Personal Philanthropy
Have you worked out a strategy and structured approach for your personal philanthropy that will allow you to make a difference that is meaningful to you and the artistic projects you want to support? Do you want to leave an enduring legacy for yourself or someone you love?
Private money has been a mainstay of arts funding in Ontario. This support often comes in the form short-term infusions of cash for immediate use, but many thoughtful individuals are shifting towards longer term, more sustainable approaches that build a more financially secure future. These approaches reflect personal philanthropic values and a desire to build an enduring personal legacy in the arts.
Our values and objectives align with yours, as our mandate is to build a stronger arts community through fostering long-term financial solutions that serve both philanthropists and the causes they support. We are dedicated to working with you and your professional advisors to achieve your philanthropic objectives with a customized solution that may involve several components: for example, long-term funding through a combination of income and capital payouts; bequests; private grants; awards and scholarships.
Our slim organizational structure allows us to respond nimbly and cost-effectively to your needs and, as a non-profit organization, our primary focus is not asset gathering, so we have no conflicting agendas. Through our seasoned board of directors, staff and leading investment managers, we offer the resources you need to make informed decisions about your personal philanthropy and how it should be structured, financially and legally.
Along with our technical knowledge and expertise, we have a deep knowledge and understanding of the arts world that is constantly updated through our wide network of contacts. We may be able to guide you in some broad decision-making, such as selecting artistic projects or arts organizations to support with your philanthropy. If you need assistance with more specific tasks, such as building short lists of candidates for awards and prizes or setting up juries for the adjudication process, we can often be of help through our long association with the Ontario Arts Council. In certain situations, it may be appropriate to approach their sector experts on your behalf.
We’re here to serve you. Please call us to set up an appointment to talk about your various options.
There are other sources of philanthropic services. Why work with us?
Quote from Bruce Bennett, Executive Director of the Ontario Arts Foundation
“For those that have determined that they are committed to a longer-term philanthropic strategy, there are many different options and levels of complexity. The Ontario Arts Foundation provides one set of options that are aligned with those interested in supporting the arts. These options also allow for flexibility in long term involvement of the donor and very little administration is necessary. ”
If you find it most rewarding to support individual
accomplishments in a particular art form, you may want to consider establishing
a fund to offer awards and scholarships. These can be structured to support
artists at various stages along their career path:
1. Students or
emerging artists: scholarships might be set up to create educational or
training opportunities
2. Mid-career artists:
awards might allow a mid-career artist to focus on a project or new initiative
3. Artists who have
reached full stature: awards might acknowledge a lifetime of achievements
“Louis
was a generous artist who did much to further the professional careers of young
singers through his many years of teaching and master classes. I am proud
to now be able to extend his personal generosity to pianists and composers as
well.”
– Christina Quilico, established the
Christina and Louis Quilico Award
Did you know?
Because arts awards are not
considered a form of taxable income under Canada’s Income Tax Act, 100% of your
award is available to the recipient.
We would be delighted to help
you structure a fund to offer awards and scholarships. We recommend that you
give some thought to the following as you build a roadmap for expressing your
support for the arts in this way:
Reflect on the history of
your past support and involvement of the arts or individual artists (or that of
a family member, if you are considering a memorial fund)
Decide what you would like to
accomplish and put it in writing in the form of a mission statement or other
expression of your philanthropic objectives. In this process, consider:
•
What specific form would you like your support to take and how will this
reflect your values? Do you want to recognize lifetime achievements, help young
artists in their studies, recognize emerging talent through an award, etc.?
• Brainstorm to find some creative approaches to solving the
funding challenges faced by artists.These will vary according to which phase of
an artist’s career you decide to support, whether emerging or accomplished, for
example.
What are the financial
considerations?
• Would you like to establish
an endowment fund or a fixed term fund?
•
Over what time horizon do you want the fund to operate: one to five years, 10+
years, perpetual?
•
What amount do you need to fund in order to create the award /scholarship
amount you are considering?
•
How will you give: tax planned, legacy/bequest, annual, staged funding?
How involved would you or
your family like to be in the awards/ scholarship process and what might that
involvement look like?
How would you build
flexibility into the arrangements you are making? For example, what will happen
if circumstances change and how would you like the fund to reflect that change
(i.e., in terms of goals, format, amounts)?
The role of the Ontario Arts
Foundation
• Administration
•
Jury selection/adjudication: we can help facilitate jury selection
•
Fund management
•
Issue tax receipts/manage memorial donations
Defining success: We can help
you establish some metrics for determining a successful outcome for the fund
you establish.
First, let’s talk about what’s not involved! Long-term funds are often set up by private foundations, which can be complicated, time-consuming and involves the following activities:
· Incorporating a private foundation
· Securing registered charity status
· Selecting and engaging an investment manager
· Developing and implementing a plan for the work of the private
foundation
· Conducting the day to day management of the foundation
· Preparing the Annual Canada Revenue Agency filing (T3010 – A)
· Making arrangements for succession planning to ensure that
philanthropic goals are achieved in the next generation
By contrast, establishing a fund at the Ontario Arts Foundation is an attractive and economic alternative. The process is straightforward and uncomplicated.
- A donor makes a gift to the Foundation and receives an official receipt for income tax purposes.
- The donor enters into an agreement with the Foundation that sets out the terms under which the Foundation will hold the fund and describes the charitable purpose for which the fund is established.
The donor is assured that his/her philanthropic goals will be achieved now and in the future!
** Examples of Private Funds, Awards and Scholarships **
Fundraising campaigns can leverage major gifts in several ways. One of the most successful strategies is to issue ‘matching ‘ challenges, where a key donor promises to match funds raised, usually to a specified level and within a certain timeframe. The arts organization can then galvanize their base of smaller donors by telling them that their donations will be doubled if they contribute by a certain date. Some arts organizations have tripled a seed donation by using this leveraging strategy: i.e., by working a large government grant into the equation along with the large private gift, or finding another private donor or two to match the initial gift if the organization is successful in its campaign with smaller donors.
This fundraising strategy is an excellent approach to building towards a financially secure future while taking care of immediate operational and programming needs. The original gift may be held in a long-term fund, with the matching funds put to immediate use. Arts organizations often find that this approach helps them attract the kind of donor who is interested in building a legacy in the arts world and takes a strategic approach to deploying their philanthropic capital.