects the lifecycle of the foundation is the lifecycle of the family member(s) who set it up and continue to manage it. Personal and career lifecycles directly impact the rate, timing and effectiveness of the foundationâ&#x20AC;&#x2122;s evolution. As the foundation evolves the impact is felt in its focus, its leadership culture and the formal structures that support the mandate and the leaders. For some, the evolution rotation might be simple and painless, for others these evolutionary blips might be more challenging. One way to mitigate the struggles is to understand how the evolution will impact you, the leadership and the foundation overall, and when the timing of the evolution will coincide with your personal lifecycle. As the foundation moves from one stage to the next, the governance will also move along the continuum. The Start-up Stage has basic governing documents and decisions might be made at the kitchen table or during pillow talk. The Systems Stage may be when the Next Generation of leaders are onboarded and decisions are spread across multiple family members. The Diversification Stage when, depending on your size and mandate, might include engaging external advisors and paid staff. At this point, if the organization is operating in November/December 2019

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Family Foundations perpetuity, it likely will do a recalibration to assess its relevance and engagement of the family. If continuing on, it may move back to an early stage to explore new areas of funding or new partnerships. If the board decides to wind things down, or the founder wrote a sunset clause into the governing documents, it is in this last stage, Sunset Stage that assets are liquidated to other charities and foundations. For some this divestment is to a community foundation, for others there might be instructions written into the documents as to which organizations will benefit from the funds. Just like the previous evaluations there will be pressures put on the culture and operations of the foundation. This is okay and to be expected. A well-planned sunset stage means that decisions can be made and emotions and history honoured at the same time. Governing principles: In 2004 the Committee on Family Foundations of the Council on Foundations released a report outlining the different governing principles that guide family foundations. When you map these governing principles against the lifecycle stages of the foundation you will see how these principles are enacted will depend on the evolutionary stage of the foundation. These principles take into account the culture, size, proximity and areas of interest of the individuals who make up the Board of Directors or Trustees. How these principles are put into practice determines the right type of governing model best suited for the foundation. Strategic or operational? At the core of this question is how hands-on do you want to be: the more hands-on, the more operational. This approach is ideal for those who do not have staff, have smaller budgets or who do not have a formal structure that holds your philanthropic dollars. What this looks like in practice: ❯❯ A governing board that establishes the mission, guides the operations, oversees the effectiveness of the grants and acts as a connector between family members; ❯❯ Responsible for reviewing the mandate of the foundation to make sure that things are still on track and that the granting and investment strategy are aligned with the mission; ❯❯ Allocates sufficient human capital to meet the programming and granting objectives; ❯❯ Succession planning; and ❯❯ Communicates with the broader family and the advisors as to the performance of the foundation. Individualized giving through the family foundation/fund? Ideally the founder and the founding board members have laid out what role and how much individual family members can influence the granting and investment strategy of the family foundation. Laying out the way that individuals can share their opinions and drive the conversation is a key component to the governing documents. Even without a foundation, how family philanthropic assets will be invested is a critical discussion 50

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point. What this looks like in practice: ❯❯ Board identifies the types of people that they want sitting on the board — characteristics, skill-set, experience, family or non-family, etc.; ❯❯ External advisors are welcome ❯❯ Terms for the board are set and communicated broadly to the family. These bylaws are established and guide how people are on-boarded, trained and removed from the Board; ❯❯ Roles and responsibilities are clearly articulated; ❯❯ Meetings are held regularly to ensure fiduciary and mission oversights; ❯❯ Individual family members can submit grant requests that are outside of the mission, however the entire board reviews these types of applications and a formal budget is set to not exceed a maximum dollar amount or percentage of total giving; and ❯❯ Training and continuing education is made available for all board members and external advisors. Collective Impact, Joint Ventures and Strategic Partnerships – What does this look like? Many foundations recognize that they can’t move the dial alone. That said, good family foundation governance has a way for making decisions around who, when, under what circumstances and how to collaborate with other funders or facilitate a multistakeholder solution. What this looks like in practice: ❯❯ Actively seek out opportunities to learn about best practices and compare practices with others in the field; ❯❯ Have a diversified funding portfolio that includes traditional philanthropy, debt financing, unique funding models like Social and Community Impact Bonds, multi-year funding, challenge grants and endowments; ❯❯ Has a fund for emergency funding for organizations that have a long-term relationship with the foundation; ❯❯ Have a publicly stated Theory of Change so that applicants understand where and how their project can best fit in the philanthropic vision as well as where and how other funders might fit into the funding continuum; ❯❯ Share successes and failures publicly. Highlight lessons learned from the granting process and the evaluation process; ❯❯ Ensure that the funding does not undervalue the staff remuneration. Remember, it is impossible for 100percent of funds to go the project, someone has to turn on the lights, pay the rent and cover the paper in the printer; ❯❯ Map out your Time, Talent, Treasures and Ties – what else do you bring to the table other than your pocketbook? Can you provide technical expertise or link this organization to others who can help with that line item?; ❯❯ Convene conversations with industry experts and leadership; and ❯❯ Engage in public policy conversations as permitted by law Fiduciary responsibilities – Is it more than just reading a financial statement? Aside from giving money away (which is likely the best part of foundationmag.ca

Family Foundations running a foundation), one of the most important jobs of the Board is understanding how your assets grow and what your giving horizon looks like. One of the most important roles of the Board is to ensure that there is prudent fiscal oversight. What this looks like in practice: ❯❯ Know and ensure your foundation is in compliance of the tax laws; ❯❯ Understand your expenses and what is a reasonable proportion of operation costs to donations; ❯❯ Board members should not be compensated for their time with a few exceptions such as: travel to meetings, reimbursement of reasonable expenses associated with conducting the duties of the foundation (i.e. site visits). These exceptions should be documented in the foundation’s governing documents; ❯❯ Family members may be employees of the foundation and they may also hold a position on the board. As stated above, this must be documented in your governing documents and employee compensation must be justified to the market and have a job description along with performance objectives and evaluations; ❯❯ Ensure that due diligence is conducted on grantees ❯❯ Ensure there is a written investment policy; ❯❯ Establish and oversee the internal financial controls and record keeping; ❯❯ Approve the operating and disbursement budget and ensure that the investment strategy will meet these expenses; ❯❯ Retain an external firm or accountant to review the financials annually. For larger family foundations you might want to consider having a separate audit committee; and ❯❯ Share the financial information with the family members. Managing family dynamics To understand family dynamics, one should understand the history of the family. Today, in Canada there are five generations that are influencing the family wealth discussion. Those individuals who were born during the Great Depression through to those who are born today. With almost 100 years at the family wealth table it is no wonder that personalities, values and family dynamics are a strong force. As the image suggests (source: Johnson Centre), not only are there five generations at the family wealth table, but three of those generations overlap. This overlap is due to blended families and later childbirth. In some cases you will have Baby Boomers with Gen X children and Gen Y children; you will also have Gen X children with Gen Y, Millennials and iGen kids; and foundationmag.ca

you will have Gen Yers with iGen. Imagine being born when the telephone wasn’t ubiquitous having a conversation with someone who was born with a Smart Phone in their hand? Now imagine the pace of the conversation and how this pace influences what is discussed, how communities are built, how societies evolve and how politics play out. It is for this very reason you cannot expect family groups to vote as a block let alone share the same interests and values. “Family firms [foundations], and by extension their owners [founders], do not only strive for financial goals. The goal set of the family first prominently includes a concern for reputation and transgenerational control and for benevolent ties within and among the family, the firm, and community stakeholders.” As an individual sets out to establish their legacy they ask themselves, their partner(s), and their children questions about: ❯❯ Their core values; ❯❯ A vision for the future of the family and the society; ❯❯ Confronting mortality and time horizons; ❯❯ The lifecycle of the family and family business/wealth — growth or harvest mode; ❯❯ Shared urgency between the desires of the founder, the needs of the community and the passions of the inheritors; and ❯❯ Desired participation of their children and grandchildren. These existential questions are at the root of any philanthropy plan. Even when that philanthropic structure is established as part of a tax and wealth planning tool. We know that taxes and tax incentives don’t motivate people to give, but using the tax structures that are available makes planning easier and, depending on how the conversation is structured, moves the flow of capital from the foundation out into the community more effectively. Effective family governance can help navigate some of the sticky conversations around favouritism, harmony, and glass ceiling. These symptoms of family dynamics are not only found in the family business, they also manifest themselves around the family philanthropy table. By acknowledging these symptoms and using the guiding principles to shape the policies and procedures for decision making the foundation leadership establishes a strong base for ongoing activities beyond the founder. Lifecycle + governing principles + family dynamics = Impact The governance of your family council, family granting or full family foundation is more than just about the policies and procedures. It is the glue that ties the founder’s motivations with the desired social impact across the generations. Starting out with an end in sight and understanding the lifecycle of your foundation will allow for you to adopt the principles that will guide you through its evolution and manage the family dynamics that will shape the conversations. Gena Rotstein is a CoFounder of Karma & Cents. November/December 2019

FOUNDATION Magazine

Operations

Going Digital. Are You Truly Ready?

By Nicole Nakoneshny

hen was the last time you wrote a cheque? Funnily enough, I wrote one just the other day but, if you’re like me, it’s a rare occurrence. And I suspect many of you (particularly those younger than me!) probably don’t even have a chequebook. It feels like we are rapidly approaching a time when ‘writing a cheque’ will fall squarely into the ‘thing of the past’ category. According to CIBC, between 2008 and 2016, cash and cheque payments declined 22 percent and 41 percent respectively while payments made via mobile devices are expected to grow 23.2 percent annually through to 2020 and beyond. And, the way we pay for things is just one of the many ways that our lives are increasingly being led online. Of course, the non-profit sector is not immune to this movement toward online and mobile. According to CanadaHelps. org, a non-profit organization that helps charities raise money online, the number

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November/December 2019

of individual online donors has steadily increased to 20.5 percent annually over the past five years. And increasingly, those gifts are being made on mobile devices, with Blackbaud’s 2017 Charitable Giving Report saying that 21 percent of all online donations were made via mobile devices. This evolution to digital has implications for our work as fundraisers as we will increasingly need to be able to meet our donors in an online world. “As everything else in our lives is becoming digital, I think people also expect to be able to interact with charities in the same way that they do online shopping, banking and other things,” says Marina Glogovac, President and CEO of Canadahelps.org. “We also know that future generations are digital natives, so I think it will be imperative for charities to develop the competencies and capabilities to adapt or reinvent their roles and service in the digital age.” Adaptation not adoption While crucial for organizations to respond,

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Operations moving to a digital strategy doesn’t simply mean adopting the same approach as new market entrants. “The next generation of charities, organizations like charity: water and others, are a great place to look for inspiration and best practice, but it’s important to understand their model can’t simply be replicated,” says Jason Shim, Director of Digital Strategy at Pathways to Education. “These charities are being built from the ground up where 15 to 20 percent of their staff are software engineers. For most organizations, that kind of investment is simply not feasible.” But when creating an adaptation strategy, it is important to not relegate digital to the margins, but rather to wholeheartedly commit to it as a new way of doing business, as successfully ‘going digital means not just ‘doing digital’ but ‘being digital’. As a result, success requires three elements – Strategy, Capacity and Culture. 1. Strategy – Having a cohesive digital strategy is a must. Who are your audiences? What platforms are they on? What will your messages be? What digital channels and tools will you use? All of these questions must be answered in order to have success with digital. 2. Capacity – The organizational capacity and capability to develop, support and execute your strategy must be in place. Capacity means all kinds of things, including the knowledge, skills and technical capabilities of staff, infrastructure like systems, database, website and platforms as well as a means to monitor and assess progress and performance, such as analytics and reporting tools. 3. Culture – Success in digital means that digital is valued to the point that it has a ‘seat at the table’ and is integrated into the organization’s core work and business. In addition, there must be a culture of learning, testing and adaptation, where risk is tolerated, smart investment is encouraged and failure is simply seen as a part of the journey.

based on how strong the first levels are in your platform.” And while there is a strong tendency to want to immediately gravitate to Level 4 (Analytics and Advanced Tools), Celeste cautions that time and attention should be paid to the more mundane Levels 1 to 3. “The more solid you are in the first levels, the more powerful your Level 4 capacity will be. I almost think of it like a house, wherein the strength and integrity of your data overall will be based on how strong and robust the first levels are in your platform.” The journey to digital competence requires a commitment from leadership and a sustained investment in people, capabilities, technology and cultural change. And if you or your organization doesn’t feel that a focus on digital is a priority, challenge your thinking. It’s unlikely that’s the case anymore, but if it is, it’s time to confront that narrative and disrupt the beliefs that may be holding you back. About KCI - KCI is Canada’s leading consultants to the non-profit sector with professionals across the country in fundraising, strategy, research & analytics and executive search. Our core purpose is to inspire and enable organizations to raise money, to make the dream of better communities and improved lives a reality. And through our 35 years of experience, we’ve helped thousands of organizations craft their strategies, build their teams and raise billions of dollars in the education, health, social service, arts & culture and religious sectors. kciphilanthropy.com

Getting your ‘data house’ in order The final piece of the puzzle when it comes to being digitalready is data, which is the ‘yin’ to digital’s ‘yang’. Good data practices are a fundamental underpinning to the ability to optimally execute digital strategies as without good data, it’s virtually impossible to have success in digital. Celeste Bannon Waterman, KCI Partner/Lead, Research + Analytics, has created the data platform (see left) to be used as a guide when thinking about how to assess your data capacity and ensure it is as robust as possible. To assess where you are, start by having conversations with users, looking for what she calls pain points. “Look at where the challenges are and where people are deciding to do their own thing instead of working through official channels. This is a simple but really effective way to identify where your gaps are and, as a result, where you should focus.” And don’t short change the bottom of the platform. “The more solid you are in the first levels, the more powerful your Level 4 capacity will be. I think of it like a house, wherein the strength of your data overall will be foundationmag.ca

November/December 2019

FOUNDATION Magazine

Leadership

How Greenpeace is Shifting its Thinking About Campaigning To nurture internal buy-in toward designing more mindset change campaigns, Mindworks has created participatory trainings that put local office leaders in the driver’s seat.

By Nithin Coca

espite years of campaigning by environmental organisations around the world, awareness of and concern about climate change has not yet brought political action on the scale necessary to achieve science-based targets. Part of the problem is that climate and the environment provide specific challenges to campaigners due to their unique nature. Human beings, some theories argue, are not equipped to deal with distant future threats like climate change, and will instead focus on more imminent or intentional threats. Moreover, humans can accept changes that happen slowly and gradually — like climate — while focusing attention on sudden changes such as natural disasters. So how to design campaigns that take into consideration these human traits — and allow campaigners to build climate movements? It was with this in mind that Stefan Flothmann pitched a new project that would allow Greenpeace offices around the world to try to address the climate communications challenge from a more science-based perspective. “We realized that, when we were doing our climate work, the influence of what we’re doing and what we were saying on the brain is far more complex than just the build-up of information,” said Flothmann. That ideas has turned into Mindworks, which describes itself as the “cognitive science lab of Greenpeace,” and operates, functionally, as an internal start-up (similar to the 54

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Mobilisation Lab’s own origin). For Flothmann, now the global director of the project, the impetus came from the realisation that while Greenpeace was increasingly incorporating lessons and knowledge from hard sciences into its campaigning, social sciences were being neglected. “We had natural science unit for many years but we never had anything on social science,” said Flothmann. The early focus of Mindworks was to dive into the literature on cognitive science and climate messaging, and then figure out how to disseminate that information to Greenpeace staff so that they could incorporate it into their campaigning. The goal: train staff and offices to consider psychology and emotional impacts when designing campaigns. “We want to create very tangible tools to help offices do mindset change campaigns,” said Flothman. To do that, however, Mindworks first has to figure out how to change Greenpeace. In many ways, any large organisation is like society as a whole, with built-in biases and resistance to change. Adding to the challenge was that Greenpeace often undertook large-scale change projects, including organisational restructuring or shifting staff resources to new global campaigns, such as one recently launched around ocean plastic. The result was change fatigue and a desire for stability. Yet, what Flothmann was proposing was constant change and rethinking — a total shift in designing, running, and measuring campaigns. “We haven’t yet embraced a philosophy that change is foundationmag.ca

Leadership inevitable,” said Flothmann. “We need to embrace constant change because that’s the only way to stay responsive in a very fast-moving external environment.” Others had different concerns. What Mindworks was proposing would require additional work — not, as many hoped, quick methods to campaign faster. To address this, Mindworks shifted how they conducted trainings. Whereas initial workshops took a traditional approach, focusing on lectures or seminars where trainers spoke to audiences, current trainings are entirely different. “Our first trainings were largely presentations about all the great knowledge that we had discovered,” said Flothmann.” Now, we purely work through experiences and tasks that we actually give people and then reflection periods…working within the principles that we’re trying to preach.” Mindworks workshop Moreover, they work with specific country offices one at a time, and let national staff take the lead. For example, when preparing to work with Greenpeace India, Mindworks recruited local staff several weeks in advance of the workshops to prepare their own presentations on various topics. This allowed for both more local buy-in and local relevance. “A month before this training, we were given the materials, books, and asked to prepare by ourselves,” said Ali Abbas, a campaigner with Greenpeace India. “No certain method or form given to us.” For Abbas, Mindworks has provided a pathway for Greenpeace India to deal with the severe external challenges of the past few years. They’ve had their accounts frozen multiple times, and are facing active attempts by the Indian government to paint them as a foreign NGO that is trying to prevent India’s development. He saw a connection between how opponents attack Greenpeace India and the knowledge about cognitive science that Mindworks was sharing. “Corporations and the government are investing in psychology and mindsets of the people, and we are missing on that,” said Abbas. “That’s why it’s important to understand the learnings from the mind. Otherwise we’ll keep on doing the same public engagement activities, but we won’t achieve success until we are being impactful and considering narratives and how social norms are impacting people.” Mindworks is not alone in this. Other organisations, from WWF to Oxfam, have similar initiatives. There are also outside efforts such as Common Cause and the Narrative Initiative. While they all take slightly different approaches, they all see the need to think more deeply about the role of the mind and narratives. For Abbas, Mindworks has provided a framework for Greenpeace India to consider how it recovers and reframes campaigns to have a larger impact in an increasingly challenging environment. “My personal take away from the whole exercise was, maybe by campaigning we may achieve small changes or small successes, but to achieve long-standing changes we need to foundationmag.ca

work on mindset shift,” said Abbas. “Unless we do a mindset shift, it’s hard to achieve long-standing change.”

Part 2: How Greenpeace is using psychological approaches to build more effective climate campaigns

he internal cognitive science lab Mindworks is helping the organisation design initiatives that give audiences the courage to take action. The traditional model to run a digital campaign follows a fairly straightforward, if adaptable, structure. Develop campaign messages, test those messages for effectiveness with each target audience, usually focusing on response metrics, and then launch the campaign. But what if the goal is not petition signatures, shares or even responses? What if we aimed for something that’s deeper and tougher to measure: a shift in people’s mindsets, resulting in more meaningful, long-lasting change? “The concept of psychological approaches in our campaigning was so alien to people,” said Stefan Flothmann, a longtime staffer with Greenpeace, who launched Mindworks as an internal start-up within Greenpeace to explore applying cognitive science to create more effective campaigns. Since then, they’ve done research, created new models, and run workshops with Greenpeace and non-Greenpeace staff around the world to train them to both think about and integrate psychology and cognitive science into their campaigns. Their core recommendations range from clear tactics — such as putting the climate emergency at the centre of communication — to ones that will require campaigners to adapt their models — such as developing new audience research methodologies to identify emotional barriers when it comes to climate. They also urge caution when using frames that involve fear or guilt, as they can turn people off. According to their findings, campaigners should always provide assistance so that audiences resolve those negative feelings, and never communicate timelines that indicate a moment when it might be too late November/December 2019

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Leadership to take action. Indeed, all messaging should be focused on creating courage and confidence. Recommendations from Mindworks: 1. Put the climate emergency back at the centre of our communication while experimenting with new frames that build motivation and agency. 2. Develop new audience research methodology to identify the emotional barriers of our audiences on climate, which in turn support the development of effective campaigns to remove these obstacles to change. 3. Listen to and engage in conversations with our audiences. Create safe spaces and defining moments to help people resolve their emotional barriers. 4. When inducing fear or guilt to motivate people to take climate action, provide assistance to face and resolve these feelings. Never communicate deadlines that indicate a moment when it is too late. Create courage and confidence that we are starting to do the right thing. 5. Start addressing deep adaptation by integrating both adaptation and mitigation into one campaign approach. 6. Know yourself! As individuals, teams and as an organisation we need to be aware of our own emotions to communicate mindful and authentic. Japan leads the way One of the first offices to explore these new approaches is Greenpeace Japan, which had a workshop for all staff members with Mindworks in August 2018. Since then, they’ve been looking at ways to incorporate more narrative and storytelling into specific campaigns and the organisation as a whole. “We are creating a Greenpeace Japan overarching narrative, as this year is our 30th anniversary,” said Hisayo Takada, Greenpeace Japan’s Program Director. “We will start to use it this year.” That narrative will connect with efforts like Greenpeace Japan’s just-launched Ocean Sanctuaries campaign. In a shift from previous campaigns, it was made broader, encompassing oceans, plastics, and climate. They divided their target audience into three categories and developed different messages for each one, testing narratives focused on adventure, historical moments, and various symbolic marine animals. While many Greenpeace Japan campaigns did include these elements in the past, what’s changed is how deliberate it has become. “Before, we were not so organised, but having this mindset and storytelling workshop, then also having a plan that really focused on engagement, that combination is forcing us to think in a more systemic way,” said Takada. For Ali Abbas, a campaigner with Greenpeace India, which held a workshop with Mindworks earlier this year, considering psychology has forced him to rethink the traditional confrontational model that the office had been using to engage audiences for years, which often relied on shock and a 56

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dramatic element. “We have been doing certain things very repetitively, which was not making an impact impression on the audience or volunteers,” said Abbas. Now, they are trying something different, trying to provide more inspirational messages and engage them in deeper conversations. “During the election, we were doing a project called Climate Samwad, or Climate Dialogue,” said Abbas. That effort focused more on inserting environmental issues into the election debate deliberately. They’ve also shifted tactics around events such as a “Climb for Climate” event in Bangalore, and a concert in Chennai. “We [tried] to break from what is usual and implement things that capture the attention of people and have a longer lasting impact on them,” said Abbas. One major challenge is that the Mindworks model requires significant resources and, often, time to measure and understand responses. Each campaign and message has to be tailored, meaning that it doesn’t necessarily lend itself to easy replication or reproduction. Julia Lipton, with the C40 Cities Climate Leadership Group, attended a Mindworks workshop and while she found it valuable, she knows it will be difficult to implement. “The key takeout that I came away, is that C40 cities will need to use a combination of policy programs, communications, empowerment campaigns, all together to shift mindsets,” said Lipton. “There’s no one solution. We will need to use different mechanisms to target different audiences and meet people where they are at, and it will take resources and time.” One thing that could help are new tools that allow for campaigns to engage in more two-way conversations with target audience members. Currently, those types of interactions take place primarily in the real world, as most digital communications still tend to be broadcast style, be it by email, social media, or messaging apps. Mindworks is testing how chatbots could allow meaningful conversations around difficult issues that prevent people from engaging with organisations on climate change issues. “Chatbots are an opportunity to scale conversations in an online space,” said Flothmann. “We are developing basically tools that people can use to have conversations that ultimately help people out of anxieties or denial in relation to climate change.” This would also address one of the core findings and recommendations that Mindworks gives to campaigners — to engage in conversations and create safe spaces for people to resolve their emotional barriers around climate issues. Nithin Coca is a freelance journalist and media activist. This article appears with the permission of Mindworks. The firm is not alone in pioneering new methodologies for climate campaigns. Evidence increasingly shows that focusing on mindset might be the only effective path to changing the public’s thinking on climate change and creating the cultural shifts necessary to push for real action from global leaders. It won’t be easy, but by providing campaigners with training, tools, and frameworks, Mindworks aims to empower the next generation of climate campaigns. foundationmag.ca

Donor insights

Curating Knowledge The Age-Old Question: What Factors Lead to Giving?

By Phil Hills

not knowing the president is less important than not knowing about the organization’s overall impact.

However, having a negative view of the president cuts willingness to make a gift nearly in half, while a negative opinion of the board makes a gift only slightly less likely. So no opinion of, or not knowing, the president is very different than not liking the president. Perceptions of the board seem to have the least influence on willingness to give.

While we expected impact to be the headliner of influencers, our data tells us that the relationship between opinions of the institution and its leadership and the donor’s willingness to give are a bit less straightforward. Feasibility study responses in our database show that interviewees with no opinion of the organization were less likely to be willing to make a gift than those with a negative opinion of the organization. This finding signals that a negative opinion indicates an interest in — or even attachment to — the organization. Though there is clearly a need to address their concerns, these interviewees perhaps possess a passion strong enough to support the organization even as their concerns remain. Interestingly, people with no opinion about the organization’s president were just as likely to be willing to make a gift as those with a positive opinion of the president. It seems that foundationmag.ca

n the early 1900s, Andrew Carnegie famously said “It is more difficult to give money away intelligently than to earn it in the first place.” Fast forward 100 years, and fundraising professionals continue to study — with intensity — how to best cultivate and steward donors. A personal interview with a key constituent (a.k.a. feasibility interview) is a high-value opportunity to inform our understanding of individual attitudes and inclinations. But what can thousands of these interviews tell us about why major donors choose to give? We queried our database of more than 5,600 feasibility interviews to explore what factors are at play when the donor considers making a charitable gift. By far “impact” was the most frequent response to a direct question on what influences a donor to give. This reinforces the importance of investing in powerful narratives and unwavering donor stewardship.

In the end, donors are seeking impact. Communications and donor stewardship remain key components to fundraising strategy. Organizational leadership, particularly at the presidential level, should also be a priority. Involving top executives who are well-trained in their role as leaders in the institution’s philanthropy, can mitigate the formation of negative opinions. In an increasingly complex and scrutinized fundraising environment, philanthropy requires both engaged leadership and engaged donors. Phil Hills, President & CEO, Senior Consultant & Principal, Marts & Lundy. This research has been conducted by Marts & Lundy, which is the parent firm of Offord Group of Toronto. It is used here by permission of Marts & Lundy and is copyright by the firm and cannot be redistributed without permission. www.martsandlundy.com • www.theoffordgroup.com November/December 2019

FOUNDATION Magazine

CHAPTERs REPORT - BC AFP Greater Vancouver

Increasing member, new sponsor and gold status highlight a positive year

In 2019, the AFP Greater Vancouver Board of Directors Executive reviewed all board roles and recruited a full Board of Directors based on experience and interest to ensure portfolio growth and success. Our chapter would like to accomplish the following key goals in 2020: ❯❯ a 10 percent increase in membership to 400+ members; ❯❯ specialized professional development tracks supporting both young professionals and senior level executives; ❯❯ AFP Breakfast event annual sponsor; ❯❯ board and committee member succession planning; ❯❯ 10-star gold status; ❯❯ increased participation in the Every Member Campaign; and ❯❯ partnerships with CAGP and CFRE. The issue that our members worry the most about is opportunities for development and growth in their careers, ensuring they are providing value to their organizations and beneficiaries, and we are going to address it by providing strong educational programs, an outstanding mentorship program, and regular networking opportunities throughout 2020. We’re finding that the biggest challenge in growing our membership is supporting potential members at smaller organisations join AFP and educating non-member 58

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fundraisers about the benefits of AFP membership. Having a very diverse membership base is a unique aspect of being based in the Greater Vancouver area. For 2020, we are looking at having presentations on topics such as ethics, blended gifts, executive level training, and supporting more professionals achieve their CFRE designation. David Love, CFRE, President, AFP Greater Vancouver Chapter.

AFP Okanagan The Association of Fundraising Professionals (AFP) Okanagan Chapter serves to advance philanthropy by enabling people and organizations to practice effective and ethical fundraising. AFP Okanagan Chapter started just over 5 years ago and has been developing and strengthening its presence in the communities we serve ever since then. Our board of nine works hard to provide the link to professional networking, roundtable sessions, educational programs and mentorship for all levels of fundraising. As a growing Chapter of 50 members, we are faced with trying to meet the needs of Professional Fundraisers throughout the Okanagan Valley. Eliminating the barriers to participation when members and non-members are located all over the Thompson/ Okanagan region (290 KM from North to South) is a priority for us this coming year. We want everyone to have access to the resources and support they need to do their jobs well. We are also excited to be working in partnership with the Western Canada

November/December 2019

Fundraising Conference 2020 planners who are organizing the conference May 13-15th, 2020 in Kelowna. This will bring together professional fundraisers from all over Canada and beyond to our amazing city. Learn more http://wcfc.ca Each year we host our annual National Philanthropy Day Luncheon. On November 13th, 2020 we will be celebrating philanthropy and the positive impact giving, volunteering and charitable engagement has in the Okanagan. We are a small but mighty group working closely with our members and other fundraising professionals to ensure that we are supporting each other and the many charities and their donors throughout the Okanagan. Contact us at afpokangan@ gmail.com or visit www. afpokanagan.ca to learn more!. GIVING TUESDAY OKANAGAN When: Dec 3, 2019 from 7:00 AM to 7:00 PM (PT) Associated with AFP BC, Okanagan Chapter Stay tuned for more details about events taking place throughout the Okanagan. LOCATION: Okanagan, 435 Water St, Kelowna, BC V1Y 1J4

JDRF Starlight Gala by RBC Shines in Kelowna

One of the major events connected with this chapter was the benefit in Support of JDRF Canada, a beacon in the Okanagan Valley night. The 14th Annual Gala was an astonishing success, with more than $119,000 was raised towards type 1 diabetes (T1D) research. Chapter President - Richelle Leckey is the Community Engagement Coordinator for Okanagan Boys and Girls Clubs.

AFP Vancouver Island

Volunteer-led chapter has Star Gold Award, Every Member Campaign

Our chapter represents fundraising professionals across Vancouver Island and we are your one-stop shop for information, education, certification, job-postings and networking events for professional and volunteer fundraisers. It is our mission to support you in your professional fundraising journey and help you feel supported, connected and educated about the philanthropic process so that you can create a culture of philanthropy in your organisation! We are a volunteer led chapter, with the help of a part-time administrator Monica Powell. If you are interested in getting more involved with AFP VI please attend our events and reach out to our board members and learn more about our committees and areas of activity. We are always welcoming new committee members to support us with our strategic objectives. You foundationmag.ca

Chapters Report - BC can also email Monica at afp. vancouverisland@gmail.com to find out what opportunities are available. AFP Vancouver Island is proud to be a recipient of the 2019 10 Star Gold Award, honouring AFP Chapters that have accomplished many of the key objectives outlined in the strategic plan.

The Annual “Every Member Campaign” The Every Member Campaign is the AFP Foundation for

Philanthropy Canada’s annual campaign to raise the profile of the fundraising profession by creating sector advocates through education, building philanthropic leaders through scholarships, strengthening the sector through career mentoring and fostering a better understanding of our profession though research. The 2019 Every Member Campaign objectives for the Vancouver Island Chapter are: ❯❯ to exceed our fundraising goal of $5,400.00; ❯❯ to increase our Alpha

Society (monthly) donors; ❯❯ to fulfill our 100percent board member commitment to support the Every Member Campaign; and ❯❯ to receive the 10-Star Gold rating for our chapter. Why Give? Your support makes a difference. Your generous gift to the Every Member Campaign enable us — the Vancouver Island Chapter — and the AFP Foundation for Philanthropy Canada, to raise the profile of the fundraising

profession and support AFP members in their careers as professional and ethical fundraisers. Donations made by members of our chapter have a direct benefit for fundraisers on Vancouver Island and within our communities. This year, we again have the potential to receive a grant of 35percent of our fundraising efforts returned to our chapter in support of local programming. Colleen Bronson, President, AFP Vancouver Island.

CHARTER EDITORIAL ADVISORY BOARD

Would you like to join the Board? Email Steve Lloyd, at steve.lloyd@lloydmedia.ca for information.

Valerie McMurtry President & CEO Children’s Aid Foundation of Canada Christine Lukewich, CFRE Manager, Gift Planning & Annual Fund Lakeridge Health Foundation Paul Brousseau President BMR Group

Kimberly Henry, CFRE Director of Development Lisaard & Innisfree Hospice

Harvey McKinnon President McKinnon & Associates

Marilyn Anthony Managing Director PearTree Financial

Brady Hambleton VP, Marketing, Engagement & Analytics Canada’s Children’s Hospital Foundations

Steve Shaw Chief Strategy Officer Kenna

Stephen McGill President & Creative Director mcgillbuckley

Yair Lehrer VP Marketing Graduway

Mary Lynne Stewart National Director of Fund Development and Communications March of Dimes Canada

Anne Rosenfield Principal Charitably Speaking

Matt Shaw, CFRE Vice President, Development Abilities Centre

Allen Davidov Dir., Business Consulting Environics Analytics

Nneka Allen Senior Director London Health Sciences Foundation

Adam Zawadiuk, CFRE Manager, Individual Giving YMCA of Northern Alberta

Edgardo G. Gonzales Multicultural Philanthropy Advisor | Strategic Fundraising Initiatives World Vision Canada

Angela Chapman Chief Development Officer & SVP, Philanthropy VGH & UBC Hospital Foundation

foundationmag.ca

Rickesh Lakhani Executive Director Future Possibilities for Kids Keith Thomson Managing Director Stonegate Private Counsel

Wes Moon CEO, Co-Founder Wisely

Cynthia J. Armour, CFRE Principal Elderstone Resource Development

Steve Burrows Canadian Author, Philanthropist Birder Murder Books Paula Attfield President Stephen Thomas Ltd David Hutchinson President Cause Leadership Inc. Tom Ahern Principal Donor Comms Karen Sinotte Professor, School of Management, Non Profit George Brown College Allan Hoffmann Canadian Director Blackbaud Eric Esselink CEO LRI Engineering Adam Aptowitzer Managing Lawyer Drache Aptowitzer

November/December 2019

FOUNDATION Magazine

Continuations The Privilege of Spending the Last Season of my Career at Diabetes Canada

my career in a health charity is the close connection it has afforded to the purpose of reducing the burden of diabetes and to the myriad of Canadians affected by it.

Continued from page 15

“It is already happening. It’s been happening for a very long time. Let’s protect people now. They may not come forward, but at least they will know they are protected.”

Dr. Jan Hux, President & CEO, Diabetes Canada.

on some of the intractable problems faced by Canadians and accordingly value collaboration over solo efforts that can be attributed to them. Better integration of and access to health services is a critical goal for those living with diabetes however, on a longer-term scale, they have even higher aspirations — to see more effective treatments and, ultimately a cure. So, while our advocacy ambitions drive very public activity at government offices and parliament buildings across the country, our research aspirations take us to isolated laboratory facilities tucked away on university campuses. A strategy for creating impact by funding research faces several countervailing forces. There is real appeal in focusing resources on a single promising line of research to push it over the finish line but the awareness that what lies ahead may be a dead end rather than a finish line favours the funding of a broader range of projects guided by the insights and instincts of the researchers themselves. Funding successful senior researchers increases the probability of achieving impact but a failure to fund new and emerging researchers can drain the pipeline of future scientists. Multi-site multidisciplinary teams can foster creativity and innovation, yet the incentives faced by scientists seeking tenure in their university department are still far too aligned to individual contributions. Finding our way forward in the face of these complex trade-offs requires us to work collaboratively with scientists and with other funding agencies in government and the not-forprofit sector. As I reflect on our sector, I have appreciated the shift in language from non-profit to not-for-profit. Some have suggested a further evolution to forpurpose. I like that! One of the great privileges in spending the last season of 60

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Connecting the Dots on Sexual Misconduct in the Philanthropic Sector Continued from page 29

On August 31, 2018, she received the outcome of the investigation. To her surprise, they decided there were no grounds for the claim due to lack of credible evidence. It was ‘he said she said,’ they said. In addition, his behaviour was deemed as non-sexual. She was devastated by the complete about-face. Eleven days later, Maxwell was fired without cause. The department head had been promoted and was now the secondin-command of the entire institution. The investigator ultimately reported to him. People are muzzled “I’m hoping in Canada we can make strides in this,” says Lyon. “As an industry, we are mostly made up of women, but we are not in the c-suite.” She feels the groundswell of conversation has to continue and there needs to be discussion about reporting or keeping the lights on in the charity. People are muzzled directly or indirectly, she says. They are asking if this is worth losing my job or hurting my charity? “Before Tough Topics, we weren’t being mobilized,” says Lyon, but she believes “this has gone on too long. It affects our ability to be professional, results in turnover in the industry, and affects your view of the sector. But we also have the privilege of not letting this go for the people who cannot speak up. That’s the reason I didn’t say something sooner. I can only do this now because of the network of women I have to support me.” Lyon says that leaders can’t wait for an incident to happen.

November/December 2019

Gail Picco is a Canadian charity impact strategist, author and book blog editor. AFP Global Daily has been working on this in-depth article for a couple of months. Today we’re featuring Part One: When Women Speak Out. Part Two, The Response, consolidates the information about what is happening to promote change, will be published in the near future.

The Well Informed Donor Continued from page 42

In British Columbia, the Wills, Estates and Succession Act includes a provision that Kaufman calls the “vanguard of the digital age.” The provision allows courts to recognize a document as a Will if it has been recorded or stored electronically, can be read by a person and is capable of reproduction in a visible form. “In Australia, a draft text message was recognized by a court as the last Will and testament of a man who left everything to his brother along with instructions for his cremation,” says Kaufman. “The man died by suicide before he sent the text. Afterward, his wife contested the text message, but the judge allowed the Will to go forward.” New companies are beginning to offer services to help people write their own Wills and then upload them to the cloud for storage. Since digital Wills are still new technology, legal challenges to these documents have yet to be fully resolved. In addition to digital Wills, there are companies that market digital services to consolidate paperwork for estate planning. Guerriero says she doesn’t advise people to choose any specific company or method to get organized. “Just get everything together in one place, keep it safe and tell your executor where to find it,” says Guerriero. In spite of living in an increasingly digital world, that message resonates today as much as foundationmag.ca

Continuations it did 100 years ago. Brendan Read is Editor of DM Magazine and Foundation Magazine.

Benefits of Using a Private Corporation for Charitable Donation Continued from page 47

The CDA enables private company shareholders to withdraw capital from the company tax free, something very attractive to business owners. In our experience, given the choice, most business owners will make their FTSD in their corporation rather than personally, in order to maximize the tax savings. Even though the integrated after-tax cost of giving in an operating company is greater than the personal cost of giving in year one, the tax savings in future years result in a cost of giving much less than the 19.95 percent after-tax cost of giving personally, with a FTSD. A FTSD by a holding company will immediately result in a much lower cost than the personal after-tax cost of giving, when using a FTSD. With an operating company, the same is true, although not immediately in the year of donation. Importantly, it is worth pointing out that whether making a gift personally or in a corporation, a FTSD materially reduces the after-tax cost of the gift, compared to a gift of cash.

Mission, for example, had response rates five times higher after using Canada Post mailing lists to identify the most promising leads. Meanwhile the Cancer Research Society used customized Postal Indicia to boost revenue per name at a lower cost than a regular stamp. Helping others to help others We continue to help charities in lots of ways. One is to use data analysis to pinpoint prospects who are similar to their current donors. We are forging new partnerships with data partners that can help our customers with donor segmentation and modelling to inform their marketing strategies. We are developing new sources of data intelligence to help charities identify potential donors using location-based behavioural data. Targeted campaigns can maximize donations while being cost-effective. Our professional services team provides expertise and guidance to charitable organizations, helping them target new donors and build lasting relationships with existing ones. A finetuned, long-term mail campaign or a series of campaigns can help to move and motivate donors through the lifecycles. Turn a first-time donor or once-a-year donor into a donor who authorizes a

Annette St. was purchased, called “Oakland”. It had been designed by James Ellis. The house could accommodate 35 children.

Disclaimer: The analysis presented herein is based on a number of assumptions. PearTree recommends all clients work closely with their advisors to test for applicability of our format to their gifting. It is important that prospective donors are advised to obtain independent tax, legal, and/or wealth management advice on the planning implications for making a gift of flow through shares.

Continued from page 62

it with their partners. Charities have shared with us their great results in recent years. Montreal’s Old Brewery foundationmag.ca

Doug Ettinger is President and CEO of Canada Post Corporation.

Historic Plaques Which Honour Philanthropy

Les Ross is vice president of business development for PearTree Financial.

In Our World, Caring and Giving Still Matter

monthly withdrawal. Prompt them to eventually make a bequest as they plan their estate. We are investing in a new self-serve digital tool that will allow charities to plan, execute and measure their campaign online, easily and in one place. We’re also sharing our research about how Canadians interact with mail. Folks assume — but it’s not true — that younger Canadians don’t respond to mail, when in fact it stands out for them and they’re receptive to it. We are also helping charities create high-impact content and designs, with technology like predictive eye-tracking. Canada’s charities and Canada Post: our roles and futures are woven together. As the demographics of donors and the nature of giving evolve, we’re evolving, too: our offerings, partnerships, data and research. We remain an effective partner for charities, and they are valued partners for us. By working together, we can continue to build a strong charitable sector, and a more generous, compassionate and resilient Canada. Most Canadians don’t live in a small town anymore. But caring and giving still matter, perhaps more than ever.

Jewish Children’s Home 1922-1935, 336 Annette Street, Toronto, ON The Jewish Orphanage was established in 1909 in a rented house in the Ward, later moving to 218 Simcoe St. In 1921 the name was changed to Jewish Childrens’ Home, and in 1922 a stately house at 336

HISTORY The children went to local schools and attended Jewish Sunday School and were provided with clothing and meals. The Home was closed in 1935 due to disagreements between the newly established Jewish Children’s Bureau’s (JCB) and the Jewish Childrens’ Home (JCH) around child welfare policies, as well as a need for the Federation to cut costs, which led to the establishment of the United Jewish Appeal. The house was demolished in 1936. Photographer Arthur S. Goss. Source: City of Toronto Archives Salmon Collection SC 231 627

November/December 2019

FOUNDATION Magazine

A Leader’s View: Doug Ettinger, President & CEO, Canada Post

In Our World, Caring and Giving Still Matter

By Doug Ettinger

hen a neighbour was in need in the small Nova Scotia town where I grew up, people just showed up with their tools or their casseroles and pies. Or on their way into the rink, they tossed $5 into a bucket as volunteers collected for a family travelling to a faroff, big city to stay near the children’s hospital. Caring meant doing something to help. That’s a local, small-town snapshot of the critical role that Canada’s charities play. In a more sophisticated way, and on a larger scale, they take care of people. They fund the important needs and causes that matter to people. With their credibility and good work, and with their compelling appeals for donations, they persuade people to donate. Charities help to make Canada one of the five most giving countries on the planet, per capita. Charities have, thanks to this generosity, spirit and devotion by countless individuals, become an integral part of our lives, our communities and the seasons on the calendar, as well as our economy. The billions of dollars in donations that they solicit are put to good use in so many ways: funding medical research, international development, disaster relief, the arts, supporting the vulnerable and much more. The Canada Post Community Foundation Think of charities and Canada Post, and direct mail springs to mind right away. But we have another window into the vital charitable sector: our own charity. The Canada Post Community Foundation 62

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supports youth and children by funding organizations in communities across Canada: literacy and language programs, youth outreach services, gender and sexual diversity programs, the arts and more. Most of the funds are raised through our fall in-store campaign and sales of a special stamp. Our employees in post offices across the country embrace the cause. For example, in rural Nobleton, ON, they decorate the post office with a different theme (this year it’s country & western) and name generous local donors on a “wall of fame.” In tiny Nakusp, B.C., they framed the local newspaper story about the Nakusp Youth Society’s $15,000 grant from our Foundation. In Brighton, NL, the postmaster raffled off a gift basket with baked goodies and a homemade quilt. Across Canada, there’s a heartwarming commitment. Funds go to organizations in the province or territory in which they were raised. In the last eight years, the Foundation has granted more than $8 million to more than 700 projects. Everyone at Canada Post is proud of that—but the Foundation, like other charities—sees the requests for funding far exceed donations. It’s a case of, you would do more, if only you could. Role of direct mail Needs that exceed resources is a big challenge, but it’s far from the only one charities face. Raising money costs money, and charities’ own budgets are tight. Charities rely on a shrinking number of people for donations, donors’ attention is harder to get and engaging younger Canadians takes special effort. Fortunately, Canada’s charitable sector has a powerful, proven tool: and a committed partner behind it. That tool is direct mail. It still matters enormously

November/December 2019

because it is enormously effective. Just last year, the Association of Fundraising Professionals said mail is the leading way most donors give to charity. “Direct mail is the engine that keeps our mission moving forward,” Joanie Gutterman of the Cancer Research Society recently told a Canada Post colleague. That’s true for many charities. Donations by mail is one of the top three methods of giving, accounting for 22percent of funds, said the 2018 report 30 Years of Giving in Canada, published by the Rideau Hall Foundation and Imagine Canada. That’s one indicator of how important mail is to charities. Holiday giving is an annual tradition in keeping with the spirit of the season, and it reminds us of the power of direct mail. Many charities receive half of the year’s total donations in the last three months, with December the biggest month. At Canada Post, four in 10 pieces of mail that not-for-profits send all year comes to us in the last quarter. It’s mission-critical for charities to ensure their cause or appeal is top of mind and that it converts best intentions into actual donations. Direct mail has the impact to do that. A compelling mail piece raises fresh awareness of the cause, offering the charity an opportunity to increase its donor base. It can also deepen the relationship between an existing donor and the charity, motivating that donor to give more, or more often. It has the power to trigger donations at a particular time: for causes that mark a season. Consumers read and save direct marketing pieces that are relevant to them. Solicitation letters fit the preferences of people who are thoughtful about giving and take the time to discuss Continued on page 61 foundationmag.ca

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