One, entitled Confidence Men, written by Pulitzer Prize-winning author Ron Suskind, is about the first two years of the Obama administration and the financial crisis. As we now know, the unethical practices of leading American financial institutions prior to 2008, led to a meltdown on the markets that the world is still trying to recover from today.  Every organization and individual with investments was profoundly affected. Certainly, The Winnipeg Foundation has felt the negative impact.

There were a variety of causes, including a seriously weakened regulatory framework, the capacity of new technology, overly complex financial instruments which pushed legal limits, ill-advised compensation practices, weak private sector governance and a consumer-driven culture where people routinely bought what they could not afford.

I found one section of the book to be of particular interest. Goldman CEO Lloyd Blankfein is testifying before a government committee and talks about why there is such confusion about the role of banks. We see that in the mind of the public, banks are generally viewed as fiduciaries. They have a duty of care; the interest of the client comes first. When they sell an investment to a client, the client expects that the bank believes in the investment. But, in fact, that was not the case. The banks were selling investments they knew were of questionable value and, even worse, were betting through the market that these investments would soon rapidly decline in value.

That got me thinking about The Winnipeg Foundation. We unquestionably have a duty of care with respect to our donor’s gifts. Ever since 1921, generous people from all walks of life have contributed to “their” community foundation with an expectation that we would act prudently in good times and bad.

In these turbulent times, acting with a duty of care in mind is not as straight-forward as protecting the invested capital of the Foundation. Donors to endowments give money to provide sustainable support to the community and its charitable agencies. So there must be a balance between protecting capital for the long run and making annual grants for immediate impact.

Over the past five years, our investments have earned an annual average return of just over 2%. This is not enough to cover the cost of our distributions. We have traditionally granted 5% of our asset value, though in recent years, this rate has been gradually reduced. This year it is 4.4%. So, during these troubled years, we have been using some capital to continue grant distributions to the community.

In reflecting on the many policy discussions at our Committees and Board, I think we have struck the balance right. We are working to create a predictable revenue stream for the community while at the same time, building an investment strategy that will deliver long term sustainability. Every year, we model and review our assumptions as we apply our own “duty of care.”

As I drove to work today, I was thinking about a December ad campaign that would encourage Manitobans to make an extra gift to their favourite charity or to a charity that they have not supported before. The theme would be: “Everyone gives. Everyone claims. Everyone wins. It’s the Manitoba way”.

When you are in first place, it is hard to ask for more and yet, at The Winnipeg Foundation, we see countless examples of worthwhile projects that require public support. We also welcome contributions to some of our own recent initiatives:

1. The “You Can Do It Awards” provide inner-city kids from grades 5 to 12 with a $1,000 learning account to be applied to their future post secondary education in Manitoba.  You can create a $1,000 award by donating $300 to the You Can Do It Awards Fund at The Winnipeg Foundation, which will be matched by the Province and the Foundation to make up the balance.
2. Up until December 10th, you can support world class medical research taking place in Winnipeg.  The Foundation is sponsoring a virtual race to raise funds for HIV/Aids research. For more information about this unique venture, visit the Virtual Marathon for Medical Research.
3. You can help us “grow the orchard” through our Nourishing Potential Fund. The Fund provides snacks and meals for Winnipeg children and youth. In just the first year, we have already “harvested” 28 grants (almost $175,000). Every gift helps.

Manitoba has a relatively small population and we are geographically isolated. As a result, if we want our community organizations to flourish, we have to step up more than others. Twenty-six percent of us claim a charitable gift on our tax returns and, together, we donate one percent of our income. Even though these numbers lead the nation, there is opportunity to do better. The need is so apparent, and this is the season to give just a bit more.

The evening included recognition of Lewis Wasel, the first board chair, for his vital leadership role, as well as the launch of three engaging new videos that demonstrate SDCF’s community impact. Attendees were all friends of the foundation and even after the official program came to a close, the conversations and camaraderie continued.

During dinner, our table had an interesting discussion about an early decision by the SDCF Board to invest $120,000 into a needed piece of hospital equipment. It was described as a “game changer” that has profoundly affected the level of medical service in the community. That led to other examples of much smaller grants that were also making big differences in Selkirk.

A newspaper clipping from the 1990s had been placed on each table, and it included a comment by Hugh Arklie, Executive Director of the Thomas Sill Foundation. He predicted it would take fifteen years to realize the impact of Manitoba’s emerging community foundation movement. His comments are certainly proving true in Selkirk. And SDCF’s success is being replicated by almost 50 other community foundations across Manitoba.

Of course, all citizens should have a basic entitlement to public service. It follows that most public service will be funded by government, however, government can’t afford to “do it all.” In fact, government cost-cutting means the role of Manitoba community foundations is becoming more important. These organizations provide a permanent revenue source that meets local needs now and for future generations.

November is Endow Manitoba month, a great time to consider a gift to your local community foundation. To find a foundation near you, or learn more about the work of this growing philanthropic network, visit www.endowmanitoba.ca.