The full value of our philanthropic contribution
(Updated October 2024)
Our organization seeks to use its financial capacity to benefit Québec society by helping to prevent poverty and all other forms of inequality to ensure that all children and youth living in the province have the opportunity to develop their full potential. We want to be prepared to meet the needs of today and tomorrow.
To do so, the Foundation is committed to the following:
- Optimizing its grantmaking to organizations and networks whose objectives are in line with the Foundation’s mission.
- Investing a portion of its capital in social initiatives that reflect its mission.
- Making investments that allow the Foundation to maintain the value of its long-term assets (in constant dollars) for the purpose of preserving its granting and program capacity, recognizing that it may take generations to achieve the social change that we aspire to.
- Complying with the Canada Revenue Agency disbursement quota requirement.
- Keeping its overhead costs to a minimum by adopting operating, administrative and governance practices that are rigorous, effective and efficient.
Financial
assets
Endowed with a capital of $1.4 billion when it launched its activities in 2000, our foundation today holds assets in excess of $2 billion. It is a private foundation that was created through a final donation from the Chagnon family. Its revenue may not be used for the personal benefit of any its members or directors.
Disbursement
quota
requirements
Every year, as a registered charity, we comply with the Canada Revenue Agency (CRA) regulation that requires us to disburse a certain percentage of our assets* called the disbursement quota. As of January 2023, this amount has been set at 5%, up from 3.5%
We welcomed the Canadian government’s decision to increase the disbursement quota from 3.5% to 5%. In the fall of 2020, we had announced our intention to implement a potential increase of $150 million in grants over the next five years, taking into account grantees’ rhythms, needs and capacities. The purpose of this decision was to increase our total contribution from the previously earmarked $350 million to a maximum of $500 million, representing a yearly average payout of 5% of our capital
We then reaffirmed this commitment by endorsing the position of Philanthropic Foundations Canada recommending that the disbursement quota be increased from 3.5% to 5% in September 2021. This recommendation was taken from the PFC’s submission to consultations by the Government of Canada on “potentially increasing the disbursement quota and updating the tools at the Canada Revenue Agency’s disposal, beginning in 2022.”
Starting in 2017, with the progressive rollout of our current orientations, our philanthropic contributions increased while our partnerships with the Québec government (Québec en Forme, Avenir d’enfants and Réunir Réussir) were winding down.
In all, between 2017 and 2023, our philanthropic contributions totalled $520 million:
- 2023 : $110 million
The year 2023 marked the creation of our annual employee donation program, which enabled us to pay out $580,000. Launched during the December holiday season, this program gives our employees and board members an opportunity to provide ad hoc support to an organization whose cause is close to their hearts, in keeping with our mission. - 2022 : $93 million
In 2022, we made our first investment in community-owned infrastructure. - 2021 : $72 million
Over $1 billion paid out since we launched our operations in 2000. - 2020 : $63 million
This year was marked by the creation of an emergency fund in response to the COVID‑19 pandemic. - 2019 : $62 million
- 2018 : $59 million
- 2017 : $61 million
We are constantly looking for optimal ways to intensify and diversify our support at our partners’ rhythm at a time of great uncertainty and upheaval (post-pandemic, environmental crisis, inflation, economic pressure on the most vulnerable population groups, labour issues in most sectors, etc.)
Although it is not currently the case, it is possible that we could have a deficit year with respect to the disbursement quota we are held to by the CRA. If that happens, we have the possibility of applying the CRA regulation that permits organizations to draw on their disbursement excesses from previous exercises to offset a shortfall, rather than requiring our partners to maintain their planned deployment schedule just to ensure we meet our quota
* Calculated based on the value of a charity’s property that is not used directly in charitable activities or administration (source: CRA).
A portfolio consisting primarily of donations to non-qualified donees
Community-based agencies, community groups and local groups play a crucial role in their neighbourhoods. Many of these organizations are not recognized by the Canada Revenue Agency (CRA) as qualified donees (with a charitable registration number).
We believe that by developing partnerships with non-qualified donees (cooperatives and social enterprises, social movements and local associations), we can expand the reach of our support by connecting with groups from marginalized, isolated communities, thus ensuring better equality among the organizations we support.
In 2023, we paid out:
- $32.1 million to 63 initiatives from qualified donees
- $77.7 million to 127 initiatives from non-qualified donees.
A recent new form of support for community-owned infrastructure
Organizational intervention and action are not possible without community-owned infrastructure.
Since 2022, we have been using our donations to support projects aimed at acquiring, building or renovating buildings, with certain conditions, for a total annual amount not exceeding 10% of our disbursement quota.
In 2022 and 2023, we contributed to the funding of five initiatives, including the project to expand the Val-d’Or Native Friendship Centre, for a total of $21 million.
Investments
Since the social change to which we aspire may take generations to achieve, our investment policy aims to maintain the value of our capital in order to preserve our capacity for granting and programs over the next several decades. Our policy stringently integrates environmental, social and governance (ESG) criteria and practices into our portfolio management. We are vigilant in ensuring that our external portfolio managers invest the Foundation’s capital responsibly and sustainably
Mission-based Investments
In addition to our grants, we have also set a 2026 target for investing 10% of our capital (approximately $209 million) in social initiatives such as affordable housing, community-owned infrastructure, food systems, socio-ecological transition and employment integration.
As of December 31, 2023, we had already committed $123 million, or 59% of our target.
Overhead
costs
Overhead costs are all operating expenses related to the implementation of our mission. These include all operations associated with administrative expenses and the management of investments (not including external active portfolio management), finances, communications and human resources. We hold ourselves to the highest standards of rigour, effectiveness and efficiency in our operating, administrative and governance practices
In 2020, we made the decision to include costs related to the management of grant applications and the accompaniment of the organizations we support. By so doing, we have ensured that none of our overhead costs is considered an eligible expense in reaching our contribution quota.
In 2023, our overhead costs were $8 million, accounting for 6.8% of our expenses. Our annual overhead cost ratio is calculated as a proportion of our total expenditure, including donations.
Compensation
To avoid contributing to social inequality, we strive to minimize the spread between the highest and lowest salaries at the Foundation, while continuing to ensure an attractive employment offer. The Foundation’s compensation policy reflects its values of solidarity, justice, inclusion, agility and collaboration. The fundamental principles of this policy, which is reviewed on a regular basis, assure the organization of rigorous and equitable management that enables it recruit and retain the talent that it needs to achieve its mission.
Compensation includes pension plan contributions and such employee benefits as insurance and employer source deductions.
