Charity's strings Globe and Mail---Comments-----Monday, January 1, 2001 Charity is changing. Chequebook philanthropy is on the decline in Canada. The partnerships between charities and governments have weakened. Many Canadian businesses are turning to social marketing, a term used by advertising executives to describe charitable donations tied to corporate marketing objectives. The new measure of charity seems to be not just its social good, but its ability to enhance market share and to do more with less government support. The forces driving this trend are government spending priorities, research showing consumers want corporations to be more socially responsible and a shift by individual Canadians to donations to support specific causes. The payback for businesses is more loyal customers and a better bottom line. For individual donors and volunteers, it's the satisfaction that flows from the pursuit of a personal passion and making a difference. Emphasis on the social importance of charities grew through the 1990s as governments wrestled with large deficits and burgeoning debts. Many, especially those that deliver health and community services, were expected to fill the gaps created by governments that withdrew their support. One way in which Canadians recognized the demands facing charities was to give them more of their time. By 1997 the number of volunteers in Canada had climbed to 7.5 million, an increase of 2.3 million over 10 years. Despite having to do more with less government funding, Canada's charities have maintained their credibility with the public. A survey of Canadians conducted by the Canadian Centre for Philanthropy in May and July of 2000 showed that 84 per cent of Canadians believe the country's charitable organizations are honest and well managed. Most went so far as to suggest that charities serve the needs of Canadians better than governments, but they did not believe charities should be providing "a substitute for those services governments can provide." The role of charities in our society is in flux. The number of charities, nearly 80,000, offers so much choice that a Web site, http://www.charity.ca, has been created to help people find the cause that suits their interests and concerns. Businesses are establishing foundations at an unprecedented rate, 177 in 2000 alone, and using them to heighten their public profile, a goal they could not achieve as effectively through other charities. A recent example is Canadian Tire, which has launched a foundation to help families in crisis. The wake of directed donations by businesses and individuals has endangered the value attached to what the president of the United Way of Greater Toronto, Anne Golden, calls "community philanthropy" -- support that builds and sustains the infrastructure that charities need to carry out all that is asked of them. Funding professional staff who support the needy, managers who co-ordinate volunteers, people who manage food banks and the administrative and operational costs that make charities effective is not an easy fit with "social marketing" objectives or personal causes individuals feel passionate about. Yet such costs are essential and cannot be neglected. As governments examine their spending priorities in the glow of budget surpluses, they should consider the new factors influencing charitable donations and offer support in areas where businesses and individuals are unlikely to step in. Such a move could revitalize a partnership between government and charities that promises to serve the common good.