Charity: Heed the holiday spirit or give year-round?

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Feelings of goodwill and giving around the holiday season can prompt many to open their wallets, sometimes on impulse.

High-net-worth individuals and families often have a more strategic, long-term approach to philanthropy, which can dovetail with charities’ needs for long-term funding. But there can also be benefits to generous one-time donations.

As we approach the heart of the festive season, Denise Castonguay of Canada Gives, which helps philanthropists build high-impact foundations, and some notable members of family foundations, share their ideas of what a lifetime of philanthropy can look like.

Denise Castonguay, Founder and CEO, Canada Gives

How does Canada Gives works with families or individuals to build high-impact philanthropic foundations?

“Well-established foundations can operate within the not-for-profit sector quite differently than individual donors, who often make their charitable gifts on an ad hoc basis. Once a donor has a charitable foundation funded, they are able to be much more thoughtful and can take the time to build a plan or strategy for their annual giving. Don’t forget, foundations have large minimum annual disbursement obligations, so the best way to meet that requirement without having to re-visit it every year, is to have a strategic giving plan in place.

Canada Gives provides a concierge service … to our DAF [Donor Advised Funds] donors to help them become active foundation-style funders.

Ultimately, the goal is to develop a list of core charities that they can support with multi-year commitments based on criteria that matter to them, asking these key charities to provide feedback so they know how to measure success and to know that their charitable dollars are working”

What are the benefits of one-time, larger donations, both for the donors and the recipients?

“One of the primary benefits to working with a core group of charities over a longer period of time is that stronger relationships develop and donors understand how and where they can make the most impact. While we believe in year-over-year funding support that charities can count on, plan on, and budget on … there are certainly situations or opportunities that warrant a one-time larger gift. It may be in a time of crisis, or when a new piece of equipment, or a piece of land or other capital expenditures, are necessary. An out-of-the-ordinary large gift can make an immediate impact in these and many other situations.”

Even for those who prefer one-time, larger donations (possibly spurred by the holiday spirit), how can philanthropists still build wealth-stewardships that last?

“One of the most rewarding moments in philanthropy is when it becomes multigenerational. Whether it is to broaden participation in the decision to make a large one-time gift, or in annual allocations to key charities, we assist our DAF donors to include their children and even grandchildren in the joy of giving. That can not only last beyond the holiday season but create a long legacy of charitable giving within the family. We are always so impressed when a new DAF donor comes to us and says, ‘I give because we always give; my parents instilled that habit in me.’”

Sylvie Trottier, Board member, Trottier Family Foundation

What is the mission of your family foundation?

“We are a private family foundation, and our mission is to support organizations that work towards the advancement of scientific inquiry, the promotion of education, fostering better health, protecting the environment and mitigating climate change. We look to catalyze and scale transformative innovations, create cross-sector collaborations, and take risks that others cannot.”

Why is philanthropy an important part of the Trottier family’s philosophy and legacy?

“There are many interconnected, complex, and urgent crises facing our world – from climate change to inequitable health and education outcomes. These are issues that affect everyone – because we are all better off when our communities are resilient, healthy, knowledgeable, equitable and sustainable. If this wasn’t clear before, then the pandemic has brought this to light like never before. Our family foundation has the enormous privilege to be able to support organizations that are doing incredible work to address these challenges, and if we can play even a small part in turning the tide on some of these issues, then we have the responsibility to do so.”

Would you say that philanthropy is not simply for the holiday season?

“I would go even further and say that it is essential that we move beyond charity and instead lean into transformation and justice. Foundations and individual donors should move towards practices that are gaining increasing support in the philanthropic community, like multi-year and unrestricted grants, taking collaborative and participatory approaches, targeting advocacy measures and supporting groups that target the root causes of issues rather than just the symptoms.

We have the unique position of being able to take risks that others cannot – and so, even if these practices can feel more uncertain, there is a lot more risk to keeping the status quo, when the status quo leads to worsening crises like climate change. If we want to be serious about enacting change, we also need to be serious about changing how we practise philanthropy.”

Juliana Sprott, Chief Giving Officer, The Sprott Foundation

What is The Sprott Foundation’s approach to a long-term commitment to philanthropy?

“As the Chief Giving Officer of The Sprott Foundation, I am always looking for innovative programs for our family to fund. I look for food and shelter charities with fresh thinking and new approaches to ending homelessness and hunger, and I seek like-minded risk-takers who are testing theories and taking action.

The Sprott Foundation’s mission is to alleviate the effects of homelessness and hunger by funding fresh and healthy food programs for people experiencing food and housing insecurity. It is important to our family that the people served by the charities we support are treated with absolute dignity and are provided access to a variety of high-quality, nutritious foods. We don’t just want to fund food; we want to fund nutrient dense, wholesome food because that is an integral part of being a happy, healthy human who is able to meet their potential.

Our family has been extremely fortunate and know that we are in the top 1 per cent of wealth in this country. With that comes a desire to do what we can to alleviate the effects of poverty, and we believe strongly that a person can only truly meet their potential when the fundamentals of life – food and shelter – are consistently available, accessible, and healthy. Throughout the year we work to ensure the support we’re providing to food and shelter charities is unwavering and flexible. We trust our grantees to know what is best for the people they serve, and we know that they work very hard to meet their clients’ needs – all year round.

We fund an area of need that is currently making headlines. An Ipsos poll commissioned by CanadaHelps (on Nov. 15, 2022) CHK found that 22 per cent more people than in January 2021 expect to access charitable services (food, shelter, clothing) within the next six months, while 20 per cent of people say they will need to reduce their charitable donations in the face of an affordability crunch. These are not surprising numbers for me because I hear from our grantees daily how strained they are. That is why it is important for The Sprott Foundation to give generously, over the long-term, and that we are responsive to changes.

I do hope that people will consider the perennial need of the food and housing charitable sector because people struggle throughout the year with accessing basic necessities. I think it is incumbent on us all to give as generously as we can to assist our fellow humans to meet their potential. Beyond funds, everyone has something to give – whether it is your time or your expertise, charities are also in need of volunteers. I encourage people to make the effort, investigate where help is needed in their neighbourhood, and make a difference in their community for the people who need it most. The joy of giving is perennial, and the difference you can make in someone’s life lasts forever.”

Michael Audain, chairman of privately held Polygon Homes Ltd. and chairman of the Audain Foundation

What are your thoughts about holiday-inspired giving, versus year-round philanthropy?

“When young, I suppose that I did associate philanthropy with the holiday season. Indeed, from the age of 6, I was encouraged to send £1 sterling from my Christmas pocket money to Dr. Bernardo’s Homes, a charity for orphans. But after my childhood I came to realize that there are needs in society 365 days of the year so it became my habit to respond to grant requests throughout the year, providing my pocketbook could afford it.

There is nothing wrong with thinking about others in the fading days of the year, especially if you need that charitable tax receipt, but shouldn’t we try to help others throughout the calendar year?

Establishing a family foundation, I believe somewhat helps to take the spotlight off any single individual, provides a broader input into the foundation’s activities, and, fortunately for many, assures continuity beyond the lifespan of the founder. My opinion is that, no matter how modest the endowment, this is one of the most satisfying activities a family can engage in together.”

Responses have been lightly edited for clarity and length.

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