Philanthropic Foundations Canada’s new research agenda aims to address the data gap and enhance accountability, transparency, and practice.
Philanthropy is not just a part but a quintessential component of Canadian life. In the past decade, the nature of philanthropy, including its wealth and impact, has been scrutinized. Research conducted in the United States and the United Kingdom has often been extended or applied to the Canadian jurisdiction. Over this same decade, significant contributions have been made to build our understanding of the Canadian experience, specifically spurred by research by networks and programs such as PhiLab and Carleton University’s Master of Philanthropy and Nonprofit Leadership (MPNL). These research efforts have yielded important perspectives on individuals, institutions, and the field of Canadian philanthropy, underscoring the urgency and importance of our new research agenda.
While we are fortunate to have comprehensive data from the Canada Revenue Agency’s annual form, the T3010, that all charities must submit, it’s not without its challenges. Researchers working with this data face hurdles related to data quality, the time-consuming task of cleaning and verifying data, and the limitations of the CRA’s questions. The form is designed with charity regulation in mind rather than for research purposes. Some research questions remain unanswered, underscoring the need for resourceful research designs and partnerships to advance Canada’s philanthropic research.
The inaugural 2024 Landscape Report, which marks the beginning of PFC’s research initiative, is a significant step toward a comprehensive analysis of the Canadian philanthropic sector.
Building on past research and to further enrich the research ecosystem, Philanthropic Foundations Canada (PFC) is launching a new research agenda. This initiative aims to delve deeper into the organizational aspects of Canadian foundations, focusing on their practices and internal factors that shape their functioning and impact. The inaugural 2024 Landscape Report, which marks the beginning of this research initiative, is a significant step toward a comprehensive analysis of the Canadian philanthropic sector.
Research framing: Analyzing Canadian foundations
The 2024 Landscape Report demonstrates growth among key indicators of foundation work. Since 2005, the number of Canadian foundations has grown by approximately 2,200, a 25% increase. Foundation assets have increased by $100 billion since 2008, and grantmaking amounts from 2018 to 2021 increased by 23% for public foundations and 72% for private foundations. What’s more is that in addition to providing new key statistics, the report provides a framework for analyzing how philanthropic foundations might consider their purposes, approaches, and roles in support of Canadian civil society. This view is different from strategic planning; it is a reflective approach to consider how in Canada the tool of the philanthropic foundation is used.
The new research agenda will focus on analyzing Canadian foundations at two levels: organizational practices and internal dynamics.
The new research agenda at PFC builds from this perspective, focusing on analyzing Canadian foundations at two levels: organizational practices and internal dynamics.
First, PFC aims to help readers better understand the organizational practices of Canadian foundations, including their policies, strategies, and operational approaches, aiming to uncover best practices, common challenges, and innovative methods used by foundations to fulfill their philanthropic missions.
Second, PFC wants to delve into the internal dynamics of foundations – the people that comprise foundations – by examining the roles and functions of staff and boards, to better understand how the core inner actors interact with organizational goals and societal expectations. PFC’s dual research focus is crucial as it provides a comprehensive view of how foundations operate and how external and internal factors influence their effectiveness and societal impact. PFC’s second new report, Working in Foundations, will focus on the internal dynamics of philanthropic foundations, drawing from PFC’s previous compensation data and highlighting important issues in the sector, such as diversity, equality, and inclusion.
The research agenda will address quantitative data gaps by recognizing the limitations of the CRA’s form, underscoring the importance of qualitative insights.
PFC’s research agenda will address quantitative data gaps by recognizing the limitations of the CRA’s form, underscoring the importance of qualitative insights. Extensive interviews with foundation staff, board members, and other stakeholders will provide nuanced perspectives on the internal dynamics of foundations. PFC will continue producing its regular Investment Survey and Compensation Survey to complement this approach. These surveys offer valuable data on foundation investments and compensation practices, serving as stand-alone resources for members and contributing to the broader research agenda. These insights are crucial for understanding how internal factors influence foundation practices and impact. PFC will publish its next Compensation Survey in 2025.
Complementing research in the field
The new research agenda at PFC is designed to complement and build upon previous philanthropic research conducted by institutions such as Carleton University and the PhiLab network and the initiatives these leaders bestow to our sector. The 2024 Landscape Report was possible due to a collaboration between PhiLab and PFC to create a post-doctoral role. Recognizing the value of this type of collaboration, PFC, the MPNL program at Carleton, and PhiLab have created a memorandum of understanding to facilitate closer working relationships, enabling the sharing of resources, expertise, and insights to advance philanthropic research in Canada. Such collaborations will ensure that the research on our sector is more comprehensive, inclusive, and aligned with the sector’s evolving needs.
As the philanthropic sector becomes increasingly complex, there is a growing need for accountability, transparency, and demonstrable impact. The insights gained from this research will inform both practice and policy within the philanthropic sector. Policy-makers can use the findings to design a more effective regulatory environment for foundations, while practitioners can use them to help them adopt best practices and innovative approaches identified through the research. As part of developing the research agenda, PFC will draw together an advisory committee to offer peer review and further collaboration among Canadian philanthropic researchers and others in this research arena. This agenda addresses needs by providing data-driven insights and fostering reflective practices for philanthropic foundations.
Conclusion
The 2024 Landscape Report reveals the gaps in our research knowledge, particularly around foundation grantmaking, inclusion practices, wider narratives of Canadian philanthropy, and the use of new giving tools. Qualitative research is critical for exploring these areas and generating nuanced insights. Yet, most research can shine a light on only a small percentage of the 11,000 Canadian foundations. The new PFC research agenda marks a significant shift for the organization and is an embodiment of its forthcoming 2025 to 2028 strategic plan, which aims to ensure that PFC is more relevant for the sector than ever. Addressing existing data gaps through resourceful research designs and partnerships, the agenda will offer valuable insights that will inform policy and practice within the sector and provide a comprehensive and nuanced understanding of how foundations operate and how they can enhance their impact. Ultimately, this research agenda fosters reflective practices, enhances accountability and transparency, and supports strategic philanthropy, contributing to a more effective and impactful Canadian philanthropic sector.
