PFC News Five considerations for 2023 Jean-Marc Mangin PFC News 5 mins read December 20, 2022 News & Insights PFC News Five considerations for 2023 Table of Contents 1. Inflation is a major concern for everyone, especially the non-profit and charitable sector, and there is a recession looming 2. Engaging in the new regulatory pathway to fund non-qualified donees 3. Going full-tilt on addressing the sector’s data deficit 4. Our sector must follow-through on commitments to address racism and increase equitable access to resources, especially for Indigenous and Black communities 5. If there ever was a time to step up on climate change issues, now is it Dear members, partners and friends: Canada’s foundations and grantmakers contribute immensely to Canadian society. In 2023, incredible opportunities lay ahead of us, but also some looming challenges we need to keep top of mind to ensure we show up for our communities on the issues that matter. Our partners need philanthropy to lean in to provide support and leadership in meaningful ways. Here are the five key issues that we’re looking at for 2023 that we encourage you to consider and reflect on. 1. Inflation is a major concern for everyone, especially the non-profit and charitable sector, and there is a recession looming It is inevitable that with the state of economy, there will be even more demands on the sector. After a few unprecedented years during the pandemic, charities and non-profits are already challenged by fundraising and maintaining staff, and all eyes will be on philanthropy to assist. Grantmakers should be thinking about how they can step up for those supporting communities and advancing issues we all care about. Responses may include topping up grants to account for inflation, and preparing for more granting despite potential lower returns on investments. Social Finance may also be an interesting opportunity in this climate. In the context of asset classes being volatile, there may be opportunities for long-term returns in new kinds of investing. 2. Engaging in the new regulatory pathway to fund non-qualified donees The 2022 Federal Budget introduced a new framework for charitable partnerships called “qualifying disbursements.” It allows registered charities to disburse funding to both qualified donees and non-qualified donees (NQDs), provided certain requirements are met. Disbursements to NQDs must be to further the charity’s charitable purposes, with records kept to demonstrate this. New draft guidance was shared November 30 that is now being reviewed by the sector. Submissions are due to government by January 31. Together, we will need to provide helpful, constructive feedback to ensure the final guidelines are more user friendly and focused on the policy parameters themselves, rather than potential risks associated with partnerships with NQDs. Our fear is that as is, few in the sector will use the pathway. PFC is hosting a webinar to discuss the guidelines on January 10 (register here). We have shared this member advisory outlining our preliminary assessment, and we are soliciting member input on our submission to the CRA on the guidelines with a survey. Please participate, and share far and wide with your networks. 3. Going full-tilt on addressing the sector’s data deficit With the new regulatory changes to allow grants to NQDs, and the new disbursement quota rate increase, we are in a period where government officials must make changes to the T3010, the annual return all charities must complete. PFC will be using this opportunity to press for improvements to make it simpler for users, increase compliance, and enhance transparency. Another opportunity to take note of is the new five-year Charity Insights Canada Project at Carleton University that just launched. Through weekly surveys it will collect and share accurate, relevant, and timely information about the Canadian charitable sector. With several different data initiatives underway in the sector, now is the time for those working on data issues to come together and coordinate efforts. 4. Our sector must follow-through on commitments to address racism and increase equitable access to resources, especially for Indigenous and Black communities After the Papal visit this past summer and continued calls for action from Indigenous leaders and allies at PFC’s 2022 conference and elsewhere, our sector’s action on Reconciliation remains critical. Initiatives like the Indigenous People’s Resilience Fund, and The Circle on Philanthropy’s new Feast House initiative are excellent examples of avenues for engagement. PFC is honoured to be a supporting ally of the Foundation for Black Communities. We are hopeful that the Government of Canada’s Black-Led Philanthropic Endowment Fund will be disbursed in early 2023 as promised. We encourage all grantmakers to look for ways to get or stay engaged in addressing anti-Black racism in their work. 5. If there ever was a time to step up on climate change issues, now is it 2022 was the warmest year on record globally. As we were reminded at the recent COP meetings, we cannot forget about the urgency and immediacy of crisis. The Canadian Philanthropy Commitment on Climate Change can support grantmakers in developing and actioning climate lenses for their programming, granting and investing. To all our members and supporters, I thank you for being a part of our evolving community and for the important work you do. If you haven’t seen it, check out our new video. Feel free to share with anyone in your network who wants to know more about PFC. We’re here to support a growing network of grantmakers towards a more just, equitable and sustainable world. On behalf of all of us here at PFC, I wish you the very best for 2023. Jean-Marc Share This Article Facebook Twitter LinkedIn Email
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