Laird Hunter

LawNow December 2000 / January 2001

Talking About Charities: At Long Last

A recently published research report - Talking About Charities: Canadians Opinions on Charities end Issues Affecting Charities (Michael Hall and others, October 2000) - contains important, timely information which needs to be taken into account in the variety of current discussions about the place and role of charities in Canadian society. Earlier columns here have chronicled the diversity of venues in which organized philanthropy is being examined (see "Looking Back in Wonder", LawNow Feb/Mar 2000).

It was this context which led the Muttart Foundation to commission the Canadian Centre for Philanthropy to conduct a national public-opinion poll to explore Canadians' attitudes about charities and about some of the issues affecting charities. "Governments are seeking to define their relationship with the sector. Funding for some charities is being reduced. Discussions are taking place about whether charities should be able to operate businesses. . . . The Muttart Foundation felt it was time to give Canadians the opportunity to express their views on some of these questions."

Between May and July 2000, a total of 3,863 Canadians completed a telephone survey. The sample was drawn in a way to provide data that was statistically valid at both the national and provincial levels.

The survey focused on seven areas:

(1) the perceived importance of charities;

(2) advocacy;

(3) funding;

(4) business activities by charities;

(5) fundraising practices;

(6) trust in charities; and

(7) accountability.

The report provides valuable insights into the attitudes of the Canadian public towards charities and their activities. It also provides some context for discussions about appropriate public policy regarding these institutions. It shows that Canadians consider charities to be increasingly important and to have a better understanding of the needs of the average Canadian than does government. Moreover, there is strong public support for charities speaking out on social issues like the environment, health care, or poverty. The majority of Canadians feel that either there should be no limit on advocacy expenditures or that the limit should exceed the current legal limit of 10% of charities' resources.

In keeping with their views about the importance of charities, most Canadians believe that they are under-funded. Nearly half think that government and almost two-thirds think that businesses should increase the funding that they provide to charities. Forty percent of the respondents think that individual Canadians should be giving more to charities while only 38% think charities should try to address their under-funding by doing more to earn their own income. A majority of Canadians, however, are in favour of allowing charities to undertake business activities with the proviso that the proceeds go to support their charitable programs and services.

Canadians, do, however, have a number of concerns about some of the activities of charities. Despite the recognition that charities need to devote energies to fundraising, there appears to be substantial dissatisfaction with some of their fundraising activities and little tolerance for the use of commission-based fundraisers.

Charities appear to be generally trusted by Canadians, but there are perceptions that they spend too much on operating expenses, and there appears to be a desire to have limits set on these expenses. However, few Canadians are able to estimate the percentage of charity revenues that go to operating and fundraising expenses. This may help to explain the large percentage of Canadians who identify the need for more information both about the work that charities do and the way they spend their money. Although charities are highly trusted, a large majority of Canadians appear to believe there is a need for greater monitoring of charities and their spending. The perceived need for greater monitoring may, however, be due to the fact that most Canadians are unaware that organizations currently exist that monitor charities and some aspects of their spending.

Everyone interested in the future of organized philanthropy should read a copy of this study and determine where their own views fit. More to the point, each reader should be able to explain their position. From the informed conversation that could follow, useful and appropriate public policy might just result.

Talking About Charities: Canadians Opinions on Charities end Issues Affecting Charities (ISBN 0-9687041-5-8) can be obtained from The Muttart Foundation, (780) 425-9616, www.muttart.org.

The Canadian Centre for Philanthropy (now Imagine Canada) can be contacted at www.imaginecanada.ca.

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