working with government.ppt

7/27/2019 Working with Government.ppt

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Engaging Members andWorking with Government: A

Case Study from Canada

Hilary Pearson

President & CEOPhilanthropic Foundations Canada

Ottawa, Ontario

October 25, 2005


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Outline of Presentation Policy Issues and Positions

How do we define our positions?

Member Needs and Views How do we engage our members?

Approaching Government The legal framework

Successes and lessons learned


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PFCs Mission Our mission, crafted in1999 when PFC was

created:

to promote the growth and development ofeffective and responsible foundations,and

to foster a social and regulatoryenvironment that encourages philanthropic

contribution Second part is the driver for PFCs

government relations strategy


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Our Policy Issues PFC was created (in part) to advocate on

behalf of private foundations. Why?

A) Tax Policy Issues Longstanding federal government suspicion of

private foundations as vehicles for potentialself-dealing.

Tax policy changes in 1997 discriminatedagainst donors to private foundations. Discrimination particularly unfortunate for charities

because they restricted donations of assets (securities)to private foundations when assets had higher marketvalue in late 90s.


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Our Policy Issues (cont) B) Funding Access for Charities

Previous to 1999, organized private philanthropy wasrepresented through an organization that also represented

charities (Canadian Centre for Philanthropy) Private foundations wanted to add their distinct voice to the

debate over donor incentives and the lack of adequatefunding for charities

C) Regulatory Issues In 2000-04, federal government introduced regulatory

changes to disbursement rules and other tax regulations

System is now much more complex for all charities.


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Our Policy Issues (cont) PFC does not intervene on public policies

at sub-national levels. We also have not intervened up to now in national policy

debates in specific areas such as environment, aboriginalaffairs, or external affairs.

Our mandate focuses on the publicregulatory environment and on promotion

of philanthropy We have no research capacity as an association to weigh in

on policy issues in key areas such as social services, health,education etc.

Our role is to inform and to convene on these issues.


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Defining a Position Policy positions are defined by our Board of Directors

Elected annually from the membership Now at 15 directors Representative of the range of foundations

Executive Director drafts initial positions Reviewed by two Board Committees (Government Relations, which

includes Board and non-Board members, and Executive)

Executive Director typically presents PFCs positions Presentations to committees of members of Parliament Discussions with officials Dialogue with Ministers Conversations with media


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Member Needs and Views Informing them

We communicate regularly with members on regulatory issues Monthly newsletter Bi-annual member advisories

Member seminars on tax and regulatory issues Briefs to parliamentary committees

Soliciting their opinions We survey members on specific issues We ask for feedback by email and we get it We answer them on individual issues

Giving them feedback Through the newsletter Through our annual report Through memos on specific topics


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Member Needs and Views (cont) Do member views diverge?

So far, we have avoided divisive debates We have unanimity on the importance of more favourable tax

incentives for donors to private foundations

Consistent support for PFCs positions on regulatory issues ofimportance to the charitable sector, such as rule complexity.

Members want faster action Members are sometimes frustrated with the slowness of policy

change Context of policy work is unfamiliar to most.

Internal debates within government are of less interest to privatedonors. But no member has withdrawn because of lack of progress on

policy changes. Policy change is understood to be evolutionary


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On Engaging Members: Reflections Members are not uniformly interested in the

policy/advocacy role For many, the associations role in advocating for tax changes has

not been a main reason for joining.

Members value the learning and networking benefits more than thevaguer policy change benefits.

Complexity of tax and regulatory issues discourages manymembers from participating actively

Staff lead the work of advocacy on behalf of members.

Nevertheless, the advocacy role has been critical to

building visibility and credibility for the network Members value the association more highly because it is seen as

part of the charitable sectors leadership umbrella organizations. Some members also see the association as an important vehicle

for contributing more effectively to federal policy discussions onsector regulation.


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Approaching Government PFC is a registered charity in Canada

This status imposes certain constraints on our politicaladvocacy role.

Substantially all of our resources must be devoted tocharitable purposes and activities. The 10% rule: Political activities can absorb no more than

10% of a charitys resources annually (if charitys annualincome is over $200,000). Smaller charities can use up to 20%of their resources.

Clearly partisan political activities are ruled out.

Advocacy for a particular policy change must be approachedcarefully and with balance. Charities can engage in letter writing campaigns, rallies or other

organized mass campaigns. But they must not exceed the 10%rule.


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Approaching Government (cont) What is allowed political activity?

Political activities of charities, according to law,include the following: If a charity explicitly indicates in its materials (whether

internal or external) that the intention of the activity is toincite, or organize to put pressure on, an electedrepresentative or public official to retain, oppose, orchange the law, policy, or decision of any level ofgovernment in Canada or a foreign country then this isconsidered a political activity.

A charity risks revocation of its status if itoversteps the 10% limit. Implies that charities have to keep careful track of staff

time and expenses on advocacy work.


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Approaching Government (cont) Canadas charity law in effect puts a chill on

advocacy work for many Umbrella groups and associations such as PFC and CFC

must keep a watch on the extent of their activities, if theyinvolve advocacy for policy change.

Within this constraint, there are many avenues: Working directly with parliamentarians

Working with officials

More rarely, working with media and communications orgovernment relations specialists.

Working with partner organizations in the charitable sector.


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Successes and Lessons PFC has worked for six years to obtain a specific tax

policy change. We have not yet obtained it.

Can we claim success? No, if measured by the announcement of the desired

change.

Yes, if other measures are used, such as: Increased access to civil servants

Successful clarification of underlying issues through data

Increased visibility to elected officials Increasing numbers of public statements of support for the

change.

So, yes we do claim success, measured incrementally.


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Successes and Lessons (cont) What are our success factors?

Proximity/regular contact with government

officials Staff or Board knowledge of government

processes and culture

Good data Allies (or a lack of opponents)

Being in the right place at the right time


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Successes and Lessons (cont) Some of the lessons we have learned:

Be consistent

Be persevering Cover all possible bases (political and

bureaucratic)

Develop solid research and good data

Seek and gain support from otherorganizations

Be vigilant for the right moment to push forchange.


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Annex: Information on PFC


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PFCS Organizational Goals (1999)

To become a centre of ideas, learningand mutual support for foundations;

To increase public awareness of the value

of private foundations and to provide assistancein the development of new foundations;

To serve as a positive voice for the foundationsector and an effective vehicle for its membersto express their views to government;

To provide leadership in the foundation sectorthrough the identification and encouragementof best practices and principles;

To serve as a resource on philanthropy

and foundations at large.


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Who are PFCs Members?

PFC has 82 members; Majority are private family foundations

Also some independent non-family and public foundations

Members from across Canada Distributed among large, medium, small foundations

Large ($50M+) 28%

Medium ($10M to $50M) 31%

Small ($10M-) 41%

Total assets of about $ 4.5 billion Represent half the assets of active family foundations


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The Foundation Sector in Canada

In 2004, 2,324 act ive grant makingCanadian foundations* Of these, 83.7% are family foundations (1,946)

Others include community, corporate andspecial purpose foundations

Few have assets of more than $50 million

Majority of family foundations have assets

under $10 million* Source: Imagine Canada online data (16 May 2005) from Directory to Foundations and Corporations. As at

December 2004, the number of CRA registered foundations is 8,500.

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