National Summit: Day One Summary for Financing Track

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Summary of the financing track for the National Summit for the Charitable and Nonprofit Sector.

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National Summit: Day One Summary for Financing Track

  1. 1. <ul><li>TRACK TWO SUMMARY: SUSTAINABLE & DIVERSE FINANCING </li></ul><ul><li>November 29, 2011 </li></ul>
  2. 2. <ul><li>Need multi-year funding (three plus years) </li></ul><ul><li>No core funding </li></ul><ul><li>Not much funding for innovation </li></ul><ul><li>Approval process too slow – money comes in late </li></ul><ul><li>Risk mitigation – standards vary & paying at the end – shift risk taking to non-profit sector </li></ul><ul><li>Competitive – pits organizations against each other </li></ul><ul><li>Excessive reporting requirement </li></ul>Issues: Grants & Contributions
  3. 3. <ul><li>Clauses that prevent advocacy </li></ul><ul><li>Risk that you would drift from your mandate in order to “fit” the program </li></ul><ul><li>Better understanding of in-kind contribution, expectations and purpose </li></ul><ul><li>A lack of internal communication between ministries & different levels of government is a hindrance to determining the most effective distribution of funds </li></ul><ul><li>Rules constantly changing </li></ul><ul><li>Need more information on available grants </li></ul>Issues: Grants & Contributions
  4. 4. Outcomes & Actions: Grants & Contributions <ul><li>DESIRED OUTCOMES </li></ul><ul><li>Multi-year funding based on policy outcomes, including all costs with standard applications and reviews (34%) </li></ul><ul><li>Standardized reporting system on how money is spent (20%) </li></ul><ul><li>On-going dialogue with governments on common issues and new models of cooperation (16%) </li></ul><ul><li>ACTIONS </li></ul><ul><li>Presentation to the Treasury Board by Imagine Canada and ability to articulate a process to work towards </li></ul><ul><li>Multi-Year Funding Agreements: </li></ul><ul><ul><li>Test with a government that is interested (e.g. Calgary mayor) in this model </li></ul></ul><ul><ul><li>Use the results as an evidence based example of how this with other governments and other partners </li></ul></ul><ul><ul><li>Imagine to start dialogue with feds on this idea </li></ul></ul><ul><li>Other actions? </li></ul>
  5. 5. <ul><li>Barriers to earned income </li></ul><ul><ul><li>Risks </li></ul></ul><ul><ul><li>Adverse regulatory environment </li></ul></ul><ul><ul><li>Donor objections </li></ul></ul><ul><ul><li>Government structure not conducive to entrepreneurship </li></ul></ul><ul><ul><li>Lack of Venture Capital </li></ul></ul><ul><li>Need access to resources to develop sensible and sustainable strategy. Including regulatory environment, monitoring risk, & governance </li></ul><ul><li>Earned income focus can distract from mission (i.e. “mission drift”) </li></ul><ul><li>The more earned income you get, the more infrastructure you need – often different infrastructure from doing your mission work </li></ul><ul><li>The sector lacks an entrepreneurial spirit and access to venture capital </li></ul>Issues: Earned Income
  6. 6. Outcomes & Actions: Earned Income <ul><li>DESIRED OUTCOMES </li></ul><ul><li>Better CRA regulations that support social enterprise/social finance (31%) </li></ul><ul><li>More contact between sectors on social finance, eg, non-profits, business, financial institutions, government (22%) </li></ul><ul><li>Better board knowledge of sector financing including new social finance possibilities and risks (15%) </li></ul><ul><li>ACTIONS </li></ul><ul><li>Advocate with CRA and the government about the importance and benefit of social finance & social enterprise </li></ul><ul><li>Work with Federal bureaucracy to ensure policies will actually allow/encourage social finance & social enterprise activities </li></ul><ul><li>Sharing / scaling successful innovative funding initiatives </li></ul><ul><li>Develop a primer and/or low-cost consultation or website for organizations that are contemplating social enterprise </li></ul><ul><li>Work with government and foundation partners to create capacity building grants to improve earned income activities </li></ul><ul><li>Design training materials for Boards </li></ul><ul><li>CRA needs to spend more energy on educating the sector about the rule and this increased vigilance. </li></ul>
  7. 7. <ul><li>Need consistent definitions of “fundraising” vs. administrative costs </li></ul><ul><li>Can Facebook, the new community, provide the modern day collection plate </li></ul><ul><li>No recognition of the need for operating funding </li></ul><ul><li>Economic downturn and stock exchange vagaries have negative impact on giving </li></ul><ul><li>Impact of media stories: resulting in decreased trust in charities </li></ul><ul><li>Competition from public sector institutions </li></ul><ul><li>Long & onerous process to nurture relationships that lead to a donation </li></ul><ul><li>Donors are giving only to the specific outcome that they want: they are not giving to good of mankind but to the good of &quot;my kind” </li></ul>Issues: Philanthropy
  8. 8. <ul><li>Need training on pathways to philanthropy </li></ul><ul><li>Need better tax incentives </li></ul><ul><li>Lot of untapped potential money </li></ul><ul><li>How to get rich Canadians? </li></ul><ul><li>How to harness New Canadians contributions to mainstream charities? </li></ul><ul><li>There needs to be more public education on importance of and need for qualified professional staff </li></ul><ul><li>There are a large no.’s of charities operating in rural settings: hard to attract donors and get voices heard </li></ul>Issues: Philanthropy
  9. 9. Outcomes & Actions: Philanthropy <ul><li>DESIRED OUTCOMES </li></ul><ul><li>Better perception by the public of charities and non-profits and of their positive impacts on society(32%) </li></ul><ul><li>Stretch tax credit and capital gains exemption for gifts of real estate in budget (22%) </li></ul><ul><li>Foundations fund operating expenses (18%) </li></ul><ul><li>ACTIONS </li></ul><ul><li>Lobby Finance Committee, MPs, members of Cabinet </li></ul><ul><li>Collective of charities should get together to build a campaign (awareness campaign with advertising, earned media, social media) to promote giving (i.e. Participaction, Acts of Kindness) </li></ul><ul><li>Create alternative ranking systems to Charity Intelligence </li></ul><ul><li>Develop shared metrics for charities, sensitive to size, maturity & place </li></ul><ul><li>Create an Imagine communication committee </li></ul><ul><li>Identify the Canadian Bill Gates who will champion other similarly wealthy folks who will do real 'philanthropy' </li></ul>
  10. 10. Issues: Financial Literacy <ul><li>Limited understanding among old and new board members of agency finances </li></ul><ul><li>Size of organization has much impact on internal capacity for: </li></ul><ul><ul><li>Earned income </li></ul></ul><ul><ul><li>Understanding CRA </li></ul></ul><ul><ul><li>Understanding financials </li></ul></ul><ul><ul><li>Reporting & accountability </li></ul></ul><ul><li>Others that need increased financial literacy </li></ul><ul><ul><li>Donors (i.e, how much it actually costs to do our business) </li></ul></ul><ul><ul><li>Program managers in government who work with non-profits </li></ul></ul>
  11. 11. Outcomes & Actions: Financial Literacy <ul><li>DESIRED OUTCOMES </li></ul><ul><li>More resources for increased financial literacy for non-profits, boards, auditors and civil servants who deal with non-profits (38%) </li></ul><ul><li>More learning about non-profit sector in business, schools, CA courses, auditor training, civil service, law school & banking(28%) </li></ul><ul><li>Imagine Canada produce financial literacy resources especially for non-profit Boards (24%) </li></ul><ul><li>ACTIONS </li></ul><ul><li>Create a national inventory of organizations available to provide financial literacy resources and assistance </li></ul><ul><li>Produce a or series of YouTube tutorial(s) and/or webinar(s) </li></ul><ul><li>Engage financial institutions to provide internships and work experience in the sector to identify learning into financial management in the sector. </li></ul><ul><li>Sector-led consultation with CRA about barriers to providing clear guidelines and written responses. </li></ul><ul><li>Explore offering continuing education credits or some other recognition program for service or learning opportunities. </li></ul><ul><li>Look at Australian example of a &quot;translation&quot; manual that defines and clarifies terminology </li></ul>

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