Philanthropy is a powerful force for social good, and its impact is only as strong as the relationships that drive it. Stronger Philanthropy, founded in 2016, recognized a crucial gap in the philanthropic landscape—while there are many back-office service providers that manage investments and direct funds, there was a distinct need for advisory services that help donors navigate the charitable sector in an organized and transparent manner. We don’t manage your funds. Instead, we specifically serve small and mid-sized family foundations and funds that value proactive and targeted grantmaking, and introduce them to strategic opportunities in the charitable sector. We offer a critical link between donors and the causes they wish to support, along with tools to measure their social investment.

The Unique Nature of Family Foundations

As the saying goes, “If you know one foundation, you know one foundation.” Each family that is able and willing to make large grants has a distinct style and process, which can vary significantly from one foundation to another. Some foundations are more sophisticated in their approach, while others maintain simpler methods. This diversity of approaches can make it challenging for charities’ fundraising teams to know how to engage with donors effectively throughout the year.

Some donors prefer frequent updates, while others only require an annual checkpoint. Some have detailed and complex application processes, while others may accept informal handshake deals. Additionally, a few donors have systems for follow-up reporting, but many could not recall what they funded even two or three years ago. This variability in expectations and processes often creates confusion and inefficiency for charities trying to secure funding.

Stronger Philanthropy aims to bridge this gap by acting as a mediator between donors and charities. While our primary clientele are major donor families, charities benefit from having a single point of contact that represents multiple potential funding sources. This streamlined approach helps both parties engage in more meaningful, focused, and transparent relationships.

Understanding the Difference between Donations and Grants

A key distinction in the philanthropic world is the difference between donations and grants. Donations are generally informal, emotionally driven contributions that help cover the general operating expenses of a charity. In contrast, grants follow a formal application process and are typically part of an intentional strategy designed to fund specific projects that help charities achieve goals beyond their day-to-day operations. While donations keep the lights on, grants fuel innovation and enable charities to pursue new opportunities for growth and impact.

At Stronger Philanthropy, the annual cycle is structured around two primary granting windows: spring and fall. These periods allow clients to finalize decisions on which applications will be funded. Each client’s priorities are unique, influenced by their values, budget, timetable, and eligibility criteria. Many of Stronger Philanthropy’s clients are religiously motivated families who view their philanthropy as an extension of their faith and as a tangible way to express their core beliefs through giving.

The Role of Due Diligence in Philanthropy

Due diligence is at the heart of Stronger Philanthropy’s work. Before funding decisions are made, charities complete a survey that provides an overview of their financial health, strategic goals, and current programming. Organizations that align with the goals of a given donor are then invited to participate in a Charity Interview. Face-to-face interviews allow Stronger Philanthropy to assess the strengths and weaknesses of the organization and gain deeper insights into their most pressing needs. Interviews also allow for the development of grant opportunities that clearly align to our clients’ objectives, leading to a clear win-win for both clients and charities.

The types of projects that Stronger Philanthropy’s clients are most excited to fund include those with clear objectives, measurable outcomes, and a defined end date. These projects often involve new initiatives such as geographic expansion, pilot projects, innovative but risky solutions,  expanding program impact, or capital campaigns. In contrast, our clients typically do not focus on funding staff salaries, core operating costs, or the establishment of endowment funds, as these are best supported by donors committed to long-term, ongoing support who use an annual donation model.

Understanding the Landscape of Canadian Philanthropy

Philanthropy in Canada has undergone significant changes over the past decade. While the number of individuals claiming charitable donations on their taxes has steadily declined, the average size of donations has increased. Several trends are contributing to this shift:

  1. Individualism: A growing focus on individual giving, often characterized by direct donations from wealthy philanthropists.
  2. Secularization: As religious affiliations decline, charitable giving is increasingly motivated by personal values rather than faith-based traditions.
  3. Shrinking Middle Class: As the middle class continues to shrink, fewer people are able to contribute to charitable causes at the levels seen in previous generations.

In addition to these trends, Canadian charities themselves can be categorized into several types, each with its own unique challenges and opportunities. We evaluate charities according to six main types:

  • Startup Charities (under five years old) are driven by exciting visions but often lack the track record or robust donor base needed for program impact. They face high risks but offer the potential for high rewards as they develop their programming and expand their networks.
  • Grassroots Charities tend to be community-oriented and heavily supported by volunteers. These organizations are often focused on addressing immediate needs but may struggle with fiscal viability and long-term sustainability.
  • Classic Charities are well-established organizations with loyal donor bases. They tend to have reliable and stable revenue streams supported by an aging donor base. Their challenge is that they must innovate to avoid stagnation and irrelevance.
  • Visionary Charities have bold goals and a renewed sense of mission, often through new, youthful leadership or a big idea. These organizations experience growing pains but are positioned for high-impact growth.
  • Blue Chip Charities are household names in the philanthropic sector, with professional staff and significant resources from diverse types of donors. An investment into these organizations produces predictable results. These organizations must continue to stay relevant to maintain their leadership role in the third sector.
  • Institutional Charities are often deeply integrated into the fabric of society. Examples include religious communities, hospitals, schools, and universities that serve a defined constituency. Their presence in our communities benefits the greater social good and they require commitment from these stakeholders for their success.
Conclusion

Stronger Philanthropy’s mission is to connect the right donors with the right charities, facilitating the kind of strategic, targeted giving that leads to real and lasting social change. By providing advisory services that bridge the gap between donors and the charitable sector, Stronger Philanthropy plays a critical role in strengthening the impact of Canadian philanthropy. Whether working with new startups or established organizations, Stronger Philanthropy’s approach is grounded in the belief that major donor grants, fueled by thoughtful engagement and due diligence with accountability, can drive meaningful progress toward solving the  most pressing challenges in our communities.