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Funder Focus: Charles Pascal and the Atkinson Charitable Foundation

September 3, 2002
By Nicole Zummach

This month in our continuing series of interviews with some of Canada's leading funders, we feature the Atkinson Charitable Foundation, which was established in 1948 by Joseph E. Atkinson, former publisher of The Toronto Star newspaper. CharityVillage spoke with executive director Charles E. Pascal, about the foundation's commitment to early childhood development and economic justice, its support of innovative thinking and new approaches, and its involvement in public policy issues.

CharityVillage: Your main areas of focus are the promotion of social and economic justice and early childhood education and development. How do these focus areas reflect the values and interests of the foundation's founder, Joseph E. Atkinson?

Charles Pascal: Everything we do is infused with Atkinson's kind of twentieth century vision around a safer, healthier, more just and comfortable society for everyone. For the first half of the twentieth century he was probably the most influential Canadian when it came to the kind of post war social contract that we had in Canada. He was fifty or sixty years ahead of his time on issues like childcare and collective bargaining for workers, and was an unrelenting advocate for universal health care. He is an extraordinary Canadian but very few Canadians know about him, which is why, right now, we are commissioning a documentary that brings his life and ideas to the public eye.

To give you another example of how farsighted, how radical this guy was, the headline of his first editorial on December 1, 1899 was 'Stop the racial cry'. It was an anti-racism editorial. In the year 2002 when racism in Canada is on the rise and is moving from our polite, implicit, unintrusive version to more explicit homophobia, sexism, and racism, this guy was writing about this and writing against these things in 1899. So it's his spirit and his beliefs that infuse everything we do at the foundation.

CV: Does the foundation still have any ties to The Toronto Star?

CP: When Mr. Atkinson passed away in 1948, his intention - what he had in his will, was that the foundation that he had established legally in 1942 was going to own the Toronto Star and profits of the Star would then all go to charity. A pretty radical idea. The government of the day, a Conservative government, was not very comfortable with Mr. Atkinson's editorial and progressive ideas and they passed the Ontario Charitable Donations Act with the precise objective of making it illegal for a charity to own more than 10% of a business. There was only one entity in all of Ontario that was affected by it, which was the Star and the foundation. Around 1949-1950 the foundation and the Star became legally separate. So, we are independent of the Star but we have a close moral and philosophical relationship.

CV: Unlike many other funders, you encourage and seek out projects that are radical and innovative. Is this 'risk' paying off?

CP:
There is a risk in not being innovative. A private family foundation in Canada that does not understand that its resources should be seen as risk capital isn't going to make a difference. One of Atkinson's very strong beliefs was the importance of the role of government. In Canada today there are a lot of forces, including well-heeled resources, that are in the business of trying to encourage government to get out of the business of governing. However, it is not our job to provide resources for agencies to run themselves. Social service agencies should be well funded by government right across the country. They haven't been and they are under duress.

Our job is to try to support ideas that hold promise for a different way of doing something important. So we do take chances on projects that have some promising ideas. We are in the business of supporting people who really want to think in new and different ways. If it doesn't work out, hey, it was a risk well worth taking. On the other hand, just generally speaking it would be risky, given the legacy we have, for us not to think of our money as risk capital, because all we would be doing is applying Band-Aids here and there and maintaining the status quo while the gap between rich and poor in this country continues to expand.

CV: In 2000 you launched the $1 million Early Years Challenge to support Ontario community-based projects that demonstrate the benefits of seamless, integrated, early years programs. What results are you seeing so far?

CP: While we are in the business of fostering creative and innovative ideas that hold promise for a better tomorrow for all Canadians, we are also in the business of communications. Everything we do is designed to ensure that the good ideas that come from our partners are heard about and discussed. If funders don't emphasize communications and dissemination in their work, then there is a lot of dust that can gather around some otherwise helpful reports and ideas. Even crafting the phrase 'Million Dollar Challenge', there is a lot of meaning behind those words. One million dollars, that sounds like a lot of money. The word 'challenge', well, who are we challenging? We were challenging communities to come up with some interesting ideas that could point the way for policy makers and governments to imagine how to integrate childcare, the early years in elementary school, and children's service agencies, because there isn't really a true integration taking place anywhere in Canada. There is a lot of good coordination, but not total integration. So the challenge was to the creative minds of wonderful partners in communities around Ontario.

As a result of that challenge, the city of Toronto came in with another $3 million dollars and became a partner. The CAW and the three large automakers came in with $100,000. The federal government just contributed several hundred thousand dollars for research and development. So that was the initial response. Lots of good people and organizations did come to the table and form partnerships with us. We now have, with the city of Toronto, local school boards and these other players, a bunch of projects called First Duty. There are about five projects underway and they all hold great promise to show the way.

CV: Last year you funded a project called Canadian Democracy and Corporate Accountability. Tell me a bit about this initiative and how these two concepts fit together?

CP: Yes, that's the Broadbent/Bennett commission. That project continues to have seriousness because of the timing of it. It raised questions about whether or not there is enough transparency regarding how corporations act. Did we know then that Enron would break? Did we know then about the amount of corporate misdeeds that are cropping up in the United States and causing havoc in the stock markets all over the world? Did we know that would happen? No, we didn't predict that but there was a sense in the public at large, even before these scandals hit, that something is wrong here. There is an awful lot of influence on the part of corporations. A lot of corporate money is used to convince governments to reduce taxes before reducing the debt, to reduce taxes before reengineering universal healthcare, to reduce taxes before we ensure that proper social service for disadvantaged people properly exist in communities. I am not saying that individual corporate leaders engage in that, but certainly representatives of corporations do. So there was the sense that the power of corporations was so great that there has to be a bit more transparency about who's doing what. This project was launched more than a year and a half ago, well before this stuff broke. Now it is going to get even more attention than when it was first released.

CV: How does this project relate to current trends in corporate social responsibility (CSR)?

CP: It's all connected. It's all part of the same interest in ensuring transparency, authenticity, and responsibility regarding the behaviour of a company in its own backyard - not only what it does for shareholders, but what it does for stakeholders. On the granting side we are quite active in research designed to look at issues of corporate responsibility and corporate accountability and we have been pleased with the response of some corporate leaders and business people. However, about four years ago we realized that we talk a good game in respect to our grantmaking side, but what are we doing with our own money in the marketplace? So we set about to research what we should do, and at the last board meeting in June the board approved a mission based investment policy.

I think it is a foundation's responsibility to ensure that the relationship between what it does in the markets to generate interest for its grantmaking side doesn't get in the way or abrogate the mission. If through our investments, we are doing things that contradict that, we think that there is a potential liability there. There are a lot foundations, we are told, that are looking at what we are doing. I think they are looking for a foundation to put its toe in the wa ter, and we are going to put more than our toe in and see what happens.

CV: Do you do any evaluation of the projects and initiatives you fund?

CP: In this age of accountability a lot of people and a lot of governments misuse the word. They use it as a bit of a shell game and smoke and mirrors, but accountability is important. What we try to do is understand that number one, you can't fund projects, meaningful projects, one year at a time. You have to engage in medium to long range kinds of projects. If something is a really critical, interesting project it may take two or three years. With respect to outcomes, there are a lot of funders out there who are asking for 'rigorous evaluations'. I am here to say that the easily measured is trivial stuff. If you can measure it easily, it probably isn't worth doing in the first place. That doesn't mean to say that we shouldn't invest in how to take the more complicated things that are of interest and figure out multiple ways of measuring them.

We need to invest more money in sophisticated evaluation rather than forcing individual agencies into recording information that is narrow and trivial, but easy to gather. We conduct what we called 'so what?' evaluations. What we do is three to five years after our funding is gone we have independent evaluators who go back to the project. They talk to the leadership; they talk to others who had been in a position where they could observe what the project was supposed to accomplish. We found these very valuable because some of the projects that look like gangbusters in the moment, later actually fizzled out. By the same token, project X might have looked like it was a write off. Then, five years after the fact somebody has picked up the report for that project and developed it into a framework for a major community-based anti-poverty strategy.

We also ask the independent evaluators to ask grant recipients about what kind of partner we were, because we are an active partner. We are not a passive funder. We are very proactive. We don't sit back and wait for people to approach us. And if folks are looking for a cheque and a 'see you later', then we are not the funder for them. When they bring those evaluations to the board for us all to learn from, they will not report on what each individual grantee thought of us as a partner. They will take all of that particular information and put it into a separate report. If the person who is evaluating us as a funder knows they will be associated with that specific project, in spite of the fact that we say 'we really are a learning organization', we are still a funder and they may not want to say anything negative. So we want to make it completely safe for them to tell it like it is.

CV: What is next for the Atkinson Foundation?

CP: Because we are in the business of trying to catch people who are doing things right, we've come up with a new program that is simply called the Atkinson Economic Justice Award. We will be announcing our first recipient in mid September. It is just there as a vehicle; it is not something people can apply for, and it is not something we will hand out every year. When the board or a member of the board sees a person who is doing really interesting things and could use some sustained support over a number of years, we'll tap them on the shoulder and say, 'if you had a hundred thousand dollars a year for three years - a $75,000 stipend and $25,000 for expenses - what could you do with it?'

We are living in a time where the great social experiment called Canada is really under attack. There are so many issues out there. Let me give you one thing that preoccupies me as of late. Since September 11, there has been a lot of talk of security. I, myself, would like people who worry about the kind of perimeter security regarding terror to be in a room with people who face the awful prospects of not being able to feed their children. What about the right of security of the person? There is so much out there that needs addressing. There is no time to rest. We may not have any silver bullets but we do have lots of extremely creative and innovative people in communities around Ontario and beyond who need support to do the work they do.

Charles Pascal has been executive director of the Atkinson Charitable Foundation for more than six years, and prior to that, was a Deputy Minister for the Government of Ontario. For more information about the foundation, visit: atkinsonfdn.on.ca.

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