The world is moving so fast, with so much coming at us, that we in the Canadian charitable sector often feel like we’re being carried away by this huge wave, rather than able to chart a course for where we want to get to.
The AFP Congress 2018 was based on the theme “Disrupt Philanthropy”: either through incorporating digital better, or trying out new fundraising techniques, or even just allowing ourselves to be the fundraiser we want to be – to radically change how we fundraise in Canada.
Mark Blumberg, in his session took this a step further, that we need to look even beyond our borders: how is disruption in the philanthropic sector in other countries going to impact Canada?
Mark Blumberg didn’t put it this way, but I believe it’s a combination of looking at:
• our neighbors, the US, who are also the trendsetter for global culture and the leader in world affairs and finances;
• our precursors, the UK, with whom we share a strong historical and social connection;
• our cousins, Australia, who have evolved in parallel to Canadians and face some of the same challenges we do.
Understanding disruption in these other philanthropic markets serves as a combination of global barometer (what is the state of charities worldwide), as well as spotting possible “canaries in the coalmine” that could hit Canada in the near future.
For instance, the UK charitable sector was enormously disrupted by the media frenzy surrounding the suicide of Olive Cooke, a 92-year-old poppy seller struggling with depression. Her death was attributed in large part to the nearly 3000 requests for donations she received from charities in a year.
Based on the fact that Cooke had not proactively opted out of data sharing, her name was exchanged or sold across charities, and to commercial third parties, raising concerns of how transparent charities truly are about their data sharing.
How would we react in Canada if something like this happened? Do our charities have clear unambiguous guidelines on how we share data? Do we take the easy approach and assume permission because someone has not opted out, or do we take the harder route of proactively asking for opt-in permission?
Tax law is also very important to understand in this world where money crosses borders in seconds. In the US, the standard deduction for a couple has doubled to USD $24K, meaning unless you have this much in expenses for charitable donations, mortgage deductions, medical etc, you don’t need to “itemize.” In reality, only the very wealthy reach this amount in deductions (about 5% of Americans).
Another way to look at this is, is that for 95% of Americans, who do not hit that USD $24K amount, a US tax receipt may not save them in taxes, meaning there is an opportunity here for foreign charities to give these citizens of the world a pitch to invest in causes north of their border (environmental charities come to mind).
These are just a few of the nuggets from Mark Blumberg’s session.
This is a recap from the AFP Congress 2018 session Disruption in US, UK & Australian Philanthropy and its Impact in Canada, presented by Mark Blumberg, LL.B, LL.M, TEP, Partner at Blumberg Segal LLP.
Recap by Khalil Guliwala
Anyone interested in the charitable sector is strongly encouraged to visit https://www.canadiancharitylaw.ca/ and also the www.CharityData.ca website, and to attend sessions presented by Mark Blumberg.
