{"id":29009,"date":"2020-04-22T20:18:00","date_gmt":"2020-04-23T00:18:00","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=29009"},"modified":"2020-04-27T13:19:36","modified_gmt":"2020-04-27T17:19:36","slug":"covid-19-cccc-calls-for-a-matching-funds-program-to-support-charities","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2020\/04\/22\/covid-19-cccc-calls-for-a-matching-funds-program-to-support-charities\/","title":{"rendered":"COVID-19: CCCC Calls for a Matching Funds Program to Support Charities"},"content":{"rendered":"
This entry is part 20 of 45 in the series COVID-19<\/a><\/div><\/div><\/div>\n
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Read CCCC’s Funding Proposal to the Federal Government<\/a><\/p>\n\n\n\n

CCCC has written to the Hon. Ahmed Hussen, Minister of Families, Children and Social Development with a funding proposal to sustain and strengthen the charitable sector during the COVID-19 pandemic crisis, when demand for services is very high, but significant decreases in donations due to income insecurity threatens to destabilize charities.<\/p>\n\n\n\n

CCCC\u2019s primary goal is to ensure that as many of Canada\u2019s registered charities as possible survive the COVID-19 pandemic crisis on the basis that every registered charity, by definition, provides a public benefit to Canadians, and thus any loss of charities negatively impacts the quality of life in Canada. Sustaining all charities therefore maintains and adds to the richness and health of our nation.<\/p>\n\n\n\n

Faith-based charities provide significant public benefits to individuals, neighbourhoods, regions and the nation. For every dollar in a place of worship\u2019s operating budget, the community receives more than $4.50 of socioeconomic value and non-members of churches are four times more likely to use a church\u2019s community programs than are its members.<\/p>\n\n\n\n

What about existing proposals?<\/h1>\n\n\n\n

With the viability and health of our members and the broader charitable sector at stake, CCCC continues to support Imagine Canada\u2019s request<\/a> for a Sector Resilience Grant Program but as for how that support is distributed, <\/em>we have submitted a proposal that builds on think tank Cardus\u2019 matching funds model as described in their proposal<\/a> and essay<\/a>.<\/p>\n\n\n\n

What is a \u201cmatching funds model\u201d?<\/h1>\n\n\n\n

A matching funds model means that public funds match private donations on a dollar for dollar basis up to a certain limit. In this case, CCCC suggests the prior year\u2019s donations as a benchmark. Matching funds ensures a stable cash flow during this time of crisis and uncertainty.<\/p>\n\n\n\n

Why make another proposal? What\u2019s different about CCCC\u2019s proposal?<\/h1>\n\n\n\n

CCCC focuses on the funding and distribution mechanism for the Sector Resilience program as proposed by Imagine Canada. Funding needs to be simple, quick, and equitable. The Sector Resilience Program currently follows a traditional grant process \u2013 charities complete applications, applications are adjudicated by grant making organizations, such as community foundations or national organizations like the United Way, and successful charities receive some funds. This can work well, but for the survival of the sector, CCCC proposes a simpler model.<\/p>\n\n\n\n

CCCC builds on Cardus\u2019 proposal in three key ways:<\/p>\n\n\n\n

  1. Extending the timeframe from 3 months to the duration of the crisis<\/li>
  2. Capping the amount of donations to be matched by restoring charities to their 2019 donation levels. Asking the government to simply fund the gap makes it easier for them to say \u201cYES!\u201d<\/li>
  3. Clarifying that donations being matched are unrestricted donations. Capital campaigns or restricted fund campaigns are excluded. The focus is on maintaining funds for normal operations. There are other government funding programs, and specific elements of Imagine Canada\u2019s request that relate to pandemic-specific programs.<\/li><\/ol>\n\n\n\n

    With these adjustments to Imagine Canada and Cardus\u2019 proposals, CCCC has set out a solution that addresses the needs of charities and<\/em> government in an effort to make access funds as easy as possible for CCCC members and the charitable sector at large.<\/p>\n\n\n\n

    Why do we propose a matching funds model?<\/h1>\n\n\n\n

    It is highly efficient<\/h2>\n\n\n\n

    Administrative systems<\/strong> to process matching funds already exist<\/strong> within the federal bureaucracy (i.e. Global Affairs and Health Canada) and can be expanded rather than building from scratch. There is also less administrative burden<\/strong> on charities than for grant application-based models because it would only require a simple reporting of existing records.<\/p>\n\n\n\n

    It leverages government grants<\/h2>\n\n\n\n

    Public support is a precondition for government matching funds. It creates a true partnership between the public and government.<\/p>\n\n\n\n

    It promotes charitable giving<\/h2>\n\n\n\n

    Matching funds spurs greater giving<\/strong> by private donors. Studies show match money increases \u201crevenue per solicitation by 19 percent<\/a>,\u201d and that there are long-term positive impacts. Government should focus on expanding, not shrinking, the sector\u2019s capacity.<\/p>\n\n\n\n

    It only requires existing fundraising capabilities<\/h2>\n\n\n\n

    Many charities do not have the experience, capacity or skill for grant writing. Instead, they have great expertise in fundraising from individual donors. Matching capitalizes on this existing strength of charities.<\/p>\n\n\n\n

    It maintains a level of responsibility and risk for charities<\/h2>\n\n\n\n

    By matching donations, it ensures charities will exert their best efforts to stay viable. It also encourages charities to examine their ways of operating, find creative ways to reduce costs and remain sustainable in light of changing donor behaviour.<\/p>\n\n\n\n

    It recovers part of the cost from a lower tax expenditure on charitable donations<\/h2>\n\n\n\n

    Grants are given when a charity has lost donation revenue. That means claims for donation tax credits would be lower than in the previous year.<\/p>\n\n\n\n

    In the face of COVID-19, social solidary is key to maintaining trust, a sense of common sacrifice, and ultimately stronger institutions and relationships.<\/strong> Charitable giving is known to have significant psychological effects on individuals and communities. This is an opportunity to use matching funds as a key component to this message of solidarity and unity in crisis.<\/p>\n\n\n\n

    As you engage with your federal political representative<\/a>, we encourage you to use CCCC\u2019s proposal to call for charity stabilization funds with a matching funds distribution model to ensure both the short and long term health of the Canadian charitable sector. CCCC\u2019s proposal to Minister Hussen is available below for your reference.<\/p>\n\n\n\n

    CCCC will continue to work with Imagine Canada and Cardus to secure the best funding program possible for our members. The advocacy of CCCC and our members is vital as we mobilize and respond to the extraordinary needs facing charities, and the communities they serve, during the COVID-19 pandemic.

    Read CCCC\u2019s     funding proposal to the federal government here<\/a>.<\/p>\n\n\n\n