From Charity to Change: Inside the World of Canadian Foundations

by Hilary M. Pearson

McGill Queen’s University Press/2022

Reviewed by Teresa Marques

August 24, 2023

The world of Canadian philanthropy doesn’t often get a lot of attention. To outsiders, it may seem obscure, cloistered, and likely to be properly accused of being cozy and out of touch. Having worked in the “giving” sector for more than two decades, I’ve enjoyed a front-row seat to the efforts of charitable organizations doing good work, and to the foundations who often help make this work possible. A little more attention on the inner workings of this sector is long overdue.

In her book, From Charity to Change: Inside the World of Canadian Foundations, Hilary Pearson shines a revealing light on Canadian philanthropic foundations. Through rich storytelling, Pearson connects key trends that are changing Canada to the lived experience of some of the country’s largest foundations. This is a collection of stories that Pearson is uniquely qualified to present. As founding and long-term president of Philanthropic Foundations of Canada, Pearson has seen firsthand the ways that Canadian foundations have evolved in terms of how they operate, how they organize themselves, and where they direct their dollars. As a result, the book is a captivating snapshot and entry point into the world of Canadian philanthropy and the diversity of its impact. Pearson’s narrative reflects both a changing sector and a changing country.

While Pearson is careful not to generalize, one key theme that emerges is that ‘cutting cheques’ is no longer the only prerogative of Canadian foundations. She describes a shift from foundations as “static grantors” to more strategically focused on key objectives, engaged in building organizational and sectoral capacity, strengthening community, influencing public policy, and, across the range of philanthropic focus, addressing climate change and participating in meaningful reconciliation with Indigenous peoples through relationship-building.

Pearson has a remarkable ability to zoom both in and out, from the inner workings and familial relationships that can inform how a foundation evolves, to the political and economic dynamics of particular cities that influence how foundations can spur action (and when they can’t). Her spotlight on Montreal from the 1980s to the early twenty-first century is particularly fascinating. Through well-told stories, she describes how major players such as the McConnell Foundation, the Lucie et André Chagnon Foundation and the Mirella & Lino Saputo Foundation were at the heart of collaborative city-building efforts that brought foundations together in new ways to respond to gaps in social services.

Pearson highlights a range of other leading foundations who have equally pushed the world of Canadian philanthropy toward new and more impactful ways of working. From the Max Bell Foundation, Muttart Foundation and Maytree Foundation, which have encouraged policy change, professional development, and activism by philanthropists, to foundations such as the Ivey, Donner and Trottier, which are focusing their assets and influence almost exclusively on the climate crisis.  She also tells the stories of foundations that have looked inward with honest and meaningful attempts to improve their performance. She recounts how they have “learned in public” from criticisms of their ways of working, and describes how some have reformulated themselves and their approaches with great transparency. These are important lessons the sector still needs to take on more generally in order to build and sustain trust.

While Pearson is careful not to generalize, one key theme that emerges is that ‘cutting cheques’ is no longer the only prerogative of Canadian foundations.

At the start of her book, Pearson helpfully sets the table for the reader about the scope and scale of the Canadian context. There are currently more than 6,000 private foundations in Canada, with collective assets of $56.3 billion. If you are to include public and community foundations, the dollar value crosses the $100 billion threshold. Pearson’s interviews and stories focus on a fraction of these foundations, albeit the largest and most influential, to weave together a narrative that is interesting, compelling and suggestive of further and broader changes ahead.

While highlighting specific foundations and their work, an underlying thread of this book is the unique pressure facing the charitable sector and philanthropy alike, especially post-pandemic.  She does not shy away from the complex realities confronting the sector today: inherent power imbalances; calls to spend-down assets instead of strengthening perpetual endowments; shifting best practices to engage ‘end users’ of philanthropic dollars in determining how funds are best spent. It’s clear from her work that the act of giving is happening in ways less isolated and insulated from community than might be suggested by the shortlist of illustrious family names profiled in her work.

There is no doubt that Canada’s charitable sector is facing extreme pressures. While needs are rising, the number of overall donors in Canada is decreasing. A landmark study produced by the Rideau Hall Foundation in partnership with Imagine Canada looked at Canadian giving patterns over 30 years. We found a significant shift in Canadians’ giving patterns. In particular, donation rates are dropping across all age groups. Total giving in Canada is increasing, but only because a smaller pool of affluent donors is giving more. This is a scenario that is likely not sustainable, and should cause alarm given the role that charitable organizations play in the lives of Canadians.  A recent Ipsos poll commissioned by CanadaHelps found that 22 per cent of Canadians planned to use charitable services to meet their basic needs in 2022. Many other Canadians rely indirectly on charitable dollars without recognizing it. Philanthropy, while not the only solution, plays a meaningful role, but the philanthropic sector will need to continue to find ways to build trust and demonstrate accountability. Those who emphasize strong governance, public transparency, and engagement with community are well positioned for lasting impact.

The degree of differentiation within the world of foundations makes it challenging to generalize or come to conclusions about the direction of Canada’s foundations writ-large. However, the reader is left with reasons to be optimistic that foundations can be drivers of meaningful change. They are a set of actors with greater flexibility than public funders, and often with greater appetite and willingness to take risks over a longer-term horizon. In this, foundations have the potential to be drivers of genuine innovation, to take risks that government cannot, and to use their platforms to inform and shift dominant public narratives. Indeed, given their potential for impact they have a responsibility to take on these roles for real systemic change to occur.

Pearson’s book is necessary reading for anyone interested in working toward social change or how resources are deployed to do good. For me, as the CEO of a national charitable organization that attempts to serve as a platform for social good, engaging partners and community in how resources are deployed innovatively and responsibly, the stories in this book provoke inspiration and provide a variety of important lessons learned. Pearson states that “Doing well is uniquely challenging…it takes commitment, humility and a willingness to understand the nuances.”  In this, her writing becomes a relevant and timely read for us all.

Teresa Marques is President & CEO of the Rideau Hall Foundation.