2012 : Bulleti

2012: Issue 1

In our ongoing attempt to navigate thechallenges that impact our sector, there’s

no question that change is the only con-stant. Daily news reports dwell on eco-nomic issues, the volatile Euro zone, ongo-ing unease about global markets andaging, shrinking donor bases. With all this“bad news”, one could easily be pessimisticabout the Canadian charitable landscape.

And yet, amidst this doom and gloom aresome glimmers of hope. Statistics Canadareports that Canadians made charitabledonations of almost $8.3 billion in 2010 – ahealthy 6.5 per cent increase over 2009.And, while the ongoing economic volatilityundeniably casts a certain degree of un-certainty over corporate Canada, manyCanadian companies remained profitablethroughout 2011. And, perhaps mostimportantly, their commitment to supportthe charitable sector remains strong.

This commitment came through loud andclear at a series of KCI-facilitated round-tables with leading companies from acrossthe country. Wanting to better understandhow corporate Canada is now making giving decisions, KCI invited a number ofcommunity relations professionals to sharetheir thoughts and insights about a widevariety of topics. And in this issue, we giveyou a “seat at the boardroom table” by providing details about what corporatedonors are looking for in their relationshipswith their charitable partners.

While some of the trends we’ve identifiedmay not necessarily seem “new”, what is

new is the intensity, frequency and sheernumber of companies taking this direc-tion. This tells us that as businessesbecome more “business-like” with their giving strategies, so too must our sectorbecome more “business-like” in formulat-ing our asking strategies.

Perhaps the most important conclusionwe’ve drawn from our consultations is thatcorporate Canada wants to be a partnerwith the charitable sector – not just asource of funds for projects, programs andservices. And while some leading charitableorganizations have adopted this philoso-phy, we heard from our corporate partnersthat far too many charities seeking theirsupport underestimate what corporationscan (and want) to bring to the table and, asa result, underestimate the potential toharness it.

On behalf of the entire KCI team acrossCanada, I applaud the corporate sector forits consistent generosity and commitmentto community investment, and sincerelythank the company representatives inVancouver, Calgary, Montreal, Toronto andHalifax who carved time out of their busyschedules to participate in our conversa-tions. We were not only delighted by theirwillingness to participate and by theenthusiasm and candor of the insightsthey shared, but were truly inspired by thepassion and desire shared by these compa-ny leaders about making a difference.

Wishing you a productive and fulfilling 2012.

Marnie Spears President and CEO

The Corporate Giving Issue

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Our roundtables with representativesof corporate Canada helped us bet-

ter understand their thinking related tothe support of the charitable sector. Andone key theme that emerged is thatthe word “philanthropy” itself is being replaced by new terminology such as‘community investment’, ‘corporate citi-zenship’ and ‘corporate social responsibil-ity’. Barbara Simic, Manager, CommunityInvestment, ConocoPhilipps, Calgary,sums up this change by saying, “We seethe word ‘philanthropy’ as describingmore of an individual person’s engage-ment and responsibility.”

Far from just semantic, this change in vernacular reflects a fundamental shift in how corporations are thinking aboutcharitable support. Corporate givingtoday is more focused, forward looking,leveraged for effect and targeted tomake measurable, tangible differences in

the communities where businesses oper-ate. It has moved from a largely reactiveto a strategic posture, with leaders recog-nizing the value of linking communityinvestment with various aspects of busi-ness, such as talent recruitment andretention, customer relations and reputa-tion management.

As we explore the trends that emergedfrom our discussions, we’ll look at somesolid examples of how leading compa-nies are supporting charities and howour sector can successfully anticipate,adapt and respond.

1)Aligning community relationships tobusiness strategies

The trend of aligning community invest-ment programs with business strategiesbegan to appear a number of years ago.Embraced by a number of “early adopters”,

this trend has gained significant momen-tum over the last several years, and today,the vast majority of companies now seekevidence of business benefits in additionto fulfillment of their charitable goalswhen making giving decisions – benefitslike distinguishing the organization fromits competitors, enhancing its corporatereputation and galvanizing its brand.

What this means for charities is that thedays of corporations responding positive-ly to “we’re a good organization and weneed money” proposals are long gone.Charities that are successfully attractingcorporate support are first doing theirhomework to understand the businessand community investment objectives of their prospective corporate partnersand presenting proposals and plans thatdemonstrate“why we’re a good fit for you”.

When looking at whether or not charities

The ‘new philanthropy’ of corporate giving

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are a good fit, corporations are lookingfor answers to the following questions:What is your understanding of the corpo-ration’s current realities and future direc-tions? What are its respective goals inresponding to community issues andhow does your work help to achievethem? How do we each define and valueresults and impact? Who are our mutualstakeholders? What distinguishes youand the services you provide? And withwhom do you partner to achieve yoursuccess?

The approach that Teck Resources hastaken in its community relations is a goodillustration of a corporation that hasaligned its business and communityinterests. With zinc operations in Canada,the United States and Peru, Teck pro-duces approximately 646,000 tonnes ofzinc concentrates and 278,000 tonnes ofrefined zinc. When the company firstlearned how devastating an impact zincdeficiency has on the lives of people indeveloping countries (almost half a mil-lion children and 800,000 adults die eachyear), it recognized it had a role to play tofind solutions and its Zinc and Healthprogram became part of a signatureglobal citizenship initiative to raiseawareness about the dangers of zinc defi-ciency and help save children’s lives.

Teck has also become involved “on theground” with some charitable and gov-ernment partners in tackling this issue.One program is the Zinc Alliance for Child Health (ZACH). In partnership withthe Micronutrient Initiative and theGovernment of Canada, Teck will work todevelop and sustain zinc treatment pro-grams that help save the lives of childrenaffected by zinc deficiency. The first proj-ect will support the Ministry of Health inSenegal to dramatically scale up the useof zinc supplements, along with oralrehydration salts, for the treatment ofdiarrhea. This partnership demonstrates

how responsible businesses can take anactive role and form working relation-ships with non-profit organizations tohave an impact on an issue of mutualinterest.

2) Creating Shared Value: A Win/WinProposition

Some corporations are taking the con-cept of aligning business interests withcommunity relationships one step fur-ther. Described as creating shared value,corporations that adopt this approach donot distinguish between “business” and“community” interests, arguing that theyare, in fact, one in the same. While sharedvalue is still in its genesis, a growing num-ber of companies have embarked onefforts to animate the philosophy by re-conceiving the intersection between cor-porate performance and society with agoal of seamlessly integrating the two.

By creating mutual interdependencybetween their organizations and the

Making a difference in different ways: Small and medium size businesses

When thinking of corporate support ofthe charitable sector, we tend to focuson the ‘big players’. And whileundoubtedly, large corporations arekey supporters, it is important not tolose sight of the significant role playedby small and medium sized business in supporting charities in Canada. Andit is also important to recognize thattheir approach and philosophy may be different than that of their largercounterparts.

In many cases, small to medium sizebusiness community involvement istied to owners’ or management’s per-sonal philanthropic interests.

Because small and medium size busi-nesses must focus most of their atten-tion on core business needs, they maynot have the time or resources to iden-tify specific community needs ordevelop strategic long-term partner-ships with charitable organizations.

Many charitable organizations aremaking it easy for companies of anysize to participate in fun turnkeyfundraising events such as ProstateCancer Canada’s “Movember”, offeringfree promotional posters and donationboxes, a free mobile app for employeesto track and solicit donations, andopportunities for prizes and visibilityon the fundraising website and socialmedia pages.

Local Board of Trade or Chamber ofCommerce organizations offer net-working benefits for charities to createbrand awareness and identify compa-nies that share an affinity for theircause, and could well be a very interest-ing platform to help promote giving andvolunteerism. As well, Imagine Canada,Volunteer Canada and various commu-nity foundations across the country arealso taking leadership roles to advancephilanthropy and engage the next gen-eration of business leaders at all levels.

““Charities that are successfullyattracting corporate supportare first doing their homeworkto understand the businessand philanthropic objectivesof their prospective corporatepartners and presenting pro-posals and plans that demon-strate ‘why we’re a good fit for you’.

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causes they support, companies discoverthat deeper engagement naturally leadsto shared value. As companies becomemore engaged, more opportunitiesemerge for partnerships that can acceler-ate and expand the potential for socialimpact. A Sears Canada charitable part-nership effectively illustrates how creat-ing shared value has been a win/winproposition for both it and its charitablepartner.

Vincent Power, Sears Canada’s DivisionalVice President, Corporate Affairs says thatthe national retailer’s relationship withBoys and Girls Clubs of Canada hasendured because it’s still seen to be justas relevant and natural a fit for Sears as itwas when they first began their associa-tion over four decades ago.

“Boys and Girls Clubs provide safe andwholesome after-school programming.

That ‘after school’ time-slot has alwaysbeen worrisome for parents – it’s a timewhen kids can get in with the wrongcrowd or engage in unsupervised, unsafeor risky activities. Parents are Sears’s cus-tomers and associates (employees). Our

partnership resonates with them as wellas our other stakeholders, and it’s inte-grated into all aspects of our business.”

Point-of-sale “Round Up Your Purchase”giving, converting Sears reward points tocash for a donation (which Sears match-es), or the in-store Tree of Wishes (storespartner with Clubs in their communitiesand ensure needy kids receive Christmasgifts) are all popular and well-received bycustomers. An annual golf tournamentbrings Sears associates and supplierstogether for a day of fun that culminateswith a dinner keynote speaker sharing apersonal story about how Boys and GirlsClubs made a difference in his or her life.“It’s not only a great way to build and fos-ter relationships,” Mr. Power adds, “it alsosends a powerful message about whatwe accomplish as partners.” There arealso volunteering opportunities for Searsassociates, mentoring initiatives, jointlyproduced surveys, and co-branded publi-cations.

3) Looking for partnerships that gobeyond the dollars

The charitable sector has the opportunityto mind-shift how its relationship withCanada’s corporate sector is defined.Based on the feedback and input fromour roundtable participants, it’s time forus to think in a different way – one that is open to exploring the full potentialoffered by creating deeper, more sustain-able relationships with corporate part-ners. A critical step is to stop thinking ofcorporations as simply a “pot of money”from which to apply for donations, butrather as a potential partner in theachievement of your goals.

Colin MacDonald, Chairman, ClearwaterSeafood Incorporated, Halifax, observesthat “It’s not business as usual, and it hasn’t been for years. Corporations haveevolved and want a higher level ofengagement with the organizations they

Don’t assume that because you’vealways received a grant/donation froma particular corporation that you’ll auto-matically receive one this year. Reachout to longtime donors; arm themwith real information about the valueof your work. (P.S. Budgetary appealsor seeking to replace lost governmentfunding are uninspiring and usuallynot well received by corporations).

Do look for opportunities to remindthem why your work– and hence theirsupport – is essential.

Do strive to better understand a company through in-depth researchof its business goals, areas of focus and community engagement pro-grams. Look beyond corporate giving.Listen, understand, and respect.

Do ask for constructive (and perhaps“hard to hear”) feedback.

Do think broadly about your networksand take advantage of them. Be opento collaboration.

Do position your organization as aconvener, a partner, a catalyst forchange and new ideas.

Do look for ways to collaborate andintegrate with peer organizations.

Don’t bypass the corporate charit-able giving hierarchy. Instead, work to develop a quality, long term rela-tionship with your key contact andvarious connectors. It may take time, but the effort is well worth it.

The art of the corporate approach: Charitable sectordos and don’ts

“

“By creating mutual interde-pendency between theirorganizations and the causesthey support, companies discover that deeper engage-ment naturally leads toshared value. As companiesbecome more engaged, moreopportunities emerge forpartnerships that can acceler-ate and expand the potentialfor social impact.

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invest in. They seek selective impact anda larger role in finding solutions. Charitiesthat continue to approach the corporatesector the same way they always havewill miss opportunities. Corporationshave much more than money to bring tothe table. They can leverage variousresources, and share expertise, servicesand skills. In other words, they’re lookingfor meaningful, long-term partnerships.”

Pierre-Marc Tremblay of Paccini / Com-mensal, Montreal says, “Community out-reach is essential, and all our restaurantsadopt a community cause. It’s one of thefirst things we ingrain in our employees.We find it helps strengthen and mobilizeour teams because it’s a source of pride.”

One element of that partnership is theinvolvement of the corporation’s employ-ees. While workplace giving and volun-teering isn’t new, the dynamic haschanged dramatically. A growing numberof companies are implementing match-

ing and volunteering programs, in partbecause employee engagement hasbecome a proven impetus for attractingand retaining quality talent across all sec-tors and in companies of all shapes andsizes. All roundtable participants acknow-ledged that not enough charities are recognizing corporate Canada’s desire toengage employees in its charitable activ-ities, and therefore are not taking fulladvantage of the opportunities present-ed by this trend.

Manulife Financial, whose employees

have a long tradition of giving back, is agreat example. The company supportstheir efforts in numerous ways: Com-munity Spirit Days offer a paid day off tovolunteer at a charity of their choice; theHelping Hands program enables employ-ees who volunteer at a registered charityfor 25 hours or more to apply for a $500grant for the charity; if an employee raises money for a registered fundraisingevent, their PowerMatch program willmatch it up to $150.

The relationship that World Wildlife Fund(WWF) and Goldcorp have created is agreat example of going beyond the dol-lars and truly leveraging all that a corpo-rate partner can bring to the table.

In addition to being a key financial spon-sor of WWF programs and events, JohnAllen, Goldcorp’s Vice President, Sustain-able Development, felt there was some-thing more “specific” the company coulddo. As a leader in monitoring and mini-

““A critical step is to stop think-ing of corporations as simplya ‘pot of money’ from whichto apply for donations, butrather as a potential partnerin the achievement of yourgoals.

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mizing water use and protecting ecosys-tems, Goldcorp has a business goal togain deeper knowledge of the most efficient water usage to reduce con-sumption in every region where it operates. Allen heard about the WWFNorth American Water Footprint Studyon how water use is embedded in goodsand services; partnering with WWFseemed ideal.

And the partnership goes well beyondwriting a cheque. After some discussions,Goldcorp recently seconded Alicia Sierra,Environmental Engineer at their mine inMexico, who relocated to Vancouver for18 months to work as a WWF FreshwaterResearch Analyst. Her job is to track andmeasure the mining industry’s cumula-tive water impact on rivers, lakes andwetlands in Canada, the United Statesand Mexico.

Christine Marks, Manager, CorporateCommunications, further indicates thatthis type of partnership is a natural forGoldcorp. “There is mutual benefit andshared value for Goldcorp and WWF topartner on such a project; we are actuallysharing skills which help with the cre-ation of knowledge. It also supports

Goldcorp goals around corporate posi-tioning and reputation”.

4) A heightened focus on impact,accountability and performance measurement

Our Fall 2011 Issue shone the spotlighton impact. In our 2009 Corporate Giv-ing Issue, companies repeatedly told usthat the ability of not-for-profits todemonstrate the impact of charitablegifts was becoming more important. Our

roundtable findings not only reinforcedthe heightened focus on impact, but alsorevealed that accountability and per-formance measurement are increasinglyhot topics.

Companies specializing in charitablebenchmarking and reporting are begin-ning to dot Canada’s philanthropic land-scape. Corporations are joining thesebenchmarking firms to ensure their com-munity investment results achieve meas-urable value that can be accurately, cred-

“

“Charities that continue toapproach the corporate sectorthe same way they alwayshave will miss opportunities.Corporations have much morethan money to bring to thetable. They can leverage vari-ous resources, share expertise,services and skills. In otherwords, they’re looking formeaningful, long-term partnerships.

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ibly and confidently reported to share-holders, employees and customers. Thistrend is only expected to increase ascompanies continue striving to maximizethe value of their investments—to thecommunity as well as to their variousstakeholders. This ongoing attention toperformance measurement is not justbecause of the economy—it’s becausecorporations and their stakeholders wantand need to know how their investmentis being used. The bottom line: those thatcan clearly demonstrate how a contribu-tion achieves measurable outcomes willhave a distinct advantage in the corpo-rate giving marketplace.

Our participants resoundingly said “If youare not measuring your results, start now.Don’t worry about perfection and keep itsimple.” As Jim Collins, renowned authorof Good to Great, says in the Chronicle ofPhilanthropy article “Tips on Coping withthe Slow Recovery”(November 4, 2011),“Itdoesn’t really matter whether you quanti-fy your results. What matters is that yourigorously assemble viable evidence totrack your progress. It’s not about findingthe perfect indicator but settling upon aconsistent and intelligent method ofassessing your results and faithfully track-ing your trajectory.”

A common observation from our round-table participants was that many charita-ble organizations appear to struggle withthis. While the general consensus is thatmore checks and balances are needed,Malcolm Burrows, Head, PhilanthropicAdvisory Services, Scotiabank PrivateClient Group believes that “micromanag-ing is not the direction we want to take.I think we need to sit down with our charitable partners and be clear aboutwhat is important to us in terms of measurement. ”

The majority of our participants com-mented that they are all exploring how to

measure impact, determine their expec-tations and be sure those expectationsare reasonable. It was generally under-stood that smaller charities do not likelyhave the capacity to do extensive report-ing; in fact, all agreed that story tellingcontinues to be one of the most powerfulmetrics. It’s often more important forboth companies and their stakeholdersto hear about how a gift is making a dif-ference in people’s lives.

Our participants also concurred thatcharitable organizations that demon-strate a comprehensive understanding ofa company’s goals and objectives garnersenhanced credibility and trust betweenpartners – an invaluable benefit that can-not be measured in dollars or statistics.

5) A growing interest on issues…notjust organizations

Watch for more focus on supportingissues, rather than specific organizations.

With many charities performing similar orcomplementary services, there may begreater likelihood for support if there’s awillingness among these organizationsto partner to achieve common objec-tives. It’s a trend that involves bridgingopportunities, expertise and resources tocreate integrated services and solutions,wherever appropriate.

Bell Canada’s recently established Let’sTalk, a multi-year charitable programdedicated to the promotion and supportof mental health across Canada, is oneexample of this trend. Rather than sup-porting one or two particular organiza-tions in the area of mental health, Bell has rather chosen to establish its ownprogram as a way to associate itself withthis issue and achieve its communitygoals. Recently awarded the 2012 Free-man Philanthropic Services Award forOutstanding Corporation from AFP Inter-national as well as 2011 AFP GreaterToronto Chapter Philanthropy Award for

Challenges, change and constructive feedback: “Notablenuggets” from our corporate roundtable discussions

“”

We are generally partnering with fewerorganizations but at more significantlevels.”

“We want to be open to supportingevery size of charitable organization.If their priorities are aligned with ourgiving focus, no cause is too small.”

“Greater coordination and collabora-tion needed among NFPs to ensure collective impact on social issues. Toomany are working at cross purposes.”

“Many organizations still don’t dotheir homework to understand ourareas of focus or charitable giving protocol.”

“Constant mergers, acquisitions andsplitting of companies make decisiontimes longer.”

“NFPs are often unable to supportpromised deliverables. We welcomethe opportunity to bring value throughour own resources to gain greaterimpact – a win-win for both parties.”

“If a program didn’t work well, we wantto talk about how we can help toachieve better outcomes.”

“Charities often come to us after they‘have all the answers’. Why not involveus early on? We could be much moreengaged in supporting strategies andproposed plans.

Marnie A. SpearsPresident and CEO

Nicole NakoneshnyVice President and Editor,Philanthropic Trends Quarterly

Philanthropic Trends Quarterly© is published by KCI.Unauthorized reproduction or distribution without attributionis prohibited. Philanthropic Trends Quarterly© is intended toprovide an anecdotal ‘snapshot’ of philanthropy in Canada.We hope it will serve as a useful overview for observers of thecharitable and nonprofit scene.

Aussi disponible en français. Illustrations by Doug Ross.

214 KING STREET WEST, SUITE 508, TORONTO, ON M5H 3S6 t: 416.340.9710 f: 416.340.9755 e: toronto@kciphilanthropy.com www.forwardthinkingKCI.comT 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

Next issue:

Watch for our Spring 2012edition that will highlight thelatest trends in fundraising and philanthropy

Outstanding Corporation, this five-year$50 million initiative will support a widerange of programs to enhance aware-ness, understanding and treatment ofmental illness and promote access tocare and research across the country.

What this may mean for charities is thatthe need for collaboration between not-for-profits may become more common-place. Corporations, particularly thosewith large and sophisticated communityinvestment departments, often have aknowledge of the charitable work occur-ring in particular sectors and also possessthe know-how to bring different groupstogether. “More and more, we are look-ing to work with organizations to addresscomplex issues, such as literacy, poverty,and mental health, to name a few,” saysJan Belanger, Assistant Vice-President ofCommunity Affairs, for Great-West Life,London Life and Canada Life. “That means we are seeking opportunities tohelp optimize the power of people,organizations and collective resources byfacilitating partnerships, rather thanfunding projects in isolation.” She notesthat in her organization, she and herteam are particularly sensitive to fundingsolutions where new approaches andknowledge will be shared and adaptedbeyond the organizations involved,thereby enabling greater impact.

Advancing the culture of corporategiving in Canada

Not only did our roundtables highlightsome of the major trends in corporate

community relations, they also illustratedthat this is an exciting time for findingways to work together. Going beyondthe traditional financial support, charitiesare looking for the opportunity to partnerwith organizations for mutual benefit.

Tanya Oliva, Manager, Corporate Leader-ship, Coast Capital Savings, Surrey, BritishColumbia, summed it up best. “There arerising public expectations for business toplay its role in addressing social issuessuch as poverty, homelessness and environmental impact. I believe thatCanadian businesses want to step up tothe podium alongside the charitable sec-tor and government as society’s chal-lenges become more complex and inter-connected. As corporations undertakebroader roles in addressing community

issues, the boundaries between socialand profit motives can become blurred.Making ‘profit with purpose’ is anincreasing expectation.”

This desire to work together makes ourcorporate partners incredibly importantallies for both advancing philanthropy aswell as the social agenda in this country.