AFP

There has been a lot of talk about charities acting like businesses.  I was having lunch today with my friend and colleague, Jill Andres, about social enterprise and how there is such a broad spectrum of what this could mean. Read more »

Thank you to Nadine Riopel, Bob McInnis, Derek Brechtholdt and the others who tweeted out the draft of this brief, and most especially provided valuable feedback.

This brief was developed in response to a call from the House of Commons Finance Committee as they undergo a review process of Canada's charitable sector and the tax laws that govern the sector.  Recommendations range from the creation of a government appointed Ambassador of Philanthropy, creating clearer legislation around "reasonable profit" and social enterprise, and addressing the inconsistencies in the T3010 tax filing that do not address the critical information that donors need in order to make informed charitable decisions.

This morning on the CBC Eyeopener, Andrea McManus the chair of the Association of Fundraising Professionals was interviewed on effective philanthropy.  Some key points that she raised include: Read more »

Just a quick post to say congratulations to this years National Philanthropy Day honourees.  The message that I got out of today's luncheon and the presentation is one of hope.  As we are climbing (slowly) out of turbulent economic times it was amazing and very HOPEFUL to hear about ways that people were stepping up to the plate and supporting our communities.

Thank you to each and every person who donates time, money and other resources to making our world a better place to live.

In the latest of Advancing Philanthropy magazine, a publication of the Association of Fundraising Professionals (AFP), there is a column by Jacklyn Boice, Miachel Nilsen and John Skendall about intentional innovation in the charitable sector. 

There are three main stakeholders for charitable organizations, the employees of the organization, the volunteers of an organization and the financial investors to the organizations.  These three groups feed into a system.  This system described in a report “Intentional Innovation: How Getting More Systematic About Innovation Could Improve Philanthropy and Increase Social Impact” released by the W.K. Kellogg Foundation, is one that “is not afraid to fail and tests new ideas before implementing them into the whole program.”

In previous posts I have discussed the role of collaboration between agencies and how donors can act as bridges between charities.  In this piece, the role of the donor can be seen as a change agent.  These individuals, “foster innovation throughout the organization, both on specific projects and in structural ways that impact daily operations.” (Great Idea!, Advancing Philanthropy, Jan./Feb. 2009)

How are you acting as a change agent for the agencies that you donate to?  Traditional models look at how community investors can act as connectors.  Morphing this traditional role to the resources available today, specifically the evolution of social-media technologies and Web 2.0, how have you adapted your role?

The Karma & Cents winter newsletter highlighted how organizations are going to have to start clustering and collaborating more in order to survive the recession.  What role are you playing in facilitating this?  How are you encouraging the organizations that you support in moving towards each other, perhaps in unique ways?  An example that I share with client is the Storehouse 39:3:10 group in Calgary, Alberta.  Storehouse is a group of four organizations, each with unique missions, who have banded together to share workspace and some human resources.  They even have a joint fundraising professional!

In today’s non-profit marketplace, the role of the donor or community investor is not only financial – the intellectual capital that you bring to the table is critical – AND YOU DON’T HAVE TO SIT ON THE BOARD!  Organizations that foster innovation will encourage you to try and test your ideas without having to be part of the decision making leadership.  They will encourage you to take on this role, because they are the type of organization that recognizes the need for new ways of thinking, doing, trying and testing.

I look forward to hearing how you have encourage innovation within the charities that you support.

Today - Friday, November 14th, 2008, marks the end of National Philanthropy Week.  This day is a celebration of individuals around the globe who are making a difference by donating their resources (personal, financial, intellectual and corporate) to the non-profit and charitable sector.

I attended the luncheon today, hosted by Dave Kelly of CityTV, honouring Calgarians with the Generosity of Spirit Awards.  The Generosity of Spirit Award is given to seven individuals or businesses in the following categories:

• Outstanding Philanthropic Family
• Outstanding Philanthropic Group
• Outstanding Youth Philanthropist
• Outstanding Small Business Philanthropist
• Outstanding Individual Philanthropist
• Outstanding Corporate Philanthropist
• Outstanding Lifetime Philanthropist

In the line of work that I am in, I see outstanding individuals and companies on a daily basis.  This year, it is especially important to share their stories as we enter into difficult financial times, so that we remember that there are others who need our help that much more.

I want to share with you what I got out of today's luncheon.  I was inspired.  I was inspired by the young man who gave the invocation and told us that he wants to see a charitable sector that can trade in social commodities (someone should introduce him to Kathryn Babcock at the Canadian Women's Foundation who recently launch the first charitable IPO trading on the TSX). 

I was inspired by Verda & Duncan McNeill who shared their family story of philanthropy and how they have taught their sons how to continue their legacy.  This teaching was done through modeling community-focused behaviours and integrating community into the different business ventures that the McNeill family has undertaken.

I was inspired by the Kinsmen Club, who by collective power, have put their stamp on the Easter Seals Camp Horizon. 

I was inspired by Jane Wu, a young woman who was nominated by Child & Youth Friendly Calgary (the ED, Penny Hume was recently awarded a Woman of Vision from Global TV) who told everyone, at the age of 17, that we should, "Just do it now." 

I was inspired by Masters Gallery, a local art gallery owned by Rod Green.  Rod said today that everyone has a Culture Gene and some people just need it turned on.  The Culture Gene is the driver behind getting engaged in the Arts, whether it is visual or performance.  In order to turn on this gene we have to be exposed to the Arts.  That makes sense to me.  He went on to say that we all have a Philanthropy Gene and we just need to turn that on too.  In order to turn on the Philanthropy Gene we need to be exposed to philanthropy.  I would argue, not any type of philanthropy, but the best kind, the kind that is tactical and strategic.

I was inspired by Bill Davis who is actively involved in community projects because, "It just feels good."  Bill not only has gotten involved himself, but through his initiatives has engaged others thereby generating even greater impact.  He shared with us that he is having more fun with his friends around the table working with him on these projects.

I was inpsired by EnCana.  Yes, the big bad oil company...  I have had the privilege of working with EnCana when I was the Director of Development at CentrePoint Non-Profit Management.  Mary Ann Blackman, Manager of Community Investments, told us that EnCana prides itself on creating long-term relationships with their recipients.  I cannot stress how important it is for businesses to look at their charitable as multi-year investments.  Mary Ann drove the point home by sharing with us how EnCana builds these relationships and nurtures them, by not only providing funding, but also professional and capacity building supports.

Lastly, I was inspired by Dick Matthews.  This year, Mr. Matthews was awarded the Lifetime Philanthropist Award.  His contributions, both of time and money have strengthened the local musical performing arts community.

So many times I hear that charities do not thank their donors enough.  As someone who has worked in the charitable sector and now assists others in supporting the charitable sector, THANK YOU!  Without your generous spirit our society would not be what it is today.  You ensure that organizations can do what they are meant to do - make our city, country and world a good place to live.

So you've identified your values, you'ver picked how you will give and you've set your philanthropic goals.  The goals that articulate the kind of social impact you want to make.  How will you find the charities that best fit your values and goals?

First, decide if your community investment goals are locally, nationally or internationally based.  Depending on how you decide to disburse your funds will also play into the type and geographic location of the recipient organizations.  Make sure you have checked with your tax accountant and lawyer about any financial and legal implications your decision will have.

For charities that are Canadian based it is easier to make sure your philanthropic investment will be used appropriately.  Canada Revenue Agency recently released its policy guidelines on fundraising for charitable organizations.  This document defines what "charitable objectives" are and how organizations can spend your philanthropic investment.  A copy of this policy can be found under Materials in the Resources section of this website.

Second, ask questions!

Some basic questions you will want to ask a charity before investing are:

1. Has the agency adopted the Code of Ethical Fundraising (see Resources on this site for a copy) developed by Imagine Canada?
2. Can the agency provide you with two years audited financial statements?  You want two years (preferably three) because you need to compare growth in both revenue and expenses.
3. Who is on the Board of Directors?  What are their terms?  Does the Executive Director have a vote? Are any of the Board Members financially compensated?
4. Where does the core funding come from?  How long is that funding in place?
5. Does the agency have a strategic plan?  How often is it reviewed?  How are is the organization measuring itself against the plan?
6. What percentage of the operating budget goes to the highest paid salary?  How many paid staff are there?
7. How much does it cost to raise a dollar?  You might want to take the following measurements into consideration: 40% of Executive Director's salary, 100% of Fund Development staff salary, 50% of marketing/communications budget and 5-7% of general overhead expenses (rent, phone, etc.).  Under the Donor Bill of Rights written by the Association of Fundraising Professionals, as a philanthropic investor you have the right to know this information.  A copy of the Donor Bill of Rights can be found in the Resources section of this website.
8. Finally, and probably the question you are most interested in knowing the answer to, how will this agency invest your money?  How many people will be helped, animals saved, programs delivered, etc.

If you need more clarification - ASK.  For the most part, charities want to be accountable to their donors.  If you are not satisfied with the answers do not make that charitable investment.