APRIL20,2017

21stCenturyPhilanthropyinCanada:

Foundations’EmergingRolesTacklingGrandChallenges

SocialInnovationGeneration(SiG)2

SiGisanationalcollaborativepartnershipfoundedin2007by

seekstoaddressCanada’ssocialandecologicalchallengesbycreatingacultureofcontinuoussocialinnovation.

Today’sQuestions3

Facing21stcenturysocioeconomic&environmentalcrises,whataretheresponsibilities&rolesfor

grantmakingfoundations?

andWhatrolesdofoundationsplaytocatalyzeanenablingecosystemfor

innovationsuccess?

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Introductiontothispresentation

1. Currentproblemsolving paradigm2. Evolvingphilanthropy

3. Foundationfutures:emerginginnovation paradigm

4. Creatinganenablingregulatoryframework:modernizingthecharityregime

5. Nextstepstoanewsystem

Organizations&SectorsShiftfromSilostoBigTeams:Somefoundationsadoptingnewmindset,culture&rolesworkingwithothersinhybridcollaborationplatforms.

TopTakeaways:EvolutionofFoundationRoles5

ModernizingCharityRegime:Foundations&charitiesintegralcomponentofemergingsolutionsecosystembutfaceoutdatedrules.

All-sectorsInclusiveInnovationAgenda&Ecosystem:Somefoundationsidentifying“solutionssystem”needs&becomingcatalystspromotingtransitionarchitecture.

DRAMATICSHIFTinFOUNDATIONROLES

SEEINGINNOVATIONasPROJETDESOCIÉTÉ

REVAMPINGINNOVATIONECOSYSTEM

TheCurrentParadigm

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CurrentcrisesCurrentparadigm

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THEUGLYGlobalsystemsill-equippedfor21st centurychallenges

THEGOODLivingstandardsarerising in

developingcountries

THEBADOECDincomedistributionisbecomingless equitable

CurrentcrisesCurrentparadigm

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SYSTEMICPROBLEMS

REQUIRESYSTEMICSOLUTIONS

CurrentcrisesCurrentparadigm...SYSTEMGAP

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Nowisthetimefor21stcenturyresponsestoaddress21stcenturychallenges.

AnitaMcGahan in“ThePowerofCoordinatedAction”(2015)

GrowingUrgency

“Bydefinition,theseproblemscannotbeaddressedfullybyanysingleorganization,governmentorinternationalagency…Solutionsdependoncoordinatedactionbyinstitutionalandindividualactorsaroundtheworld.”

HybridDomain 11

Contentadaptedfrom“TheRiseoftheHybridDomain:CollaborativeGovernanceforSocialInnovation”byYukoAoyama&BalajiParthasarathy(2016)

“ ”SocialInnovation

DoubleFailure

StateFailure+

MarketFailure

OrganizationalArrangements

DomainFlexibility• Cross-domain

collaboration• Hybrid

organizations

ScaleFlexibility• GlobalVenture

Philanthropy• Transnational

SocialEntrepreneurship

• Newdesignsforsocialimpacts

• Applicationsofnewtechnologies

The rise of the hybrid domain signifies the shift from shareholder-driven

to stakeholder-driven capitalism on the one hand, and the growing role of civil society

organizations as key stakeholders working in conjunction with the state and corporations

in pursuing social missions on the other.

HybridDomainCurrentStateSolutions

“Noplansurvivesthestartofthebattle.”(Oldmilitaryadage)

“IfyouwanttomakeGodlaugh,showHimyourplans.”

(Someone’sgrandmother)

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Thanks Ric Young...

Solvingcomplexchallenges =noroadmaps...

OnlyaNorthStar…

...Therefore, use emergentstrategies.

Evolvingphilanthropy

EARLY 20thCENTURY

Philanthropyevolvesbeyondresponsibilitybyfamiliesofwealth

HowWeGotHere:NoblesseOblige toSocialInnovation15

LATE20THCENTURYPhilanthropictraditiontransitionsfromsocialassistance tostrategic

initiatives

2000-2017Increasedfocusonsocialinnovation,capacity

building,collaboration,conditionsforscale andall-

sectorapproachesMcConnell’s

Applied Dissemination

Curricula for voluntary sector

leadership

Networks for social change

leadership

20thCENTURY

Foundationsasexclusivelygrantmakers

fundingindividualgrantees

HowWeGotHere:NoblesseOblige toSocialInnovation16

LATE20THCENTURYFoundationsaddself-managedstrategic

initiativestograntmaking

2000-2017Greaterfocus:capacitybuilding,all-sectorcollectiveimpact,

collaboration,driveforscaleandmeasuringimpact

EXAMPLES

*UnitedWayCI*AmplifierMontreal

*CivicAction*20,000HomesCampaign

*Nourish*TakeChargeonToxics*SlowFishCanada

FoundationsShiftingfromCapacityBuildingin SocialInnovation toCollaboratingPartnersinSystemChangeenroutetoSustainabilityTransition

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LATE20THCENTURYPhilanthropictraditiontransitionstostrategic

initiatives

2000-2017Increasedfocusonsocialinnovation,capacity

building,collaboration,conditionsforscaleandall-sectorapproaches

2017-OnwardIncreasedfocuson

generativepartnerships,systemschangeand

transition

19th&EARLY20thCENTURY

Philanthropy:traditionofresponsibilitybyfamiliesofwealthor

privilege

INNOVATING PHILANTHROPY

TODAY’S INFLECTION

POINT

EvolvingPhilanthropy:FourBigShiftsfrom2000Onwards18

MINDSET SHIFT COLLABORATION

SOCIAL INNOVATION ECOSYSTEM APPROACHES

1.MINDSETSHIFT● Tacklingrootcausesofcomplexchallenges:outcomesfocused

● Systemsthinking● AnticipatingnewfoundationrolesasparticipantsintheemergingInnovationEcosystem

Weareinthemidstofacharitysectormindsetshift

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NEED|BURDEN → OPPORTUNITY|STRENGTH

SYMPTOMS → SOLUTIONS

FUNDRAISING → FINANCING

INDIVIDUALPROJECTS → MULTI-SECTORPLATFORMS

GROWTH → SUSTAINABILITY

INCREMENTALCHANGE → SYSTEMSCHANGE

MINIMUMCOSTS → TRUECOSTS

Transformingenvironmentfromconstrainedtoenabled21

"ChartingaPathForward:StrengtheningandEnablingtheCharitableSectorinCanada,”MowatCentre (April2017)

Theenablingenvironmentforcharities

2.COLLABORATION● Allsectorapproaches

○ Civilsociety- academy- business- publicsector○ Hybriddomain→newvaluewhensectors

collaborate○ Powerofnetworks&relationshipbuilding

● Purpose:Shiftfromtransactionaltolongertermtransformationalpartnerships

● Platforms:custombuiltfor short,medium&longterm

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Marketplacedevelopment

Sharedmission Collectiveimpactpartnership

Socialinnovationlabs

Generativepartnership

Ecosystembuilding

Allsectorapproachesforsocialimpact

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FromTransactionaltoTransformationalPartnerships

COMPETE ----through to------COOPERATE | COLLABORATE | INTEGRATE

TypologyofFunderCollaborationbyLizWeaverandMarkCabaj

1.CommonAgenda CommunityAspiration

2. SharedMeasurement StrategicLearning

3.MutualReinforcingActivities HighLeverageActivities

4. ContinuousCommunicationInclusiveCommunityEngagement

5. Backbone ContainersforChange

MovingtowardsCollectiveImpact3.025

TheFiveConditions

LeadershipParadigmMovementBuildingManagement

FROM(FSG)TO(CABAJ-WEAVER)- Collectiveimpact3.0

3.SOCIALINNOVATION● Innovationseekingpositivesocialandecologicalimpact

● Focusonrootcauses● Focusonsystemchange● Focusondurability,scaleandImpact

Theriseofthesocialinnovationfield27

BCE- 1800 1800- 1960 1960- 2000 2000- PresentSocial

Innovation:HumanIngenuity

SocialInnovation:Evolving,but

InvisibleConcept

SocialInnovation:EmergingField,BigSuccessesare

Movements

RiseoftheSocialInnovator&

LinkstoSystemChange

2016

Socialinnovationisgloballyrelevant,with

nationalsocialinnovationstrategiesrecognizedasa

criticalenablingcondition.

CANADARANKEDTHIRDINTHEWORLDFORSOCIALINNOVATIONIN2016

The Economist Develops First Ever Global Index

4.ECOSYSTEMVISION● Ecosystemsenablesolutionsplatforms

● Manyactors,sectors,programs,policies- together- createnewformsofvalue&empowerlargescaleimpacts

● Ecosystemscanbeintentionallyshaped&strengthened

Asolutionsecosystemiswhere“alltheelementstogetherdrawstrengthfromthediversityofcontributionsthatcollectively

targetallaspectsofagivensocialchallenge.”-- WilliamEggersandPaulMacmillan,

TheSolutionRevolution(2013)

Theenablingconditionsforcollaborationsuchthatcollectiveimpactis

greaterthanthesumofitsparts.

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Whatdowemeanbyecosystem?

EcosystemApproach:MondragonSuccessConditions

1. ASocialInnovationEcosystem“Mondragonisasocialinnovationecosystem…[a]complexnetworkofinterdependentorganismsthatenable,maintain,&strengthenoneanotherthroughtheirinteraction…[building]akindofsustainable‘constellation’basedapproach…”

2. Values-ledbusinessCooperation,Participation,SocialResponsibility,&Innovation.

3. MONDRAGONisasocialmovement

Aco-operativebusinessorganizationofintegrated

autonomousandindependentcooperatives

March 2017

Emerginginnovationparadigm:Foundationsseeingtheirroleasparticipantsin...● Systemschange● Generativeinnovationpartnerships

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InnovationParadigm:Systemschange

Foundationsareincreasingly:● Exploring systemschangeapproaches● Recognizing thattheyarenotindividualagentsworkingalone

tosolveadiscreteproblem● Engaging withthebreadthofstakeholdersandchangemakers

relatedtotheirmission● Engaging withthecomplexityoftheproblemitself

● Exploringhowtheycancreatetheconditionsthatenablechangetohappenandhowtobestserveasaplatformforsystemicaction

From“FundingSystemsChange:ChallengesandOpportunities”bySocialInnovationExchange,SocialInnovationGeneration,ForumfortheFutureandTheSystemsStudio(April2017)

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MidwestEnergySystemsMap

From “Transformer:Howtobuildanetworktochangeasystem– ACaseStudyoftheRE-AMPEnergyNetwork,”MonitorInstitute(2010)

1. Startbyunderstandingthesystemyouaretryingtochange

2. Involvefundersandnonprofitsasequalsfromtheoutset

3. Designforanetwork,notanorganizationandinvestincollectiveinfrastructure

4. Cultivateleadershipatmanylevels5. Createmultipleopportunitiestoconnectand

communicate6. Remainadaptiveandemergent– and

committedtolong-termvision

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RE-AMPLessonsforFoundations&CSOs

From “Transformer:Howtobuildanetworktochangeasystem– ACaseStudyoftheRE-AMPEnergyNetwork,”MonitorInstitute(2010)withthankstoDarcyRiddell

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Leveragingasystemsmindsetandanecosystemapproach,generativepartnership

modelsoffer:

Adaptive+emergent+collaborative+impact-focused

INNOVATION PLATFORMStodevelopsolutionstocomplexproblems

InnovationParadigm:GenerativePartnerships

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SharedPlatforms

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● SupportingSocialImpactR&D:“SocialR&D”○ ExpandGrantmakingforR&D○ SupportingnonprofitSocialR&Dmovement

● ThinkingEcosystem○ Foundationstrategiesseeingthemselvesaspartof

aninnovationecosystemtacklinggrandchallengesandthereforeseekingtheircomplementaryrole

● Investing&BuildingNewPlatforms○ Experimentingwithagileplatformsconnecting

partnerstacklingcomplexchallengestargetingspecificoutcomes

FoundationRoles:ShiftingToInnovationThinking

CreatingAnEnablingRegulatoryFramework:ModernizingtheCharityRegime

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“...Canada’scurrentsystems,structures,policiesandlegislationcouldbeviewedasrisk-averse,outdated

andconstraining,limitingopportunitiesforinnovation,experimentation,revenuegenerationandcross-sectorcollaboration.”

LisaLalande&JoanneCaveChartingaPathForwardStrengtheningand

EnablingtheCharitableSectorinCanadaMowatCentreApril2017

Systemschange:UnleashCharities’InnerInnovatorModernizeCRARules&AppointCabinetChampion

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Systemschange:CRA&CharitiesModernize20thCenturyRules likeothercountries…

ON MARCH 26th THE UK HOUSE OF LORDS ISSUED 150 PAGE REPORT WITH 100 CONCLUSIONS INCLUDING

42 RECOMMENDATIONS TO STRENGTHEN CHARITIES

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REGULATORY+POLICYBARRIERSFACECROSS-SECTORINNOVATION

1. 400-yearoldElizabethanPoorLawDefinitionof“Charity”a. Onlypermissiontotacklesymptoms,notrootcausesb. Narrowcharitablepurposes:NoSolutionsJournalism,etcc. Oppositiontocross-sectorpartnershipsofferingwin-win-win

2. Arbitrary&bureaucratic“earnedincome”rules,e.g.90%volunteer-runversustest“surplusappliedtomission”

3. Policychill:outdatedpolicy(“politicalactivities” test)4. Nocivilsocietychampion atfederalCabinettable5. Noall-governmentpolicyframework forenablingcivilsociety6. Nofederalinclusiveinnovationpolicyframework linking

technology,science,businessandsocialinnovation

Systemschange:UnleashCharitiesasInnovatorsModernizingCRACharityRules

Nextstepstoanewsystem

Foundations&

Grantmakers

CapacityBuilding&Talent

Development

SocialInfrastructureBank*SolutionsFinance*SocialFinance*Crowdfunding

PublicSectorEnablers

InnovationScalingSystems&ChallengePlatforms

CommunityHubs,Clusters+EcosystemFieldBuilders

Centre(s)

forSocialEvidence,Foresight,WhatWorks

Pro-bonoMarketplaceforSkills-BasedVolunteering

KeyAction&KnowledgeNetworks OpenData

Portal(s)/Platforms

SOCIALINNOVATIONECOSYSTEM

SolutionsLabs

SolutionsInnovationEcosystemStrengthenedwithan

EnablingPolicyFrameworkModernizedCharityRegulatoryRegime

Cross-SectorPolicyTable

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NextSteps:Foundations’EvolvingRolesFoundationsStaffShiftfromManagingGrantstoBuildingDeepRelationships&SupportingSolutionsEcosystemsonCanada’sGrandChallenges:● Conveningcoalitions● Supportingpartners

1 2 FoundationsShapeCross-SectorCapacity:Foundationsshare socialinnovationapproaches&toolswithpublic/privatesector/CSOstoenhanceprofessionalcapacityofallsectorstoworktogether

FoundationsIdentifyGapsintheSolutionsInnovationEcosystem:Foundationsleadasadvocatesforfillingecosystemgaps● Architecting&catalyzing

newsocialinfrastructure

3 InnovationasProjetdeSociété:FoundationsbecomeadvocatesforaligningCanada’sinnovationagendawithsolvingsocialinequality&climatechange

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FoundationsRecognizeNeedToBeProactiveandPromoteAnEnablingRegulatoryRegime:Foundationspromotemodernizationofthecharity&non-profitregulatoryregimerequiredtounleashtheinnovationcapabilitiesoffoundations&theircharitypartners

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Thankyou!

Formoreinformation,pleasecontact:

TimDraimin- tim@sigeneration.ca

www.sigeneration.cawww.sigknowledgehub.comTwitter:@sigeneration

SpecialthankstomySiGcolleagues:KelseySpitz&KarenGomez