Perspectives on Canadian Philanthropy OFFORDMAG:Layout 1 3/13/07 11:51 AM Page 2

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THE OFFORD GROUP perspectives on canadian philanthropy OFFORDMAG:Layout 1 3/13/07 11:51 AM Page 2

THE VIEW FROM HERE

Welcome to the inaugural issue of our magazine: The Offord Group: Perspectives on Canadian volume 1 Philanthropy. For everyone in leadership roles, CEOs, Board Chairs, Campaign Chairs, and professional leaders of Canada's major institutions and charitable organizations, we look forward to bringing you our

view of the evolving third sector. MAJOR GIFTS: GETTING STARTED ...... page 3 We at The Offord Group truly feel honoured and excited by the work we do helping build institutions and charities. With 2007 in full swing and our business being not so new anymore, we are taking a look at not THE POWER OF ONE: FUNDING FOR only a few of our clients’ achievements of the last couple of years, but also at what lies ahead globally for THE FUTURE ...... page 4 them and for leaders across the country. ARTS: TORONTO SYMPHONY While major events worldwide continue to shape our future, Canadians continue to show their ORCHESTRA ODE TO JOY . . . . page 5 commitment to be part of the solution, both here and abroad. HEALTHCARE: We are inspired by our clients, their donors and leaders, and want to share some of their stories with you. HOW ARE WE DOING? ...... page 6 I believe, as I'm sure you do, that we can learn from each other, especially by sharing our successes (as well as our challenges!) This is one of the best ways to continue our commitment to building the EDUCATION: sector. UNIVERSITY BENCHMARKS . . . page 8

NEW ALLIANCE BETWEEN We believe that the coming year will be another wonderful time for visionaries and missionaries THE OFFORD GROUP AND committed to building a better Canada in their chosen field. We know that hard work is a reality of those MARTS & LUNDY ...... page 10 involved in development and want to encourage your continued success in your endeavours. We hope that you will take away a nugget or two from our experiences, helping you to raise the bar even THE FUNDRAISER’S PAGE . . . . . page 11 further. The Offord Group: Perspectives on Canadian Philanthropy Sincerely, is a publication for Canadian CEOs, volunteers and professional leaders in the philanthropic sector. Our goal is to provide a qualitative and quantitative review of the sector that will help to inform decisions and strategies for practitioners.

Nicholas Offord Editor: Robin Fowler, CFRE President, The Offord Group Contributors: Nicholas Offord, Prabha Mattappally, Lydia Powell, Jason Lockhart Distribution: Cathie Frame

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governance MAJOR GIFTS: GETTING STARTED Starting a major gifts program or a capital campaign are not “light” tasks. Many Board members and staff wonder if their organization is ready to embark on a major capital or endowment campaign. Maximum success can be reached if the right questions are asked (and answered!) at the beginning of the endeavour. A list of questions follow as a starting point. If an organization's CEO, Board of Directors, fundraising committee(s) and staff review these before deciding to embark on the next stage (whether it be a feasibility study, audit or staff prepara- tion), there will be some important information in place to help to move to the next phase of decision-making.

MAJOR GIFT CAMPAIGNS: A PRIMER FOR DIRECTORS OF BOARDS

• As a Board member, am I prepared to use my personal contacts and • Do we have the right resources in place: staff, programs, and policies? influence to help open doors to potential donors, sponsors and partners? • Will the CEO make this work a priority? Will he/she be an effective • Is this a sufficiently high priority for me that I am willing to make a champion for us in the community? personal gift? Can I help influence a corporate gift at my own workplace? • What kind of donors will support the project? Do they know who we are? • To what extent will such an initiative build and strengthen relationships with • Are there others who are perhaps not involved with our organization who our donors? would be willing to join us as volunteers? • To what extent do we have a tradition of asking friends for multi-year • Are there polices and procedures in place to protect our integrity and commitments to major projects? minimize risk? • Does this initiative support the strategic plan of the organization in a • Does everyone know their role? Who makes decisions? cohesive way? • Is there an effective prospect management system? • Are the specific priorities that require funding compelling for donors? • Is the database reliable and flexible? • Do we have a clear and well articulated value proposition for donors? • What additional resources are required to run the program? • Do we know what the project costs are and the value of naming Where will this money come from? opportunities? • Do I trust the staff team to be able to deliver on the goals? 3 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 4

education

THE POWER OF ONE: FUNDING FOR THE FUTURE

The University of Calgary's goal is to become the first choice in profession was an easy choice to support. On every measure a sampling of leadership gifts that have Canada for the most talented engineering students. From the and metric we looked at, the Faculty of Engineering and the helped propel universities to new heights: kindness of one man, that goal may now come true. University of Calgary has all the attributes and hallmarks of a great Canadian educational and engineering research institu- - $105-million contribution in December 2003 from Michael G. The University of Calgary's Engineering department received a tion. We are proud to be associated with it.” This illustrates that DeGroote to the McMaster University medical program. $50-million contribution, $25-million from Ontario Philanthropist there are philanthropists in Canada who are willing and able to - McGill University graduate Richard Tomlinson donated $64-million Seymour Schulich and a matching contribution of $25-million make sizable contributions to charities that have bold goals and in 2000, designating $6-million for libraries in the area of digital from the Government of Alberta. This generous donation will the leadership to make those goals a reality. resources, preservation of rare materials, and a unique donation allow the Engineering department to provide its students with matching program. 100 new scholarships, 3 new research chairs, increased fund- The donation continues Mr. Schulich's legacy of encouraging - In 1992, Queen's University received $12-million from ing for field trips and clubs, and provide funds to enhance excellence in post-secondary education across the country. Mr. Alfred Bader, an alumnus. Queen's also received a $15-million learning and assist with job placement after graduation. The Schulich has made significant donations to York University's donation in the late 1980s from an anonymous source. - University of British Columbia received $15-million from Vancouver Faculty has been renamed “The Schulich School of business school, the University of Western Ontario's medical financier Peter Wall in 1991, and a $10-million gift from the Chan Engineering,” in recognition of his generosity. school and McGill University's Faculty of Music which are also Foundation of Canada to establish a performing arts centre in 1989. named in his honour. Mr. Schulich knows the impact of his gifts - In the late 1980s, an anonymous donor gave Simon Fraser University When Seymour Schulich was asked to comment on his dona- and hopes they inspire others to share his vision. $13.6-million. tion, it is easy to get a sense of what motivated him to give such - In the early 1980s, McMaster University received $25-million from a large sum to the U of C. “Engineers are society's builders and Leadership gifts of this nature remind us of the value of person- Dr. Harry Lyman Hooker. innovators. They play a vital role in creating the infrastructure al example promoting a culture of philanthropic investment. and services that support the standard of living we enjoy in our They also point to the value of ambition and creative change by The Offord Group is affiliated with Give Canada, the country's leading consultant to modern society. We need more engineers in Canada and this institutional leaders in inspiring such commitments. institutions in the planning, marketing and execution of naming rights philanthropy. 4 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 5

arts photo: Cylla von Tiedemann TORONTO SYMPHONY ORCHESTRA ODE TO JOY

The Toronto Symphony Orchestra aims to be one of the Foundation to invest new resources in fundraising at a been major multi-year commitments to build the orches- world's best orchestras, and under the inspired leader- time when we were already projecting a deficit proved to tra's endowment and significant multi-million dollar gifts. ship of Maestro Peter Oundjian there is no question that be the crucial test of whether the TSO family could come great music is now thrilling packed houses at Roy together to create a longer-term financial solution” said Now the highly effective development operation is linked Thomson Hall. TSO President & CEO, Andrew R. Shaw. inextricably with the future success of the orchestra. That's music to the ears of Maestro Oundjian and the Backing up the artistic talent with sufficient financial Working with The Offord Group, the TSO developed a remarkable people at the TSO. resources has been the single biggest priority of man- convincing plan to put in place a new management agement for the last year and a half. With pricing com- structure for development activity, grow the major giving “The Toronto Symphony Orchestra is one of the city's petition on tickets, limited seat supply, and modest gov- program, and put discipline to the execution of the pro- greatest jewels and we were honoured to have worked ernment grants, fundraising has always been vital to the gram by both volunteers and management. Central to with Andrew and his team” remarked Nicholas Offord, TSO to maintain its status as one of Canada's leading the plan was the recruitment of a Senior Vice President President, The Offord Group. “We are very proud of their arts organizations. But in an environment where almost of Development, to lead the expanded fundraising enter- accomplishments to date and look forward to witnessing every major cultural operation in Toronto was in a major prise. their continued growth and success in the future.” fundraising campaign for new bricks and mortar, the decision to invest in a development program to sustain Today, there is renewed confidence in the management To learn more about the exciting events taking place at the TSO operations was a difficult one. “Convincing the capacity of the Development team. Not only has the TSO the Toronto Symphony Orchestra, or to participate in the Board of Directors and the Toronto Symphony Orchestra closed the year out without a deficit, but there have also 'symphonic experience', please visit www.tso.ca. 5 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 6

healthcare

HOW ARE WE DOING?

THE IMPORTANCE OF FUNDRAISING PERFORMANCE BENCHMARKING

It's a question board members often ask. It is also a question the charitable sector has not been as ready to respond to as it should. Diversity across the sector and within organizational cultures has, in the past, made it very challenging to provide useful information that volunteers and CEOs can easily comprehend.

Yet, understanding how one's charitable organization performs - whether it is delivering on programmatic imperatives or determining the efficacy of fundraising operations - is critical for every organization's long-term strategic planning.

Over the last two years, The Offord Group has collaborated closely with its partner, Innovative Research Group, to develop new metrics to assist organizations to understand their current productivity, how they compare to peers of their own choosing, and industry best practise.

The Fundraising Performance Benchmarking study is designed to measure the fundraising productivity of charitable organizations against sector performance at the regional, provincial and national level, as well as against identified peers.

BENCHMARKING STUDIES CAN:

• Establish meaningful benchmarks for major charities by sector; • Identify a charity's market share of giving within a particular community; • Demonstrate 5-year trends in growth, spending, granting, and revenue generation; • Discern how an organization ranks amongst peers; • Compare an organization to national, provincial and regional benchmarks; • Provide multi-year trending analysis in both revenue and expense categories; • Show the return on investment in fundraising compared to other organizations; • Provide crucial input for an organization's continuous improvement and strategic planning; and • For the institutional sector, can provide benchmarks that are weighted for size and operational budget.

Above all, such studies should help management resources in answering key performance-related questions and provide justification for program investments over time. 6 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 7

Regional Fundraising Breakdown Total Charitable Giving Approx. $16.0 Billion* VIEWPOINT did you know? * 2003 CRA: Registered Charity Filings • Did you know that Ontario accounted It is also true that donors for more than half of all charitable gifts donated within Canada? have a growing interest in • Did you know that, with the exception of Quebec, the religious sector the effectiveness of received the most philanthropic charities. support? Education and Welfare received the most philanthropic support within Quebec. Nada Ristich, Senior • Did you know that Ontario was the only region to donate more towards Manager of Corporate healthcare than education? Donations at BMO Financial Group, reviews hundreds of proposals from all over the charitable How do we conduct our Fundraising Performance Benchmarking? In the example below, we calculated benchmarks for the hospital sector on detailed financial data for 157 foundations. sector every year. “Having Hospital Benchmarking Case Study: this kind of information

The Offord Group and Innovative Research Group conducted a would make me feel a lot hospital benchmarking study which looked at CRA revenue data on more confident about all 80,000 + registered charities in Canada. After carefully going forward with assessing all charities that are affiliated with Hospitals we arrived at 157 charities that had sufficient revenues and consistency of data to proposals from certain produce reliable benchmarks. By then aggregating results over a kinds of organizations and five-year period, the benchmarks ameliorate reporting anomolies or exceptionally large gifts received in a given year. institutions.”

Such research can provide evidence that the Board Expenditure Source Breakdown (5-year average) cares about how money is spent in an organization, and address questions that By conducting peer-to-peer reviews we can come up during both culti- examine spending and revenue patterns that inform management decisions. This is but one vation and solicitation of tool for asking the right questions about why one donors. Says Nada, “Every Hospital Foundation may be more successful than another. For both consultants and for manage- organization should be ment, understanding where you are is the first step thinking about doing this in getting to where you want to be. because it makes good business sense and it's important in the stewardship While quantitative decision-support tools are new to the sector, early interest in such products has led The Offord Group and Innovative Research Group process.” to invest additional resources in specialized benchmarks for different sectors (see University sector following page). 7 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 8

The Canadian university sector is The Offord Group, in partnership Senior fundraising management one of the most productive and effi- with Innovative Research Group, need to factor an institution's other cient divisions of our charitable sec- conducted a regional performance qualitative factors in addition to the tor, according to a recent bench- analysis of universities across dollars reported such as the com- marking study. And the big institu- Canada raising over $1 million in mitment and level of excellence of tions with medical schools raise big tax-receipted gifts. Of the 90 volunteers and staff, size, age and money. accredited universities operating in wealth of the alumni constituency, Canada in 2003, 46 universities and history of philanthropic activity. While universities can debate the met the threshold of raising over $1 The Performance Benchmarking practicality and appropriateness of million per year. study also allows successful institu- rankings for other parts of their pro- tions to push for innovation to stay gramming, this study was designed A few of the top-line results from ahead of the game and provides specifically to provide Board mem- this study are: other universities with aspirations bers, university executives and Average total charitable revenue for the future. donors with answers to such ques- per institution: $ 14,918,000 tions as “How effective is our man- Average fundraising expenditure agement and programming?”, “Why per institution: $ 1,695,000 aren't we raising more funds?”, and Average charitable revenues per “What is the cost of raising money?” fundraising $1 invested: $ 8.80

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education

AVERAGE TOTAL CHARITABLE REVENUES PER INSTITUTION (IN MILLIONS) (by Maclean's Rankings Categories) Medical Doctoral institutions are clearly power-houses in terms of their absolute ability to raise funds and raise the Canadian average to a level beyond the capacity of most comprehensive universities. More and more, we are seeing the next tier of universities growing their development operations to gener- ate more revenue.

AVERAGE FUNDRAISING EXPENDITURE PER INSTITUTION (IN MILLIONS)

While the average by category appears to be consistent with the scale of funds raised, we did note large variations in expenses related to specific institutions of similar size. Spending on fundraising does seem to be a primary determinant of gifts received, although efficiency can vary considerably.

CHARITABLE REVENUES PER FUNDRAISING $1 INVESTED (IN DOLLARS)

Economies of scale matter in fundraising as much as any other enterprise. While larger institutions enjoy a very high level of return for fundraising expendi- tures, even smaller undergraduate universities enjoy a relatively high degree of efficiency in their fundraising programs.

For more information on University Sector Performance Benchmarking, contact The Offord Group at 416.640.4135 or www.theoffordgroup.com 9 OFFORDMAG:Layout 1 3/13/07 10:21 AM Page 10

new alliance between the offord group and marts & lundy

TORONTO - July 20, 2006 - Nicholas Offord, and knowledgeable approach to building programs, President, The Offord Group and Michael Sinkus, particularly in university and health care sectors, to Chair and Chief Executive Officer of Marts & Lundy, the U.S. market.” are pleased to announce a strategic alliance between their two companies, which will provide reciprocal Formed in 1926, Marts & Lundy is a full-service access to each other's clients in Canada and the U.S. consultancy helping institutions of all sizes build a “culture of philanthropy.” With experience serv- “This provides our growing client base access to some ing in excess of 8,000 clients around the world of the best and most experienced consultants from the and offices across the U.S., Marts & Lundy U.S., who can provide additional perspective, knowl- includes top specialists in capacity analysis, bench- edge and analytics expertise,” says Nicholas Offord. marking, planned giving, development operations, strategic communications and specialized writing Both companies share a similar corporate philosophy services. that is focused on research-driven strategy and capacity building for organizations and institutions. Both The Offord Group is a Toronto-based consultancy employ senior consultants with long career experience providing counsel in growth management, perform- in the charitable sector. ance benchmarking, strategic planning, development operations, philanthropic research, leadership giving Marts & Lundy has served Canadian clients for many and naming rights. Serving a wide variety of clients years, but says Michael Sinkus, “We are delighted that in all sectors, The Offord Group aims to transform The Offord Group will represent us and improve our organizational culture to help promote the client service capacity in Canada. And we are philanthropic spirit which will drive organizational delighted to represent The Offord Group's innovative success.

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the fundraiser’s page

five questions: learning from each other

1. how are you developing and building leadership capacity in your 4. how do you feel you personally add value to your organization? organization? I passionately believe in the mission of what we do as an organization. And, coming Leadership is nurtured and developed through inspiration and engagement. I try to get from a business background, I encourage everyone to incorporate good business prac- as many of those who benefit from our programs in front of our current and potential tices and principles into all of the activities within their sphere of personal responsibil- leaders and donors. Through the Canadian Centre for Diversity, we have thousands of ity. young people who are the greatest spokespeople for what we do - they truly engage our leadership with their vision and hope for the future of our country. 5. what are the most serious management challenges you confront? Time is always a big challenge - we have so much to do and there is never enough of it! 2. how are you building your constituency for the future? Resources, both on the staff and expenses side - there are never enough of either! Building for the future is so critical and a major piece of our strategic plan. My hope is Workaholic personalities - it seems that everyone I know in this field works long hours that our program participants and their parents will become strong supporters since and there is always a danger of burn-out: sometimes we just don't get to all the impor- they have personally experienced the value of the work we are doing. Also, we are con- tant things we really need to do to keep our constituents informed and committed sup- tinuing to engage the children and relatives of some of our founding families, whose porters. links go back almost 60 years. This integration of activities both on the programming and fundraising side will ensure, I believe, a solid and sustainable pattern of growth for Amanda Sherrington Amanda Sherrington is the National Executive Director of the Canadian Council of Christians and Jews the future. (CCCJ). CCCJ and its programming division, the Canadian Centre for Diversity, is the leading Canadian provider of school-based programs that educate against discrimination, prejudice and bias and promote the value of diversity in our society.

3. how do you think you can protect and enhance your brand? The Canadian Centre for Diversity aims to create understanding and respect through its educational programs across the country (from elementary school children through to the business sector and from all back- Branding is something that has been an issue for us for a long time, as some feel that our grounds) and is the only organization in Canada that is delivering an original series of programs for young name is exclusive, which I can understand… however, our founders are important to us. people designed to combat prejudice and bias before they turn into hatred. Amanda joined CCCJ in 2002 after a 20-year award-winning career - she founded one of the first confer- We are addressing this through our programming division, the Canadian Centre for ence and event planning companies in Canada in 1976, and built the business into an industry leader. In Diversity, and this is appealing greatly to many people, so we now know that we have to work 1996, after 20 years at the helm of her company, she became Executive Director of the 1997 Festival of the Future. In 1999, she undertook extensive consulting and event management for the Apotex Centre of the at strategically using our brands and sub-brands (which are our programs and how some Baycrest Centre for Geriatric Care and a number of other clients. Amanda is passionate about what she does and works long hours and yet, somehow finds time to also be a tireless supporter of many organizations along- people know us). side her husband John, and to walk her dog Max.

the world needs more effective and happier fundraisers!

High turnover rates and job satisfaction are major issues for 2. Call a donor to say “thanks”. Talking to people who support 5. Get perspective. Spending time with colleagues in other institutions managing fundraising programs. More needs to be your mission has its own rewards. areas and building relationships that go beyond your usual done to bring along a growing pool of talent, and for those agenda will help you better understand the motivations and already in leadership roles, to be more engaged in developing 3. Reconnect with the end result of your fundraising efforts: context of your work. the next generation of professionals. take the time to see the money go to work. Build a sense of accomplishment and your product knowledge for the next ask. 6. Network. Without a doubt there is a colleague at another 1. For those who have been in the field for more than five years, institution or charity that will be glad you asked for advice and mentoring is a vital contribution. Mentors are always amazed at 4. Get involved with professional associations: being with oth- shared a problem with. how much they get back in return and how this helps them con- ers “in the same boat” reinforces the positive things you do. nect with their own work. For fundraising professionals with Those who pursue certification often say it makes them realize 7. Try to lead a balanced life - enjoy work and play, family time less than 5 years of experience, ask a senior colleague to be a that they are definitely in the right field and builds a core body and quiet personal time. Exercise, eat well and get enough mentor or to help find a mentor. of knowledge. sleep. 11 TOGMAGNEWCOVER:Layout 1 3/19/07 1:20 PM Page 2

350 Bay Street • Suite 300 • Toronto, ON • Canada • M5H 2S6 (416) 640-4135 • [email protected] • www.theoffordgroup.com