By Kathleen A. Provost, CFRE, MAdEd
As a professional fundraiser, I have come to wonder how the presence of a global pandemic over the last two years will shape my profession. In my last article, I talked about a “Great Awakening”, wondering what may come from what we learned from this world pandemic. What may have been learnt after weathering this storm? In my opinion, this “Great Awakening” means individuals are taking control of their professional, personal and philanthropic choices. If this is true, then, how will this shape the charitable sector going forward?
To look beyond 2022, and to help inform our outlook on the role we play in the midst of these shifts and uncertainties, I have decided to interview community leaders in our charitable sector. Join me on this journey as my next columns will each reflect segments of conversations, in an attempt to help us give consideration to what lies ahead.
MY CHAT WITH BRUCE MACDONALD
I have crossed path with numerous extraordinary individuals throughout my career; but as I wondered about what tomorrow may bring to this charitable sector, Bruce was the first name I thought of to have an honest conversation.
Bruce MacDonald is the President & CEO of Imagine Canada, a national organization created in 1981 and whose mission is to strengthen Canadian charities and nonprofits so they can better serve individuals and communities both here and around the world. Bruce was also appointed in 2019 as Co-Chair of the Permanent Advisory Committee on the Charitable Sector working with the Canadian federal government. I have known Bruce for many years and wanted to hear what he had to say about some key considerations within our charitable sector following a global pandemic.
What challenges does our charitable sector have at the current moment?
Bruce was saying that when looking at the current operating environment in our sector, we may still be looking at a “bumpy period ahead”. He reminded me how government programs made available during the pandemic have had a significant impact on our sector. He referenced the “Canada Emergency Wage Subsidy” (CEWS) for example, which was stopped in October 2021 (given we had not yet experienced Omnicom). It is estimated that about half of the organizations who applied for wage subsidies received it, and these programs supported upward of 55 percent of their staffing cost. Bruce reminded me that the longer the gap between this kind of support and the capacity for organizations to resume any fundraising, or any revenue generating activities, the more pressure there will be on charitable organizations. These pressures will necessarily affect employment trends in our charitable sector.
We also talked about the rising costs of “doing business” due to inflation, and how inflation affects us all. Given the nature of our sector, Bruce said we are faced with two key obstacles: first, our sector cannot pass along any increased costs to its constituents; and secondly, many of us work in a fix revenue environment. That is, we have multi-year signed agreements, sponsorships or pledges that will not be adjusted to inflation.
How will the charitable sector, as we know it, change in the years ahead?
Throughout his outreach to his members during the pandemic, Bruce did witness examples of organizations “pivoting” or “adapting” to maintain their activities. The counselling sector was a great example that illustrated to Bruce the benefits of hybrid services. These counselling services may now continue to offer both virtual consultations and in-person consultations because the virtual experience had proven at times to be more effective — hence, a re-design.
We also talked about how professionals who steward donors had found creative ways to outreach to these donors. A number of professionals and donors now express that they have found an easiness to having meaningful conversations, because they have learnt how to be comfortable in this new virtual world. Additionally, we both observed how charitable organizations of all sizes had developed the ability to tell stories differently — through digital storytelling and via social media.
Bruce did share that in some of his latest media interviews, the topic of the day was crowdfunding, citing for example the Ottawa Freedom Convoy, or some recent Ukraine relief efforts. He reminded me that individual or family recipients of crowdfunding are not accountable to report to their donors how they spend the funds they raise. With consideration to accountability: the very rules and regulations registered charities are required to follow may present charitable organizations as a more “trustworthy” option for donors. Both Bruce and I were wondering if this may be an opportunity for registered charities to further demonstrate accountability, trust, and impact.
What is the role of rules and regulations for the charitable sector?
Because Imagine Canada is a national organization working to bolster the Canadian charitable sector’s role in building, enriching and defining our nation, with a vision of a stronger Canada where charities work together alongside business and government to build vibrant and prosperous communities; Bruce and I talked about regulations concerning our sector. The Disbursement Quota, for example, is a regulatory area the federal government is attempting to simplify; but, realized through this attempt that it was a far more complex issue than originally expected. The range of data and sector related information needed to simplify these regulations come from a wide spectrum of stakeholders. Amendments to any regulatory items would lead to numerous social impacts. Bruce was telling me the federal government, in the example of the Disbursement Quota, struggled to have an agreed upon data starting point upon which to base its decisions. This would suggest the necessity to create a department or ministry within the federal government to coordinate and coherently assemble information from all stakeholders to help inform policy and have positive impacts in the charitable sector. Bruce did mention that provinces like Newfoundland and British Columbia are already forming departments to help advice governments on key provincial charitable sector issues.
What values are emerging from this post-pandemic moment?
There is a shift of expectations around the inherent power imbalance between donors and charities felt in every area of the charitable sector that will impact everything we do, from programs, intentionality, staff composition, to Board appointments. Bruce was saying that this trend is here to stay. Leadership will need to adapt and ensure organizations reflect what Canadian society is looking for in a charitable sector.
The pandemic has also shown a light on the vulnerability of our sector. We are looking at a painful disruption of the status quo. The debate on the Disbursement Quota has surfaced many aspects of philanthropy that have underpinned the system for many years. Issues like the idea of ‘gifts in perpetuity’ are being called into question. Some are suggesting that they should move to ‘mandatory spend down’ and the very idea of endowment philanthropy being viewed through the lens of colonialism and privilege. These important questions and debates will shape the future of philanthropy for years to come.
Bruce’s concluding remarks caused me to reflect. He said that this pandemic has cast a light on the importance charitable organizations have in our communities. He argued that one in two charities he has engaged with recently reported that during this pandemic Canadians were coming to them for more services. In times of trouble people turn to our sector, hence it is imperative that we have a strong sector.
FINAL THOUGHTS
In my conversation with Bruce, it became apparent that the effects of a global pandemic are influencing a number of key components that will reshape the charitable sector has we know it today. We must therefore consider issues between donors and charities, and what this means for our communities. If philanthropy is to be impactful, successful, and rewarding, maybe funders should approach the grantee-donor relationships from a place of trust, humility and transparency. This specific grantee-donor relationship is giving rise to the concept of “trust-based philanthropy” a peer-to-peer learning and advocacy initiative to make trust-based practices the norm in philanthropy. Maybe this pandemic has awakened our curiosity to new ideas and alternatives?
Reading authors Stephanie Beasley and Catherine Cheney for Devex: a media platform for the global development community, I found they exemplified these “new philanthropic behaviours”. Their recent article demonstrates how tech entrepreneurs are bringing new approaches and challenges to philanthropy. Trends are demonstrating that these tech-donors are turning their attention to global development causes, as well as pivoting from making money to giving it away. This change in focus by tech-oriented philanthropists acts as a pace-setting model and offers a new perspective. Nick Tedesco, president and CEO, National Center for Family Philanthropy claims that: We are now encountering first-generation wealth creators who are not part of multigenerational wealth constructs where wealth is the norm and preservation of capital is essential.
Following twenty-four months of this global “tsunami”, we have learnt to “re-think” and adapt to ensure we have desired impacts. My conversation with Bruce reminded me that rules and regulations, such as the private member’s Bill C-240 — an Act to amend the Income Tax Act (donations involving private corporation shares or real estate), can play a key role in supporting our charitable sector as it adapts to a new philanthropy. The role of leaders, professional fundraisers and the choices of fundraising activities are all becoming key pieces of this change. But most importantly is the role the donors play in defining this new philanthropy. The donors desire to enable immediate changes needed in our society will influence every aspects of our charitable sector.
I am grateful to Bruce for shining some light on a few key components that impact our charitable sector today. I think that with a positive outlook, we may envision the world differently and stimulate our ability to problem-solve creatively by making purposeful choices as we re-design this charitable sector.
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.
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