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foundation philanthropy – ceo's commentary
Posts Tagged ‘community foundation’
Friday, February 17th, 2012
During the early part of February, I had an opportunity to spend some vacation time in Florida with my wife enjoying the sun, walking, swimming—not doing anything at all that might be described as demanding. I got to a Jets game in Tampa (which we won). I also read a few books.
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.”
Tags: charitible giving, community foundation
Posted in Charitable Giving, Philanthropy | 2 Comments »
Tuesday, November 15th, 2011
Just recently, 130 people gathered at Rembrandt’s Restaurant in Lockport to celebrate the success of the Selkirk and District Community Foundation (SDCF), which has distributed more than $1 million in grants during its 15-year history.
 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.
Tags: charitible giving, community foundation, Manitoba
Posted in Charitable Giving, Philanthropy, Rural Community Foundations | No Comments »
Thursday, October 6th, 2011
So Air Canada no longer wants its employees staying in downtown Winnipeg. How do those of us with a passion for the downtown react?
I don’t think there is much comfort in painting a more positive picture even though that may be our first reaction. Air Canada has declared its judgment to the world and the media has assured the message was heard. Perception is more important than reality.
There are always interesting ideas about how to better deploy our police services—horses, buffalo coats and beat patrols—the Chief has undoubtedly considered them all. Political leaders of every stripe are strongly supportive and police budgets are voted an ever increasing share of public resources. In addition, the public and private sectors have both invested in the downtown through major projects like the MTS Centre or the new Hydro Headquarters as well as countless smaller ones. Philanthropy is also doing its part. Support for the Human Rights Museum symbolizes the community’s generosity—The Winnipeg Foundation alone granted $6 million. The Foundation has invested heavily in Central Park, Old Market Square, the Red River Culinary School—the list of projects is very long. And other charities are equally committed.
Despite Air Canada’s conclusion about our downtown, my view is that we are making progress. But to change the situation in a profound way, we need 2000 new condos on the “walkway system”. There are certainly available sites for major residential blocks—for example, over Portage Place, along Graham, over Winnipeg Square, north of the Canwest Building or east of the Fairmont Hotel.
It would take very significant government subsidies and it is not easy for public policy to support private housing. But the advantages accompanying such development would be equally significant. From a safety perspective alone, several thousand residents constantly moving throughout the downtown and connected by our all-weather walkway system would be transformative. Residents would give more meaningful voice to the most obvious needs which mostly relate to root causes. And their presence would not only bring new business (groceries, dry cleaning, etc) but equally important, shore up the business that already exists. Of course, whatever the required subsidy may be, investing public money into the capital construction of new condo units will lever a more significant private investment. It will create jobs and an increased tax base. I haven’t looked recently at how much PST, income tax or other provincial revenue is generated by the construction of a $350,000 condo unit, but at least some of the subsidy would be immediately recovered.
We all want a city where community life flourishes. The Air Canada decision is really a message saying that whatever progress has been made and however well intentioned our efforts to date may be, the results are not sufficient. Setting a goal of 2000 condo units may be entirely arbitrary but can there be any doubt that such a major residential initiative would be a game-changer for the downtown? Hopefully the private and public sectors will seriously consider this option knowing the charitable sector will continue to play a supportive role appropriately focused on the amenities and social services of the downtown area.
Tags: community foundation, downtown
Posted in Neighbourhoods, Philanthropy | 3 Comments »
Friday, September 9th, 2011
This old nautical saying reflects the importance of staying on course. The Winnipeg Foundation’s 2011 fiscal year ends on September 30th, in the midst of continuing economic storms. These circumstances remind us that, even in the roughest seas when our ship is surrounded by high waves, we must focus on longer-term direction. For a foundation, this means relying on its policies and professional advisors to carry it through
The past few years have been characterized by turmoil in financial markets. This August saw unprecedented volatility as indexes tumbled one day only to spike up the next. In 2008, when the major financial meltdown occurred, it was common among foundations to revamp their spending plans. At The Winnipeg Foundation, we stayed on course, followed our formulas and actually increased our grants in 2009 by more than $1 million. Since then, we have been making modest annual adjustments to account for longer-term trends. Our investment and spending policies are very much focused on the horizon.
We are also living in a time of profound change to the legal framework that shapes our mission. Canada has amended tax laws such that many community foundations are shifting focus to “flow through” granting and “term” endowments. Here again, our core business at The Winnipeg Foundation remains unchanged. We are building permanent endowments to generate annual grants that support Winnipeg’s charitable sector. Of course, the Foundation will accommodate other types of gifts when there is good reason to do so. Shorter-term projects such as our work in Central Park, the recently created “You Can Do It Awards” program and our administration of the Business Council’s Aboriginal scholarships clearly demonstrate this flexibility. But in the end, we are in the legacy business: “For Good, Forever.”
The current climate is also forcing the charities we support to examine new ways of delivering their services. Many are wondering about using business activities as a means of fulfilling their mission. Recognizing this growing interest, The Winnipeg Foundation, in partnership with U of M’s Faculty of Law, is hosting a symposium on September 21st called: Philanthropy, Law and Social Enterprise: New Direction or Distraction? We have arranged for leading thinkers from the USA, UK and across Canada to lead the discussion.
Understanding these profound winds of change is an important part of keeping your eyes on the horizon. While it is impossible to ignore the turbulent waters that currently surround our activities, working in this climate continues to be interesting, challenging and rewarding. Our Board and staff know that our only reason for being is to serve the people of Winnipeg. And to do that effectively, we need to keep our focus steady as she goes.
Tags: charitible giving, community foundation, giving in troubled times
Posted in Charitable Giving, Partnerships, Philanthropy | No Comments »
Friday, May 27th, 2011
Like me, I am sure that everyone who attended the recent national conference of Canadian community foundations arrived home filled with new energy and commitment to our work and our communities. We heard inspiring speakers like Governor General David Johnston, Naomi Tutu and former U.S. President Bill Clinton. But for me, the most powerful words came from a children’s choir called Voices of Nature. The lyrics that have stayed with me is: “Why should one baby feel so hungry she cries? Salt water wells in my eyes.”
Without question, the initiative I am paying most attention to these days is Nourishing Potential—the endowment providing food to kids. Our Board has decided The Winnipeg Foundation should have a $5 million fund capable of generating $250,000 annually to augment food budgets for after-school programs. An Advisory Committee has been formed and the first grants will be announced soon. One of my primary responsibilities over the next five years is to identify donors who share our concern that too many Winnipeg kids are hungry.
On hearing those children ask “Why should one baby feel so hungry she cries?”, my thoughts also raced back to a recent personal experience. One day last fall, my wife was looking after one of our granddaughters who was just about two years old. We were late in getting her home for dinner and traffic was terrible. So, there we were: hardly moving along Osborne while our granddaughter cried loudly from her car seat because she was hungry. In reality, the experience didn’t last long, and it certainly wasn’t serious, but it was very painful. I can’t imagine the anxiety of parents and grandparents who face this situation on a regular basis and aren’t able to meet their child’s nutrition needs.
So, the children’s song has unquestionably renewed my focus on building our Nourishing Potential endowment. Thankfully, we have dedicated volunteers and committed staff in charities all across our city who are helping to address this situation. I also know that our Provincial government is taking concrete steps to augment support.
However, child hunger is a complex and multi-faceted issue. How can we demand more effective public policy if we don’t understand, or agree on, the solutions? How much can we reasonably expect of philanthropy? In a city as rich as Winnipeg, with plentiful food everywhere, why should any children feel so hungry they cry?
Tags: charitible giving, community foundation, Nutrition, Winnipeg
Posted in Charitable Giving, Nutrition, Partnerships | No Comments »
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