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FOUNDATION The Business & Spirit of Philanthropy in Canada July/August 2021 | Vol. 2 | No. 10

Guest Editor

Paul Nazareth on The Future of Gift Planning INSIDE:

• Turning a New Chapter • Indigenous-Led Philanthropy • Diversifying Diversity Part 3 PM 4 0 0 5 0 8 0 3


THE LEAD IN

The World Around Us

An ostrich-like bird, the Darwin’s (or Lesser) rhea is one of the most distinctive, fabled and endangered residents of the Chilean steppe. Rheas do not fly, but thanks to their unusually large wings, which they spread behind their bodies while running from predators, they can sprint at speeds over 50 kph. Two species of rhea, the Greater and Lesser, occupy overlapping ranges in Patagonia which straddles Argentina and Chile. A groundbreaking conservation programme by Tompkins Conservation is helping to restore this iconic bird to Chilean Patagonia. “We’ve had a very successful hatching season, with 22 new chicks in Patagonia National Park, at South America’s only reproduction centre for Darwin’s rhea,” says Kristine Tompkins, President of Tompkins Conservation and a UN Environment Programme (UNEP) Patron of Protected Areas. “In four years of our rewilding programme the population of this endangered species, which fell to only 20 in Patagonia National Park, has tripled.” The Ñandú (Darwin’s rhea) Reproduction Centre began operations in 2015 in Patagonia National Park. It’s part of a larger rewilding programme to restore native species to create whole and healthy ecosystems. “Since the 1970s there have been unprecedented global declines in the extent and integrity of ecosystems, distinctness of local ecological communities, abundance and number of wild species, and the number of local domesticated varieties,” says a recent article in Science titled Pervasive human-driven decline of life on Earth points to the need for transformative change, written by authors of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services Global Assessment. Tompkins Conservation, The Pew Charitable Trusts and the Government of Chile announced an agreement to create a public-private fund to ensure the future conservation of Chilean Patagonia. This move to protect one of the last wild places on Earth could be a game-changer for conservation. Patagonia is a vast, sparsely populated region at the southern end of South America, shared between Chile and Argentina. With its fjords, glaciers, large forests, numerous waterways, steppe and grasslands this unique environment offers significant potential for conservation. The funding agreement will allow implementation of responsible and effective pathways for change, concurring with the Platform’s finding that “successful conservation outcomes are dependent on adaptive governance, sustained funding, strong societal engagement, effective and equitable benefit-sharing mechanisms, and monitoring and enforcement of rules.” According to Francisco Solis of The Pew Charitable Trusts, “the Chilean project is unique in that it proposes to give equal attention to community benefits and enhanced nature protections. Here, private contributions will complement increases in public investment in park management until the government ultimately assumes full fiscal responsibility through sources such as tourism revenue.” The project is a response to the challenge of financing and managing a dramatically expanding park system, after Tompkins Conservation’s historic donation created seven new national parks and expanded three others in Chilean Patagonia. In all, the foundation donated over 526,000 hectares of land. For Kristine Tompkins, President of Tompkins Conservation and UN Patron of Protected Areas, the milestone takes Chile one step further to becoming an international model for conservation. “We consider this fund to be a keystone of our commitment with Chile post-donation,” she explains. “We are helping to conserve one of the most pristine corners of the planet.” foundationmag.ca

July/August 2021

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CONTENTS

3 THE LEAD IN July/August 2021 | Vol. 2 | No. 10

6 SEEN, HEARD & NOTED www.foundationmag.ca

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Twitter: @foundationmaga1 PRESIDENT / EDITOR-IN-CHIEF Steve Lloyd - steve.lloyd@lloydmedia.ca DESIGN / PRODUCTION Jennifer O’Neill - jennifer@dmn.ca PHOTOGRAPHER Gary Tannyan Tanya Hannah Rumble Reverend Graham Singh Roxanne Tackie Phylicia Davis-Wesseling Mariya Yurokova

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

Philanthropist as Villain. Or Not.

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Philanthropic Partnerships

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CONTRIBUTING WRITERS Malcolm Burrows Sara Krynitzki Sarah Chamberlin Paul Nazareth Marina Glogovac Peter Nicholson Mark Halpern Kathleen Provost Christine Kang Sharon Redsky Stuart Keeler

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July/August 2021

Wealth Management - Malcolm Burrows Leadership - Kathleen Provost

The Evolution of Health Care Marketing & Fundraising - Sarah Chamberlin

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Creative Charitable Gifting Strategies The Accidental Philanthropist - Mark Halpern

IN CONVERSATION

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Diversifying Diversity Women Well Represented in Nonprofit Sector, But What About Intersectionality?: Part Three

DONORS

38 Triple Your Charitable Donations? The Time is Now. Here’s Why.

HISTORIC PLAQUES

39 Ernest Thompson Seton Plaque COMMENT

42 Why Going Digital is Core to Mission Next Issue… Watch for the September/October Issue. Our Special Report on Volunteerism in Canada. Inside looks, profiles, personal stories, insights, and pure data. And look for our next Fundraising Report, as well as a Tech Report on Digital Tools in Nonprofits. foundationmag.ca


CONTENTS

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ON THE COVER

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OUR GUEST EDITOR

EVOLUTION

22 Guest Editor – Paul Nazareth

26 Turning a New Chapter in Philanthropy

INTRODUCTION

23 The Evolution of Strategic Philanthropy in Canada

GIFT PLANNING

24 The Gift of Art

Passion Assets: How gifts of art and culture can be a catalyst to better gift planning conversations

30 Advancing Indigenous-Led Philanthropy in the Gift Planning Conversation

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Empowering the Community

LEADERSHIP

32 Church Crisis, Foundations Opportunity 34 Five Ways to Steward a Diverse Group of Donors

PLANNED GIVING

36 The Surprising Connection Between Wills and Social Media July/August 2021

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SEEN, HEARD & NOTED Rainbow Railroad, an international organization that helps LGBTQI+ people escape violence and persecution to find a path to safety, joined The Honourable Minister Marco Mendicino at an announcement of a new, dedicated refugee stream in Canada for international Human Rights Defenders. Rainbow Railroad welcomes this announcement and looks forward to working closely with the government on its implementation. LGBTQI+ people continue to face widespread discrimination and violence globally in the approximately 70 countries around the world in which same-sex intimacy is criminalized. In some countries and regions, the situation is rapidly deteriorating, with LGBTQI+ communities being targeted in both community and state-led crackdowns. Relatedly, harassment and targeting of Human Rights Defenders is increasing. Canada becomes one of the first countries in the world to provide a dedicated refugee stream for Human Rights Defenders at risk. Rainbow Railroad has played a consultative role in developing this new policy, making key recommendations to inform the Ministry of Immigration, Refugees, and Citizenship, since the Minister’s mandate letter called to “Introduce a dedicated refugee stream to provide safe haven for human rights advocates, journalists and humanitarian workers at risk, with a target of helping resettle as many as 250 people a year”. 6

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“Rainbow Railroad has been working with the government of Canada to advocate for the tools needed to support Human Rights Defenders at risk around the world — especially those who are LGBTQI+ and thus uniquely vulnerable to persecution and violence,” said Rainbow Railroad Executive Director, Kimahli Powell. “We look forward to working with the government and its implementing partners to ensure LGBTQI+ Human Rights Defenders are included and prioritized in this new stream.” Recently, Rainbow Railroad has clearly outlined the global conditions impacting vulnerable LGBTQI+ populations experiencing global persecution and violence in its report on the impacts of COVID-19 on LGBTQI+ migrants and in its comprehensive Annual Report: Understanding the State of Global LGBTQI+ Persecution. In both reports, Rainbow Railroad details the unique vulnerabilities and challenges that global LGBTQI+ refugees, displaced persons and Human Rights Defenders face. ••••••••••••••••••• Throughout COVID-19 the move away from cash toward contactless payments has been accelerated. This shift has posed a great challenge for fundraising efforts of all kinds that have relied on inperson donation collection. To provide the charitable sector with a solution for the post-pandemic world, Moneris Solutions is collaborating with the

July/August 2021

Canadian startup, tiptap, to offer touchless giving technology for non-profits and charities of all sizes. “We’re excited to be working with tiptap, a great Canadian scale-up that helps non-profits and charities help others,” says Malcolm Fowler, Chief Strategic Partnership Officer, Moneris. “The payments industry has made great strides in improving and expanding contactless payments to better protect Canadians during the pandemic. However, a convenient technological equivalent to support charities and non-profits has been a gap. tiptap has really created a solution that will help charities continue to raise funds for their important work.”

The standalone nearfield communication (NFC) enabled wireless devices developed by tiptap allow Canadians to “tap to give™” using a debit card, credit card, or digital wallet. Each pocket-sized unit functions as an autonomous POS system with a pre-set dollar amount, enabling contactless transactions without additional equipment or complicated back-end technology. “From a consumer perspective, it doesn’t get much easier than tap-andgo,” says Chris Greenfield, CEO and founder of tiptap. “That said, from a vendor perspective, there are certain scenarios — like fundraising — where the existing contactless foundationmag.ca


SEEN, HEARD & NOTED payment offerings are over-complicated. tiptap is changing that with simple setup and operation. With turn-on-and-collect devices and little to no capital required to get started, we see our solution really meeting a unique need for non-profits and charities.” Multiple devices of different dollar amounts can be grouped together in a standalone display or even carried around by volunteers so giving is as easy as tapping the amount of choice. The devices can also be integrated into a brand or organization’s marketing materials enhancing the fundraising efforts by foundations and corporations. When the Royal Botanical Gardens in Burlington, Ontario wanted to raise funds for their latest campaign while maintaining social distancing, Moneris and tiptap helped to install a solar powered standalone station by the trail entrance. Visitors could then simply tap their card before continuing on their walk, enjoying the natural beauty of the park. ••••••••••••••••••• Jansen Ng of East Gwillimbury sees his windfall as a social and moral responsibility, promising to do a lot of good as Ontario and Canada’s newest multimillionaire. He even vows to continue to cut his own hair! Jansen collected the massive $65 million jackpot from the Tuesday, July 6, 2021 LOTTO MAX draw. The 41-year-old, who is an occasional lottery player, decided to buy a LOTTO MAX Quick Pick ticket at a foundationmag.ca

local gas. “A few days after the draw, I went to check the ticket on a ticket checker and the message said, ‘Please See Retailer’. I thought the ticket checker was malfunctioning and decided to check the ticket at home on the OLG Lottery App.” That’s when he saw the ‘Big Winner’ message on the App but didn’t believe it so he kept checking it on a few other mobile devices.

experience.” As a spiritual person, Jansen says “I see this as God’s money; I’ve just been entrusted to take care of it for a little while.” Jansen says he wants to continue to support charities he currently works with, which remain near and dear to him. He is also exploring ways to set up several foundations and not-for-profits. “I have

He finally went back to the retailer with the ticket and the terminal began to chime and announce ‘Winner/ Gagnant’. That’s when he truly got excited and his first thought was, “Thank God. This is a huge blessing!” The first person he told about his new windfall was not his parents or his banker. Instead, he went to visit his pastor. He knew that lottery winners usually seek out financial advice when they first learn of their win, but he wanted to seek some spiritual and moral advice. “I felt the responsibility of this win immediately. I wanted to be sure to use this money responsibly, so I felt my pastor was the best person to work that through with me. This is such a humbling

travelled extensively over the years, saw much poverty and want to try to make the world a better place with some of this money. Lottery winnings used strategically and intentionally can impact the community far beyond just a simple donation.” As a former member of the military, he suffered a traumatic brain injury that led to his retirement. He vows to help fellow veterans and others to deal with nonvisible injuries that lead to a severely diminished quality of life. “At one point, I was almost homeless because I didn’t know how to deal with my injury. I was struggling with making decisions and some of the things I did were strange and irrational, but I kept the true cause hidden July/August 2021

from the people around me. I hope to help some who are struggling as I did without having to face more personal hardships.” ••••••••••••••••••• CIBC Asset Management Inc. (CAM) launched a new ETF Series of CIBC Sustainable Investment Solutions, providing access to actively managed strategies that seek to align with the investing values of socially responsible investors. A portion of CIBC’s revenues from managing these environmental, social and governance (ESG) solutions are donated to organizations supporting climate transition activities. David Scandiffio, President and CEO of CIBC Asset Management noted the CIBC Sustainable Investment Solutions are actively managed funds that integrate a socially responsible approach to investing while providing a range of income and long-term capital growth outcomes. The CIBC Sustainable Investment Solutions are designed to align investors’ wealth with a values-based approach focused on responsible investing. The solutions also aim to have a lower carbon footprint and energy sector exposure than broad market indices, and employ positive sector screening for companies involved in the renewable energy space and green bonds. The products utilize CIBC Asset Management proprietary ESG analysis and portfolio construction methodology in conjunction with customized screening from Sustainalytics. FOUNDATION Magazine

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WEALTH MANAGEMENT MALCOLM BURROWS

Philanthropist as Villain. Or Not.

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BY MALCOLM BURROWS

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GARY TANNYAN

ome of the most nefarious villains in popular culture are philanthropists. The fabulous — and fabulously junky — Netflix series Lupin makes it clear. Philanthropists are smiling hypocrites with too much money and no scruples. In Lupin, the villain that bedevils the titular gentleman burglar hero (played by the supremely charismatic Omar Sy) is a corrupt, arm’s dealing industrialist who has cops and cabinet ministers in his pocket. The plot partly turns on the launch of his private foundation, which is notionally to be run by his only daughter. Instead it’s a facade for moneylaundering. Super villain bad stuff. When did philanthropists become a “thing” that attracts both attention and suspicion? What is it about the “philanthropist” that is fuelling the popular imagination? And what’s the reality of on the ground in Canada? A stereotype emerges Without full data to support me, I’d say the contemporary image of the “philanthropist” dates to the early 2000s. It was the billionairemegadonor, Bill Gates-Warren Buffet years. The book, Philanthrocapitalism: How the Rich Can Save The World, by Matthew Bishop and Michael Green foundationmag.ca


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captured the moment. The gee-whiz title conveys the breathless sycophancy of the writers and why philanthropy might inspire skepticism. Suddenly, the word “philanthropist” became mainstream — a ten-cent term for charitable donor. My prime evidence for this cultural phenomenon is Bond movies. Quantum of Solace, 2008. Villain is a philanthropist. Before that bad guys were just foreign and/or mega rich. Jump forward to the 2020s: Bill Gates caused COVID and is injecting people with micro-chip laced vaccines. Q told me. Reasons for the bad reputation Here are three possible reasons why “philanthropist”, especially of the megarich variety, may have become a synonym for baddie: 1. The label has been overused and is perceived to virtuously rebrand rich people. It’s a form of reputation laundering — sometimes intergenerational — that obscures a multitude of sins. 2. There is an image of philanthropy as an extended glitzy party or photo op. These pictures imply the philanthropic act is more about society and personal pleasure. Selfindulgent, ego-driven stuff. 3. Philanthropists get more attention than the work or people they fund. This happens when the size of the cheque overwhelms the action in the community. Philanthropy has wealth and power inequity baked in. Some argue that no matter how well-meaning, philanthropy foundationmag.ca

is a one-way street. The philanthropist has the money and power; beneficiaries do not. But in practice these inequities can and should be mitigated. The power imbalance is muted after a gift is made, the charity owns the money, and is carrying out its programs. Changing face of philanthropy Beyond the debate, and the popular culture stereotypes, is an underlying shift about philanthropy in Canada. The philanthropist is not who we think he is. There is a combination of factors that has been fuelling philanthropy in Canada in the last 25 years. Each item on the list below is worthy of its own debate and several academic theses. Combined they are transforming the way and amount Canadians are giving to charity: ❯ increase in asset values (stocks, real estate, business valuations); ❯ wealth concentration; ❯ smaller family size and more Canadians without children; ❯ diversity of population; ❯ aging society; ❯ mainstream positive awareness of philanthropy to contribute to society; ❯ increased professional resources and structural options to support philanthropy; ❯ tax incentives to encourage donations from assets. In my practice as a philanthropic advisor, these factors are combining to create non-traditional philanthropists. Women out number men, especially as they age. Donors come from every imaginable background and ethnicity. And their

stories are not fodder for movie melodrama. Most are values-based donors who don’t identify with the label of philanthropist or the associated popular myth. They are altruistic, don’t play games, and are generally trusting. A high percentage of my clients will donate most of their estate after they are dead. They just want to give — without all the trappings. One of my favourite stereotypebusting philanthropists is a deceased client of ours, who I will call Petie. Petie immigrated to Canada when she was a child. She worked as a nurse; her husband for the LCBO. They had no kids and were savers with modest means. A widow in her 70s, she inherited $2.5 million from a cousin (also without children) in at age 80. Her first reaction was to say “this isn’t my money. I don’t need it, and I don’t want it.” Her second reaction was to establish a foundation that provided scholarships and training support for nurses. Women helping women in a traditionally overlooked and under appreciated profession. And Petie-named foundation, that grew to $4 million with an estate donation, after her female cousin. Now, Petie, was of a different generation than the clients today, but I tell her story because it couldn’t be further from Lupin’s Hubert Pellegrini, Bond villains or Bill Gates. There are many more Peties in Canada. Attention should be paid. MALCOLM BURROWS is Head of Philanthropic Advisory Services at Scotia Wealth Management. He writes this column exclusively for each issue of Foundation Magazine.

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LEADERSHIP KATHLEEN PROVOST

Philanthropic Partnerships The true meaning of a partnership in the charitable sector

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BY KATHLEEN PROVOST

s a professional fundraiser, I always try to identify potential donors who want to make gifts to specific causes in the hopes to achieve a true philanthropic partnership. For me, a true philanthropic partnership means both parties involved are in agreement as to their role, their purpose and their intent with a specific philanthropic outcome. Join me as I further explain this philanthropic partnership concept.

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Clarity on different types partnerships The definition of a business partnership usually involves a formal arrangement by two or more parties to manage and operate a business and share its profits and liabilities. In this type of partnership, all partners share liabilities and profits equally; however, different agreements between the partners may offer variations to some partners, for example, to have limited liability. Another form of partnership is the public-privatephilanthropic partnership, also known as the “P3 partnership”. In this model, funding for a project can be divided between a government agency and a nonprofit organization and in which the two partners can seek out a partner from the private sector to execute on the completion of a specific agreed upon project. Yet, another form of partnership is the charitable partnership. When we look at the meaning behind a charitable partnership, we use such words as helping organizations work together to leverage their brands, helping them extend their reach, and working to have an foundationmag.ca


COLUMNIST impact to make an even greater difference. At times, putting aside competition or reluctance to work collectively, charities partner together to further leverage their brands, reach, and impact. It should be notes that partnerships are very different than sponsorships which is when an organization commits money or resources towards an event or program in exchange for specific promotional benefits. At its core, a sponsorship is an exchange of money for services. Hence, when we consider a philanthropic partnership, the impact we are having as partners must remain the goal. For example, one partner can invest funds and another partner can play the expertise role; but both partners should have the objective to have on impact on an agreed upon problem or issue, that brings the partners together in a philanthropic environment

public forum, like on a donor wall, is an “acceptable” advantage for a donor and does not disqualify his ability to count this specific donation as a charitable gift eligible for a tax receipt as per the Income Tax Act. As professional fundraisers involved in building these partnerships, we have the responsivity to make sure a philanthropic partnership does not cross the line between charitable giving for a philanthropic purpose and an exchange of money with a specific expectation of something in return.

Defining the role of the partners An individual, a foundation, or a corporation can partner with a charitable organization with a shared understanding of the “liabilities” each one has and the “advantages” each partner will reap. These details should be described in a donor or donation agreement that specifies what is expected of the donor and the charitable organization (donee) in this agreed upon philanthropic partnership. The donation agreement is usually drafted for all partners involved to ensure that a donor’s promise can be relied upon, whilst setting the expectations of both donor and donee so as to prevent any misunderstandings. Canada Revenue Agency defines a charitable gift as a voluntary transfer of property (asset, funds). When a donor receives a benefit or an advantage in return for a donation, all or part of the donation may no longer qualify as a gift for purposes of the Income Tax Act. Stipulation of that gift must be given freely, the gift cannot be made as a result of a contractual or other obligation (for example, a court order) making the gift ineligible for an income tax receipt to be issued. However, there must be some benefits or advantages with specified values for a donor. Hence, recognizing a donor in a

Consider - The donor as a partner So why preoccupy ourselves with the philanthropic partnership? Donors are very informed partners, and they have specific expectations. In September 2020, the Angus Reid Institute, collaborating with: Cardus, Charitable Impact, Imagine Canada, Philanthropic Foundations Canada, United Way, and Canada Helps, conducted a new public opinion survey. Its findings said that Canadian donors were giving less than they were before the pandemic: twoin-five (37 percent) Canadians who had donated to at least one charity in the last two years said their donations had decreased since March 2020, when COVID-19 first gripped the nation. In addition, the poll found a majority of donors of the opinion that “scandals” in our sector, remain an issue that raised questions about governance, transparency, and management, all relevant for the whole charitable sector. This resulted in a significant segment of donors who said it had changed the way they feel about donating to charity overall. This decrease in giving and preoccupation by the donor represents significant lost dollars for all charitable organizations. On the other hand, in June 2021, Kyle

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A partnering dilemma All partners entering in a philanthropic partnership must clearly define and respect the agreed upon “terms” or “clauses” of the partnership agreement. However, at times, we need to offer some creativity to avail us a leverage to remain competitive and relevant within the charitable sector.

Bakx, CBC News, wrote that “The Average Canadian saved more than $5,000 in the pandemic”. And he further went on to ask: But what will they do with that cash? This may not be true for all Canadians, and it depended on the sector in which they earned income in 2020, but it remains a question. If we are to establish philanthropic partnerships, we must consider the tenuous position of the donee (the charity) and the expectation of the donor (individual, group, or corporation) based on a number of factors, in addition to a global pandemic and its effects. Consider - The charity as a partner The role the charitable sector plays in our society is paramount. It is key to understand their role when establishing philanthropic partnerships. It was Bruce MacDonald from Imagine Canada who wrote that charities are facing a cash crunch; “many are being hit with increased demand while their revenue sources are drying up.” Imagine Canada’s initial projections indicated that the COVID-19 pandemic will reduce charities’ revenues by between $9 billion and $15 billion, and lead to more than 100,000 layoffs. We must keep in mind that overall, the charitable sector contributes 8.5 percent of Canada’s GDP and employs 2.4 million people. Stewardship is a very important component of the profession of fundraising and it is key to developing philanthropic partnerships. “Stewardship” is often seen as looking after or managing something or someone specifically with the objective of carefully and responsibly managing the expectations that are entrusted to one’s care. It is usually through the process of stewarding a donor, that we can identify what “advantages” are sought out and can be promised in a specific philanthropic partnership. It is also through stewardship, that we may discover unrealistic expectation on the part of a donor with regards to the donee receiving the funds and the organization capacity to fulfill these expectations.

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MARKETING & FUNDRAISING SARAH CHAMBERLIN

Sarah Chamberlin

The Evolution of Health Care

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BY SARAH CHAMBERLIN

Physical illness has never faced the same level of stigma as mental illness.

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hat comes to mind when you think of health care? Is it the nurses, doctors and staff who treat us? Is it how we take care of ourselves through personal fitness and nutrition? Or, is it the structures — hospitals, procedures, and policies — that keep the health care system operational? Every response is valid. The only real issue here is that a large part of the answer to “What comes to mind when you think of health care?” is often overlooked. For many years, and even still today, health was defined primarily by what we could see. Physical illness has never faced the same level of stigma as mental illness. For instance, if you broke your leg or had a cold, you didn’t have to feel guilty about it or nervous about not going into work that day. It was generally accepted that you physically couldn’t. Unfortunately, mental illness hasn’t been given the same respect at work, or in any other part of life. Since its inception, the Centre for Addiction and Mental Health (CAMH) has been committed to creating a world where Mental Health is Health. As a global leader in mental health, CAMH is committed to creating a world where mental health is given this same level of urgency and investment as physical health. In this world, we look at health in an all-inclusive way foundationmag.ca


COLUMNIST where the physical, which often doesn’t need to be defined or defended, and the mental, which is sometimes disregarded — are equal. And, the connection between the two — mental and physical — is understood. Pressure on health care Last year, the pandemic brought both sides crashing together. On one hand, people were becoming physically ill from the coronavirus. As it spread, people ill with COVID-19 filled up hospital beds around the world, stores emptied, and schools and workplaces went online. It got to the point where some countries were forced to house patients in impromptu hospitals. On the other hand, physical distancing measures disrupted in-person mental health services for millions of people worldwide, at a time when those services were most needed. Job, property, opportunity, relationship, and life loss all took an unbelievable toll on our collective health. As a result, the health care system faced more pressure than we’ve ever seen. Around the same time, CAMH launched its Not suicide. Not today. campaign including a catalogue of research-informed educational materials and helpful tools on suicide prevention, mental illness and addictions. The timing, although coincidental, could not have been better as the campaign was our largest and most influential yet. We also developed a COVID resource hub filled with tools and coping strategies for the general public, business leaders, and frontline workers. As we enter what is hopefully the end of the pandemic, we’re also entering the beginning of a new form of health care. More people are prioritizing their own mental health. Businesses are accelerating their mental health policies and offerings for staff. And we’re seeing people from all walks of life advocate for mental health in their networks at school, work and home. Progress is being made, stigma is being busted and people are demanding that mental health care adapt and catch up with other areas of health care. foundationmag.ca

Simply put: investments in health care research work, and discoveries change the way people are treated and how likely they are to recover. For example, after decades of research and billions of dollars invested, 60 percent of Canadians with cancer diagnosed today will now survive at least five years, compared to a 25 percent survival rate in the 1940s. Of course, a more

A watershed moment As we look ahead, I believe we’re on the precipice of a watershed moment for health care. When you think about the terms “unprecedented” and “new normal” in the past year, they’ve been connected to something negative. But they don’t have to be. Thankfully, we’re finally entering an unprecedented time in our history where health consists

CAMH is launching a campaign to for better mental health care for all

recent achievement has been the timely development of the COVID-19 vaccine which will save billions of lives. And, when we look at mental health, some research breakthroughs at CAMH include potential methods to reverse memory loss due to aging, address PTSD, and treat “baby blues” (a precursor to postpartum depression). Right now, CAMH is on the brink of more discoveries and important breakthroughs in mental health. Today, people around the world have hope for personalized medicine for every patient, culturally sensitive and equitable care across populations and geographies, and prevention strategies and earlier diagnosis for people of all ages. But there is still a long way to go, which is why CAMH is launching a campaign to accelerate discovery into better mental health care for all.

of the physical and the mental, and the movement, which includes you, to embrace a world where mental health is health is growing every day. Hopefully, this new normal in which we redefine health is here to stay. SARAH CHAMBERLIN is Vice President of Marketing and Donor Experience at CAMH Foundation. The Foundation supports the philanthropic efforts of CAMH, Canada’s largest mental health teaching hospital and a world leader in mental health research, treatment, and advocacy. She writes this column exclusively for each issue of Foundation Magazine. Please visit CAMH.ca to read more about the important work CAMH is doing, and to find tools to help you deal with increased levels of stress and anxiety throughout the pandemic. You’re also welcome to contact Sarah directly about supporting CAMH Foundation: Sarah Chamberlin, Vice President, Marketing and Donor Experience, CAMH Foundation, 416-535-8501 ext. 33823 or sarah.chamberlin@camh.ca

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THE ACCIDENTAL PHILANTHROPIST MARK HALPERN

Creative Charitable Gifting Strategies

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BY MARK HALPERN, CFP, TEP, MFA-P

here are many wonderful ways for your supporters to be remembered for leaving more to charity and family instead of a large sum to the tax department. This column explains some effective strategies (that don’t get enough attention) to facilitate more significant gifts from your donors in the most cost and tax-efficient manner possible.

Mark Halpern, CFP, TEP, MFA-P 14

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Charitable gift annuity This under-used strategy is virtually off the radar in Canada. It is used in the U.S. to raise hundreds of millions in donation dollars, and I scratch my head wondering why our charities are not promoting this on their planned legacy giving menu. More people than ever are actively involved with their own investing. Technology has democratized the process. Today people run complicated investment portfolios from a smartphone. Getting their attention on strategic philanthropy becomes much easier when a charitable gift annuity foundationmag.ca


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Some large charitable organizations have gift annuities available, but very few actively market them. is properly explained — something that will appeal to donors in our low interest rate environment. Generous baby boomers can enhance income during their lifetime, reduce their taxes and make a significant charitable gift by incorporating this into their investment and charitable planned giving. It’s a great investment for people 65 and over, who seek secure guaranteed income during their lifetime and want to support their favourite charity now, and also leave a legacy gift upon death. Registered charities can offer a charitable gift annuity in which a portion of the donation is used to buy a life annuity for the donor from a tierone insurance company. The annuity will provide lifetime payments to the donor(s). A large portion of money received from an annuity is a return of principal and the balance is interest, which does get taxed but at a reduced rate. Examples of a $100,000 gift Married Couple Who Need the Annuity Payment Charity uses about $62,000 of the donation to buy the annuity. It provides 5 percent return, much higher compared to the 2 percent banks currently pay on a 10-year GIC. That works out to $3,600 a year until the second spouse dies. The remaining $38,000 of the original $100,000 is a charitable donation and the donors get a charitable receipt for that entire amount. That results in approximately $19,000 of tax savings, assuming the highest tax bracket in Ontario (53.5 percent).

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The entire amount of the $38,000 charitable receipt doesn’t have to be used in one year. In fact, it can be used over a five-year period, depending on the donation amount, to offset current or future taxes owing.

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Married Couple Who Don’t Need Annuity Payment As above, the donor saves $19,000 in taxes but this couple doesn’t need the annual $3,600 to pay bills. They use it to buy a $200,000 joint-last-to-die life insurance policy and name the charity as beneficiary. On the death of the second spouse, the charity receives $200,000 (in addition to the original $48,000) and the estate will get a $200,000 tax receipt to save $100,000 in estate taxes. Note that during their lifetime, an individual can only claim an amount for total donations of up to 75 percent of net income per year. At death though, donors can claim total donations made up to 100 percent of net income in the year of death and the preceding year. That means gifts to charity on death will mitigate donor estate taxes and convert taxes into charity. This would allow donors to use life taxexempt life insurance at a cost of pennies for dollars, to be remembered for leaving a large gift to a charity they are passionate about instead of a large cheque to the tax department. Conversely, gifting an insurance policy to a charity while the donor is alive, generates an immediate tax receipt for any premiums paid (versus at death) and allows the donor to be recognized while they are alive for their generous legacy gift.

Regardless of the charitable annuity method chosen, donor(s) receive guaranteed income (annually or monthly) from the annuity. In many cases, donors use multiples of $100,000 to help their favourite charities and create guaranteed income streams for lifestyle needs, while saving lots of tax today and in the future. Key considerations: ❯ Donor’s age and contribution amount affect the size of annuity payments. Older and health challenged donors typically receive larger payments. ❯ Allows donors to increase current aftertax income available for spending and enjoy the security of a fixed guaranteed income. ❯ Donor doesn’t need the money invested in the charitable gift annuity to provide for a surviving spouse or dependents. ❯ Charity wants worry-free management of such an investment. ❯ If the annuity income exceeds donors’ needs, they can donate some of it back to the charity and receive a tax receipt. ❯ A charitable gift annuity is an irrevocable (permanent) gift. ❯ A life annuity can include a guarantee period as well. We usually recommend 10 years. ❯ There are no ongoing fees for investment management services or administration. Some large charitable organizations do have charitable gift annuities available, but very few are actively marketing them. Many would-be donors are under the false assumption that they must be

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COLUMNIST

The attributes of a Charitable Gift Annuity...can be very compelling to your donors. rich, like Warren Buffett or Bill Gates, to become a philanthropist. The attributes of a Charitable Gift Annuity make it much easier and can be very compelling to your donors. CPP Philanthropy™ Donors can create large charitable gifts using funds supplied by the government. A married couple, both 65, receive CPP benefits totalling about $26,000 a year. That money gets taxed, invested, and re-taxed again. Let’s assume they live in Ontario and pay tax at the highest marginal tax rate of 53.53 percent. If they don’t need those funds to pay their bills, they should consider using just the CPP benefit to pay the premiums on a joint-and-last-to-die life insurance policy in the amount of $1.4 million. By making their favourite charity the policy owner and beneficiary, the charity will receive the insurance payout on the death of the second spouse. During their lifetime, the donor receives the charitable receipt for the premiums which offsets the tax owing on the CPP entirely. Alternatively, they could make the charity a beneficiary at death and create a donation receipt of $1.4 million, saving their estate about $700,000. Another option is to make their family the beneficiary of the $1.4 million life insurance policy and instead donate their RRSP/RRIF to charity versus paying 53.5 percent on the registered proceeds! A real win-win for their family and the charity. Taxes on RSPs and RIFs converted to charitable gifts Wealthy Canadians with substantial sums in RSPs and RIFs are usually unaware of the large tax bill due (53 percent in Ontario) on withdrawal or foundationmag.ca

death of a husband and wife. Singles, widows and divorcees do not have the benefit of a tax-free spousal rollover. These funds are seldom needed to pay bills and generally won’t move the dial on donor’s estate planning. Recent case: $1 million of taxes became $4.5 million of charity A business owner had $2 million of retirement savings in his RRSP and contacted us to explore the possibility of donating it to charity while he is alive. At death, a $2 million RRSP or RRIF is worth only $960,000 to heirs. Our donor wanted to donate all of his RRSP/RRIF to their own charitable fund (Donor Advised Fund). Withdrawals (or disposition at death) on registered money are taxed at 53.5 percent. Donations to charities generate 50 percent tax savings. Therefore, the net out-of-pocket cost to donate the $2 million RRSP intact was 3.5 percent. Normally, withdrawals of registered funds are subject to withholding tax of 30 percent. We arranged for CRA to waive withholding taxes at source. His bank transferred the entire $2 million to the Donor Advised Fund (DAF) we set up for him. His DAF now has $2 million intact which can be distributed to any registered charities in Canada. We structured a Joint and Last to Die (JLTD) 10-pay Life Insurance with the policy owned and paid for by the DAF, premium $100K/year. The death benefit at their life expectancy at age 85 is $3.5 million. The result is that the client converted $2 million of taxable RRSP funds (worth only $960,000 to his family) and instead created a charitable family legacy of $4.5 million. The cash surrender value (CSV) and dividends from the insurance policy

can be used during the donor’s lifetime to make additional tax-free gifts to charity. For example, the CSV @ year 10 = $807K and at age 85 = $2.8 million. Many charities, foundations, and donors rely on us as a resource, advising them on legacy planned giving programs with best-in-class donation strategies that are cost-effective and tax advantaged. Please be in touch to discuss how we may help you and your supporters become Accidental Philanthropists™. Enjoy a great summer. Stay safe and be well. MARK HALPERN is a well-known CFP, TEP, MFA-P and a Certified Financial Planner, Trust & Estate Practitioner, Master Financial Advisor – Philanthropy. He was honoured to speak in the Disruptors Category at Moses Znaimer’s most recent ideacity conference. His talk generated high interest and comments. Watch “The New Philanthropy” on the event site or YouTube. Learn more at www.wealthinsurance.com. He writes this column exclusively for each issue of Foundation Magazine.

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IN CONVERSATION

DIVERSIFYING DIVERSITY Women Well Represented in Nonprofit Sector, But What About Intersectionality?: Part Three

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BY TANYA HANNAH RUMBLE, CFRE AND MARIYA YUROKOVA, MBA, CFRE

his is our third and final installment of our series on intersectionality in the non-profit sector. Sharing the lived experience of three professionals who are inspiring and champions of inclusion through their positional leadership in the sector, as well as the values they espouse. Sofia Janmohamed, Ksoal Ky and Judy Zhu bravely share about what they wish they had when they were new professionals, who inspires them, and what they are doing now to share their power and privilege with the next generation of emerging leaders in the sector If you were introducing yourself to a group of new colleagues what would you share? Sofia Janmohamed Vice-President, Leadership Giving & Stewardship at Canadian Cancer Society I am a passionate, hard working person that loves to help other people and achieve goals. I am always thinking about the next big vision I can strive for but I’m learning to take the time to enjoy the special moments 18

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and celebrate the achievements more. I love learning, meeting new people, making people laugh, travelling, and anything to do with being near water. My motto is to embrace uncertainty, act with courage and lead through change. This is what I remind myself to do every day and try to inspire others to do the same. Kosal Ky Director of Strategic Partnerships at Findhelp Information Services | 211 Central Region I think of my life in three segments and how they define me as a person — my past, my present and my future. From my past: I am a Cambodian woman who was brought here to Canada at the age of three, my mother and I escaped the Khmer Rouge regime in the 1980s. My present: I work in the social services sector and have for over 20 years; I contribute to the social fabric of the Canadian charitable sector. My future: I am the mother of two young children who I am raising to be the second and next generation of the Cambodian-Canadian Diaspora.

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IN CONVERSATION Judy Zhu Director, Leadership Giving & Asian Giving at Canadian Cancer Society How I introduce myself today would be very different from how I introduced myself ten years ago. Today, I am proud to say that I am a female BIPOC professional who embraces multiculturalism and values humanity regardless of gender identity, age, race, colour, religion or ability. Professionally I am a Director of Leadership Giving & Asian Giving at Canadian Cancer Society. As a fundraising professional since 2008, I am passionate about changing the world with positive impact whether through education, health care or social services. I am a fundraiser at heart with purpose of empowering and helping people achieve their philanthropic goals. Personally, I am a mother of two lovely children, I cherish every moment with them. I am a strong believer of myself and who I am, I believe inspiring by example whether you are a mom or a leader, never stop pursuing success — the sky is the limit. Did you have role models to aspire to when you began your career? If not, why? If yes, who were they and why did they inspire you? Ky: Growing up in an immigrant household I was raised to believe in the traditional roles men and women play in the home and at work. I was raised to be the Model Asian Minority, to keep my head down and work hard and to exist with the deeply held belief in the meritocracy; working hard as a means of social mobility. I was often told that leadership roles are not for “people like us” but rather to just be grateful to have a job. However, when I entered the social service sector in my early twenties, that belief system was quickly challenged as I saw that the sector consisted mainly of strong and driven women leaders, in all levels of many organizations. Women who were moving key strategic initiatives, having community impact and making system level change. Over the course of my career I have kept in touch with a handful of what I call my “Women Influencers”. This circle of friends and trusted women warriors are my bedrock, they push me to be more, demand more of myself and the system and embrace my true self. Zhu: 21 years ago, when I first moved to Vancouver from China as an international student, I never thought I would have a career in philanthropy. I am who I am professionally because of my mentor (and fellow interviewee) — Sofia Janmohamed. I met Sofia at my first fundraising job, a student fundraiser in University Advancement. Despite my heavy accent at the time, Sofia offered me a student caller job and believes in me more than I believe in myself. Over the years, Sofia excels in everything she does, academically and professionally, aside from many awards and achievements currently she serves as the president of AFP Greater Vancouver Chapter. She inspired and encouraged me to do many things that I might not otherwise do. From completing graduate school to becoming a certified fundraising executive (CFRE), she gives me inspiration and foundationmag.ca

direction to move forward in my career. It is a blessing to have her in my life. My mother Yanbing Chen is my personal hero and life coach. She is the person that inspires me to never give up and never stop trying. I have no better words to explain how lucky I feel to have a mom like her. She always cares about my future and well-being, her life-long leadership in female entrepreneurship is a continuous source of inspiration and motivation for me and all the girls in our family. Janmohamed: I am so grateful for the incredible role models that I have been blessed with throughout my career. All these people have not only inspired me to always do my best, but they have demonstrated the importance of giving back to others. The one consistent thing about every single one of my career role models over the years is their ability to create opportunities for personal and professional growth. Not just for themselves — but for those that they worked with. The greatest things you can do as a leader is to really see someone for who they are and what they do well, help them learn and develop, and create opportunities for them to thrive and excel. How do you relate to the idea of being a role model? What are the specific strategies you use to share your power and privilege with others in the sector? Zhu: I don’t consider myself as a role model yet but rather an inspiring leader. I love to lead by example and am never ashamed to share my failures. Since 2010, I have mentored many young international students like myself and founded a Chinese Young Mothers Group on WeChat in 2012 to help and support young expatriate moms of Chinese-descent. I also volunteer with the AFP Greater Vancouver Chapter’s Professional Development Committee. My strategies to share my power and privilege with others in the sector are through mentorship and networking. I often share my story of how I reached where I am today from my start as an international student. I also actively engage in speaking opportunities to share about my career and profession publicly, because I want my peers to see that a BIPOC woman can accomplish many things regardless of our skin colour and race. Ky: I believe that everything in life has a natural ebb and flow, a rise and fall. These natural principles also hold with the concept of leadership and power. A leader who acts as a role model will recognize the nature of their time, which is fleeting, and ensure that the work, which is important and impactful to our whole society, continues most effectively when we share knowledge, resources and insights along our journey. I believe that all leaders in the sector have a responsibility to pass on their learning to those who are rising: our time in leadership is momentary and nothing is permanent, including the roles, and power that I have and hold, so I strategically become more intentional in my relationships, knowledge transference July/August 2021

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IN CONVERSATION becomes central in my interactions with the people around me. Work in the social service sector has occurred before my time and will continue after me. Janmohamed: Leading by example is critically important in all aspects. As a woman of colour serving in various leadership roles within the community, my organization, and the fundraising sector, I try to keep top of mind how my choices and actions can impact others in a positive way. Asking questions, sharing experiences, challenging biases, and always striving to learn about others are some of my own strategies. I feel that the greatest impact I can have is to provide support to anyone and everyone that has something they would like to achieve. Whether it is coaching someone for their next career step or talking about how they can handle a challenging situation, it brings me true joy to help another person — even it is a tiny step in their own journey. Beyond role models, what are the individual, organizational and system-wide changes that need to take place so that all levels of leadership in the fundraising sector have representation from diverse communities and intersectional identities? Janmohamed: As individuals, we each carry the responsibility of challenging our own biases and regularly investing in our development. Life-long learning of other people, cultures, and ideas is a must. Diversity isn’t really an end goal — it is a way of life, made up of daily choices, regular actions and challenging the status quos. As leaders, we need to create the opportunities for others to do the same and inspire their actions through our own. Leaders also need to encourage dialogue and varying points of view, support innovative thinking, and welcome critical feedback. As a leader, I welcome being wrong for example — it means I’ve just learned something, and I’m inspired by the person that has the courage to share and teach. Organizations need to create the space and security for leaders to try new things and support their teams. Having diverse board representation, posting salary ranges for jobs, fostering dialogue and being transparent internally and externally are critical to the advancement of inclusion, diversity, equity, and access. Zhu: I believe our professional associations including AFP (Association of Fundraising Professional); CASE (the Council for Advancement and Support of Education); AHP (the Association for healthcare Philanthropy); APRA (Association of Professional Researchers for Advancement); CAGP (Canadian Association of Gift Planners) need to come together to form JEDI (Justice, Equity, Diversity, Inclusion) policies to regulate our sector and non-profit organizations. The policies should include but not be limited to reforming hiring practices to make sure that an organization is reaching the best candidates, no matter who or where they might be. JEDI policies could mandate that non-profit organization boards or executive foundationmag.ca

leadership have the same proportion of gender, race, colour; and take steps to make sure our workplaces are accessible. Fostering a sense of belonging is not enough, there is far more work that needs to be done and accomplished, we can only do it together by taking care of one another regardless of gender identity, age, race, colour, religion and disability, with love. Ky: The work of diversity, equity and inclusion is often spoken about as a marathon and not a race; but we can’t use this metaphor as a rationale for slow change. In order to make space for diverse community leaders to feel they have the scope and voice to remove systemic barriers, invite real change and provide wrap around support we need, real leadership. Change sits with organizational leadership, governance, and the development of impactful, insightful policies and procedures. This does not take time; it takes the willing and will power. As we work in this sector we need to know that we are not alone and we are truly seen and authentically heard. We are grateful to all eleven leaders who shared their experiences with us for this series. While we have ways to go when it comes to achieving a truly diverse and more importantly — inclusive nonprofit industry, we are also hopeful that there are many leaders, with a multitude of intersectional identities who are leading the way and graciously offering their time, talent and wisdom to inspire others. We encourage you to go beyond the personal perspectives shared in these articles and consider the many suggestions and resources which have been introduced throughout. Diversity, Equity and Inclusion work is a marathon, but there are many strategies which can be implemented today, on personal and organizational level. Connect with us on LinkedIn and tell us where you will start today! TANYA HANNAH Rumble, CFRE, MFA-P™, is a fundraising leader who has raised millions for some of Canada’s largest charities. Tanya is passionate about equity, diversity and inclusion; and power and privilege and how these intersect with philanthropy. Tanya holds an Honours Bachelor or Arts in Political Science from McMaster, earned a Graduate Certificate in Marketing Communications at NYU; she is also a graduate of the AFP Inclusion and Philanthropy Fellowship, and DiverseCity Fellowship. Tanya is a new mom, a voracious consumer of podcasts, and a baking enthusiast. Tanya gratefully acknowledges the traditional territories of the Mississauga and Haudenosaunee nations, whose traditional territory she lives and works with her husband and young son. MARIYA YURUKOVA, MBA, CFRE, is an experienced fundraiser and thought leader in the nonprofit sector. With over fifteen years of experience in fundraising, Mariya has raised more than $20 million for various organizations, working on gifts ranging from millions to direct marketing campaigns for first time donors. Mariya is an active voice and advocate for diversity and inclusion in the nonprofit sector, with publications in Hilborn Charity E-News, Advancing Philanthropy, CASE Currents Magazine and many more. Mariya. As a first generation immigrant woman and part of an interracial family, Mariya is keenly aware of systemic inequities in the nonprofit sector and works towards advancing social justice causes while acknowledging her own privilege. July/August 2021

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We invited Paul Nazareth to be our first Guest Editor for this issue. He graciously accepted and we are proud to present the following articles and insights on on pages 22 to 36. – Steve Lloyd, Publisher & Editor in Chief

GUEST EDITOR

OUR GUEST EDITOR

Paul Nazareth

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Paul Nazareth has worked in Canada’s philanthropic sector for over 20 years. Currently, Vice President, Education & Development at the Canadian Association of Gift Planners (CAGP), he was previously VP at the charity CanadaHelps. Paul has been a philanthropic advisor with a national wealth management firm and spent 15 years working with charities from Universities to Churches. Paul is on the board of several charities including The Circle Canada and on the Advisory Council of Carleton University’s Masters in Philanthropy and Nonprofit Leadership program. He serves as faculty for the Master Financial Advisor in Philanthropy (MFA-P) program led by CAGP, Knowledge Bureau and Spire Philanthropy, and is a frequent instructor in the fundraising, financial and estate advisor community through organizations like AFP, CPA, Advocis and Estate Planning Councils. Paul writes on philanthropy for a variety of publications and regularly appears on national radio and television to speak about turning generosity into a personal legacy through strategic charitable gift planning.

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INTRODUCTION

The Evolution of Strategic Philanthropy in Canada BY PAUL NAZARETH

“T PAUL NAZARETH, MFA-P, Vice President, Education & Development. Canadian Association of Gift Planners (www.cagp-acpdp.org)

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hink big, start small, scale up”, a phrase shared often by our community leader Ruth MacKenzie, CEO of the Canadian Association of Gift Planners. CAGP, founded almost 30 years ago has been thinking big and successfully scaling for some time now — excitingly, as we build on the investments of so many we have reached a tipping point of scale and a new energy has taken root in our movement. We are grateful to Steve Llloyd and Foundation Magazine for a place to tell more stories of our mission; A better world through strategic charitable giving. Gifts of assets like public securities, gifts of life insurance, property, art and the most significant gift one can make, a gift in a Will are the “how” of philanthropy that has been underutilized in philanthropic strategy even though here in Canada we have the most favourable charitable tax system in the world. I’m excited as this issue’s guest editor to bring some interesting insight to this strategic vision with some of our sector’s brightest and most creative champions. But this new energy I speak about is the ethos of the “why”. Why do we give, where is the connection between community and capital of philanthropy and the spirit and soul of generosity? Excitingly, Canada and our own CAGP community are unpacking philanthropy’s roots in supremacy and inequity too. We are even more excited to be bringing these expert voices to this issue, who are active in utilizing this capital strategy of assets to effect change in racial justice and social equity. We also cannot ignore technology’s role in making change and too often it has been discussed in the context of a high volume of smaller donations, but it applies to strategic giving too. Thank you to all our writers who have given their time and expertise to add to this conversation. We hope you find value in it. As a frequent speaker I often describe personal generosity as a healthy tension between head and heart. This issue is a testament to what our CAGP community represents; excellence in these areas of the “how” and the “why” to create that better world. A famous African proverb says “if you want to go fast, go alone. If you want to go far, go together”. And through this issue we hope you’ll agree that activating the strategic philanthropic potential of charities, advisors and donors as CAGP does, will help our nation and world, go further, together. July/August 2021

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GIFT PLANNING

Art

The Gift of

Passion Assets: How gifts of art and culture can be a catalyst to better gift planning conversations

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BY STUART KEELER

our client’s Great Aunt Aiysha has just given them a painting and a much-loved stamp collection and they are not sure what to do with them. My advice: have the items appraised then auction or sell them or donate the pieces to a favourite charity or museum. Art is a unique asset class that can appreciate in value and represent part of a diversified investment portfolio, plus it can be creatively leveraged by donors as an institutional gift. In this article I will share the highs and lows and my personal opinions and a variety of ways that art can open opportunities. People collect all kinds of items, often dubbed “passion assets”, that become sources of appreciation and enjoyment. Things like wine, cars, jewellery, antiques, coins, baseball cards, stamps, couture fashion and art have had notable returns at 24

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auction or provided as gifts to museums, non-profit public collections or private foundations. A friend of mine collected antique lace for over 40 years and met a textile expert at a flea market who advised her to have the collection appraised. My friend was shocked at the value and subsequently gifted the items to a speciality museum with the agreement that they could sell the lace at auction and raise funds for education and the restoration of textiles. Everyone walked away carrying a moment of personal meaning and feeling they made a contribution to a better world. The appraisal process may seem daunting, however there are ways to find a trusting professional who can provide honest feedback. You can also seek out professionals who are able to connect you with potential organizations or donors to turn your passion assets into philanthropy purposes. foundationmag.ca


GIFT PLANNING

Many organizations are equipped to accept standard methods of gifts such as cash donations or gifts of security. However, there are exciting opportunities for organizations to accept passion assets. Finding a professional to help you navigate this process is important to get it right, feel connected to your goal and ensure professional advice and practices are adhered to for the best outcome and intentions. There are myriad places to donate to Donating to a museum in exchange for a tax receipt is another course of action. Most investment and fundraising professionals will tell you that there are multiple ways to think creatively about wealth and the distribution of assets — including art — to achieve philanthropic goals and make a positive impact. There are myriad places to donate to, with various sizes, genres and collecting interests, from living heritage museums to historic houses, specialized collections, contemporary art galleries and more. Direct donation of art can be made with an interesting advantage. Rob Cowley, President and Canadian Art Specialist at Cowley Abbott in Toronto, says that “In terms of direct donation, a collector may have an opportunity to provide their artwork to a public collection. The artwork might fill a gap, further enriching the existing collection or, as we have been witnessing with greater regularity in recent years, the institution may choose to sell the artwork, with the proceeds of sale allowing the possible investment in further artwork through auction or private sale that furthers the institution’s collection development.” A potential donor can easily find an institutional mission to connect with and then craft a plan with the staff to direct auction proceeds from donated art to align with any personal interests they may have, funding items such as education, community engagement, exhibitions, or a role such as a special project curator or ASL interpreter to reach new audiences. As foundationmag.ca

you start your journey, ask yourself — what is important to you (your why) to donating your personal collection. From there, you can consider how the gift can generate positive outcomes for the organization of your choice that aligns with your values and giving plan. You can also consider, if the donation is meant for immediately or create a long-term funding plan, how the funds should be allocated, and working on a bespoke giving plan that works for both you and the organization. Cowley supports this alternate approach of donors offering the artwork at auction themselves and then donating the proceeds of sale to the institution or cause they wish to support. If a client inherited a painting, for example, from her great grandfather 20 years ago and, aside from gratitude for the thoughtful gesture there is no emotional connection to the piece of art, the recipient should have the work appraised and make a plan. Donors should seek professional tax advice when donating art (not just first time as this is a complex area). With the continuous and highly lucrative (and currently record-breaking) market for rare historical, post-war and contemporary art at auction (including the months that have been affected by COVID-19), Rob Cowley and his team regularly witness these various options exercised by donors and public collections, the process benefitting the donor through a tax receipt, benefitting institutions through further development of their collections and mandates, and, importantly, benefitting the public through enrichment of the cultural experiences they are able to enjoy. The pandemic has changed donor plans We live in interesting times, where public funding and philanthropy in the art and culture sectors are undergoing significant shifts. After experiencing the pandemic, and facing social strife and political changes across the globe, younger generations are looking at the future differently. Increasingly, this group wants to offload impractical possessions and make their cultural advantages available to everyone. Art has value, history, cachet and buzz. Hey!... pass it on! New generations are inheriting “stuff” and generally want to lighten their load. Art can be creatively leveraged and with advantage to the next generation viewing pleasure, or engagement in the current moment with funds raised in the connecting and creating a better world for all. STUART KEELER has contributed this article as a guest and at the invitation of the Foundation Magazine and the views expressed in it are solely and exclusively his own personal views. July/August 2021

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EVOLUTION

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EVOLUTION

Turning a New Chapter in

Philanthropy

Empowering the Community T

BY SARA KRYNITZKI AND PHYLICIA DAVISWESSELING

hese last 16 months have been a pivotal time for all of us in the Canadian philanthropic sector as the systemic and pervasive inequities that exist in our country have been laid bare. In just the last year we have witnessed a flood of atrocity, including increasing and widespread anti-Asian violence, the murder of George Floyd, the revelation of mass unmarked graves of hundreds of Indigenous children at former residential schools, and the terrorist attack that killed four of five Muslim family members in London, Ontario, who were just out for a walk. These are all stark examples of the violence perpetuated by racism, colonialism and white supremacy that are very much alive today, and that are built deeply into the foundations of all of our systems and in turn continue to be propelled by them. As individuals who have worked for years in grassroots spaces and the nonprofit sector, who foundationmag.ca

now have the privilege to work in roles to advance philanthropy, we know it is our responsibility to both call out the violence and harm of institutions embedded with norms of oppression and to challenge these systems at every level in our professional and personal capacities. It is well documented that philanthropy has historically benefited from and contributes to social and economic inequities, both in how financial capital is amassed in our society, and how its dissemination is designed and controlled. Systems of oppression continue to influence the norms of the entire sector, from who leads philanthropic and nonprofit institutions, to who gets to make the decisions, to who receives the funding, and what those relationships look like. At the same time, philanthropy can in fact play a meaningful role in providing opportunities for real change. One way we have been involved in July/August 2021

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EVOLUTION advancing such a goal is through the development of the Black and Indigenous Futures Fund, an ambitious new funding opportunity at Toronto Foundation that took some big steps to reduce barriers and increase access for those usually left out of philanthropy. A new way to do philanthropy The murder of George Floyd in the US catalyzed leaders in every industry around the globe to reflect on their own complicity in perpetuating anti-Black racism and other forms of racial oppression. Toronto Foundation took a new step towards addressing systemic and institutional racism by beginning work with Black, Indigenous and other racialized nonprofit and grassroots leaders to craft a new grant opportunity. This group determined that the fund should be specifically for Black and Indigenous communities, as racial injustice has especially affected Black and Indigenous communities in Canada. They also recognized that the pandemic has disproportionately affected Black and Indigenous communities and the initiatives that serve them are dealing with increased demands and less stable funding while facing greater risk of closing. The leadership table then participated in or recommended community members for the two selection committees. Members were from Black and Indigenous communities in Toronto, and worked for local nonprofits or volunteered in their communities. Toronto Foundation offered organizations the option to apply beyond the traditional route of written applications; organizations could submit oral and video applications. Sector leaders could choose to tell their story directly over Zoom, levelling the playing field for those who are stronger presenters and/or may not have the time or expertise to write applications. Imaginative leaders also submitted video applications to share their work and plans more creatively. In addition, the opportunity opened the door for nonqualified donee grassroots groups to apply and be funded via service contracts to deliver charitable activities. For years Toronto Foundation has been supporting non-qualified donees through trusteeship agreements with charitable partners, but this was the first time it offered direct financial support to initiatives without charitable status. It takes time, resources, and money to get charitable status or to work with charitable trusteeship partners — investments and tradeoffs that some community groups do not want to or are not able to make. Some of these groups may be poised for growth whereas some

are dedicated to their work in their community and don’t need more than modest financial support to make a difference. Supporting non-qualified donees is imperative to advancing equity and racial justice as on-the-ground initiatives are often the most nimble and best equipped to identify and advance solutions for their own communities, and key resources available in historically excluded communities are often provided by local grassroots leadership. Such initiatives are overwhelmingly led by those who are racialized and other groups that are underserved, underrepresented and underfunded in philanthropy. The response to this new funding program has been overwhelmingly positive. Applicants, including many who did not ultimately receive funding, have repeatedly shared how much they welcomed the process and how much they felt respected and appreciated by it. Many funders have also reached out to learn more about the initiative and how it was done. Staff supported the process administratively and facilitated the discussions, but the selection committees read the record-breaking 200+ applications that came in and decided on funding recipients amongst themselves, without the typical gatekeeping interference of grant staff. It involved an incredible amount of work and many challenging, difficult decisions on the part of the volunteers. The committee awarded the $400,000 of unrestricted funding to 16 qualified donees and eight nonqualified donees. To encourage further unrestricted funding over a longer term to groups identified by the selection committees, several lead donors from Toronto Foundation’s network of philanthropists contributed over $1.1M for a matching pool of $375,000 a year for three years. In 2021, Toronto Foundation fundholders who commit to up to three years of funding will see their grants matched.

It requires listening, building relationships, understanding and respect...

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Shifting and sharing power Shifting power. Trust-based philanthropy. Participatory grantmaking. These are all buzzwords and phrases in the sector at the moment. But these things can lead to tangible action and when done right, can have a genuine impact. At their core, they point to a new philanthropy that is about engaging those who are meant to benefit from philanthropy to involve them beyond the transactional and in genuine, substantive and transformative ways. It requires listening, building relationships, and understanding and respecting the expertise, brilliance, and lived realities that exist on the foundationmag.ca


EVOLUTION ground. It requires empowering community members to be involved in all the processes from start to finish. And it requires surrendering power. However, it’s one thing to commit in principle to such actions, and it’s quite another to dedicate the time and resources to make it happen. Dollar for dollar, the Black and Indigenous Futures Fund has been a resource intensive grant program for Toronto Foundation. And Toronto Foundation is not finished. It has a program to administer over the next year, and relationships to cultivate and foster, especially with the grassroots groups, as those contracts require “direction and control” as per the current regulations of the Canada Revenue Agency. Toronto Foundation will also be considering ways to improve its grant programs in the future, building off the learnings here. One element they are grappling with is how to better ensure selection committees have the agency to select the recipients, while being mindful of the immense workload and time commitment involved. While all the volunteers in the process were provided with honoraria, community members engaged in the process often have less time and energy to dedicate than traditional selection committee members with professional and financial privilege. Similar participatory and community led approaches are being created and supported elsewhere in Canada. Notable examples include the Indigenous Peoples Resilience Fund and the COVID-19 Quebec Philanthropic Consortium. The Indigenous People’s Resilience Fund is an Indigenousled effort to respond to urgent community needs while taking a long-term view on building community resilience. It is governed by an Indigenous Advisory Council that approves all governance, funding, communications and fundraising strategies and recommendations related to its work. As an original signatory to the Philanthropic Declaration of Action in support of the Truth and Reconciliation Commission of Canada’s Calls to Action, Community Foundations of Canada is supporting this work as a host partner. The COVID-19 Quebec Philanthropic Consortium was launched early in the pandemic by a group of foundations in Québec, co-ordinated with the support of PFC. The group recognized that grassroots engagement was being underused in Montreal as part of the response to COVID-19, and set to provide needed support as directed by on-the-ground leadership in the communities most at risk — those that were lower-income, racialized and comprised of more frontline

workers. This collaborative model involving a strong coalition of philanthropic leaders working in concert with public authorities and community groups has demonstrated how the philanthropic sector can bridge gaps in government response and be a source of innovation that can change the course of events. Supporting collaboration among foundations, notably in the service of community led initiatives, is one of the three pillars of PFC’s new 2021-24 strategic plan. Effective collaboration is hard work and requires dialogue, authentic and respectful relationships, humility and a willingness to learn and share — values that are reflected in PFC’s new statement of purpose.

The philanthropic sector can bridge gaps in government response...

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Action Though such examples of community-driven philanthropic action are far from the norm, we feel that they point to significant steps forward and hope they inspire other funders. But as a sector, let’s not wait for the next crisis to act before taking the next step. Let’s ask ourselves — do we want to maintain the norms of the status quo or do we actually want to make real change? At Community Foundations of Canada’s recent summit, Elder Peter Schuler reminded us that we create what we think. So as a sector and individually, let’s push ourselves to be more creative, and start putting in more of the needed reflection, time and resources to encourage and use philanthropy toward building a world that authentically advances justice, reparations and systemic change. SARA KRYNITZKI has spent more than 20 years leading non-profit initiatives in Toronto, Ottawa and nationally, as a funder, program founder, and fundraiser. She recently joined Philanthropic Foundations of Canada as its new Director of Policy and Communications. She previously served as the Manager of Community Initiatives at Toronto Foundation, where she oversaw its discretionary granting programs and research projects. She has two political science degrees, and currently sits on the board of directors of the alumni association for Canada’s oldest and most prestigious legislative youth leadership program, the Parliamentary Internship Programme. PHYLICIA DAVIS-WESSELING (Co-Chair and Board Member, Parkdale Project Read/ Founder & Board Member, KGO Adult Literacy) is the Founder and Project Lead of the KGO Adult Literacy Program; an community-based organization that supports adults 21 and older with the literacy and numeracy skills in Kingston-Galloway-Orton Park community of East Scarborough. Phylicia has her Masters in Education from the University of Toronto, OISE where she focused Adult Education and Community Development. Phylicia is a board member with Parkdale Project Read in the role as Co-Chair and has been involved in civic engagement and equity work at Ryerson University and Toronto Foundation.

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GIFT PLANNING

Advancing Indigenous-Led Philanthropy in the Gift Planning Conversation

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BY SHARON REDSKY

n order to look to the future, we have to reflect on the past. It is important to acknowledge that Canada was founded on the reciprocity of Indigenous peoples and recognize that much of the wealth accumulated has been through the dispossession of land, agriculture production, and extraction of natural resources. Recognizing the harm done towards Indigenous people is essential to understand the link between colonial practices, broken Treaties, and legislative policies to systemic inequalities. An example of this, is the Indian Act in 1895 made it illegal for First Nations peoples to practice religious ceremonies and various cultural gatherings1 and from that until 1951 criminalized give away ceremonies. The permit system that required an Indian agent to approve the sale of produce such as cattle and grains and the pass system required approval to leave their reserves or face incarceration. In addition, in 1918 The Canadian government gives itself the power to lease out Indigenous land to non-Indigenous persons if it is being used for farming2. Most recently, the horrific discoveries of over one thousand unmarked graves located at Indian Residential Schools across this county bring light once again to the Government of Canada and church’s role in Indian Residential Schools, which operated from 1880 to 1997. It is estimated that 150,000 Indigenous children attended residential schools. The Truth and Reconciliation Commission of Canada launched in 2008, heard from over 6,000 Indian Residential survivors. They revealed stories of abuse and cultural genocide. 30

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GIFT PLANNING

Inquires and commission reports outline approaches and actions that can improve reconciliation, including the Truth and Reconciliation (TRC) final report released 94 call to action, the National Inquiry into Missing and Murdered Indigenous Women and Girls (MMIWG), which has 231 Calls for Justice and the United Nation’s declaration on Indigenous peoples (UNDRIP). Building a better future There is a rise of Indigenous led organizations and qualified donees that include First Nations, Métis and Inuit communities across the country who are vital in delivering culturally appropriate services. They know their communities and develop innovative solutions. However, many of these Indigenous charities and communities survive on project-based funding. It is critical to consult with Indigenous people to incorporate their voices and wisdom. There is a role for the philanthropic sector in investing in Indigenous charities and communities and providing them long-term funding. In a report entitled Canadian Charities Giving to Indigenous Charities and Qualified Donees – 2018, it outlines that of the 8.3 billion gifted through foundations in 2018, Indigenous groups received 46.9 million, which represents just over half of a percent or .056 cents for every 100 dollars gifted to nonIndigenous charities. Imagine if foundations increased their investment up to 5 dollars for every 100 dollars. This would bring over 400 million into Indigenous charities and communities in supporting their important work. As stated in the Honouring the Truth Final report, “reconciliation must inspire Indigenous and non-Indigenous peoples to transform Canadian society so that our children and grandchildren can live together in dignity, peace, and prosperity on these lands we now share.” With this in mind in building a better future for the generations to come, much more needs to be done to foster equity and Indigenous perspectives in the future of philanthropy. The sector needs strong leadership and sustained foundationmag.ca

commitment in advancing the work of reconciliation. A positive example which is led by Indigenous people for Indigenous people is the Indigenous Peoples Resilience Fund (IPRF) which grew out of the collective contributions of foundations and funders in supporting urgent Indigenous community needs. This fund is for Indigenous led organizations and communities and is governed by an Indigenous advisory council. Another example is the Circle, who provides important work in building bridges between Indigenous communities and philanthropic organizations. As part of their work, the Circle plays an integral role in elevating the practices of reciprocity which offers important lessons about Indigenous ways of sharing, connecting to the land, and caring of each other. Here are a few other suggestions, be an ally with Indigenous people in addressing inequalities and create spaces for voices to be heard, provide resources for Indigenous-led initiatives, and promote the work of Indigenous charities and communities. As an Indigenous fundraiser, and active member of the gift planning community, I encourage the philanthropic sector from funders, to fundraisers and advisors to educate themselves to better include Indigenous charities and communities in their donor and client conversations. SHARON REDSKY is a First Nation member of Shoal Lake #40 with mixed heritage. She works in the area of fundraising and strategic development. She is a previous board member of the Association of Fundraising Professional Foundation for Philanthropy. The AFP Foundations for Philanthropy enhance philanthropy and volunteerism through programs of education, research, and service that benefit those who lead, serve and support nonprofit institutions.

Sharon adds: I acknowledge the ancestral traditional territory of Treaty #1 and Homeland of the Métis Nation that I have the privilege of living on. I also acknowledge Treaty #3 traditional territory of my ancestors and Shoal Lake First Nation #40 which is primary water source for Winnipeg and continues to have a boil water advisory. 1 https://www.thecanadianencyclopedia.ca/en/article/indian-act 2 https://www.nwac.ca/wp-content/uploads/2018/04/The-Indian-Act-Said-WHAT-pdf-1.pdf

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LEADERSHIP

Church Crisis, Foundations Opportunity

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BY REVEREND GRAHAM SINGH

oday’s crisis around the church, residential schools and so many of Canada’s historic institutions presents both a challenge and opportunity for Canada’s granting foundations and charities. For many Canadians, the church feels dangerous these days — even, toxic. A much needed conversation including Black Lives Matter, Me Too and the horrors of Residential Schools has been set on fire by the shocking discovery of the unmarked graves of beautiful, precious souls. Souls that deserve recognition in this life — and the next. A group of monks and nuns recently wrote to all Catholic Bishops in Canada, demanding for an immediate plan not only for apologies, but also for concrete action in favour of Canada’s First Nations. Several recent news articles have focused on 32

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the hundreds of millions of dollars raised to rebuild church buildings, yet less than $25 million awarded to residential school victims. Hundreds of professors at Ryerson University have signed a letter asking for that organizations’ name to be changed, in shame for the extant Mr. Ryerson’s own implication in creating the residential schools system. Where is the line of responsibility drawn? In London, England, the 2010 Olympic Games took place on top of one of the largest toxic wastelands in Europe. Infrastructure visionaries saw the potential and a cleanup operation began decades before. No one can undo the atrocities committed on the ground of these newfound burial sites. However, what could be done to clean a toxic heritage on other lands of the church and related organizations, to the point where new civic dreams could come alive? foundationmag.ca


LEADERSHIP As a pastor based in Montreal, I can tell you those of us left standing are trying our best, yet the colonial culture that pervades our organization makes it so hard to change. A group of us from around Canada have established a new, secular, charity called the Trinity Centres Foundation to try to come up with new models not only for practical reparations and reconciliation, but for an entirely new model for engaging the $45 billion of property wealth of the church.

These church properties may contain the missing link in social impact programs My experience as a minister says that being honest about these matters and the doubts and concerns of others, is indeed the best way to have conversations about a supernatural faith. In other words, protectionism, vague statements and little concrete action has a direct detrimental effect on the core business of the church: helping others see the God who made them, even despite our own deep failings. In a recent event hosted by our foundation between Bishops and large granting foundations, Marc Manguin, CEO of Philanthropic Foundations of Canada made his point clear: Canada’s wealthy families have little trust left in the church, however they do often feel a historic tie to the places which were created. Before impact investments were cool, these old colonial families built many of these churches. Their names are on the plaques.

question remains: what about the land? Perhaps we should simply plough down all the churches and build affordable housing. In some cases, that is indeed an excellent idea. Yet at the same time, this solution seems somehow lacking when we look at the old stone behemoths that line our main streets. We are at an impasse Enter the world of today’s impact financing of social purpose real estate. This is the work of the Canadian Urban Institute, Imagine Canada, Community Foundations of Canada, the Federation of Canadian Municipalities, the National Trust for Canada, Canada’s Social Finance Fund and the Senate of Canada’s ongoing work looking at the financing of the social sector. Traditionally, these groups have avoided working with faith communities, for the reasons listed above and more. They are laser-focused on tangible progress towards equality for black, indigenous, LGBTQ2S Canadians, and more. These groups have something the church does not: deployable capital, aimed at social impact. We are at an impasse: can we connect these two great tides, or do we allow a tsunami of justice against the church, to destroy our urban landscapes. More community-planned de-consecration is required to make this happen. This would allow a new re-consecration for the sacred work of reconciliation, embodied in the thriving of Canada’s social sector and fuelled by investment-ready social purpose real estate plans, built by and with Canada’s granting foundations. If only the church would see that this giving up of colonial power is a key to its own future of faith and service. If only Canada’s granting foundations would see that these church properties may contain the missing link in so many social impact Investment programmes: real property on which to secure financing instruments. What if a new coconsecration of Canada’s troubled faith properties is indeed the toxic remediation, we need most. THE REVEREND GRAHAM SINGH is an Anglican Priest in Montreal, graduate of the London School of Economics and founder of the Trinity Centres Foundation, a charity dedicated to transforming church properties for community impact.

Courts have and will deal with those questions The question is: were these buildings built purely as places of faith, or were the donors’ intention that they would become the social infrastructure of the future? What if a remediation of the toxicity could in fact reveal hundreds of millions of square feet of community spaces, right in the heart of cities where our charities and nonprofits most need it? There is no toxic wasteland that acquires the resources to clean up, easily. What if the errant landowner benefits too much? Why should society or its non-religious charities contribute? Who should be held responsible for what happened? Courts have and will deal with many of those questions however the foundationmag.ca

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LEADERSHIP

Five Ways to Steward a Diverse Group of Donors

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BY ROXANNE TACKIE

ow, more than ever, Canadians are having conversations regarding social justice, diversity, and inclusion; and the non-profit and philanthropic sectors have been called on to respond. Truly, the work of becoming a more inclusive sector not only benefits our communities, but it also benefits our organizations — particularly when it comes to fundraising. Donor stewardship is a powerful fundraising tool; however, many traditional stewardship practices only appeal to a particular group of wealthy, mostly white donors. To appeal to a broader audience, we must consider new ways of doing things, so I encourage organizations to consider these five ways to steward a diverse group of donors.

1

Understand what diversity means. Most of us think of race and ethnicity when it comes to diversity; however, there are many ways in which people can be diverse. There’s physical ability — such as whether someone is able-bodied or has a physical disability. Gender diversity is another important area, which includes not only traditional identities of male and female, but a range of other gender identities including transgendered, non-binary, and gender neutrality. And, there are various other types of diversity including age, religion, sexual orientation, and more. It is important to examine whether there are areas where your organization may be communicating well to the perspective of some and lacking in communicating to others. Developing this self-awareness helps organizations to understand where they need to improve. 34

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2

Recognize Canada’s changing landscape. Canada is a more diverse nation than ever before, and the statistics show that this trend will continue. According to the Statistics Division and Analytical Studies Branch of Statistics Canada, by the year 2031, 29 to 32 percent of the population could belong to a visible minority group and 29 percent of people will have a language of origin besides English. These donors have a deep connection to family and community which informs their giving and generosity. In addition, the same branch shows as of 2019, millennials are Canada’s largest generation at nearly onethird of the population. Younger donors have a desire to become more interactive with causes they care about, and are eager to share their support with friends, families and social networks. Being aware of these changes are important for organizations. Since the pool of Canadian donors has become more diverse, their perspective and expectations have changed, so we too must change how we communicate with them.

3

Steward gifts of all sizes and types. Major gifts are important, and organizations should work to cultivate relationships with major donors. Still, it is just as important to ensure that every donor receives some form of stewardship. For example, many newcomers and young donors may be in a stage of life where they lack disposable income; however, organizations that can retain their support long-term will benefit when their life situation changes and they have the ability to give more. In addition, while speaking at the Canadian Association of Gift Planners (CAGP) conference earlier this year, I noted that foundationmag.ca


LEADERSHIP many fundraising professionals often overlook the value of stewarding of legacy donors since the gift is not realized at the time of the bequest commitment. However, organizations must steward legacy donors to maintain their bequest, and motivate them to increase their annual giving. So, it is important to ensure that organizations work to include all types of donations when developing a stewardship plan.

4

Tell stories that connect with all audiences. Storytelling is important, but particularly, telling your organization’s story in a way that connects to your donors. Nonprofits can often fall into the trap of the “hero complex” where they position themselves as the one that has “saved” a particular person or community. This can be perceived as distasteful, especially by marginalized communities. Truthfully, an organization can only enhance someone’s life rather than solve all their problems. So, when telling stories, appeal to what is important to all people. What is the topic of the day? What are the basic values that all people have? This will ensure that your storytelling language is inclusive.

5

Diversify the perspectives on your team. The easiest way to ensure that your communications to donors are both authentic and inclusive is to ensure that your team is diverse. This starts with the board of directors since they are responsible for setting the overall strategy within your organization. The more varying thoughts and perspectives you have on your board, the better for your organization because great minds don’t think alike. But be aware, just because you have one Indigenous volunteer, it doesn’t mean that their perspective represents that of all Indigenous peoples. Also, diversifying your team is only one part of the equation. Once you have diverse perspectives at the table, you must be willing to listen to them and include them in your stewardship plan. Appealing to a diverse group of donors is ongoing work that involves a process of regular self-awareness and re-evaluation of the way you are engaging with your donors. However, when you choose to focus on diversity and inclusion, you will form stronger relationships with a broader group of donors, and thus strengthen your overall fundraising strategy. ROXANNE TACKIE is the Co-Founder of Story Point Consulting where she collaborates with nonprofit professionals through coaching, training and consulting. You can reach her at info@storypoint.ca.

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Sheree Allison, a Certified Fundraising Executive (CFRE), pioneered the merger of two amazing organizations: Big Brothers Big Sisters and Boys & Girls Club in Miramichi, N.B.

Check out how it works here: https://hilborn-civilsectorpress.com/pages/author-support-services

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PLANNED GIVING

The Surprising Connection Between Wills and Social Media

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BY CHRISTINE KANG

state planning and social media is not a pairing you would immediately nor easily make. In fact, until COVID-19 hit, the creation of wills was a heavily paper-dependent and traditional process, with all signings required to be in person. But when it comes to gathering information on will planning or learning more about charitable bequests, it appears that Canadians are more than keen to engage online and on social media no less. The typical story of planned giving begins with a gift planner visiting an elderly donor and drinking tea together while they share stories of their lives. I have a soft place in my heart for these visits and donors as it is a great gift to be invited into someone’s home and to hear their life story. But it happens more seldom than you might expect. More and more charities have moved to invest in gift planning, recognizing the tremendous opportunity due to the transfer of wealth, the long-term value of raising future funds, and the heavily taxed assets owned by many aging Canadians. Today, the stereotypical planned giving donors who may be willing to share information regarding their planned gifts to your organization are becoming harder to find. These committed donors are being approached by many organizations and maintaining the growth of future gifts that organizations rely on for the future, especially in times of uncertainty, is starting to require more effort and complexity. This can pose a difficult conundrum in the world of planned giving, where the case for organizations to invest resources for the benefit of the future can be a constant challenge, especially where there are so many immediate needs at hand. But it is also the role and privilege of leaders to be able to invest in the future of their cause. So, investing in gift planning is an investment into the future. And like all investments, some risk is involved — such as the long lifecycle for any planned giving program. There's a gap between when a future gift is confirmed to when the donor might pass away and the gift is realized. And there's also a gap earlier on the cultivation stage as well. Canadians tend to delay writing their will and even when they start thinking about it more seriously. It can take some time before action is taken. What’s more, if the idea of including a charity as part of their legacy is new to them, there will be many considerations at play, from ensuring they provide enough for family to choosing which charities to include. Despite these risks, it's still an investment worth making. Not just because I'm personally biased as a gift planning professional, but because the proof is in the millions of dollars 36

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that come into charities across Canada from estate gifts every year. After all, every type of fundraising, be it corporate, direct mail, major gifts, etc., has its benefits and challenges, and gift planning is no exception. I have the privilege of working at an organization where compared to many other charities, there has been a long-term commitment to planned giving and investing for the future. I recognize this is a tremendous blessing to be able to take risks. Initially moving some of our planned giving activities online wasn't too difficult. We do live in an increasingly digital world. But starting to promote planned giving, a personal and delicate topic for many, on social media platforms like Facebook, Instagram, and LinkedIn was a risk, unproven at the time. Fortunately, the results were beyond what we could have imagined. After a few years of social media campaigns, we have earned over 11.5 million impressions, almost 1,000 individuals interested in learning more, several confirmed gifts, and lots of learning along the way on how to optimize this new way of marketing for gift planning. There are also proven results from a few other charities who have also ventured out into the social media space and from Will Power, the CAGP's national campaign to make gifts in wills the social norm. Through these campaigns we have learned that Canadians are willing to engage in getting their information online and via social media. We have learned that they're willing to provide us with their personal contact information over social media channels in exchange for more information on the topic. We have learned that going out on social media allows us to reach new people, the vast majority of whom do not currently have a relationship with us. We have learned that the quick almost instantaneous results from online marketing allows us to immediately see which ads and content resonate well with audiences and which do not, a benefit not available in traditional media like print. I've been contacted by many of my gift planning peers across the country and even across the border in the United States, eager to learn more about this new frontier in gift planning. Innovation can be hard to come by but once you've proven it for others, it seems like overnight it can quickly become a new standard. By no means am I saying that social media is the solution for every planned giving program. A combined approach to your gift planning efforts involving tried and true methods like surveys, direct mail, and delightful in person visits is probably still best. But don't be afraid to allow a little risk and invest for the future, knowing it's already been tested and tried with proven outcomes. CHRISTINE KANG is a Manager of Gift & Estate Planning at SickKids Foundation. foundationmag.ca


COLUMNIST Philanthropic Partnerships CONTINUED FROM page 11

At times, the fundraiser will have a conversation to “explore” the partnering possibilities and maybe “stretch” the acceptability of agreed upon “advantages or benefits” for a donor in a philanthropic partnership. However, as professional fundraisers, it is our responsibility to draw the line of acceptability based on legal requirements, guided by the Income Tax Act and based on ethical obligations, which can be found within our organization or provided by the Association of Fundraising Professionals (AFP) Donors Bill of Right, or Code of Ethic. There are moments, where we have the fiscal responsibilities to disagree on demands made by the donor in a particular philanthropic partnership because of regulations dictated by a charity’s internal policies, such as a gift acceptance policy or an investment policy.

A meaningful philanthropic partnership Charities have become an essential part of the fabric of our society. As Imagine Canada said: the charitable and nonprofit sector contributes 8.7 percent to GDP — that is more than the fisheries sector (1.65 percent) or agriculture (6.7 percent). We need to ensure that we can build philanthropic partnerships to enhance our capacity to contribute to the overall social as well as the overall economy. Drafting a donation or donor agreement enables both donor and donee in a philanthropic partnership to set realistic expectations with shared goals and objectives, intended outcomes, and liabilities for which each partner is accountable. This agreement can be as simple as a one-pager pledge form, or a detailed twenty-page endowment agreement. Whether we are entering in a partnership with a donor for a short, medium or long-term agreement, we have

the obligation to make these partnerships meaningful for all partners involved. Philanthropic partnerships provide all partners involved with a momentous sense of accomplishment. KATHLEEN A. Provost, CFRE is currently the Director, Campaign Initiatives at St. Francis Xavier University, in Antigonish, NS. She brings over 25 years of fundraising experience within the charitable sector. She has been a Certified Fundraising Executive (CFRE) since 2007, and a long-time member and volunteer for the Association of Fundraising Professionals (AFP). As a recognized leader, Kathleen has tailored presentations and workshops for French and English audiences at various events including AFP-Nova Scotia, AFP-Ottawa, AFP-National Congress, Coady International Institute and the Canadian Council for the Advancement of Education. Kathleen is a McGill University graduate and holds a Master, Adult Education from St. Francis Xavier University. She has received numerous recognitions during her career, including the Queen Elizabeth II Diamond Jubilee Medal for her contributions to the charitable sector. She writes this column exclusively for each issue of Foundation Magazine.

Thirty years ago this Fall, Canadian FundRaiser started reporting on the nonprofit sector Now weekly, as Hilborn-charityenews.ca, we’re the most trusted news source serving the Canadian nonprofit sector. To advertise: contact chris@hilborn.com To contribute an article: contact ann@hilborn.com To subscribe: contact mary@hilborn.com

Independent Canadian news and analysis for the nonprofit sector foundationmag.ca

July/August 2021

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DONORS

Triple Your Charitable Donations? The Time is Now. Here’s Why.

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BY PETER NICHOLSON

s a Canadian, when was the last time you thought about mining? In the year 2021, amid the cell phones, computers, solar panels and electric cars, you may not consider the critical minerals that make technology possible. Now I’ll take it a step further — what if I told you that mining is not only essential to our future economy, but also a way to give more to charity? The truth is, mining and charitable giving are closely linked through a uniquely Canadian tax structure. They are Canadian as hockey. In May 2006, WCPD Inc (Wealth, Creation, Preservation & Donation) made financial services history when Dr. Earl Wynands, an eminent anesthesiologist and Order of Canada recipient, participated in the first flow-through share donation without paying a capital gain. Since then, my firm has facilitated more than $175 million in charitable giving for our clients all across Canada. This trusted method of giving is simple and combines two tax policies that are older than your RRSP: one to assist Canada’s resource sector to create jobs and produce critical minerals, and another to give Canadians a tax break for donations to charity, or your conventional tax receipt. Together, combining these tax policies allow our clients, on average, to give up to three times more to charity, at no additional cost due to the tax efficiency, In my conversations with major donors, I find the tax incentives behind charitable giving are easily understood. We can all grasp that charities need our help. But mining? Why is that important? There are very good reasons why, since 1954, our government has offered a 100% 38

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tax deduction for buying flow-through shares, so junior mining companies can find that next deposit of cobalt for electric cars, gallium for LED lights, or indium for solar panels. Canada has been a world leader in mining for decades, accounting for more than $100 billion to our annual GDP, and producing over 700,000 direct and indirect jobs. The fact it is also the number one employer of Indigenous Peoples makes it all the more important. Put simply, the more mining that occurs, the better it is for Canada, on many levels. However, from 2011 to 2019, the mining industry was in one of the worst bear markets in history. India and China stopped growing to the same extent. And as a result, there was less drilling everywhere, including Canada. But the tables have turned. Earlier this month, three of the top mineral producing countries — Australia, the United States and ourselves — formally launched a landmark initiative aimed at researching and discovering critical resources needed for the world of tomorrow. The Critical Minerals Mapping Initiative was founded due to one basic principle: to fuel technology and renewable energy, we need raw materials. Meanwhile, as we emerge from this pandemic, investors are once again flocking to gold in their portfolios as a safe haven and a trusted hedge against market uncertainty. What it adds up to is not only the rise of the mining industry globally, and in Canada, but also an opportunity for major donors. In 2018, due to less mining in Canada, our firm had a $60 million wait list of high-net-worth clients, all searching for the flow-through shares needed to facilitate our structure. Today, we now

have plenty of availability for new donors. Amid the worst public health crisis in a generation, there is no doubt that charities need help now more than ever. So my message is clear: if you are a high earner, recently sold a business, or experienced a large capital gain, you can help Canada’s mining industry, while also giving more to charities of your choice. And the next time you pick up that cell phone, login to your computer, or purchase an electric car, consider this: the minerals inside may have done more than created jobs and made our planet cleaner. They may have helped a Canadian registered charity. For decades, PETER NICHOLSON has been a recognized leader in Canadian tax assisted investments, with a specialized focus on philanthropic tax planning and tax reduction. Through his work with countless donors, foundations and institutions and boards, he has helped generate in excess of $175 million for client donations. WCPD is Canada’s leader with over 500 closed charity flow-through offerings. To learn more about how we can assist your philanthropic goals, write peter.nicholson@wcpd.com foundationmag.ca


HISTORIC PLAQUES

IMAGES COURTESY THE SETON CENTRE AND GEORGE GOLDSBOROUGH

Historic Plaques Which Honour Philanthropy

Power Up Your Social Strategy Results Cause Related Marketing can help you Increase sales and market share, strengthen brand positioning, enhance corporate image and clout, increase your ability to attract, motivate and retain employees and decrease operating costs. Nonprofit organizations can see such benefits as increased donations; enhanced visibility of their causes or messages; connections to sponsors and corporations, their network of employees, suppliers, distributors and other contacts; and a wealth of corporate experience, including marketing expertise and strategy development.

Ernest Thompson Seton Plaque Municipality of North Cypress-Langford, Manitoba

A Strategic Approach. Not all nonprofits are ripe for attracting corporate partners. Nonprofits hoping to attract cause related marketing partners should do their homework and practice due diligence.

World-renowned naturalist, artist and writer Ernest Thompson Seton was born in England. In 1882, he joined his brother on a homestead near Carberry, Manitoba and began to keep scientific records. He often referred to his time here as the “Golden Years” of his life and it inspired many of his later works. Housed in one of Carberry’s heritage buildings, the Seton Centre is a small museum, art gallery and gift shop dedicated to the life and works of Ernest Thompson Seton. Appointed naturalist to the Manitoba government in 1892, he founded the Woodcraft League and became the first Chief of Boy Scouts of America. He moved to Santa Fe, New Mexico where he founded the Seton Institute in 1930 and there spent the rest of his life. He fell in love with wild nature from the time of his earliest memory and discovered a remarkable talent for art in his middle teen years. Combining the two, Seton briefly attended the Royal Academy of Arts in London, but achieved mastery of depicting animal forms from endless hours of life study. He became one of the most successful and highly regarded wildlife illustrators of his generation creating drawings, prints and paintings for his own books as well as for many other authors of his time. Roger Tory Peterson credited Seton’s bird illustrations for providing inspiration for his field guides: “It was on this idea that my Field Guide to the Birds, was based.” This plaque in Seton Provincial Park along the Trans-Canada Highway, in the Municipality of North Cypress-Langford, was erected in 1959 by the Historic Sites Advisory Board of Manitoba. There are other plaques and signs around Canada, honouring Seton. Some are included here.

Why Social Strategy Group? We focus on the mutually beneficial relationship and recommend rights and benefits for both sides. We present the marketing concepts and how the project will be executed and explain required budget and metrics to identify how successful it can be over time. We focus on the mutually beneficial relationship and recommend rights and benefits for both sides. We present the marketing concepts and how the project will be executed and explain required budget and metrics to identify how successful it can be over time.

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Our Team of Cause Related Marketing Strategists will promote your business using an ethical approach benefit both parties. CRM has a wide range of benefits to attract new customers, add value to the brand. Being ethically and socially responsible will provide the company with brand loyalty with a positive link to the charity of choice. CRM can drastically improve customer loyalty since today’s consumers would rather support and purchase products which support charitable causes.

Laura Tyson, Director of Communications email lauratyson@Socialstrategygroup.com or call 416-670-6688 www.socialstrategygroup.com

July/August 2021

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COMMENT Why Going Digital is Core to Mission CONTINUED FROM page 42

This is more than using hardware and software. A path to digital transformation first starts with culture change. Charity leaders and boards of directors need to first change their organizational, strategic, operating and donor-facing norms and processes. This is as much about creating a culture that is conducive to a digital environment: one that is agile, learning-in-action, participatory and collaborative. Rigid hierarchies and layers of approval will slow down or disable organizational learning that is so critical. Staff productivity and communication tools need to be implemented to empower staff such as Slack or project management tools such as Asana to keep teams working closely together. This is as much about creating

a new kind of an organization while integrating it with the old one. It is a change management effort at its core. Of course, charities also need to master the necessary digital expertise or invest in building expertise among their staff — digital transformation efforts are far more likely to succeed when organizations invest in digital talent. Here’s how you can start: 1. As a start, focus on basic tools for office and financial operations. These are foundational, digital tools. 2. Next, add online donation tools to level up your fundraising. 3. Event hosting, social media management, email marketing and websites are then added or upgraded to improve supporter engagement, as well as to increase fundraising and acquire more donors. 4. Software for data management and Customer Relationship Management (CRM), as well as peer-to-peer

fundraising tools, become priorities further along the path of digital transformation. Not just about technology While organizations are in different stages of their transformation journeys, these steps are typical of most. Those early in their journey must start with clarity around the gaps, needs, goals, and benefits of digital transformation for their organization. The story of why is just as important as the question of what. After all, this isn’t just about technology. This is about a deeper organizational retooling for the digital age. MARINA GLOGOVAC is president and CEO of CanadaHelps. org, a non-profit foundation which provides fundraising and donation technology to other charities and donors. Through CanadaHelps, 1.1 million Canadians donated more than $480 million to charities online in 2020. Glogovac has been a technology and media executive for more than 25 years, including roles at Kobo, Lavalife Corp. and St. Joseph’s Media.

We Create Accidental Philanthropists™ We help charities and foundations with Legacy Planned Giving Programs. People become Accidental Philanthropists™ when given the opportunity to give money to charity and family instead of the tax department. Donations are not all the same. Cash, cheques, and credit cards are the least cost-effective or tax efficient ways to give. We have identified more than 20 better ways to be more generous and your 8 best prospects to become Accidental Philanthropists™. Contact us to obtain the reports. Watch “The New Philanthropy”, Mark Halpern’s ‘Ted Talk’ at Moses Znaimer’s ideacity conference http://bit.ly/MarkHalpernTalk Mark Halpern, CFP, TEP, MFA-P Certified Financial Planner, Trust & Estate Practitioner, Master Financial Advisor – Philanthropy Helping families and charities for 30 years

WEALTHinsurance.com® Please contact us to learn more info@WEALTHinsurance.com 416 364 2929 | 866 566 2001 40

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July/August 2021

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COMMENT

Why Going Digital is Core to Mission

C

BY MARINA GLOGOVAC

OVID-19 has forced many charities to begin or accelerate their online fundraising and activities. This shift includes small charities that may have been slow to adapt, as well as large charities that were already online and need to ramp up operations. Today, however, most organizations still lag behind when it comes to digital transformation more than a year into the pandemic, and with no clear end in sight, it’s never been more critical for charities to focus on digital. In a recent survey by CanadaHelps, more than 1,400 Canadian charities were surveyed on their digital skills and adoption which reports that a large number of charities are behind when it comes to needed knowledge, and skills. For example, the majority of charities rate their digital skill level as “fair” or “poor” when using 13 of 15 basic software tools, even though many respondents believe that they’ll soon find it harder to fulfill their mission if they don’t improve their digital capabilities. While about three quarters of smaller charities with annual revenue of $500,000 to $1 million are integrating digital technology into everyday activities, only 42 percent of 42

FOUNDATION Magazine

July/August 2021

small charities with annual revenue less than $100,000 are doing so. Why are so many charities far behind? This is surprising and alarming. Online donations have been rising for years as Canadians of all ages — especially the younger ones — increasingly use their devices for daily activities, including online giving. In 2020, 1.1 million Canadians donated more than $480 million through CanadaHelps, a huge increase in online donations during a time when total donations (both online and offline channels) are projected to have declined. So, why are so many charities still far behind when it comes to digital adoption? The short answer: lack of resources, expertise, staff — and, perhaps, a lack of understanding as to how urgent it is. As one leader of a small charity told us, “We are perpetually understaffed (with COVID, down to just the Director/Curator), so researching and implementing new technological tools, even though I know they are important and a priority, just doesn’t happen.” The same struggles are also felt by staff and volunteers in thousands of other charities across the country.

But digital transformation is not only necessary, it’s mission-critical. In other sectors of the economy, digitization is clearly understood as key to survival in the rapidly expanding digital economy and it’s being prioritized as such in organizations small and large. The concept of digital transformation can be defined as the process of using digital technologies to create new — or to modify existing — organizational processes, culture, and experiences. The end goal for a charity should be to create missiondriven change faster by dramatically expanding its capabilities to be effective in the digital world. Beyond software and hardware or its ability to improve operational efficiencies and accelerate fundraising, digital transformation allows charities to better measure and evaluate program delivery, improve fundraising and communication with supporters, and demonstrate impacts to donors. Start shifting your organizational culture The key to achieving these goals, especially for smaller charities, is to first start shifting your organizational culture and staff mindset. CONTINUED ON page 40 foundationmag.ca


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