By Sara Krynitzki and Dr. Michele Fugiel Gartner
Many in our sector may be surprised to learn that data on foundations in Canada is extremely limited — this includes data produced by government, in academia, and even by our own sector. This is despite the fact that roughly 1 in 8 charities in Canada are foundations, and that foundations today steward over $135B in non-taxed assets.
At the government level, there have been some significant initiatives over the years produced by Statistics Canada, but they need to be more regular, and provide a comprehensive look at foundations specifically. Data from the T3010, the form all charities must complete to report to the CRA on their activities annually, is the best regular source of data about our sector. Still, it’s been designed for regulation rather than data collection per se. What’s more, is that its online reporting mechanism is clunky and designed for businesses rather than charities. As a result, uptake of online reporting has been very low, which leads to all sorts of data integrity issues. Additionally, data from the T3010 is not readily available to the public. Believe it or not, T3010 researchers still need to request CDs to be mailed to them by the government, and most of the data they receive in the CDs is disaggregated in ways that require hours and hours of analysis work by research experts.
In terms of academic and sector data, some research initiatives have been monumental, including PhiLab (the Canadian Philanthropy Partnership Research Network), and Carleton University’s Master’s of Philanthropy and Nonprofit Leadership (MPNL) program, and Charity Insights Canada Project. Imagine Canada’s research capacity is also outstanding — so notable in fact that we recently heard on a panel that to access data on the sector the Government of Canada usually looks to Imagine Canada! Also, over the past ten years, there have been important research compilations about Canada’s philanthropic landscape, such as Intersections and Innovations (Phillips and Wyatt, 2021), Philanthropic Foundations in Canada (Elson et al., 2020), and several other practitioner reports and case studies. Our organization is very supportive of these initiatives, and we are in engaged deeply with all of them.
The issue is that these initiatives are inadequate: government data is not enough and not very accessible, and academic and sector research is fragmented, irregular, and sparse. There needs to be initiatives with an eye to providing a more fulsome picture of foundations with comprehensive data published on a regular basis.
Why should you care? Because data and research matter. They are used to tell stories, answer questions, understand change over time, and influence behaviour. When the right data is in the right hands at the right time, decisions are better informed, programs are better designed, and services are more effectively and efficiently delivered. More and more, data is regarded as a critical factor in all decision-making processes — but this wealth of information can only be truly beneficial if we know that it is reliable and correct. Indeed, data can improve trust and promote accountability. This is an absolute necessity for a sector like ours. Transparency is a moral imperative, and public expectations on this front is only intensifing.
For all these reasons, PFC has decided to grow its research capacity in a major, unprecedented way. We believe it is the key to more wholistically understanding who foundations are, how they’re changing (or not), what their strengths and contributions are, and what weaknesses and opportunities we need to watch out for. Better data will help us more effectively advocate for our sector about our sector — because without it, who we are becomes largely understood based on assumptions and anecdotes.
The sector’s data deficit continues to challenge all of our efforts, but PFC is taking action.
Our work starts with the launch this spring of our inaugural Landscape of Canadian Foundations report. Building on modest previous research initiatives on foundation assets and giving trends which PFC has published regularly since 2014, this new report model will use a mix of currently available but under-analysed or unreported quantitative data, including historical PFC investment survey data, along with qualitative data gathered through extensive interviews conducted with a diverse cross-section of philanthropic foundations from across Canada over the past year. It will provide a deep dive into what the data reveals about how Canadian philanthropic foundations developed, and what purposes, approaches, and roles they use to deliver on their mandates — from investment to grantmaking. The landscape report will provide insights on total grantings, areas of funding, and new trends.
After we launch our first Landscape report this spring, we plan to share our findings with our network in cities across the country. Information will be shared on our website soon, and in our monthly newsletter.
What’s even more exciting is that this is just the start. We have much more work on the horizon in terms of building out our research capacity that is in development with our stakeholders. We will also be doubling down on our policy activities to work with the government on key policy areas, including the data deficit, and we will continue to work in partnership with sector colleagues. The truth is that neither organizations nor government can fix the problem alone. So we are embarking on a big, new research agenda and an ambitious fresh program to bridge the gap between theory and practice in philanthropy, offering invaluable insights to decision-makers, academics and practitioners alike.
Curious to learn more? Don’t hesitate to reach out. We’d love to connect.
Sara Krynitzki is PFC’s Director of Public Affairs and Research, and Dr. Michele Fugiel Gartner is PFC’s new Lead Researcher. A registered charitable organization, Philanthropic Foundations Canada (PFC) is Canada’s national network of grantmakers, working together towards a more just, equitable and sustainable world. With staff, board, and members across Canada, our network is comprised of public and private foundations, as well as charities, corporate giving programs, donor-advised funds, and nonprofits whose primary function and activity is grantmaking. In partnership with its diverse membership, and in collaboration with civil society, business, and government, PFC advances the common good through network capacity building, collaboration initiatives, policy work and research.
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