This text is part of the special section Philanthropy
If, traditionally, granting foundations have not always had an interest in the climate issue, more and more of them are looking for ways to get involved for the environment, according to experts in the field.
“I would say that it’s easily less than 5% of philanthropic donations in Canada that go to environmental issues. So there is a lot of catching up to do,” explains the President and CEO of the Foundation of Greater Montreal, Karel Mayrand, who previously worked at the David Suzuki Foundation.
If the latter brought his sensitivity for the environment to the Foundation of Greater Montreal, he believes that the foundations will be more and more brought to collaborate and even to share their know-how.
“There are other Montreal philanthropic foundations that want to do something about the climate and the environment in Montreal. We have brought these foundations together around the same table to ensure that the foundations which have more experience on the issue can exchange views with those which have a great deal of interest, but which do not necessarily know which end to take this stake. Currently, there are easily half a dozen philanthropic foundations in Montreal looking for concrete ways to get involved in ecological transition and for the climate. It’s really unblocking, ”he says.
An opinion shared by the Executive Director of the Trottier Family Foundation, Éric St-Pierre, who invites foundations, even those whose main goal is not the environment, to open up to this issue.
“I would like foundations to find ways to include the climate in their objectives, whether it’s with the grants they offer or their endowment by making eco-responsible investments,” he says.
Eco-responsible investments
In addition to making grants on the issue of ecological transition to charities, another way of investing in the climate for foundations is to place their endowment so that it works for the environment, and not against it. -this.
“For example, at the Foundation of Greater Montreal, our assets are $420 million, while we pay out maybe $16 to $20 million in grants a year. When we say 420 million, we have to think about how this money is invested. We therefore adopted a responsible investment policy last fall. Basically, we have made a commitment, for all of our assets, to put ourselves on a trajectory in line with the Paris Agreement,” explains Mr. Mayrand.
Currently, there are easily half a dozen philanthropic foundations in Montreal looking for concrete ways to get involved in ecological transition and the climate. It’s really unlocking.
In addition to working together on climate issues, these types of initiatives have attracted several new placements at the Foundation of Greater Montreal.
For its part, the Trottier Family Foundation has decided since 2015-2016 to eliminate all investments relating to fossil fuels: “Since then, we no longer have any assets in coal, natural gas and oil”, indicates Mr. St-Pierre.
Current needs
To be able to give more to climate issues, the philanthropic community is also calling for changes in the rules so that organizations wishing to be recognized by the Canada Revenue Agency can do so more easily.
“Environmental organizations are younger, and that’s often a barrier. There are initiatives that we would like to fund, but we can’t because the law [Loi sur l’impôt sur le revenu en lien avec les donations] requires us to fund only organizations qualified by the Canada Revenue Agency,” explains Mr. Mayrand.
He believes that when the law was written, the environment was not included, because it was not an issue at the time and that, as this area is indirectly included in the law, it makes so that it is “perhaps more difficult” for these organizations to obtain their status.
Karel Mayrand also mentions the need to fund advocacy activities.
“We also need to play with taxation and regulations, a bit like we did with the issue of smoking at the time, and often the philanthropic community will fund research, but will not want to fund of advocacy, he sums up. And without these, the laws do not change and, if the laws do not change, we do not achieve the environmental objectives. »