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2015: Issue 2
At the beginning of every calendar year, I
speak to leaders in the fundraising profes-
sion and charitable sector to hear their
thoughts about the year ahead. We talk about
what trends and practices they are keeping an
eye on as well as what concerns or issues are
“keeping them up at night”.
As you can imagine, these conversations yield
a richness of thought and insight that help to
inform our thinking here at KCI. And this year
was no different. What was different was that
almost without exception one overarching
preoccupation emerged from virtually every
conversation - the struggle to grow fundrais-
ing revenues.
Whether working in a large charity or small,
growing fundraising revenue was highlighted
as becoming increasingly difficult. And, as you
will see in this edition, while Canadians contin-
ue to give, there are some undeniably sobering
trends in both giving to and engagement with
the charitable sector. Most notable is that all
evidence is pointing to fewer donors and fewer
volunteers. While regrettably not new, the lat-
est data are telling us that it is more stark and
real today than I think ever.
This decline is coincident with some profound
changes and disruptions in the sector. Just as
we are rethinking the rules and norms in so
many parts of our lives, Canadians are rethink-
ing their relationship with the charitable sector.
I believe that some are critical, some are ques-
tioning and some are just confused. Regard-
less, there is a large scale enquiry going on in
Canadian society about the role of charities and
how best to interact with them from the per-
spective of both giving and volunteering.
This evolution in thinking may require a proac-
tive, wholesale examination of the paradigms
that govern how the sector currently operates.
At both the sector and organization levels, this
is a time when everything needs to be on the
table – what you are “in business” to do, how
you are set up to do it,who are your partners in
making it happen. I believe that if sector and
organizational leaders don’t have these discus-
sions and make sound, and in some cases,
tough decisions about the future, the rapidly
evolving philanthropic marketplace in Canada
today will make decisions for them.
Fundamentally, I believe we are at an inflection
point for the sector in Canada – a moment in
time after which, depending on what we do as
professionals, and collectively as a sector, there
will be a significant change, either positive or
negative. The way forward for the sector is
neither clear nor simple. But with strong and
courageous leadership and a lot of thoughtful
conversation, I believe the sector can emerge
stronger and more vibrant than ever.
Marnie Spears
President and CEO
The Change & Adaptation Issue
SUMMER 20152
We live in a rapidly changing world.
Thanks in part to advances in technology
as well as significant changes in demogra-
phics, so many of the rules and norms of
yesterdayjustdon’tseemtoapplyanymore.
Think of Netflix and how it has changed
our relationship to television and how we
consume entertainment. Or how Uber is
changing the way we are getting around
and turning the taxi industry on its head
as it does it. Or the way Airbnb has be-
come a big player in travel accommoda-
tion and the impact that it is having on
the hotel industry.
A similar transformation is happening in
the charitable sector.
“We are living in a time that I would
describe as a period of profound disrup-
tion. In many parts of our lives, attitudes
and behaviours are changing and as a
result, so too are long held rules and def-
initions,” says James Stauch, Director,
Institute for Community Prosperity at
Mount Royal University.“And this period
of change and disruption applies to the
charitable sector as well. Canadians are
thinking differently about charities and
their interactions with them. And I be-
lieve that this evolution in thinking is
going to require a change in strategy in
the sector.”
Examples of the evolution Stauch refers
to are abundant. Whether it’s the grow-
ing interest in “giving direct” through
crowdfunding, or donors establishing
their own “terms and conditions” for giv-
ing by creating family foundations and
donor advised funds,the charitable sector
is living in a period of significant trans-
formation where old rules are being chal-
lenged and new ones are being written.
These changing and evolving attitudes
and definitions are also occurring in the
midst of a backdrop of decline in partici-
pation in the sector, both from the point
of view of giving as well as volunteering.
While Canadians are a giving people by
nature and certainly continue to exhibit a
spirit of generosity, a look at giving and
volunteering rates points to two overar-
ching themes – there is a struggle to
grow revenues and fewer Canadians are
giving and volunteering.
As outlined in Figure 1 (page 3),traditional
charities have struggled to grow over the
past few years, realizing only 3% growth
in fundraising revenues between 2009 and
2013. And Figure 2 shows that total tax
receipted giving of $8.6 billion in 2013 is
now just matching pre-recessionary levels.
Even more sobering is that participation
rates, in terms of both giving and volun-
SUMMER 2015 3
teering, are also on the decline. The per-
centage of tax filers who claim charitable
receipts has been steadily dropping
(Figure 3, on page 4), from around 30% in
the early 1990s to a low of 21.9% in 2013.
And while tax receipted giving is only
one indicator of giving in Canada, the
data from the Canadian Survey of Giving,
Volunteering and Participating (a survey
that includes Canadians 15 year and
older and defines giving in all its means)
shows that the declared donor rate
declined from 84% in 2010 to 82% in
2013. While only a 2% drop,once popula-
tion increases over the period are fac-
tored in (982,000 Canadians aged 15
years and over), the total number of
donors“lost”is almost 500,000.
Evolving definitions…
Bruce MacDonald, President and CEO of
Imagine Canada, doesn’t believe that
Canadian society is any less committed
to the charitable sector, but rather that
the definition of what that means and
how it manifests is changing. “As we
think of society going forward and
Canadians ‘doing good’, I believe we are
living through a period of fundamental
change,” says MacDonald. “Involvement
with charity has always been defined as
volunteering and giving, but I think that
“ “The charitable sector is
living in a period of signifi-
cant transformation where
old rules are being chal-
lenged and new ones are
being written.
Struggle for growth…
Figure 1: Source T3010 filings. Gifts from other charities not included.
Data pulled from the T3010 filings for the
past several years paint a relatively sombre
picture for the majority of the charitable sec-
tor when it comes to fundraising revenues.
While public foundations (including com-
munity foundations and some hospital
foundations) experienced growth of 40%
between 2010 and 2013 and private foun-
dations grew by a relatively healthy 14%,
fundraising revenues of traditional charita-
ble organizations inched upward by only 3%
over that same period. And so, the message
from this chart is clear - core charities are
struggling to grow.
In addition, total tax receipted giving by
Canadians at $8.6 billion in 2013 is now just
matching pre-recessionary levels, six years
later. Since 2008, tax receipted giving has
seen years of both growth and decline, cer-
tainly not exhibiting the kind of slow and
steady growth that was experienced in the
two decades previous from the early 1990s
to the mid-2000s.
Figure 2: Source Canada Revenue Agency
• • • • • • • • • • • • • • •
• • • • • • • • • • • • • • •
$13.52 $13.82 $13.96 $13.92
$1.56 $1.57 $1.66 $1.79
$3.05
$3.57 $3.62
$4.25
$0
$5
$10
$15
$20
$25
2010 2011 2012 2013
Billions
Public Foundation Private Foundation Charitable Organization
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
TotalGivingfromIndividuals-inBillions
SUMMER 20154
we in the sector are going to have to
broaden that definition. While this way of
thinking continues to resonate with cer-
tain segments of the population, most
notably older generations, I believe that
what it means to be involved in charity is
unfolding differently for young people as
well as for many in the boomer cohort. ”
There are myriad examples of the
changes that MacDonald refers to. Lines
and definitions about what is charity are
starting to blur with the emergence of
hybrid models that have a mix of busi-
ness and charitable benefit.
In the charitable sector, the social enter-
prise model that combines charitable
purpose with for-profit business is
becoming more and more common. In
the private sector, many corporations are
integrating “giving back” right into their
business models. One example among
many is Tom’s Shoes that donates a pair
of shoes to someone in need for each pair
sold. And cause marketing, where con-
sumers support a cause or charity when
they make a purchase, has also long been
a popular hybrid model.
Finally, there’s crowdfunding, a platform
that sees people making gifts to initi-
atives that may or may not fall into the
traditional definition of “charity”. But
when contributing to an individual or
family through a crowd funding project,
that “act of giving” feels the same as giv-
ing to a charity in the mind of the“donor”.
So this is yet another example of the blur-
ring of lines and definitions.
“Society’s appreciation, trust and under-
standing of the historically dominant
structures of the charitable sector seems
to be diminishing,” says MacDonald. “So
I believe that we are going to have to
adapt and respond in order to meet
Canadians where they are,something that
will require thinking of different ways for
them to connect with their communities.”
Barbara Grantham, President and CEO of
the VGH and UBC Hospital Foundation
also doesn’t agree that society is becom-
ing less philanthropic and believes that
changing attitudes and expectations are
at the crux of the need to adapt. “In
Vancouver, many of the leading philan-
thropic families have begun passing the
torch to the next generation. In addition,
…and fewer donors and volunteers
“ “Society’s appreciation,trust
and understanding of the
historically dominant struc-
tures of the charitable sector
seems to be diminishing.
For the past several decades, there has
been an overall trend of “fewer donors
giving more”when it comes to the tradi-
tional method of giving to charity – tax
receipted giving.
In the early 1990s,about 30% of tax filers
reported charitable tax receipts with
average giving of about $600. Since
then, the percentage has declined
steadily, dropping to 21.9% in 2013 with
the average donation growing to more
than $1,500.
In addition, data from the Canadian
Survey of Giving, Volunteering and
Participating (CSGVP), which takes a
wider look at giving by Canadians (sur-
vey includes Canadians 15 year and
older and defines giving in all its means,
not just tax receipted giving) indicate
that the declared donor rate declined
from 84% in 2010 to 82% in 2013. While
only a drop of 2%, when population
increases over the period are factored in,
(982,000 Canadians aged 15 years and
over),the total number of donors“lost”is
almost 500,000.
The data becomes ever more troubling
when voluntarism is considered. The vol-
unteer rate declined from 47% to 44%
between 2010 and 2013, which means
that the sector has “lost” just over 1 mil-
lion volunteers.
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
20%
22%
24%
26%
28%
30%
Average Donation
% of taxfilers
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Figure 3: Source Canada Revenue Agency
SUMMER 2015 5
The changing tide in terms of attitudes
and behaviours is transforming how
people want to engage with charities,
resulting in a “new donor” profile. While
not universal as some donors, particular-
ly older Canadians, continue to look for a
traditional relationship with the charities
they support, the rules of engagement
for the “new” Canadian donor can be
summarized in the following five“wants”.
1. Something to believe in - These
donors are looking to be inspired. They
want to be involved in causes and issues,
not just particular organizations. And as
a result, they want to understand how
your work fits into a bigger picture. The
traditional model sees charities asking
for money to support their particular
needs and priorities, whereas the new
model is one where charities create
opportunities for donors to believe in
something and advance an agenda of
mutual importance.
2. Direct connection to impact – There
has always been a desire to understand
the impact of giving, but for these
donors, it’s about making that impact as
tangible as possible. The desire to get
closer to those who have been directly
impacted by their gift is demonstrated
by the success of a number of recent
crowdfunding initiatives. The Child
Sponsorship programs of several inter-
national development organizations as
well as the KIVA loan model are excellent
examples of methods to provide the
kind of direct connection these donors
are looking for.
3. Something to belong to – These
donors want to have a sense of commu-
nity and feel connected to others who
are involved with the organization. That
connection can be as simple as being
able to link to the charity website on
their own social media profiles, or it
could be as deep and profound as play-
ing the role of volunteer or ambassador
for the cause. Regardless, these donors
desire some degree of defining connec-
tion with the group of peers who share
their interest in and passion for the
organization and perhaps more impor-
tantly, its cause.
4. To decide for myself – Choice is not
thought of as a privilege for these
donors, but almost as a fundamental
right. Rooted in an ability to choose that
is now a reality in most other parts of
their lives, these donors reject the limita-
tions of being told what to do. They are
looking for the freedom and fluidity of
choice, wanting to have a say in what
they support and how they go about
making that support a reality.
5. Others to know – These donors value
social currency and validation. As a
result,they want to be able to share their
involvement with their personal and pro-
fessional networks.The traditional model
sees the charity providing recognition
through annual reports and donor walls.
But, these donors want more than that
and are looking for ways to share their
involvement themselves.
The “new” Canadian donor
there is new wealth settling in Vancouver.
This brings new cultural norms and
beliefs that we need to learn and under-
stand”says Grantham. “These donors are
coming into philanthropy with a newer
conversation around impact and engage-
ment,and with a highly engaged sense of
philanthropy that is more like a social
venture. Most organizations, regardless
of size, are to some degree facing these
trends. All of us are thinking through
what these changes are going to look like
and mean for our organizations and the
causes we represent.”
Further adding to the need to adapt is
the desire for greater control and involve-
ment when making a gift, something
that Penny Blackwood, Executive Director
of Alumni Affairs and Development at
Memorial University in Newfoundland
and Labrador is encountering more and
more often. “We are seeing that donors
want to be more in control of their giving
than we ever have before,”saysBlackwood.
“Many of our graduates from the 70’s and
80’s have a strong entrepreneurial mind-
set. When they graduated, they weren’t
getting jobs, so they created their own
opportunities. Having always been in con-
trol of their situations, now that they are
getting to the age of giving back, they
also want to be in control of their giving.”
…mean new rules of engagement…
This desire for control is manifesting not
only at the major and transformational
SUMMER 20156
Parachute merger critical success factors
As an example of an organization that
resulted from a successful merger, we
asked Louise Logan,President and CEO of
Parachute what she felt were the factors
that were critical to their success. She
identified the following.
Create the platform for change
• Clearly focus on what is best for the
cause; set aside personal agendas
(focus on what matters)
• Spend time to develop and document the
case for change (why are we doing this)
• Establish clear goals and a guiding
vision that all parties publicly embrace
(what are we trying to accomplish)
Make change happen
• Move quickly from concept to imple-
mentation (maintain momentum)
• Obtain funding for the pre and
post-merger process (secure necessary
resources)
• Establish a steering committee with
senior leadership (Board) representa-
tion from each of the merging organi-
zations (lead from the top)
• Engage external, objective, professional
advice to facilitate dialogue and the
merger process (get professional help)
• Proactively engage key influencers,
funders and stakeholders, and commu-
nicate progress and results (generate
broad-based buy-in/ownership for
change)
• Be transparent and open with staff,
engage them in the process to the
extent possible (proactively manage the
internal change process)
• Pay attention to selecting the right
leader and governance model (leader-
ship and governance matter,a lot)
Look to the future
• Don’t focus solely on the merger
process, look ahead and plan for post-
merger (look to the future, the merger is
just a vehicle for achieving your goals)
• Establish the new brand identity and
set the new organization culture as
soon as possible (move quickly to the
future state)
• Engage sponsors and donors in the
new organization at the first opportu-
nity (make them want to support and
be ambassadors for the new vision)
gift level, but at all giving levels and, as a
result,is having a profound impact on the
work of fundraisers. Traditional philan-
thropy, which is characterized by giving
without reward or recognition and often
stimulated by a sense of duty or obligation
is being challenged. Rather, we are now
in an era where the“self”is at the centre.
Whether it be the growing number of pri-
vate and family foundations and donor
advised funds being created or posting
videos as part of the ALS Ice Bucket
Challenge,it is becoming increasingly evi-
dent that giving as a means of personal
expression is an important trend across
all gift levels.
For years, we have heard that donors
want more engagement with the chari-
ties they support. Traditionally,this desire
has been thought of through the lens of
volunteer roles tied to organizational
mission. While critical for these types of
engagement opportunities to be avail-
able, many donors are now defining
engagement through the giving lens,
looking to create experiences with their
giving that go beyond simply “writing a
cheque”. While not new (think of the par-
ticipatory events like the Shoppers Drug
Mart Weekend to End Women’s Cancer or
The Becel Ride for Heart), it is becoming
increasingly popular. And, what is new is
the desire to share the story of their giv-
ing with others. Probably best exempli-
fied by the ALS Ice Bucket Challenge,
many donors are looking to “make pub-
lic”their giving by communicating it with
their personal and professional networks.
One organization that has adapted well
to this trend is charity:water. From shav-
ing their head, to throwing a party, to
teaching yoga (just some of the examples
from their marketing campaign to en-
courage participation), the organization
has developed a program where donors
can create their own fundraising initiative
to raise money for the charity. Within rea-
son, anything goes and the donor gets to
decide. Not to leave anyone out, donors
are also given the option to simply write
a cheque. As a result, charity:water has
created space and programming that
enables donors to give in a way that
make sense for them.
We are also increasingly in an era of DIY
(Do-It-Yourself) philanthropy. Enabled by
“ “Organizations must put
mandate reflection and
relevancy squarely at the
front and centre of their
strategic conversations.
a variety of new mechanisms like crowd-
funding that have democratized the defi-
nition of charity, no longer is it a “top
down” model where charities decide
what is needed and then ask donors for
support. Crowdfunding enables anyone
to decide what “need” requires funding
and gives them the means to take that
need out “to market” themselves. As a
result, individuals don’t need charities in
the way they used to in order to“do good”,
now having the ability to do a lot with-
out them, which could be a real game
changer for the sector.
…and evolution in paradigms
Another trend that can’t be ignored is
the desire for more collaboration among
charities. Donors have been telling us
for years that they are frustrated with
the multitude of similar causes seeking
the same money and now,we have statis-
tical corroboration from a variety of
sources that this is in fact true.
The 2013 Muttart Foundation Talking
About Charities survey reports consistent
messaging over the past 14 years. The
results of the survey, which is conducted
every three years, show that since 2000
upwards of 70% of respondents agree or
strongly agree that “too many charities
are trying to get donations for the same
cause”. And an AFP commissioned Ipsos
Reid study in 2013 reported that 75%
strongly agree or agree that“charities that
address similar issues should work togeth-
er and share plans and resources.”
So what do Canadian donors want? In
short, more collaboration. And the res-
ponse will require significant innovation,
both within our current paradigms as
well as the creation of new ones.
Jan Belanger, Vice President, Community
Relations for Great-West Life, London Life
and Canada Life, sees progressive organi-
zations undertaking courageous exami-
nations of what they exist to do and
whether they are optimally set up to
do it within their current structure and
paradigm.
“These organizations are putting rele-
vance front and centre in their strategic
conversations. This means stepping back
and taking a more critical look at their
purpose and the fundamentals of how
they are set up and operate.They’re pok-
ing holes and pushing back on assump-
tions about their mission, who they are,
and how they work. Perhaps most impor-
tantly, I’m seeing a greater focus on
understanding who else is addressing
their issue,and not just from the perspec-
tive of competing for the same funding.In
what ways is an organization unique in its
offering? To move their issue forward, is
there a need for greater alignment, and
sharing of knowledge, expertise, and
resources? These hard questions are lead-
ing to authentic collaboration, or even
the amalgamation of some charities.”
Belanger recognizes these are tough con-
versations that demand fresh thinking on
the part of both voluntary and institu-
tional leaders. And if there is such a thing
as “institutional ego”, it must be con-
sciously sublimated for the greater good.
SUMMER 2015 7
“ “
So what do Canadian
donors want? In short,
more collaboration. And
the response will require
significant innovation,
both within our current
paradigms as well as the
creation of new ones.
SUMMER 20158
“It takes courage to challenge past suc-
cesses and institutional history, and put
everything on the table to see if an organ-
ization is doing as well as it could be.And,
if not, to ask ‘why not?’ These conversa-
tions are invaluable;without them,I worry
some organizations may be self-directing
their demise. Through sincere objectivity
and working to take on change with com-
mitment,today’s sector leaders are begin-
ning to emerge.”
One organization that undertook such a
courageous leap is Parachute. Formed in
2012, Parachute is a national, charitable
organization that unites the former orga-
nizations of Safe Communities Canada,
Safe Kids Canada, SMARTRISK and Think-
First Canada into one strong leader in
injury prevention.
“Before merging, all four organizations
were small and each focused on a partic-
ular niche area of injury prevention. As a
result, each was individually finding it a
challenge to advance their portion of the
injury prevention mission in Canada as
well as to grow and sustain a solid base
of financial support,” says Cathy Séguin,
who was the Vice-President of Safe Kids
Canada pre-merger and became the in-
augural Chair of Parachute. “We therefore
realized that we would be far stronger
and have more impact as a collective
than as four independent organizations.”
The amalgamation process began in 2009
when the leaders of the four organizations
sat down to explore options to work to-
gether more formally,investigating various
ways in which an amalgamation might be
structured.Ultimately,a new organization
with the new brand Parachute was creat-
ed that combined the expertise and ex-
perience of all four legacy organizations
and was designed to achieve greater
impact in awareness, advocacy and
action in the cause of injury prevention.
Louise Logan, President and CEO of
Parachute, feels that the merger has
unequivocally had the kind of impact that
was intended, particularly as it relates to
advancing the issue of injury prevention
in Canada. “We have grown in size and
have increased our ability to have impact
on the issue. Bringing together the four
organizations has enabled us to bring
attention to the cause of injury preven-
tion in a way we never would have been
able to as individual entities. Because we
are now a larger organization, we have
been able to attract new people to the
organization, grow our corporate donor
base and are now beginning to focus on
growing individual fundraising. The
organization, and more importantly our
ability to advance the issue of injury pre-
vention in Canada, is in a much more solid
place now thanks to the merger.”
While merging several organizations is
one model of collaboration, the RESOLVE
Campaign in Calgary is another. Involving
nine Partner agencies, RESOLVE is a col-
laborative fundraising campaign that is
seeking to raise $120 million to build
affordable and supported rental hous-
ing for 3,000 vulnerable and homeless
Calgarians.
The RESOLVE Campaign arose out of
the Government of Alberta’s Plan to End
Homelessness. As part of funding this
initiative, from 2008 to 2011 the Govern-
ment of Alberta issued a call for proposal
to offer affordable housing grants.But the
agencies needed to fund the remaining
amount of a purchase or construction in
order to access the grants.
Three visionary agencies came together
to consider how they could raise the
philanthropic dollars to create debt-free
properties that could sustain affordable
rents.They realized that working together
with other homeless-serving agencies
was the best way and invited all those
that received grants to join.
“In thinking about all these different
agencies going out to the community to
raise money, it was acknowledged that
donors may be frustrated by receiving
multiple asks from different organizations
who are raising money for very similar
projects,” says RESOLVE Executive Direct-
or, Sheryl Barlage. “There was also an
acknowledgement that a unified cam-
paign could create greater awareness of
the need for affordable housing and
greater profile for the agencies. Also con-
sidered, the collaboration could attract a
higher level of community leaders and
influencers for its Cabinet to champion
the Campaign.”
Ultimately, nine agencies signed on to
RESOLVE. And Barlage reports that the
Marnie A. Spears
President and CEO
Nicole Nakoneshny
Vice President and Editor,
Philanthropic Trends Quarterly
Philanthropic Trends Quarterly© is published by KCI.
Unauthorized reproduction or distribution without attribution
is prohibited. Philanthropic Trends Quarterly© is intended to
provide an anecdotal ‘snapshot’of philanthropy in Canada.
We hope it will serve as a useful overview for observers of the
charitable and nonprofit scene.
Aussi disponible en français. Illustrations by Rocco Baviera.
214 KING STREET WEST, SUITE 508,TORONTO, ON M5H 3S6 t: 416.340.9710 f: 416.340.9755 e: toronto@kciphilanthropy.com www.forwardthinkingKCI.com
T O R O N T O O T T A W A M O N T R E A L C A L G A R Y V A N C O U V E R H A L I F A X E D M O N T O N
response from the community has been
excellent. “We have not once been turned
away at the door during our approaches
to donors. And while we are still in the
quiet phase, we are experiencing suc-
cess – we have raised enough money to
provide 1,102 vulnerable Calgarians with
a place to call home, towards our goal
of 3,000.”
Collective action
Bruce MacDonald believes that in these
changing times, organizations must grow
their capacity to anticipate change and
adapt to it before the case for change
becomes desperately obvious.
“Charities need to be spending some
time over the next while thinking about
these issues,” says MacDonald. “I think
that in general,charity leaders are so busy
keeping the doors open from a fiscal per-
spective that they often find themselves
in a mode of responding to change
instead of getting out in front of it. We
need to develop a capacity to respond to
changes in society, finding the balance
between maintaining an internal focus on
running good, tight organizations while
paying attention to what is happening
externally. If leaders aren’t paying atten-
tion to the seismic shifts in the environ-
ment, they will find themselves playing
catch up. And when that happens, it be-
comes really tough to regain momentum.”
MacDonald also believes that successfully
adapting to changing attitudes and behav-
iours means charities need to have the
freedom to experiment and innovate. And
the environment in which charities operate
must be open and hospitable to doing that.
“We can’t have it both ways,”he says. “We
can’t expect charities to be able to adapt
and experiment while having the rules of
the game inhibit and restrict innovation.
As a result, we need to ensure that our
regulatory and policy environment is
conducive and that societal attitudes are
open and understanding. It is time for us
to take our rightful place alongside other
segments of the economy. We need to
move our own thinking, as well as the
thinking of those outside the sector, from
the realm of “good people doing good
work”to one that sees us as being part of
the economic engine of this country.”
This is something that he believes will
require collective action on the part
of the whole sector. “If, as a sector, we
are going to convince lawmakers that
changes are needed and help shape
society’s attitudes and opinions about
the sector, we are going to need to do
that together.“
In addition to a sector-wide conversation
about the future, it is also a time for orga-
nizational introspection. It is a time at the
board table and among senior leadership
for thoughtful contemplation of what (if
any) this “disruption” and challenge to
traditional philanthropy means for you.
It is a time to think about who you could/
should be collaborating with to advance
your mission. It is a time to do a careful
assessment of current revenue genera-
tion programs and build three to five
year fundraising and volunteer engage-
ment plans. And finally, it is a time to
grow and build champions for your
organization who can help advance your
vision and mission.
These changing times mean that busi-
ness in the charitable sector is tough,
competitive, fluid and uncertain, perhaps
like never before. And so,leadership must
be willing to confront these facts and
have the courage to make decisions
about shaping both the future of their
own organizations as well as the sector
as a whole.
“
“
We need to move our own
thinking, as well as the
thinking of those outside
the sector, from the realm
of“good people doing
good work” to one that
sees us as being part of
the economic engine of
this country.

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pt-2015-02

  • 1. 2015: Issue 2 At the beginning of every calendar year, I speak to leaders in the fundraising profes- sion and charitable sector to hear their thoughts about the year ahead. We talk about what trends and practices they are keeping an eye on as well as what concerns or issues are “keeping them up at night”. As you can imagine, these conversations yield a richness of thought and insight that help to inform our thinking here at KCI. And this year was no different. What was different was that almost without exception one overarching preoccupation emerged from virtually every conversation - the struggle to grow fundrais- ing revenues. Whether working in a large charity or small, growing fundraising revenue was highlighted as becoming increasingly difficult. And, as you will see in this edition, while Canadians contin- ue to give, there are some undeniably sobering trends in both giving to and engagement with the charitable sector. Most notable is that all evidence is pointing to fewer donors and fewer volunteers. While regrettably not new, the lat- est data are telling us that it is more stark and real today than I think ever. This decline is coincident with some profound changes and disruptions in the sector. Just as we are rethinking the rules and norms in so many parts of our lives, Canadians are rethink- ing their relationship with the charitable sector. I believe that some are critical, some are ques- tioning and some are just confused. Regard- less, there is a large scale enquiry going on in Canadian society about the role of charities and how best to interact with them from the per- spective of both giving and volunteering. This evolution in thinking may require a proac- tive, wholesale examination of the paradigms that govern how the sector currently operates. At both the sector and organization levels, this is a time when everything needs to be on the table – what you are “in business” to do, how you are set up to do it,who are your partners in making it happen. I believe that if sector and organizational leaders don’t have these discus- sions and make sound, and in some cases, tough decisions about the future, the rapidly evolving philanthropic marketplace in Canada today will make decisions for them. Fundamentally, I believe we are at an inflection point for the sector in Canada – a moment in time after which, depending on what we do as professionals, and collectively as a sector, there will be a significant change, either positive or negative. The way forward for the sector is neither clear nor simple. But with strong and courageous leadership and a lot of thoughtful conversation, I believe the sector can emerge stronger and more vibrant than ever. Marnie Spears President and CEO The Change & Adaptation Issue
  • 2. SUMMER 20152 We live in a rapidly changing world. Thanks in part to advances in technology as well as significant changes in demogra- phics, so many of the rules and norms of yesterdayjustdon’tseemtoapplyanymore. Think of Netflix and how it has changed our relationship to television and how we consume entertainment. Or how Uber is changing the way we are getting around and turning the taxi industry on its head as it does it. Or the way Airbnb has be- come a big player in travel accommoda- tion and the impact that it is having on the hotel industry. A similar transformation is happening in the charitable sector. “We are living in a time that I would describe as a period of profound disrup- tion. In many parts of our lives, attitudes and behaviours are changing and as a result, so too are long held rules and def- initions,” says James Stauch, Director, Institute for Community Prosperity at Mount Royal University.“And this period of change and disruption applies to the charitable sector as well. Canadians are thinking differently about charities and their interactions with them. And I be- lieve that this evolution in thinking is going to require a change in strategy in the sector.” Examples of the evolution Stauch refers to are abundant. Whether it’s the grow- ing interest in “giving direct” through crowdfunding, or donors establishing their own “terms and conditions” for giv- ing by creating family foundations and donor advised funds,the charitable sector is living in a period of significant trans- formation where old rules are being chal- lenged and new ones are being written. These changing and evolving attitudes and definitions are also occurring in the midst of a backdrop of decline in partici- pation in the sector, both from the point of view of giving as well as volunteering. While Canadians are a giving people by nature and certainly continue to exhibit a spirit of generosity, a look at giving and volunteering rates points to two overar- ching themes – there is a struggle to grow revenues and fewer Canadians are giving and volunteering. As outlined in Figure 1 (page 3),traditional charities have struggled to grow over the past few years, realizing only 3% growth in fundraising revenues between 2009 and 2013. And Figure 2 shows that total tax receipted giving of $8.6 billion in 2013 is now just matching pre-recessionary levels. Even more sobering is that participation rates, in terms of both giving and volun-
  • 3. SUMMER 2015 3 teering, are also on the decline. The per- centage of tax filers who claim charitable receipts has been steadily dropping (Figure 3, on page 4), from around 30% in the early 1990s to a low of 21.9% in 2013. And while tax receipted giving is only one indicator of giving in Canada, the data from the Canadian Survey of Giving, Volunteering and Participating (a survey that includes Canadians 15 year and older and defines giving in all its means) shows that the declared donor rate declined from 84% in 2010 to 82% in 2013. While only a 2% drop,once popula- tion increases over the period are fac- tored in (982,000 Canadians aged 15 years and over), the total number of donors“lost”is almost 500,000. Evolving definitions… Bruce MacDonald, President and CEO of Imagine Canada, doesn’t believe that Canadian society is any less committed to the charitable sector, but rather that the definition of what that means and how it manifests is changing. “As we think of society going forward and Canadians ‘doing good’, I believe we are living through a period of fundamental change,” says MacDonald. “Involvement with charity has always been defined as volunteering and giving, but I think that “ “The charitable sector is living in a period of signifi- cant transformation where old rules are being chal- lenged and new ones are being written. Struggle for growth… Figure 1: Source T3010 filings. Gifts from other charities not included. Data pulled from the T3010 filings for the past several years paint a relatively sombre picture for the majority of the charitable sec- tor when it comes to fundraising revenues. While public foundations (including com- munity foundations and some hospital foundations) experienced growth of 40% between 2010 and 2013 and private foun- dations grew by a relatively healthy 14%, fundraising revenues of traditional charita- ble organizations inched upward by only 3% over that same period. And so, the message from this chart is clear - core charities are struggling to grow. In addition, total tax receipted giving by Canadians at $8.6 billion in 2013 is now just matching pre-recessionary levels, six years later. Since 2008, tax receipted giving has seen years of both growth and decline, cer- tainly not exhibiting the kind of slow and steady growth that was experienced in the two decades previous from the early 1990s to the mid-2000s. Figure 2: Source Canada Revenue Agency • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • $13.52 $13.82 $13.96 $13.92 $1.56 $1.57 $1.66 $1.79 $3.05 $3.57 $3.62 $4.25 $0 $5 $10 $15 $20 $25 2010 2011 2012 2013 Billions Public Foundation Private Foundation Charitable Organization $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TotalGivingfromIndividuals-inBillions
  • 4. SUMMER 20154 we in the sector are going to have to broaden that definition. While this way of thinking continues to resonate with cer- tain segments of the population, most notably older generations, I believe that what it means to be involved in charity is unfolding differently for young people as well as for many in the boomer cohort. ” There are myriad examples of the changes that MacDonald refers to. Lines and definitions about what is charity are starting to blur with the emergence of hybrid models that have a mix of busi- ness and charitable benefit. In the charitable sector, the social enter- prise model that combines charitable purpose with for-profit business is becoming more and more common. In the private sector, many corporations are integrating “giving back” right into their business models. One example among many is Tom’s Shoes that donates a pair of shoes to someone in need for each pair sold. And cause marketing, where con- sumers support a cause or charity when they make a purchase, has also long been a popular hybrid model. Finally, there’s crowdfunding, a platform that sees people making gifts to initi- atives that may or may not fall into the traditional definition of “charity”. But when contributing to an individual or family through a crowd funding project, that “act of giving” feels the same as giv- ing to a charity in the mind of the“donor”. So this is yet another example of the blur- ring of lines and definitions. “Society’s appreciation, trust and under- standing of the historically dominant structures of the charitable sector seems to be diminishing,” says MacDonald. “So I believe that we are going to have to adapt and respond in order to meet Canadians where they are,something that will require thinking of different ways for them to connect with their communities.” Barbara Grantham, President and CEO of the VGH and UBC Hospital Foundation also doesn’t agree that society is becom- ing less philanthropic and believes that changing attitudes and expectations are at the crux of the need to adapt. “In Vancouver, many of the leading philan- thropic families have begun passing the torch to the next generation. In addition, …and fewer donors and volunteers “ “Society’s appreciation,trust and understanding of the historically dominant struc- tures of the charitable sector seems to be diminishing. For the past several decades, there has been an overall trend of “fewer donors giving more”when it comes to the tradi- tional method of giving to charity – tax receipted giving. In the early 1990s,about 30% of tax filers reported charitable tax receipts with average giving of about $600. Since then, the percentage has declined steadily, dropping to 21.9% in 2013 with the average donation growing to more than $1,500. In addition, data from the Canadian Survey of Giving, Volunteering and Participating (CSGVP), which takes a wider look at giving by Canadians (sur- vey includes Canadians 15 year and older and defines giving in all its means, not just tax receipted giving) indicate that the declared donor rate declined from 84% in 2010 to 82% in 2013. While only a drop of 2%, when population increases over the period are factored in, (982,000 Canadians aged 15 years and over),the total number of donors“lost”is almost 500,000. The data becomes ever more troubling when voluntarism is considered. The vol- unteer rate declined from 47% to 44% between 2010 and 2013, which means that the sector has “lost” just over 1 mil- lion volunteers. $400 $600 $800 $1,000 $1,200 $1,400 $1,600 20% 22% 24% 26% 28% 30% Average Donation % of taxfilers 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Figure 3: Source Canada Revenue Agency
  • 5. SUMMER 2015 5 The changing tide in terms of attitudes and behaviours is transforming how people want to engage with charities, resulting in a “new donor” profile. While not universal as some donors, particular- ly older Canadians, continue to look for a traditional relationship with the charities they support, the rules of engagement for the “new” Canadian donor can be summarized in the following five“wants”. 1. Something to believe in - These donors are looking to be inspired. They want to be involved in causes and issues, not just particular organizations. And as a result, they want to understand how your work fits into a bigger picture. The traditional model sees charities asking for money to support their particular needs and priorities, whereas the new model is one where charities create opportunities for donors to believe in something and advance an agenda of mutual importance. 2. Direct connection to impact – There has always been a desire to understand the impact of giving, but for these donors, it’s about making that impact as tangible as possible. The desire to get closer to those who have been directly impacted by their gift is demonstrated by the success of a number of recent crowdfunding initiatives. The Child Sponsorship programs of several inter- national development organizations as well as the KIVA loan model are excellent examples of methods to provide the kind of direct connection these donors are looking for. 3. Something to belong to – These donors want to have a sense of commu- nity and feel connected to others who are involved with the organization. That connection can be as simple as being able to link to the charity website on their own social media profiles, or it could be as deep and profound as play- ing the role of volunteer or ambassador for the cause. Regardless, these donors desire some degree of defining connec- tion with the group of peers who share their interest in and passion for the organization and perhaps more impor- tantly, its cause. 4. To decide for myself – Choice is not thought of as a privilege for these donors, but almost as a fundamental right. Rooted in an ability to choose that is now a reality in most other parts of their lives, these donors reject the limita- tions of being told what to do. They are looking for the freedom and fluidity of choice, wanting to have a say in what they support and how they go about making that support a reality. 5. Others to know – These donors value social currency and validation. As a result,they want to be able to share their involvement with their personal and pro- fessional networks.The traditional model sees the charity providing recognition through annual reports and donor walls. But, these donors want more than that and are looking for ways to share their involvement themselves. The “new” Canadian donor there is new wealth settling in Vancouver. This brings new cultural norms and beliefs that we need to learn and under- stand”says Grantham. “These donors are coming into philanthropy with a newer conversation around impact and engage- ment,and with a highly engaged sense of philanthropy that is more like a social venture. Most organizations, regardless of size, are to some degree facing these trends. All of us are thinking through what these changes are going to look like and mean for our organizations and the causes we represent.” Further adding to the need to adapt is the desire for greater control and involve- ment when making a gift, something that Penny Blackwood, Executive Director of Alumni Affairs and Development at Memorial University in Newfoundland and Labrador is encountering more and more often. “We are seeing that donors want to be more in control of their giving than we ever have before,”saysBlackwood. “Many of our graduates from the 70’s and 80’s have a strong entrepreneurial mind- set. When they graduated, they weren’t getting jobs, so they created their own opportunities. Having always been in con- trol of their situations, now that they are getting to the age of giving back, they also want to be in control of their giving.” …mean new rules of engagement… This desire for control is manifesting not only at the major and transformational
  • 6. SUMMER 20156 Parachute merger critical success factors As an example of an organization that resulted from a successful merger, we asked Louise Logan,President and CEO of Parachute what she felt were the factors that were critical to their success. She identified the following. Create the platform for change • Clearly focus on what is best for the cause; set aside personal agendas (focus on what matters) • Spend time to develop and document the case for change (why are we doing this) • Establish clear goals and a guiding vision that all parties publicly embrace (what are we trying to accomplish) Make change happen • Move quickly from concept to imple- mentation (maintain momentum) • Obtain funding for the pre and post-merger process (secure necessary resources) • Establish a steering committee with senior leadership (Board) representa- tion from each of the merging organi- zations (lead from the top) • Engage external, objective, professional advice to facilitate dialogue and the merger process (get professional help) • Proactively engage key influencers, funders and stakeholders, and commu- nicate progress and results (generate broad-based buy-in/ownership for change) • Be transparent and open with staff, engage them in the process to the extent possible (proactively manage the internal change process) • Pay attention to selecting the right leader and governance model (leader- ship and governance matter,a lot) Look to the future • Don’t focus solely on the merger process, look ahead and plan for post- merger (look to the future, the merger is just a vehicle for achieving your goals) • Establish the new brand identity and set the new organization culture as soon as possible (move quickly to the future state) • Engage sponsors and donors in the new organization at the first opportu- nity (make them want to support and be ambassadors for the new vision) gift level, but at all giving levels and, as a result,is having a profound impact on the work of fundraisers. Traditional philan- thropy, which is characterized by giving without reward or recognition and often stimulated by a sense of duty or obligation is being challenged. Rather, we are now in an era where the“self”is at the centre. Whether it be the growing number of pri- vate and family foundations and donor advised funds being created or posting videos as part of the ALS Ice Bucket Challenge,it is becoming increasingly evi- dent that giving as a means of personal expression is an important trend across all gift levels. For years, we have heard that donors want more engagement with the chari- ties they support. Traditionally,this desire has been thought of through the lens of volunteer roles tied to organizational mission. While critical for these types of engagement opportunities to be avail- able, many donors are now defining engagement through the giving lens, looking to create experiences with their giving that go beyond simply “writing a cheque”. While not new (think of the par- ticipatory events like the Shoppers Drug Mart Weekend to End Women’s Cancer or The Becel Ride for Heart), it is becoming increasingly popular. And, what is new is the desire to share the story of their giv- ing with others. Probably best exempli- fied by the ALS Ice Bucket Challenge, many donors are looking to “make pub- lic”their giving by communicating it with their personal and professional networks. One organization that has adapted well to this trend is charity:water. From shav- ing their head, to throwing a party, to teaching yoga (just some of the examples from their marketing campaign to en- courage participation), the organization has developed a program where donors can create their own fundraising initiative to raise money for the charity. Within rea- son, anything goes and the donor gets to decide. Not to leave anyone out, donors are also given the option to simply write a cheque. As a result, charity:water has created space and programming that enables donors to give in a way that make sense for them. We are also increasingly in an era of DIY (Do-It-Yourself) philanthropy. Enabled by “ “Organizations must put mandate reflection and relevancy squarely at the front and centre of their strategic conversations.
  • 7. a variety of new mechanisms like crowd- funding that have democratized the defi- nition of charity, no longer is it a “top down” model where charities decide what is needed and then ask donors for support. Crowdfunding enables anyone to decide what “need” requires funding and gives them the means to take that need out “to market” themselves. As a result, individuals don’t need charities in the way they used to in order to“do good”, now having the ability to do a lot with- out them, which could be a real game changer for the sector. …and evolution in paradigms Another trend that can’t be ignored is the desire for more collaboration among charities. Donors have been telling us for years that they are frustrated with the multitude of similar causes seeking the same money and now,we have statis- tical corroboration from a variety of sources that this is in fact true. The 2013 Muttart Foundation Talking About Charities survey reports consistent messaging over the past 14 years. The results of the survey, which is conducted every three years, show that since 2000 upwards of 70% of respondents agree or strongly agree that “too many charities are trying to get donations for the same cause”. And an AFP commissioned Ipsos Reid study in 2013 reported that 75% strongly agree or agree that“charities that address similar issues should work togeth- er and share plans and resources.” So what do Canadian donors want? In short, more collaboration. And the res- ponse will require significant innovation, both within our current paradigms as well as the creation of new ones. Jan Belanger, Vice President, Community Relations for Great-West Life, London Life and Canada Life, sees progressive organi- zations undertaking courageous exami- nations of what they exist to do and whether they are optimally set up to do it within their current structure and paradigm. “These organizations are putting rele- vance front and centre in their strategic conversations. This means stepping back and taking a more critical look at their purpose and the fundamentals of how they are set up and operate.They’re pok- ing holes and pushing back on assump- tions about their mission, who they are, and how they work. Perhaps most impor- tantly, I’m seeing a greater focus on understanding who else is addressing their issue,and not just from the perspec- tive of competing for the same funding.In what ways is an organization unique in its offering? To move their issue forward, is there a need for greater alignment, and sharing of knowledge, expertise, and resources? These hard questions are lead- ing to authentic collaboration, or even the amalgamation of some charities.” Belanger recognizes these are tough con- versations that demand fresh thinking on the part of both voluntary and institu- tional leaders. And if there is such a thing as “institutional ego”, it must be con- sciously sublimated for the greater good. SUMMER 2015 7 “ “ So what do Canadian donors want? In short, more collaboration. And the response will require significant innovation, both within our current paradigms as well as the creation of new ones.
  • 8. SUMMER 20158 “It takes courage to challenge past suc- cesses and institutional history, and put everything on the table to see if an organ- ization is doing as well as it could be.And, if not, to ask ‘why not?’ These conversa- tions are invaluable;without them,I worry some organizations may be self-directing their demise. Through sincere objectivity and working to take on change with com- mitment,today’s sector leaders are begin- ning to emerge.” One organization that undertook such a courageous leap is Parachute. Formed in 2012, Parachute is a national, charitable organization that unites the former orga- nizations of Safe Communities Canada, Safe Kids Canada, SMARTRISK and Think- First Canada into one strong leader in injury prevention. “Before merging, all four organizations were small and each focused on a partic- ular niche area of injury prevention. As a result, each was individually finding it a challenge to advance their portion of the injury prevention mission in Canada as well as to grow and sustain a solid base of financial support,” says Cathy Séguin, who was the Vice-President of Safe Kids Canada pre-merger and became the in- augural Chair of Parachute. “We therefore realized that we would be far stronger and have more impact as a collective than as four independent organizations.” The amalgamation process began in 2009 when the leaders of the four organizations sat down to explore options to work to- gether more formally,investigating various ways in which an amalgamation might be structured.Ultimately,a new organization with the new brand Parachute was creat- ed that combined the expertise and ex- perience of all four legacy organizations and was designed to achieve greater impact in awareness, advocacy and action in the cause of injury prevention. Louise Logan, President and CEO of Parachute, feels that the merger has unequivocally had the kind of impact that was intended, particularly as it relates to advancing the issue of injury prevention in Canada. “We have grown in size and have increased our ability to have impact on the issue. Bringing together the four organizations has enabled us to bring attention to the cause of injury preven- tion in a way we never would have been able to as individual entities. Because we are now a larger organization, we have been able to attract new people to the organization, grow our corporate donor base and are now beginning to focus on growing individual fundraising. The organization, and more importantly our ability to advance the issue of injury pre- vention in Canada, is in a much more solid place now thanks to the merger.” While merging several organizations is one model of collaboration, the RESOLVE Campaign in Calgary is another. Involving nine Partner agencies, RESOLVE is a col- laborative fundraising campaign that is seeking to raise $120 million to build affordable and supported rental hous- ing for 3,000 vulnerable and homeless Calgarians. The RESOLVE Campaign arose out of the Government of Alberta’s Plan to End Homelessness. As part of funding this initiative, from 2008 to 2011 the Govern- ment of Alberta issued a call for proposal to offer affordable housing grants.But the agencies needed to fund the remaining amount of a purchase or construction in order to access the grants. Three visionary agencies came together to consider how they could raise the philanthropic dollars to create debt-free properties that could sustain affordable rents.They realized that working together with other homeless-serving agencies was the best way and invited all those that received grants to join. “In thinking about all these different agencies going out to the community to raise money, it was acknowledged that donors may be frustrated by receiving multiple asks from different organizations who are raising money for very similar projects,” says RESOLVE Executive Direct- or, Sheryl Barlage. “There was also an acknowledgement that a unified cam- paign could create greater awareness of the need for affordable housing and greater profile for the agencies. Also con- sidered, the collaboration could attract a higher level of community leaders and influencers for its Cabinet to champion the Campaign.” Ultimately, nine agencies signed on to RESOLVE. And Barlage reports that the
  • 9. Marnie A. Spears President and CEO Nicole Nakoneshny Vice President and Editor, Philanthropic Trends Quarterly Philanthropic Trends Quarterly© is published by KCI. Unauthorized reproduction or distribution without attribution is prohibited. Philanthropic Trends Quarterly© is intended to provide an anecdotal ‘snapshot’of philanthropy in Canada. We hope it will serve as a useful overview for observers of the charitable and nonprofit scene. Aussi disponible en français. Illustrations by Rocco Baviera. 214 KING STREET WEST, SUITE 508,TORONTO, ON M5H 3S6 t: 416.340.9710 f: 416.340.9755 e: toronto@kciphilanthropy.com www.forwardthinkingKCI.com T O R O N T O O T T A W A M O N T R E A L C A L G A R Y V A N C O U V E R H A L I F A X E D M O N T O N response from the community has been excellent. “We have not once been turned away at the door during our approaches to donors. And while we are still in the quiet phase, we are experiencing suc- cess – we have raised enough money to provide 1,102 vulnerable Calgarians with a place to call home, towards our goal of 3,000.” Collective action Bruce MacDonald believes that in these changing times, organizations must grow their capacity to anticipate change and adapt to it before the case for change becomes desperately obvious. “Charities need to be spending some time over the next while thinking about these issues,” says MacDonald. “I think that in general,charity leaders are so busy keeping the doors open from a fiscal per- spective that they often find themselves in a mode of responding to change instead of getting out in front of it. We need to develop a capacity to respond to changes in society, finding the balance between maintaining an internal focus on running good, tight organizations while paying attention to what is happening externally. If leaders aren’t paying atten- tion to the seismic shifts in the environ- ment, they will find themselves playing catch up. And when that happens, it be- comes really tough to regain momentum.” MacDonald also believes that successfully adapting to changing attitudes and behav- iours means charities need to have the freedom to experiment and innovate. And the environment in which charities operate must be open and hospitable to doing that. “We can’t have it both ways,”he says. “We can’t expect charities to be able to adapt and experiment while having the rules of the game inhibit and restrict innovation. As a result, we need to ensure that our regulatory and policy environment is conducive and that societal attitudes are open and understanding. It is time for us to take our rightful place alongside other segments of the economy. We need to move our own thinking, as well as the thinking of those outside the sector, from the realm of “good people doing good work”to one that sees us as being part of the economic engine of this country.” This is something that he believes will require collective action on the part of the whole sector. “If, as a sector, we are going to convince lawmakers that changes are needed and help shape society’s attitudes and opinions about the sector, we are going to need to do that together.“ In addition to a sector-wide conversation about the future, it is also a time for orga- nizational introspection. It is a time at the board table and among senior leadership for thoughtful contemplation of what (if any) this “disruption” and challenge to traditional philanthropy means for you. It is a time to think about who you could/ should be collaborating with to advance your mission. It is a time to do a careful assessment of current revenue genera- tion programs and build three to five year fundraising and volunteer engage- ment plans. And finally, it is a time to grow and build champions for your organization who can help advance your vision and mission. These changing times mean that busi- ness in the charitable sector is tough, competitive, fluid and uncertain, perhaps like never before. And so,leadership must be willing to confront these facts and have the courage to make decisions about shaping both the future of their own organizations as well as the sector as a whole. “ “ We need to move our own thinking, as well as the thinking of those outside the sector, from the realm of“good people doing good work” to one that sees us as being part of the economic engine of this country.