Working Together Breakfast Series
November 22, 2006

Good Morning everyone.

Thank you for this opportunity to express some thoughts this morning on a subject about which I care very much… creating a strong philanthropic climate here and Winnipeg, our home.

And thank you Gregg/Rick, for your kind introductions, to me and this topic.

One is never sure they are qualified to offer advice on a particular topic… particularly on philanthropy, and particularly to a group who have made a career of it. A bit intimidating, to say the least.

I know that in my case, in thinking about and preparing what I was going to say today, I concluded that I still have a lot of work to do in my own area of philanthropy giving, not to be qualified to speak maybe, but in fact to be truly making a mark, to be leaving a legacy, on those areas I touch or have influence over, the community in which I live, the businesses in which I work, and my family. Really, what I am going to talk about today, is not being philanthropic, but in fact creating an environment over a long period of time that creates a culture of philanthropy, so that in every aspect of one's life, philanthropy is not forced, but is a natural part of what we do. Let me explain.

What is philanthropy?
What does philanthropy mean? Maybe we each see if differently?
The Oxford dictionary defines philanthropy "the desire to help others, especially through donation of money to good causes." The emphasis here appears to be on money. I believe it is much more than that, if we truly want a philanthropic climate here in our city.

Now, the Winnipeg Foundation until recently, has had most donations made at death. That is now changing, and if we want to create or enhance the philanthropic climate in Winnipeg, not just through the Winnipeg Foundation but through all charities, to increase the quality of life in our community, all of us, and especially you as advisors, must challenge the thought process of your clients, to get them, their families, their children and their companies all into a different mindset. There is a clear need to create personal circumstances that allow resources for essential need, material well being and philanthropy.

And when is philanthropy achieved? Surely not just on death. I believe it can be now, during ones working life, or during ones retirement, or after our death, or all three. Maybe a goal for all of us, and all of your clients would be to try and create a culture of philanthropy at all three stages, a culture that promotes giving throughout ones life.

And how is philanthropy achieved?
Not just with money gifts, now or on death. I believe it is with new ideas or direction that significantly change a community and with human effort. Philanthropy is not an event. It is something bigger than that. It comes as a result of a lifestyle; a choice, requiring involvement over a number of years.

What is only a small part of philanthropy, is a cash bequest to a specified organization on ones death. At best, that is a tax deferral or a money grab from the kids. It is simply not enough to write a cheque and walk away. A more complete commitment is needed. I would submit that philanthropy requires a contribution of time, of learning, of ideas, of experience and of advocacy over a number of years. It requires personal engagement and commitment. And most of your clients require your stimulation to get that process started, to set a course, to find out, by asking, what they really wish to accomplish for the community, and develop a plan to get them involved. Over time, a gift of money will follow.

Now Gregg Hanson eloquently outlined a number of involvements I have had over the years, from business, to not-for-profit organizations I have been involved with, and to two foundations I have been a director of. And while these are important, and may seem impressive, the wisdom I have personally gained, the ideas I have on giving, are not entirely from being involved, but are derived from how I got there, how I got involved.

In thinking about some of the messages I wanted to leave with you this morning, I concluded it is not what I am involved in that is key, but how I became involved which is important, and how and what I learned along the way. It is important because it has influenced the way I conduct my own affairs, how I think and act as it relates to charitable giving. And, I believe it is important to you, and possibly to your clients, in helping them to shape their feeling on giving, their giving now while they are alive, their active volunteer involvement in the community which can bring about change, their involving others, especially their children, and finally, the creating of a lasting legacy by way of a capitalized gift. Each one of those efforts can create philanthropy, and more importantly, can create a culture of philanthropy.

So, what has shaped my thinking on giving over the years? Why was it that unlike my brother and sisters, who all sat around the same dining room table and heard the same influences, that I had become president of a national not for profit organization and they were yet to maybe join their first board or possibly donate their first dollar.

My first involvement did not come as a result of influence from my parents, business or larger family… even though I had the notion that the Richardson business and family had been generous to our community over the years. And while we were all well accustomed to my Grandmother, Muriel Sprague Richardson , saying at Sunday dinner, "To those whom much is given, much is expected…" there was never any guidance as to how to live up to that. We all know that those who are more fortunate should "put something back into the community" but that phrase does not come with a set of instructions on how to go about it.

My first involvement, which led to my being involved in a philanthropic act, arose because a wonderful lady, Molly Ives, the wife of a great Winnipeg squash professional, Charlie Ives, asked me, when I was just 22, right after finishing University, to do some research work for the Canadian Paraplegic Association, an organization I knew nothing about. In fact, I didn't even know anyone in a wheelchair. I spent evenings and a few Saturday's phoning CPA members, and asking them a number of questions about their handicaps, wheelchair access, the magazine… and I have been involved with CPA ever since… now close to 35 years.

Along the way, I realized that government was trying to claw back surpluses of volunteer organizations and I set about with others to establish the Manitoba Paraplegia Foundation to protect the members interests. Starting with capital of just under $200,000, that foundation has grown over the years to where it now contributes about $150,000 each year to paraplegics in Manitoba and funds research which benefits all handicapped people, everywhere.

Did my involvement make a difference? Yes. Did it create a philanthropic act? Yes. Did it involve my or my family's money? No. The change, occurred because someone asked someone else, in this case me, to become involved.

There are three messages here;

• the first is to ask others to get involved, get your clients involved… it will not only change their lives but it can make a difference to the community too.
• Secondly, philanthropy is not always about giving money and third;
• when you see a need for change, encourage others to work with you to make it happen. Change the culture… make a difference.

My next involvement with the community was of my own doing… I wanted to "try and put something back into the community". I was 24 and I applied to become a big brother through the Big Brother Association… become a big brother to a boy from a father absent home. It was a wonderful experience for me and I believe for my little brother Geoff too.

Did I change his life for the better…? I hope so. And did it change my life…? It certainly did. Later, I would become a board member with the Winnipeg association and eventually not only president locally but president of Big Brothers of Canada as well. Am I still involved today? Yes. While no longer a volunteer, I contribute financially to special projects that work to change and improve the Big Brother recruitment success.

But, more importantly, from this experience I leaned one of the lessons that has shaped my philanthropy throughout my life, the importance of helping youth, especially those that may go astray. But that's a story for later in this talk.

So another message, get involved or get your clients involved, in something they want or like. Make a contribution and it will make a change to the community… it will leave a legacy. Like Terry Fox… he set out to do something simple, raise money, … but his act created a philanthropic culture that impacts and involves thousands and thousands of Canadians, and people around the world, volunteering to raise money, each and every year…. With the hopes of reducing the effects of cancer.

A fifth message about legacy, is reaching out to youth, reaching down to grab someone younger, reaching down to the next generation. Jack McKeag, Manitoba's former Lieutenant Governor phoned me one day and asked if I would consider becoming involved in a Ducks Unlimited Sponsors Dinner. While he knew I was an avid duck hunter, he didn't know that I was a strong closet conservationist as well. As a result of that phone call, I have now been involved with DU for 25 years. Jack is 25 years my senior and rather than asking one his friends or colleagues, he took a chance reaching down to someone younger. He reached down and by so doing created a life long volunteer.

Now my final message flows out of all of this, and is, I believe the key to starting a philanthropic culture… it is about passion. Without discovering a persons passion there will never be a significant commitment of ones time, ones effort, or ones money. Don't ask an environmentalist to give money to the Opera. Don't try and convince someone to give to a hospital if they don't know how a hospital works or have never had a loved one who needed care. Imagine trying to convince the likes of Paul Albrechtson to contribute millions of dollars to the Reh-Fit Centre if his life had not been saved from a heart attack, while exercising there. Part of your job, in enhancing a philanthropic climate, it to truly search out in your clients what it is they are passionate about.

So why have I told you these three or four stories? Because they form my basis for charitable giving and influence the governance I now lend to the boards I sit on. To many of you, as advisors or planners, I believe they can serve as areas or themes to focus on when dealing with your clients.

I believe that to leave an important legacy, it is more, way more, than just giving money. Sure, money is a good start, but if you are able to fulfill ones passion, passion for what you are truly committed to there will surely be a better and larger legacy for the community. The process may be slow, but the results in the long term will be greater and more satisfactory to all.

So what are the messages?

• Start young, encourage others to start young
• Involve children
• Learn the fundamentals, what makes an organization tick
• Build a passion… the money will follow.

Now, I want to switch gears a bit and talk a little about the three areas of charitable giving I am currently involved with and by so doing, point out their differences, particularly as they relate to legacy. The three are:

• The Richardson Foundation Inc.
• The Siobhan Richardson Foundation
• And Personal giving

The Century Fund, now the Richardson Foundation, was established in 1957, when our family's business turned 100 years old. Now while our family had a long history of giving, both personally and corporately, it was formalized with the establishment of the Century Fund, which in that year, 1957, made a significant contribution of books to libraries and high schools, all across Canada.

Four points about the Foundation's activities may be of interest to you. The foundation has never been capitalized. It has had a changing vision/mission over the years, and thirdly, it seeks out involvement from employees and family members and puts further support behind their efforts. Finally, it involves the next generation.

Our family's committment to the community, and the legacy of the RFI, lies not in the capitalizing of the Foundation with dollars, but the commitment to the community to keep our business here, not sell or move it, and work towards continuous and growing funding for the foundation each and every year. And where does the Foundation get its funds? Our family requires each of our operating divisions or companies to contribute a percentage of pre-tax profit to the Foundation each year, like an Imagine Company does. So our legacy is not capital, but a commitment to stay in business and support the communities in which we do business with a percentage of pre-tax profits each year. As we grow, the benefit to the community grows as well. If we sold our business, as many of your clients may have done or be considering, a growing legacy would end as may ongoing support to the community. Make sure your clients clearly understand this. A sold business means the wealth may migrate and follow the next generation. A loss to our community.

The Richardson Foundation also tries to go one step further, by encouraging the volunteer involvement of employees and family members. When they contribute their time, especially at the volunteer leadership level, and they contribute their personal resources, the Foundation will often provide additional financial support…supporting a culture of philanthropy.

Finally, we have a sixth generation of family members growing up… some now in their mid-twenties. Each year, the Foundation publishes an annual report for all shareholders and employees. Also each year, at the company's annual general meeting, there is a thorough review of the operations of the foundation so that the sixth generation can become knowledgeable and connected for the future. I would encourage each of you to persuade your clients to involve their children early on in all aspects of their charitable involvement, be it giving of time or money. It will create a lifetime culture of giving back to the community.

So maybe in a slightly different way, we have a business creating a legacy for our community, by committing to stay in the community, by growing its funding, by supporting the good works of employees and shareholders, and through information and discussion instilling values in future generations of family shareholders. That's one way to do it.

When my daughter Siobhan died, my immediate family established the Siobhan Richardson Foundation in her name, so that it, the foundation, might be able to contribute and make an impact on the community, because she could not. This foundation is capitalized, has a clear vision and mission, and has as trustees, Siobhan's parents and all of her siblings. They are hopefully learning at an early age the joys of, and the importance of, making a difference to the community. Incubators and ventilators for the neo-natal centre at the St. Boniface Hospital, a field station for environmental education for youth at the Fort Whyte Nature Centre, or after school food programs to attract inner city youth to recreational programs. As well, our children are learning the rigours of finance and investing, the difficulty of saying "no" nicely, when the ask is outside the mission, or this year's money is spent. They are learning that while there are no bad charities, giving money away properly is hard work… it requires due diligence by them as trustees, before, during and long after the gift has been made. My point here is not about the magnitude of the foundation or its gifts… it is about creating values in children. Hopefully this involvement will help mould them into being able to leave their own mark on the community, through a legacy, be it of money, of their involvement, of change, or by involving others.

Finally, I would like to speak to my personal role or involvement. What stage am I at? Fortunately, I am not at the last stage of philanthropic giving where my will has been read.

Every year, I am asked to support hundreds of not-for-profits… and I do. A few dollars here and there, an "in memoriam" for a friend or parent who has passed away, or an arm twist from an associate or friend to support the annual or capital campaign they are working on. But, in my view, none of that giving, while it is important in a small way to the community, really does not get serious attention from me.

I believe I am in an in-between stage where I am still trying to bring about change… change in areas where I have a passion…conservation, youth, sports… areas I understand and am passionate about. A few personal examples may be useful.

The first is with DUC where as a result of my involvement with their research, and my past role as Chairman of the IWWR, the International Wetlands and Waterfowl Research Institute, and my passion for the environment, I spearheaded some initial research funding into the unexplained duck population decline of one type of duck found on the Canadian Prairies… called the Pintail. This initial funding attracted much more significant investment by others and these studies have led researchers, I believe, to determine the cause of the Pintail population decline. And no, the cause is not duck hunters. DUC is now implementing conservation programs with prairie Canada farmers and landowners to try and reverse this trend. Why did I make this investment? Because I and others, clearly understood the need and had a passion for how the money was going to be spent. Without my knowledge and my passion, I doubt this investment would be made.

We spoke earlier about my involvement through Big Brothers with youth, and my learning the importance of steering youth on a correct path in life… well this same understanding was shared by my wife's grandfather. As a postman, Ralph Watkins gave a significant portion of his annual income to helping underprivileged kids at the Archwood Community Centre… coaching, buying hockey equipment, paying enrolment fees and travel costs to out of town tournaments. Mr. Watkins died of a heart attack walking home from work in Winnipeg's blizzard of 1966, long before his good works could be completed. But his wife Mary wanted his legacy to continue. As a widower and a pensioner, and now in her 80's, she donated a significant portion of her savings to the Winnipeg Foundation, creating a legacy fund. Because of my involvement with Big Brothers and my passion for youth, my wife Leney & I had no difficulty understanding the need and we topped up this legacy fund so that the Archwood Community Club now has the Ralph & Mary Watkins Community Youth Fund which will forever contribute funds to the most needy boys and girls for their equipment and expenses. A lasting legacy that will make a difference, in part made possible by capital, but most importantly because of several people's understanding and passion for part of our community, youth. And done, to remember the good works of an individual who made a difference in the past. Maybe your clients want to help remember the good works of someone close to them.

A third example where I believe a legacy has been left, is the result of my and my father's lifelong involvement with the sport of sailing. In my youth, I was lucky enough to get on the Canadian Olympic Support Team and attend a Games in a support role. Later, I saw the importance of instruction and coaching through my role as President of the Manitoba Sailing Association and finally as Chair of Sport for the Pan Am Games, I learned that legacy could be left through facilities and equipment which, at the Games, we worked hard to do.

So when my collective family wanted to do something to recognize my father's lifelong love of sailing, and especially his history of volunteer involvement with the RLWYC, the building of a sailing centre where instruction to youth could be given, was a natural to all of us. But, it turned out to be much more. .. a love of sailing, and a knowledge of sport, inspired the sailing centre, but, it also inspired the other members of the Club to completely rejuvenate the club and all of the club's facilities… and today the RLWYC has first class teaching facilities with boats for sailing instruction and the members have a new facility as well, which ought to serve all youth for the next 100 years. A legacy created by each and every member who made a contribution… a group legacy.

So, three very different investments in the community but all with one common thread… knowledge, understanding and a passion for the end result.

So why do people give? Why has our family done the things they have done? Why do people become philanthropic, why do they leave a legacy?

It is said that "people only give to people, not to organizations". And while this is true, for most giving, large gifts or the establishment of foundations, or legacies, are created because someone is passionate about a need in a particular part of our community… their church, their hospital, their kids group. And how do they become passionate? It is not because they are asked to give, it is because

• They have been personally involved for a long time,
• They truly understand what makes an organization work… what it's core needs are;
• They are passionate about its works;
• and they want to make a difference for the future.

I am told about 7% of Canadians leave a gift in their will.
Why wait until then?

My sister, Carolyn Hursh, sums it up neatly into three letters. L.E.R., the three stages of our giving life. Learning, Earning, and Returning. A challenge to you to increase philanthropy and increase giving is to compress those three stages… involve people, especially youth, find those that have a passion, help them discover their passion, and work with them, and encourage giving long before the Will is read. Much more will flow to the community, than just a gift in a Will.

Personal and corporate philanthropy and volunteer services provide the foundations for successful communities, successful business conditions and our highly treasured civil society.

Our challenge is how to increase that philanthropy… increase the output of human effort, increase the amount of positive change, and increase the amount of funds directed at areas of our city and Province that need philanthropic support.

Sure, some people give because they want current or future name recognition for themselves or their family, or they want to balance between a gift, tax planning and inheritance for their children. But I believe significant philanthropic acts are made because the giver has a true passion for the work of an organization, a passion for an improvement to the life and well being of our city, province or country, has a built in culture of philanthropy. If those passions can be developed over time, uncovered and discussed openly, I believe a significantly larger number of legacy gifts would be made, now and finally when the Will is read.

The challenge to each of us, especially you, is to reach to those people who have passion, involve them, get them to be more entrepreneurial in their approach to philanthropy, for they will find a way to create a legacy, and together we can collectively elevate our commitment to the city and Province and by so doing show the way to others. Whether it be through the Winnipeg Foundation, the United Way, or the charity of choice, all involvement of personal effort or gift of monies, will make a difference.

It's up to all of us. Good Luck.

Thank you very much for this opportunity.