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May 15, 2008
The Star Phoenix
Cassandra Kyle
Philanthropists want to see their money at work
Growing number of donors offer long-term commitment to assist community needs
When billionaire investor Warren Buffett announced a $30-billion-plus donation to a charitable organization in 2006, philanthropy became ultra-fashionable, says a leading Canadian expert on giving.
"Ever since Warren Buffet gave his $33 billion to the (Bill and Melinda) Gates Foundation, word of that went around the world, it just reverberated, and it's been really cool to give your money away," said Marvi Ricker, vice-president and managing director of philanthropic services for BMO Harris Private Banking.
"If you're a celebrity, if you're a wealthy businessman, you better be doing it -- it's the new 'in' thing to do."
Ricker, who advises more than 50 wealthy clients nationwide on philanthropic giving, says Canadians are changing the way they help worthwhile causes, and being rich is no longer a prerequisite to becoming a philanthropist.
"You don't have to be Bill Gates to do philanthropy, because there are lots of people who just write big cheques and I would say they're just doing charitable giving, they're not doing philanthropy," said Ricker, who was in Saskatoon Wednesday meeting with clients.
The difference between charity and philanthropy, she explains, is that charitable giving involves the donation of money for immediate relief to a cause while philanthropy is a long-term commitment that works to get to the root of a problem.
"A very simple example is you see somebody begging on the street, you give them $10, that's charity. The philanthropic approach to that situation would be to figure out why those people are homeless," she said.
As Canadians age and become wealthier (about 800,000 citizens are millionaires), they are becoming more emotionally invested in causes important to them, Ricker said, adding they want to have a say in what their money and time is being used for. Many new philanthropists are drawn to at-risk youth, wanting to give them the opportunities not always available to marginalized children and teens, she said.
International aid, Ricker added, is increasingly becoming a more popular target for philanthropic donations.
"Our world is shrinking in the sense that we know what's going on, we see the pictures of the cyclone disaster in Burma or the earthquake in China and we can empathize with the situation there," she said.
In Saskatoon, Trevor Forrest, executive director of the Saskatoon Community Foundation, has seen the number of philanthropists in the city grow by incredible amounts during the past few years. He says people want to give back to the community that nurtured their personal and professional growth.
"I think there's more people who are really beginning to appreciate what Saskatoon, Saskatchewan and Canada has provided in terms of a lifestyle and I think they are becoming appreciative of that," he said. "I think for some of our donors, they really want to make a difference in our community for generations to come rather than just today."
Philanthropy isn't about giving millions of dollars, it's about dedication to a cause, Forrest explained. Even a small financial or volunteer commitment can go a long way.
As the national interest in giving grows, Ricker would like to see more people become involved in philanthropic movements. While charitable giving remains an important part of assisting causes that vary from environmental concerns to health care to women's shelters, a long-term take on giving is a more effective approach to issues and crises.
"It's not a question of how much money you have, it's really the approach you take to giving," Ricker said. "Philanthropy isn't writing big chequest's really identifying how you can make a difference."
