Meeting the moment

From the global pandemic to climate change, war and political upheaval, the past few years have seen change on every front.  As leaders in the philanthropy and non-profit sector, we envision a just and equitable future and collaborate with donors, partners and communities to realize our collective vision.  Like many of you, I am enmeshed in the “daily doing” as a fundraising leader. It can be challenging to try to make sense of how philanthropy is evolving in response to larger societal forces. Writing this piece allowed me to slow down, take stock and try to answer the question: how can fundraising meet the moment? With thanks to sector leaders Rea Ganesh, Nausheen Maherali, Niambi Martin-John, Krishan Mehta, Sharon Redsky and Aaron Sanderson for generously sharing their perspectives – we are pleased to offer insights that we hope will resonate, challenge, inspire and perhaps even provoke us all into meeting the moment. 

1/6. THE ECONOMY IN FLUX

As fundraising leaders emerge from the first quarter of 2023, economic uncertainty looms large. The 10-year bull market has come to an end, and Canadians are feeling battered by a declining housing market and the highest inflation in 40 years. The question on fundraisers’ minds is: how will this affect charitable giving?

1. Learn from the past. The good news is that past recessions have taught us that economic downturns do not result in decreased giving across the board. So, there is a reason to remain optimistic and focused. According to the Blackbaud Institute, “philanthropy is quite resilient and can withstand short-term economic fluctuations.”
2. People want to give. Difficult times remind us that prioritizing long-term relationships with donors is essential. A donor may need to renegotiate a pledge schedule or temporarily put a monthly donation on hold. Consider a “grace period” before moving a donor to the lapsed file or asking if they would consider switching from a gift of securities to a DAF disbursement.
3. Equity matters. Recent research has demonstrated that Black and Indigenous groups are significantly underfunded.

According to the report Unfunded: Black Communities Overlooked by Canadian Philanthropy, for every $100 donated to a charitable organization in Canada, as little as $7 goes toward supporting Black charities. The Foundation for Black Communities, Canada’s first-ever philanthropic foundation dedicated to investing in Black communities, is striving to change that and was recently selected to manage a new $200M black-led endowment fund.

Blumbergs and Redsky Fundraising reviewed T3010 data to identify the number and value of gifts made to Indigenous groups. Their report found that “Indigenous Groups received just over one-half a percent of gifted funds. As Indigenous people account for 4.9% of the Canadian population, Indigenous groups are receiving about 1/10th of the funding that they would receive due to population size, even if one ignores issues of need.”

Sharon Redsky, the co-author of the report, is a resident of Winnipeg and First Nation member of Shoal Lake #40 with mixed heritage. She is an Indigenous fundraiser with extensive experience working in Indigenous-led organizations.

Here are her thoughts on how settler philanthropists and fundraisers should think about engaging with Indigenous communities:

“It is essential to acknowledge that Canada was founded on the reciprocity of Indigenous peoples. Giving and principles of sharing, connecting to the land, and caring for each other are embedded in Indigenous culture. 

Many Indigenous-led organizations and qualified donees (First Nations, Métis and Inuit) communities delivering culturally appropriate services must survive on project-based funding. The philanthropic sector has an essential role in fostering equity and elevating the work of Indigenous charities and communities by providing long-term, sustainable funding. 

In my experience, there are two primary barriers for Indigenous charities and communities in accessing philanthropic giving. One is the perception that Indigenous communities and people receive adequate funding from the Federal Government, which is not the case. The other is the narrow criteria set by funders. I encourage flexibility in funding approaches for granting to Indigenous charities and communities to better align with their priorities.

I often refer to a quote from the report Honouring the Truth, Reconciling for the Future: “reconciliation must inspire Indigenous and non-Indigenous peoples to transform Canadian society so that our children and grandchildren can live together in dignity, peace, and prosperity on these lands we now share.”

As all organizations think critically about their role in advancing equity, they must consider how to uplift communities that have been historically marginalized or excluded. And in the current climate, wow can resources be shared to benefit those who will most acutely feel its effects?

2/6. INCLUSIVE GIVING

Traditional, tax-receipted giving has been on the decline for years. Many have talked about reversing this trend, but we should look instead toward more inclusive definitions of philanthropy. How can we reimagine charitable giving to drive change?”

1. Widen the lens. In How We Give Now, Lucy Bernholz makes a case for recognizing the full breadth of the “givingscape.” This includes volunteering, sharing data, making political donations, participating in crowdfunding, mutual aid initiatives, and giving circles. Bernholz argues that focusing solely on tax-receipted giving means missing the myriad ways we express our values.
2. Challenge the fundraising status quo. Most fundraising programs still default toward men as decision-makers and heads of household. This risks excluding women, LGBTQ2+ donors, and younger donors who may want to give as a group. Jeannie Infante Sager of the Women’s Philanthropy Institute argues it’s high time to create fundraising systems that appeal to such donors. Already, we’re seeing women philanthropists and other equity-deserving groups leveraging their giving to fight injustice and spark systemic change. Women will control half of all wealth in Canada by 2026. That bodes well for change
3. Meet people where they’re at. Philanthropy has historically excluded forms of generosity that don’t fit the paradigm of tax-receipted giving to institutions. For example, racialized groups have always given, but not always in the way that white-dominated philanthropy has deemed legitimate.

“At Scarborough Health Foundation, philanthropy takes different forms,” says Rea Ganesh, VP Philanthropy. “Our Love, Scarborough campaign strives to unite and celebrate our community, where almost three-quarters of the population identifies as a visible minority, and the seniors’ population is expected to double in the next 15 years.

Although many of our staff team are Scarborough born and raised, we’re here to learn from our community, not dictate how they should give. A big part of our success has been sharing stories representing who we are as a community. People see themselves in those stories, inspiring them to become leaders.

The response has been tremendous: our $100M Campaign has surpassed its goal; our physicians pledged $1M in the span of two months; we’ve seen sector-leading results in terms of new donors, and we’re just getting started: our staff is energized and inspired to make SHNF a true leader in inclusive giving.”

3/6. THE ROLE OF GOVERNMENT

The relationship between government and the non-profit sector is one of interdependence: government is the largest funder of the sector and sets the regulatory framework within which charities operate. The sector’s role as a government partner in delivering essential services— including health care, education and social programs—has never been more vital.

1. Increasing demand for services is putting more pressure on the sector overall. A shift of resources into one area, such as health care, could result in funding gaps in other areas, requiring increased philanthropic support.
2. As government spending priorities shift, there will be an increase in demand for non-profit services and staff talent. It will also likely increase hiring competition with the corporate sector. It is imperative for the future health of the sector that we are able to attract, train, coach, and develop talent at all levels.
3. The disbursement quota has increased from 3.5% to 5% for investment assets exceeding $1 million. Although many foundations already disburse well beyond the minimum, this change signals an opportunity for greater giving. According to Imagine Canada, the change represents approximately $200 million in new spending – a crucial opportunity to direct funds to equity-deserving communities historically underserved by philanthropy.
4. Expanding definitions. The CRA has released its draft guidance for registered charities making grants to non-qualified donees. Senator Ratna Omidvar is optimistic that the changes will “expand the flow of money from charities and philanthropy to non-qualified donees that serve the most disadvantaged people.”
5. Home in Government. AFP Canada recommends that the government establish a dedicated secretariat for the charitable sector. “A dedicated secretariat would ensure the charitable sector has the support needed to provide valuable services to those they serve, resulting in increased equity, cooperation and funding across Canada,” says Aaron Sanderson, MA, CFRE, ACFRE, Chair, AFP Canada Government Relations Committee.

4/6. AUTHENTIC LEADERSHIP

Trust and authentic leadership are critical factors in charitable giving. People are more likely to support an organization when they have confidence in its leadership.

However, research shows that trust continues to decline across all institutions. The annual Edelman Trust Barometer measures people’s trust level in various institutions, including governments, businesses, non-governmental organizations (NGOs), and the media. The 2022 report found that trust had decreased significantly across all categories. It also found that people are looking to CEOs to take responsibility.

“Organizational leaders must remember that trust and impact are inseparable,” notes Krishan Mehta, AVP Engagement at Toronto Metropolitan University. “Trust can be a value, an objective and an outcome at the same time. If leaders genuinely believe that trust comes before money, then all interested parties — staff, volunteers, donors and beneficiaries — will inevitably want to share in the organization’s success. When it comes to philanthropy, my mantra is: move at the speed of trust.”

In the charitable sector, when people perceive an organization’s leadership as authentic, they are more likely to believe that their donations will be used effectively and efficiently to achieve the organization’s mission.  In this environment of declining trust, fundraising leaders must work closely with institutional leaders to inspire philanthropic action.

1. Be visionary. Donors want to be engaged in solving complex issues. Fundraising leaders must work with their institutional counterparts to articulate a bold vision that inspires support.
2. Gain executive mindshare. Executive mindshare refers to the amount of mental energy, time, and resources your leadership allocates to a project, and it’s critical for success in major fundraising campaigns and initiatives.
3. Look to leadership. Your organization’s leadership must play a key role in articulating an aspirational vision. Fundraisers can drive success by facilitating authentic relationships between donors and institutional leaders.

5/6. INVESTING IN TALENT

Post-pandemic, the Great Resignation, and changing priorities around work have affected all corners of society. Investing in talent – both staff and volunteers – is essential for a healthy non-profit sector.

1. Leadership development is crucial. Organizations should proactively train staff to advance in their organizations, improving retention and reducing turnover. Leaders must embrace their role as educators and coaches, but training is not the employer’s sole responsibility. Individuals need to take ownership of their career development journey. Cultivate curiosity and channel it through self-directed learning, professional development and on-the-job experience.

Nausheen Maherali, VP of People, Equity and Well-being for the YMCA of Three Rivers shares her thoughts on the importance of investing in talent: “Our people development has shifted towards building capacity and capability through practise to translate learnings into new experiences for growth. A culture that supports and endorses a learning mindset is essential. If you’re going to make investments in leaders, it’s critical to look at dedicating time, resources and money. Are you creating space in people’s roles to prioritize and translate learnings into their work? Are you creating a culture that allows them to innovate and make mistakes?

We’re creating spaces for people to apply their learnings. Safe spaces don’t exist. That’s why we’re talking now about accountable spaces. It takes bravery to learn. Accountability on the receiving end will foster that learning and allow diverse perspectives to thrive.”

2. Demystify decision-making. Younger workers have led the call for greater transparency, and there’s a growing realization at management and Board levels that there’s no reason not to share. Demystifying the decision-making process can foster alignment at all levels while building staff resiliency and increasing effectiveness.

“We’re asking ourselves: who is sitting around decision-making tables, and whose voices are we missing? There can and should be multiple tables, and not all of them need to include the most senior individuals in the organization. We can build agency among our employees by helping them to uncover and share their value.”

3. Hire equitably. KCI has observed a significant shift toward more equitable hiring practices. Organizations understand the imperative of an inclusive process, even if they are still learning what this means on the ground. Executive roles are critical in this transition, and Boards are taking an intentional approach to the dual imperatives of succession planning and cultivating a more equitable C-suite.

“Equity work is identifying where you want to get to, who you want to get to, how you get to it, then taking action towards it. To create a just and equitable place. Not a quick fix, not one-time – it’s momentum towards a new movement! “

Nausheen explains: “We look at a candidate and think about how their individual skills, passions and lived experiences inspire them to contribute. Our community is further ahead than we are – we need them to work alongside us, telling us what they want and need. We no longer use the word ‘fit’: we are interested in ‘add’. Specifically adding complimentary skills to shape the impact for our communities we serve.  Our aim is to create a culture in which you can bring all of you to the work you do. That’s where the real unique value is in reaching your full potential.”

4. Invest in volunteers. Fundraising talent extends beyond staff to senior volunteers who serve on Campaign Cabinets and Boards of Directors. Education is essential. Boards that are well-informed and well-equipped to support fundraising can be incredibly productive and helpful. As organizations strive to be more intentional about recruiting Board members who bring diverse lived experiences to their roles, they must also ensure they equip volunteers to be effective.

6/6. VALUES-CENTRED FUNDRAISING

Donor-centred fundraising has been the standard in the sector for over 20 years. Coined in response to “organization-centric” fundraising, it focuses on how donors can make a difference and feel good about their giving.

Community-centric fundraising has emerged as a challenger to the primacy of donor-centric fundraising. CCF argues that fundraising must go beyond financial gain to advance equity and justice. It tackles topics such as wealth inequality, white saviourism, and racism in fundraising.

Trust-based philanthropy is an approach to giving that emphasizes strong, collaborative relationships between funders and the organizations they support. It seeks to shift the power dynamics between funders and grantees towards a more collaborative, equitable, and sustainable model of philanthropic giving. How do fundraisers continue to deliver while simultaneously evolving their practice to a more inclusive and just approach?

1. Be values-aligned. If an organization truly values equity and inclusion, it must embed it into all areas of work, including fundraising. It is not enough to deploy donor dollars to advance the mission: how you fundraise is part of your mission. Demonstrating your organization’s values through fundraising may attract donors who have yet to see a place for themselves in philanthropy.
2. Embrace evolution. In her book In Defence of Philanthropy, Beth Breeze notes that criticism of charitable giving has become vocal and widespread. Of course, this risks damaging the reputation of philanthropy, which will, in turn, impede the flow of funds to good causes. Philanthropy must evolve to be more ethical, effective, and trust-based. Fundraisers are essential to this evolution and must embrace new ways of thinking and doing.
3. The role of leadership. Organizations that want to see change must be aware of cause and effect. Fundraisers must be supported by their organizations as they explore complex topics. For example, some donors may decide to move on to supporting other causes or may no longer be the right ‘fit.’

Niambi Martin-John, Director of Development for the Stephen Lewis Foundation, shares how her practice and leadership have evolved:

“To secure the gift, fundraisers have been trained to do what donors want, sometimes at the expense of those we are expected to help. 

In recent years, my role as a fundraiser has evolved to be about shifting power and building community. Capacity already exists within the communities we support, and donors can play an important enabling role. But securing the funds isn’t enough if I’m not centring our organizational values and commitment to racial equity and justice. 

Beyond revenue, fundraisers should also be accountable for advancing anti-racism, feminism and solidarity. We need tangible, concrete support from our leadership, including the Board of Directors, to do this. If a donor decides to take their gift elsewhere, fundraisers need to know that they won’t be penalized for not closing a gift from a donor who is not values-aligned.

At SLF, we are striving to align donor engagement with what we value. For example, in our written gift agreements, SLF donors affirm their commitment to solidarity with our global movement. These are our ‘terms of engagement,’ and it is this specificity that will ultimately shift power and drive change.”

THE LAST WORD

While challenges and uncertainties are ahead, there are also reasons for hope and optimism for the charitable sector this year and beyond. Donors are seeking out organizations that have bold visions and align with their values. Fundraisers are inspired to become change-makers. Together, we can meet the moment and inspire positive change for our communities.  Here’s to a hopeful — and changeful — 2023!

– Juniper Locilento, MPNL, CFRE, KCI Alum and Guest Editor.  In partnership with Susan Storey, CFRE; KCI Partner