Community/Mission Investing stories illustrate what's possible in Canada

Community Foundations of Canada, together with Philanthropic Foundations Canada, has just released a report, The State of Community/Mission Investment of Canadian Foundations by Coro Strandberg, one of Canada’s true experts in this space.

It’s a good read, telling the stories of and drawing lessons from nine foundations across the country that are using their assets – not just their grants – to directly support economic development domestically and internationally – jobs for the hard-to-employ, affordable housing, conservation, sustainable venture capital, and non-profit capacity building.

The most common vehicle foundations are using in Canada, by far, are market-rate and below-market-rate mortgages and loans to charities and non-profits. There are a number of other community/mission investing vehicles available to foundations and some of the profiled foundations like Bealight and Vancity Community Foundation are using them. But as Coro says in the report, community/mission investing is really still in its infancy in Canada.

To this point, I was talking recently with Bob Ward, who runs the Edmonton Social Enterprise Fund (ESEF) at the Edmonton Community Foundation, one of the foundations profiled, and I was struck by a comment he made: “The ESCF is still small (about $6.5 million), but it is a very big idea – providing access to capital. It is a great role for foundations.”

Clearly there are some regulatory and legal issues and foundation policies to be considered before embarking on community/mission investing. And there are some challenges related to deal flow and a lack of intermediaries right now, but that is beginning to change.

The potential of using some of the 96.5 per cent of foundation assets not allocated to grants to work in the community in foundation program areas is pretty impressive.

To get a sense of that, I highly recommend reading Equity Advancing Equity, a recent publication of the Futures Matters series, written by Blueprint Research & Design and GPS Capital Partners.

It focuses on the impact investing of about a dozen US community foundations, but I think it is equally relevant to private foundations. 

A few examples of the investments being made by community foundations in the US: loans & equity investments for transformational real-estate developments and businesses that create local jobs; debt, equity, real-estate, deposit and loan guarantee investments for housing, small business, green building and foreclosure prevention; market rate fixed-income investments; and donor-customized program-related investments.

As the Equity Advancing Equity report says: “Community Foundations have the opportunity to change the conversation from short-term grantmaking to poor parts of a community, to long-term investment strategies that strengthen business, home ownership, education, and wealth-creation opportunities for the betterment of all.”

Coro’s report shows us where Canadian foundations stand, and these nine foundations are showing extraordinary leadership in this country. Equity Advancing Equity shows us what’s yet possible. Together they make a pretty compelling case for advancing community/mission investing among Canadian foundations.

Betsy Martin is a senior advisor with Community Foundations of Canada

Community to weigh in on Vital Signs

FOR IMMEDIATE RELEASE

CONTACT: Mike Christie (403) 527-9038

mikec@mhcf.ca

Community Consultations for 2010 Vital Signs:

Community Foundation asks for public input

Medicine Hat, Alberta (May 20, 2009) – 'Hatters will have two chances next week to add their input to the 2010 Medicine Hat’s Vital Signs report. The Community Foundation of Medicine Hat and Southeastern Alberta is hosting two separate public consultations in order for citizens to express what they would like to see in this year’s report.

The first consultation, aimed at the business community, will take place in the Chamber of Commerce’s board room on Tuesday, May 25 from 12 – 1 PM. The second consultation is of a general nature and will take place on Thursday, May 27 from 12 – 1 PM in REDI Enterprises’s board room.

Community consultations play an important role in the kick-off to the Vital Signs process.

“These consultations allow us to hear what citizens believe are the strengths and weaknesses of Medicine Hat,” said Mike Christie, executive director of the Community Foundation. “It also helps us create a better report because we hear what issues are important to ‘Hatters.”

Medicine Hat’s Vital Signs will be released on October 5, marking the fourth consecutive year that the organization has participated in the publication. In 2009, 16 Community Foundations across the country produced the report for their individual communities. Vital Signs serves as a community report card, with volunteers grading each indicator before publication.

Christie urges citizens of all ages to come to a consultation to express their views.

“Vital Signs has become a platform for local action amongst community leaders and volunteers,” Christie said. “Citizens’ input, especially in the early stages of the process, is integral to the final Vital Signs report. The contributions that residents make at these meetings can help us grow a better community.”

The events include free beverages, and attendees are welcome to bring their own lunch. The Chamber of Commerce is located at 413 - 6th Avenue SE and  REDI Enterprises is located at 860 Allowance Ave. SE.

No reservations are necessary to attend the events; however, each location has limited seating. For more information regarding the consultations or the Vital Signs report, please call the Community Foundation at (403) 527-9038 or email info@mhcf.ca. 

London Community Foundation plants seeds for Clean Air Challenge

With much enthusiasm, London Community Foundation has launched the Clean Air Challenge, a competitive environmental grant program designed to help both aspiring and established environmentalists bring innovative green ideas, products and services to London and Middlesex County.

Up to $100,000 in seed money is available. The money comes from London Community Foundation’s Community Fund.

Focusing on environmental health is nothing new for us. Several years ago, environmental health was designated as one of our strategic granting areas. This decision was only reinforced by London’s 2008 Vital Signs® Report. This report underscored how crucial it is to invest in green technologies, products and services to improve air quality within our community.

Specifically we are seeking to fund ideas that will improve air quality in our community by addressing one or more of the following objectives:

·    Reducing emissions
·    Reducing greenhouse gases
·    Reducing particulate
·    Reducing waste
·    Improving water or energy efficiency
·    Engaging London’s residents, businesses or communities in pro-environmental behaviour change

The Clean Air Challenge is loosely based on Toronto Community Foundation’s very successful Green Innovation Awards.

It features a two-stage application process. During the first stage, applicants simply submit (by email – no paper!) an executive summary (500 word) of the idea by the June 15th deadline. A panel of community-minded environmental advocates, fundholders, and business specialists will review all entries and recommend the applications that merit further review.

During the second stage, the selected applicants will be invited to submit a more developed proposal of their idea and then present their case to the Clean Air Challenge selection panel – think Dragon’s Den, minus the television cameras and fiery attitudes!

The appetite for this kind of competition in London is big. Already the Challenge has been met with much excitement from local media and environmentalists. Londoners pride themselves on being entrepreneurial, educated, and open to new things. They care about the future and our environment.

The power for positive change is in the hands of each of us.

Martha Powell is CEO of London Community Foundation

Calgary's Youth VitalSigns deepening knowledge of local needs

It’s National Youth Week in Canada - a celebration of youth and their active participation in their community which is why the recent release of the Youth VitalSigns Report in Calgary is so timely.

Inspired by The Calgary Foundation’s VitalSigns Report, this youth-driven report combines the opinions and perspectives of youth with timely research to inform the public and private sectors, governments, youth funders and youth-serving charitable organizations.

Youth VitalSigns is part of a growing movement that seeks to hear, strengthen, and empower young people. The project was launched by The Calgary Foundation and Youth Central to support positive leadership opportunities for youth to:

• Influence change by sharing their experiences and perspectives
• Expand their understanding of local community issues
• Take action in their school and community

Young people are an important asset to Canadian communities. The report gives voice to over 1,200 young Calgarians who graded their quality of life in 12 issue areas from ‘Employment and Training’ to ‘Going Green.’ By sharing their concerns, reasons to celebrate and suggestions for improvement - posted at youthvitalsigns.ca - they have become a valuable community resource.

The grades of 5 B’s and 7 C’s reflect the concerns the majority of youth graders have for their community. There are over 140,000 youth aged 24 and under living in Calgary, yet graders overwhelming state that there are few opportunities to “have a voice” in their communities and gave the issue area of Youth Voice a C.

Over 90% of graders live with family, yet the key issue area of youth homelessness and housing received a C, one of the lowest grades. With an estimated 700 people under the age of 24 living on the streets of Calgary, graders identified this area as one of the top priorities that needs immediate community investment.

Recreation and Sports received a B, one of the highest grades, with 54% of youth reporting participation in community activities while acknowledging that fee’s are a barrier for some youth. A few of the other vital facts from the 2010 Youth VitalSigns Report:

• Calgary has the lowest rate of youth cigarette smokers (grades 7-12) in Alberta, but the highest rate of youth who smoked cannabis in the past year.
• Calgary’s Youth offences decreased by almost 25 per cent since 2005.
• In 2009, 29 per cent of Calgary’s Grade 3 students were ESL students, compared to the provincial average of 13 per cent.
• In October 2009, the unemployment rate for Calgary’s youth reached 15.3 per cent – twice the rate of unemployed adults.

Youth VitalSigns has great value in deepening The Calgary Foundation’s understanding and knowledge of community needs to better inform our work in serving donors and in making effective grants to strengthen the charitable community.

Supporting youth has always been an important focus of The Calgary Foundation and its donors. In the last 2 years, The Foundation has contributed over $7 million towards initiatives that serve Children, Youth and Families including $1.9 million to support over 300 student awards last year.

A small sample of the Foundation’s support in this area includes funding for an employment program for street youth, a musical instrument loan program for underprivileged youth, a learning disability CD, anti-bullying campaigns, immigrant youth education programs and youth mentoring programs.

Engaging young people can build a strong sense of connection to their community, a commitment to civic action, and a passion for active learning. Being part of the process gives youth a feeling of ownership, they can mobilize others and become powerful role models.

Interestingly, the report highlights that youth who reported being very connected to their community tended to give higher grades then youth who reported being less connected to their community.

Youth VitalSigns bridges the developmental gap between childhood and adulthood by giving youth a voice, encouraging them to feel more connected to and engaged in their community as they grow into responsible, socially conscious adults. But youth engagement can only happen when youth voices are heard…and when leaders make an effort to listen.

Eva Friesen is the President and CEO of The Calgary Foundation