- Experts offer strategies to help charities recession-proof their
    organizations -VANCOUVER, July 22 /CNW/ - While the current economy is proving a
challenge for charitable organizations, three philanthropic experts offered
125 British Columbia charities and foundations advice to weather the storm at
the Scotiabank Philanthropic Advisory Forum: Surviving and Thriving in Tough
Economic Times, held in Vancouver today.
    Nationally-known gift planner Malcolm Burrows, Head, Philanthropic
Advisory Services, Scotia Private Client Group, noted that the philanthropic
landscape has changed as a result of economic pressures and conceded that some
Canadian not-for-profits will go out of business during the next three years.
    "After unprecedented growth in receipted donations from 1995 to 2007,
charitable giving is on the downswing, something we haven't seen since the
early 1980s," said Mr. Burrows. "To survive in this economic climate,
charities and foundations can't afford to stick to the status quo."
    Fellow panellist, Janet Austin, CEO, YWCA Vancouver, echoed the
sentiment: "In order to position ourselves well for the future, it is
important for charities to develop a more entrepreneurial mindset by embracing
change. This requires the ability to be flexible so we can move quickly and
decisively to take advantage of new opportunities."
    In reviewing the top trends characterizing today's philanthropic
environment, Mr. Burrows, Ms. Austin and fellow panellist John Cairns,
Regional Vice-President, BC and Prairie Region, Investment Management
Services, Scotia Private Client Group, provided strategies to help charities
adjust to the new philanthropic environment they find themselves operating in.1.  Major gifts and campaigns. Major gifts are on the decline.
        Universities, hospital foundations and community foundations, which
        were among the biggest beneficiaries of increased giving since 1996,
        are also the most major gift-dependent charities and are expected to
        see flat fundraising revenue for the next three years. As a result,
        capital campaigns are being delayed and deferred. Until the economy
        improves, charities would be wise to use this time to focus on
        strategic planning.

    2.  Bequests matter. With major gifts on the decline and growth in
        private foundations and donor advised funds flattening, charities
        must place a renewed emphasis on planned gifts. Canada's aging
        population, the trend to smaller families and greater affluence point
        to increased funding through estate plans.

    3.  The loyal middle. Charities with broad, deep donor pools will see the
        least volatility, particularly those with an international, health or
        religious scope. Despite the recession, people who donate a portion
        of their income are unlikely to pull back unless job losses climb to
        U.S. levels. Older donors tend to be more consistent. Focusing on
        long-term relationships and showing donors the impact of their gift
        will be critical success factors going forward. It is important to
        remember that people don't give to charities that have needs; they
        give to charities that address needs.

    4.  Special events. Grassroots and special events that offer an
        "experience" are expected to continue to thrive however, obtaining
        corporate sponsorship will be a bigger challenge.

    5.  Online donations. While online accounts for under three per cent of
        overall fundraising, it will continue to be a growth area,
        particularly for special events. However, online donors tend to be
        one-time donors, so charities need to focus on developing loyalty
        tools.

    6.  Foundation grants. Granting budgets are shrinking and are expected to
        stay below 2007 peak levels for up to three years. Foundations are
        expected to revise their programs to meet community needs, with a
        focus on charities they already support.

    7.  Endowments. Assets in Canadian charity endowments declined an
        estimated 10 to 30 per cent in 2008 due to the market crash and, as a
        result, many charities are not making endowment payments this year.Reduced capital and annual returns are exerting pressure on the endowment
model. "It has never been more important for foundation boards or investment
committees to create or review their Investment Policy Statement (IPS)," said
Mr. Cairns, who offered investment management advice for foundations and
endowments. "An effective IPS will optimize a foundation's risk-return
trade-off while taking into account unique circumstances and objectives."
    The forum, held at Scotiabank Theatre in Vancouver, was attended by
almost 300 representatives of Lower Mainland and Fraser Valley-based charities
and foundations.
    To listen to a recent podcast of Malcolm Burrows and ScotiaMcLeod's
Director of Equity Trading, Fred Ketchen, discussing the current environment
for philanthropic giving, subscribe to the Scotiabank Podcast on iTunes or
visit scotiabank.com/podcast and click on the 'Scotiabank Podcast'. The
podcast will be available on July 23, 2009.

    YWCA Vancouver is a registered charity, providing a range of integrated
services for women and their families, and those seeking to improve the
quality of their lives. From early learning and care to housing, health and
fitness, employment services and leadership, YWCA Vancouver touches lives in
communities throughout Metro Vancouver.

    Scotia Private Client Group provides customized wealth management
solutions to affluent Canadians in 14 Centres across Canada. Relationship
Managers lead a team of experts in the following financial disciplines:
Planning, Private Banking, Investment Management Services, Estate and Trust
services and income and asset protection strategies to provide a holistic
financial plan. For more information please visit
www.scotiaprivateclientgroup.com.

    Scotiabank Group is one of North America's premier financial institutions
and Canada's most international bank. In 2008 the Bank provided more than $43
million in sponsorships and donations to a variety of projects and
initiatives, primarily in the areas of healthcare, education, social services
and arts and culture. To learn more about how Scotiabank supports the
communities where its employees live and work please visit www.scotiabank.com.