Toronto Community Foundation uses a unique business model to meet its mission

By Heather Fletcher

It seems only appropriate that within Canada's most corporate city, the Toronto Community Foundation would be  recognized for getting down to business. On Sept. 23, about two weeks before TCF released its flagship publication on the state of the city, the Greater Toronto Chapter of the Association of Fundraising Professionals awarded TCF its "Outstanding Foundation" honor.

Somewhere between accepting congratulations and speaking about the report, TCF President and CEO Rahul K. Bhardwaj took the time to explain more about the organization with a unique business model — which essentially works as a "back-office" and financial steward for donors who create their own endowment funds — and how TCF works to improve the quality of life for Toronto residents.

FundRaising Success: What aspect of TCF's work do you believe earned the organization the Outstanding Foundation award and why?

Rahul K. Bhardwaj: It has everything to do with our community-development model and community leadership, which allow us to connect philanthropy with public and private partners to  collectively build a better  Toronto.

We begin by taking the pulse of the city through our Toronto's Vital Signs Report. The report is a consolidated snapshot examining issue areas that are critical to the well-being of our city and its residents.

With our unique position as an independent public foundation, we are then able to mobilize hundreds of individual and family donors who are members of our foundation family, high-impact community organizations and cross-sector leaders to tackle complex quality-of-life issues identified in Toronto's Vital Signs in creative and inspiring ways.

FS: Pathways to Education Canada nominated TCF for the award. How, for example, do TCF's efforts benefit that organization?

RB: In addition to the grants we issue each year on behalf of our fundholders, we have three grant programs of our own, one of which is called Vital Ideas. Pathways to Education Canada received two Vital Ideas grants from us, once in 2005 and again in 2007, in support of its education programs targeting youth from the disadvantaged communities of Regent Park, Rexdale and Lawrence Heights.

Pathways has achieved remarkable results in its efforts to reduce the high-school dropout rates in these neighborhoods. Through Vital Ideas, the Community Foundation enables proven, effective organizations to expand their reach, share their experience and better sustain their impact. The investment in these strategic activities is meant to build the capacity of not-for-profits.

FS: Mayor David Miller and Chris Spence, education director for the Toronto District School Board, were among those supporting TCF's nomination. How important is governmental support for TCF to accomplish its goal of helping nonprofits and, thereby, helping Toronto residents?

RB: It's more about the importance of collaboration. Philanthropy is a meeting place for businesses and different levels of government to align their objectives and share lessons learned, all in an effort to achieve transformative change and strengthen communities. The time of working in silos is long gone.

FS: TCF just completed its most recent Toronto's Vital Signs report. How does the report highlight the positive work of nonprofits funded by TCF and the work that still needs to be done?

RB: Toronto's Vital Signs provides a road map for the work that needs to be done to improve the communities across our city. We recognized that we needed a companion piece to the report that could tell the story of transformational work going on in our city.

That's where our newly launched Community Knowledge Centre comes in. It is a website that connects the issues facing our community, as reported in Toronto's Vital Signs, with the solutions not-for-profit organizations are providing. Community organizations can create an online profile in order to tell their stories, Toronto Community Foundation fundholders can search for granting opportunities, and community members can better understand and support their city.

FS: How does TCF fundraise?

RB: Word-of-mouth is our strongest method. High-net-worth individuals and others come to us because we can provide them all the benefits of a private foundation, at a fraction of the cost, and we help them reach their own charitable goals while strengthening the broader community at the same time.

We also work with a number of financial advisors who bring us to the attention of their clients. We're always exploring different avenues.

FS: What advice can you provide to other fundraisers?

RB: I think it is important to recognize the value of building a long-term relationship with donors and engaging them on many levels, whether it's inviting them to be part of the grant selection process or facilitating a site visit to see an innovative community project in action. Donors want to be connected by head and by heart, and are willing to take risks and support  innovation. FS