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Good Causes – CEO’s Commentary
Richard L. Frost,
Chief Executive Officer
January 2009
It’s customary at the start of a new year to reflect on the past 12 months and make resolutions about the future. Given our organization’s reliance on investment income, it is not hard to anticipate that my reflections on 2008 are overwhelmingly influenced by the market meltdown that occurred since the summer. Fortunately, the Foundation has a sound policy base for navigating these stormy waters. As part of our public process in releasing our 2008 Annual Report, we are including a series of open meetings so that anyone can ask questions about our intended direction. I should also mention that our website includes a recent interview I did with CBC radio which again speaks to this issue.
The important point is that despite the downturn in the economy, the Foundation will continue to work closely with donors, agencies and other funders to proactively address changing community needs. We are here For Good. Forever. This theme of “working together” underlies everything the Foundation does. We use this phrase to introduce our TV spots, it is the name of our magazine and it commonly appears in our literature. So, on reflection, I will set aside the current economic conditions and make just a few comments about “working together.”
Of course, those familiar with community foundations understand that, unlike a private or corporate foundation, we pool gifts from across the community and across the years. People from all walks of life make donations to a community foundation and by definition, those gifts work together for greater impact. We are Canada’s oldest community foundation. Our 2,000 endowment funds have received countless gifts from generous Winnipeggers who certainly understand what “working together” is all about. To each and every one, we say a sincere “thank you.”
When it comes to impact, our grants reached 650 different charitable organizations in the past year. While we are proud of these partnerships, we know that charitable organizations have volunteer Boards and dedicated staff who devote incredible energy and passion to advancing their various missions. In comparison to their effort, our investment is relatively modest – a supportive role at best. Working together, we are happy to play our part as charities large and small make a profound difference in our collective quality of life.
And finally, 2008 also saw our five- year Centennial Neighbourhood Project come to a very successful conclusion. Our grants into this corner of our inner-city amounted to $3 million but other funders invested at least $10 million additional dollars. Working together is about collaboration and we are grateful for the many partnerships we enjoy – not just in Centennial but in everything we do.
Although 2009 will undoubtedly see us gaining more understanding of the implications of the economic turmoil of 2008 and adapting to the changes it will bring, the Foundation will be consistent in our community role: working together to advance good causes.
To listen to my recent interview with CBC radio, click here.
Care to comment on this blog? Send your remarks to comments@wpgfdn.org
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December 2008
Last weekend, I was clearing old magazines out of my office at home. You can guess what happened. As I glanced at many of the title pages, I was immediately drawn to some article or other that I had meant to read but never quite got to. Eventually, the clean up came to an abrupt halt as my eyes fell on the January issue of The Walrus — “The Cities Issue.” What did it say about Winnipeg?
The issue featured a film review of Guy Maddin’s My Winnipeg, in which the commentator writes: “My Winnipeg is a love letter to an unloved city.” I can certainly understand how someone from elsewhere might see our city as “unloved.” Just drive through the downtown with your eyes open and the signs of neglect are pretty obvious. But for those of us who live and work in this city, it is also easy to understand Maddin’s attachment to his hometown. It’s our home too.
Whenever there is a chance, I like to tell people about the generosity of Winnipeggers. When you really care about your community, you invest in making it better. Nowhere in Canada do people voluntarily invest more in their communities than in this province. By far, Manitoba’s level of charitable giving leads the nation!
Every day, those of us who have the privilege of working at The Winnipeg Foundation see the passionate leadership that drives Winnipeg’s charitable agencies. There are many needs in our city and, thankfully, there are dedicated people who devote themselves tirelessly to building a better quality of life. From our perspective, Winnipeg is anything but “an unloved city.”
Earlier this fall, the Alberta-based Muttart Foundation released Talking About Charities 2008, a national survey that gauges current public opinion on charities and charitable issues. The survey showed that 81% of Manitobans have trust in charitable organizations – the highest percentage in the country. Manitoba also had the highest percentage of respondents (87%) who agreed that charities generally improve our quality of life.
During the holiday season, it is very common to give a little something to those that matter in our lives. The charities of Winnipeg all represent good causes. Whatever your favourite charity may be, it would certainly be very grateful for your gift at this special time of year. On behalf of The Winnipeg Foundation, I thank everyone who has made a gift to a local charity this year, showing your love for Our Winnipeg. Care to comment on this blog? Send your remarks to comments@wpgfdn.orgWant to receive Rick’s monthly blog via email? Sign up here.
November 2008
During the last week of October, I was part of a Manitoba delegation to Minneapolis. Our hotel was near the university and, during the break before dinner, I was walking along Washington Avenue in the midst of countless students. Somewhat hidden from the street, I came upon a beautiful park. Students were sitting on the surrounding cement walls, on benches and even on the grass enjoying unseasonably warm weather. Many were reading books. Oh….to be part of that wonderful life again!
My first two degrees are from McMaster—both in History—and I can tell you, reading lists were long. No one could possibly read everything expected. Looking across that park, I could easily relate to someone working through a reading assignment while at the same time, enjoying a fabulous October afternoon.
But I don’t take reading for granted. I well remember getting glasses in grade two only after falling far behind my classmates. For years, one of my greatest skills was avoiding situations where I might have to read aloud. My high school book reports were few and far between. Somehow, my path led from a place where reading seemed unimportant to a place where it was all-important. Not everyone finds that path.
When The Foundation was researching our Literacy for Life Fund, I was surprised to learn that 42% of working age Canadians face significant literacy challenges. Manitoba has a relatively high drop-out rate and, as a result, we are particularly challenged in this area. According to Literacy Partners of Manitoba, a working adult with a college diploma earns 50% more than someone who didn’t make it through high school. In fact, adults with low literacy are ill more often, experience more frequent medication errors and have more workplace accidents. Our economy is changing to become more knowledge-based. More and more, jobs are driven by technology and information, and literacy is becoming an increasingly important economic issue. Canadians with strong literacy skills are more likely to have better-paying jobs and less likely to become unemployed. It seems self-evident that developing reading skills is a sound investment.
Aboriginal peoples and newcomers are particularly impacted by low literacy. Research also shows a growing gender gap in reading skills that began in the 1990s. This may account for young men dropping out of high school at a higher rate than young women. The Council of Ministers of Education of Canada provides a rating for reading skills from one (low) to three (high). Girls at level 3 far outnumber boys. It seems that reading, and the literature chosen for elementary school curriculums, are more appealing to girls than to boys – creating the need for special teaching strategies and reading promotion targeting boys.
However we think about this issue, it seems to me that literacy programs are a good cause. Last month, The Winnipeg Foundation launched On the Same Page in an effort to get Manitobans to read or re-read In Search of April Raintree – the classic novel by Beatrice Moisonier that celebrates its 25 anniversary this year. If the mass reading initiative is successful, I hope we will promote another book next year. After all, the path to lifelong reading almost certainly starts with an engaging story. Care to comment on this blog? Send your remarks to comments@wpgfdn.orgWant to receive Rick’s monthly blog via email? Sign up here.
October 2008
A recent blog by one of my American colleagues might appropriately be entitled: “Should a charity be run more like a business?” She discusses some of the questionable practices of Wall Street but mostly encourages community foundations to stay true to their own values.
This past month, the news from New York has forced us all to reflect on how we are positioned in a world where there is nowhere to hide. While September has been particularly volatile, the markets have not been kind for the last seven quarters. A sustained pattern of no investment returns followed by such turmoil has to cause concern.
The Winnipeg Foundation is focused on community building. Our business model is based on endowment funds invested to generate annual income to support community projects. So, the investment climate has a profound impact on our work.
It is, therefore, timely that my comments address how the Foundation’s assets are invested, how much we plan to spend given the current environment, and who oversees our investment decisions.
Asset mix is a fundamental element of any investment strategy. Our foundation uses a benchmark of 45% fixed income and 55% equities. Fixed income offers more security while equities offer the potential of greater returns. Over the long run, we believe that this mix is prudent and will deliver the necessary revenues to sustain our community grant-making activities. However, in the face of such negative market activity in the past few weeks, we have to anticipate a negative overall result for fiscal 2008. (Our year end is September 30 th.)
We have experienced negative annual returns in the past. The key is providing a sustainable revenue stream which accounts for market volatility. This is where our “spending policy” comes in. Our target is to spend 5% of average market value each year and that is the number we will continue to use in 2009. We operate with a formula that can be adjusted over time if we see the purchasing power of our capital eroding. As a result, The Winnipeg Foundation can always be a predictable funder of community organizations.
At a time like this, it is important to know who is watching over our investments. Our portfolios are currently managed by four professional firms which bring a diversity of style and expertise. They are monitored by an independent consultant. The members of our Investment Committee who oversee our policy and direction include: Dick Archer (Chair), Richard Bracken, Charlie Curtis, Gregg Hanson, Dr. June James, Bob Puchniak, Gerald Reimer and Eric Stefanson. These well-respected volunteers bring much experience and sound judgment that enables us to continue to support good causes. Care to comment on this blog? Send your remarks to comments@wpgfdn.orgWant to receive Rick’s monthly blog via email? Sign up here.
September 2008
I missed one of the three practices. Perhaps a few others did as well. Nonetheless, here we were 20 strong all dressed in bright yellow t-shirts proudly sporting the name “Alloway’s Champions.” If positive thinking was a factor, we were surely destined to win a trophy!
No team captain was more diligent than Debbie in assuring that our Dragon Boat was properly organized. But we were novices about to learn that the competition was pretty intimidating. Beside our modest tent in the area cordoned off for participating teams were other clearly more experienced groups – Paddlestar Gallactica, GI Janes and Dirty Oars to name just a few. Some teams even had matching hats!
The Canadian Cancer Society did a remarkable job in attracting 150 participating boats and generous sponsors. The organization was flawless. Our crew was augmented with ringers from MicroAge and CP Rail. We marched confidently toward the marshalling area to the encouragement of well wishers – ready for the demanding trial ahead.
In retrospect, our entire team was overly enthusiastic for that first race. Maybe it was the candies provided for extra sugar just before we boarded. But the cadence of our paddles so ably demonstrated during practice simply disappeared. Amazingly, we finished fourth. A few Winnipeg Foundation staffers were amongst the rousing crowd as we paddled our way back to the dock. Despite the smiles and clapping, I had the distinct impression that coming fourth out of four fell below their expectations.
My arms felt like spaghetti. My heavens; I have to do this again! A healthy piece of carrot cake, great team spirit and a couple of hours rest – we were ready for our second heat. This time we got it right. The boat surged ahead as the paddles dug into the water. We came third – good enough for bronze if there were medals. In honesty, there were only three boats in that heat but we were still encouraged.
Given our stellar performance, we were honoured to be amongst the first boats to race on Sunday morning. So once again, we gathered at the Forks early enough to see a beautiful sunrise over St. Boniface. Just like the day before, hundreds of enthusiastic Winnipeggers crowded the marshalling area ready to put their pride on the line. This race was seeded and therefore much closer than the first two – seconds made all the difference. It had rained heavily the night before and maybe our part of the course was wetter than normal. Anyway, we were all winners!
It is important to reflect on the importance of fundraising events for charities. It will take money to beat cancer. Like so many others in our community who help in this way, we had a great time doing our part – all in the name of a good cause. Care to comment on this blog? Send your remarks to comments@wpgfdn.orgWant to receive Rick’s monthly blog via email? Sign up here.
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