Structure, next generation pave road to success for B.C.-based Parker Family Foundation
Dale and Joan Parker had achieved many of their life’s goals. They’d raised a wonderful family, found professional success (Dale is a former banker) and had the financial security to share some of their wealth with a range of charities. Their goal was to build a legacy of charitable giving that would outlast them and foster a habit of generosity that spanned generations.
So, when the B.C.-based retirees set out to develop an estate plan four years ago, they put charitable giving at the forefront—with a focus on family. Specifically, they wanted to include their adult son, daughter-in-law and their three grandsons (aged late twenties to early thirties) in their giving. The question that was top of mind for the Parkers—as is the case for so many philanthropists—was, how? What was the best way to move from a cheque-writing style of giving to a dedicated, structured philanthropy without burdening their family with the administrative complexities in operating a private foundation? As their interests began to broaden, their thoughts turned to supporting environmental causes. How could they find and vet a handful that aligned with their interests and values, yet delivered significant eco-friendly results?
Because the Parkers increasingly regarded themselves as stewards of their excess funds, they wondered how best to share that wealth, while helping to protect the planet. First, they needed to determine how much they could put towards achieving their philanthropic goals.
“On the financial side, we considered what it would take to look after ourselves and what we wanted to leave to our family,” Dale Parker recalls. “Once that was set out, we had a better idea of what assets would be available to support [selected environmental research or related charities], making this a better world.”
The Parkers drafted their wills and, after a referral from a trusted advisor, connected with the team at Canada Gives, which helped them establish the Parker Family Foundation account, a donor advised fund. The Parkers were impressed by the stability and flexibility our structure provides and our policies allow, the minimal amount of work needed for them to maintain a Foundation at Canada Gives, along with the option to have their portfolio manager continue to manage the funds in their Donor Advised Fund.
Sustainability of their family’s philanthropy took centre stage in the discussion.
“I’ve seen a number of families where [a foundation] starts out great, but doesn’t last,” Parker explains. “By the second or third generation they’re entitled to be on the board of the foundation, but they’re not qualified.”
Those cautionary observations in mind, the Parkers established a semi-formal advisory committee that included the entire family. Each member decided on the donations they would make to their Foundation account over a five-year period, then divided into two sub-committees. The first would work with our team to identify causes and ultimately key charity partners that aligned with their interests: in this case, transformative environmental research projects that their eco-conscious family could potentially support. His grandsons would manage and steer the second committee.
Our Client Services team helped manage grant applications from organizations that met their funding interests, and narrowed various grant requests down to four submissions, which were then presented to the Parker family. The first- and second-generation Parkers selected their causes, but the grandsons had other ideas, making a case for their preferred submission.
“When we first rated the submissions on a one to five scale for each of us independently, our grandsons had the project that we eventually selected as number one on their list—and the rest of us had it as number three. In that discussion with the boys, we realized they knew more than us.”
The successful proposal was one seeking funding for a University of Alberta project exploring the conversion of methane gas into hydrogen. Our Client Services team helped draft a five-year gift agreement that reflected the Parkers’ grant wishes under a range of possible future scenarios. “Canada Gives’ experience in drafting such agreements with universities gave us confidence the funds would be well managed, against a budget and key milestones,” Parker notes.
The family met the lead researchers, spent time at the lab and, during that meeting, one of Parker’s grandsons led a discussion probing the long-term environmental benefits of the researchers’ work.
“The meeting left me with a good feeling that the three grandsons will be engaged stewards of the Foundation,” Parker says.
As the Foundation grows and funding of prior agreements is completed, Parker’s grandsons and Canada Gives will continue to work together to identify major projects for the family to support. For his part, Dale Parker believes that his family’s foray into committed philanthropy has delivered countless benefits. But he feels that one of the most rewarding is gaining new insight into the passion and expertise of his family’s next generation.
“It’s been about gaining confidence in [our grandsons] in terms of their maturity, their interest and knowledge,” he explains.
By putting a clear and measurable structure behind their philanthropy—the Parkers receive annual reports and will continue to meet with the University of Alberta researchers each year—they’re able to take a long-term approach to their generosity. They understand that cutting-edge environmental innovation is a long-term endeavour marked by research successes and failures. Annual benchmarking enables them to understand where the university’s work is leading and to shape decisions around future funding.
With the right team at their side, Dale and Joan Parker can rest assured knowing that their family’s commitment to giving is just as sustainable as the environmental innovations they hope to foster. “[Philanthropy] is about up-front work, then thinking through you want to do,” he says. “Recognize that your goals will change, but it’s about having a stake in the ground to start with.”
The Canada Gives Team
To learn more about Canada Gives Foundation accounts, contact a member of our team.
