Funder Focus: Ken Friesen and the C. P. Loewen Family Foundation
December 6, 2004
By Nicole Zummach
This month in our Funder Focus we feature the C. P. Loewen Family
Foundation, which was established in Steinbach, Manitoba in 1973
by the late C.P. (Cornie) Loewen, founder of Loewen Windows. CharityVillage
spoke with executive director Ken Friesen about the growth and
evolution of the foundation, its move to a more strategic grantmaking
process, and its efforts to encourage change in the nonprofit sector.
CharityVillage: Until the late 1990s the foundation worked in almost complete anonymity. Then in 1999 the board decided to hire its first executive director. What has this change meant for the foundation?
Ken Friesen: It has meant a number of things, some of which are
related to my coming on board and some which are related to changes
they wanted to implement within the foundation in any case. One thing
is better and quicker responses to grant applicants than they were able
to do beforehand. As well, we have more time and resources for communication,
both with the public and with grantees and potential grantees. The foundation
made a decision to begin moving away from [anonymity], in large part
because the employees of Loewen were not aware of the charitable activity
that the Loewen family was engaged in, and in some ways considered their
company to not be involved in that sector, when in fact it was. So we've
become much more open in talking about the granting activity of the
foundation because the employees deserve to know that.
Since we've become more public, grant applications have increased and
that's been both good and bad. We've received more applications that
aren't qualified, but after we established our grant guidelines and
better defined our areas of interest the number of grant applications
has actually leveled off somewhat. In addition, we are doing a lot more
research now into our areas of interest so we have a better knowledge
about how to grant effectively. So that's been a positive change for
the foundation.
In regard to the grant application process, we instituted a new policy
in 2004 - which may carry over to 2005 - to not accept any unsolicited
grant proposals. Our granting activity is going to be down slightly
this year and perhaps next year. As a result, we have to be even more
focused. In order to respect the organizations that go through great
work to put together proposals, if we know we are not going to be able
to grant their request we feel it is better for us to go out and proactively
solicit the requests that we want.
CV: You say that your granting levels will be down this year. How much do you expect to grant?
KF: Over the last five years we've averaged about $1 million per year and it will likely be about half of that for this year and possibly next year. The income to the foundation is primarily from the window company, which is family owned, and the levels of income from the operating company change from year to year. The foundation isn't based solely upon an endowment like some foundations.
CV: And what is the geographic scope of your grantmaking?
KF: It's Canada-wide, but we tend to work in concentric circles starting from Southeast Manitoba - including Winnipeg - and then moving out from there. In the last number of years the majority of the grants, both in terms of dollar value and number of grants, have been in Manitoba. That's where the majority of the family members in the foundation are located, and also where the majority of Loewen employees live and work, which is also a consideration.
CV: When you created your grantmaking guidelines in 2000 you moved
towards a more strategic approach. What does strategic grantmaking mean
for this foundation?
KF: What it means, essentially, is that we try to be catalysts for positive change. The foundation is not among the largest foundations in Canada, nor is it among the smallest. But we felt that in order to make a difference and be effective we needed to be more strategic in terms of where we place our grants. Typically, being a catalyst is a more interactive process. We do a lot more research in terms of how our grants might make a difference before we make the actual grant. In the past, it was more a matter of organizations making applications and the foundation deciding whether the organizations were worthy, whether they were doing good work, and then making the grant. Now we tend to look to areas where we want to make change or see change happen. Then we go and look for organizations that are working in those areas, evaluate what they are doing, and then make our decision about grants.
CV: Your primary areas of interest include education, tolerance
and respect, faith, environment, alleviation of poverty and promotion
of economic mobility, and community-building. Tell me about some of
the projects you are currently involved with.
KF: We've been involved with a number of faith-based schools
over the years. Typically, these involvements have been capital projects
that the schools have undertaken. The Loewen Foundation was one of the
founding members of the Canadian Mennonite University in Winnipeg. We
like to be involved with projects or organizations where more than one
of our areas of concern are being met. So if there is something that
involves education and environment, or education and faith, those applications
tend to get more consideration.
Recently, we've been involved with the Mauro Centre for Peace and Justice,
which is housed at St. Paul's College, part of the University of Manitoba.
It was started a year and a half ago and the university is hoping to
become the first in Canada to offer a Ph.D. in conflict mediation studies.
So we were very much involved with that. Charles Loewen, one of the
foundation directors, sits on the board of the Mauro Center for Peace
and Justice and was very involved in getting it started. From time to
time, the foundation directors will be involved with organizations that
we support.
CV: As a family foundation, what are some of the specific challenges you face?
KF: At this point there are four family members involved with
the foundation. One of the challenges, perhaps, is the fact that the
operating company provides much of the income to the foundation. So
we take into account not only the foundation's mission and directors'
considerations, but also areas that key Loewen staff are interested
in. Or we'll take into account areas that the company is interested
in, as well as the foundation. One example of that is the environment.
Loewen is the largest manufacturer of luxury wood windows and doors
in Canada. Because it is a consumer of wood, the environment is obviously
very important to it. So there are areas of crossover where it becomes
a company concern as well as a family concern.
In terms of other family-related matters, one of the things that I see
developing in the next few years is the upcoming involvement of the
next generation of family. That is going to be very interesting and
will ultimately change the foundation somewhat. We also offer something
in area high schools called Philanthropy 101, which is similar to Youth
in Philanthropy (YIP), and have found the involvement of younger people
to be stimulating. They bring new ideas, life, and vitality. So as the
next generation of Loewen family becomes involved in the foundation,
I think we are going to see new vitality, new ideas, and new interests
being brought to the foundation.
CV: What advice might you give to individuals who are considering setting up their own family foundation? What are some of the keys to making it work?
KF: In my experience with the Loewen family and the Loewen Foundation,
the good will among family members is one of the keys to making the
foundation a success. The family directors have various interests, and
divergent interests at times, and it takes a base of good will to make
it work within a foundation. Secondly, I think what helps when you have
a group of diverse people in a foundation is to formalize key areas
that you want to focus on and be strategic about so that people can
set aside their particular interests in order to focus on the common
mission of the foundation. The third essential key to success is the
willingness to change. In many businesses today, change is a given;
if you are not willing to change, you're not around tomorrow. In the
foundation world that hasn't always been the case. Up until a few years
ago, foundations tended to be a little more staid. I think for foundations
to be vital in bringing about the change in society that they envision,
they have to be willing to change and move with the times.
CV: How are you encouraging change within the nonprofit sector?
KF: Typically, encouraging change comes in conversation with others. We try to challenge nonprofits to think beyond just tomorrow, and we try to provide some of the resources for them to do better what they are already doing well. We prefer to build on strength rather than propping up organizations that are already weak. We try to build on organizations that are strong, that are already doing things well, and challenge them to do better. In some cases they think they are already doing well. In our experience, most of them - when challenged in a positive way - respond to that and begin to think beyond simply tomorrow and next year to what they could be if they had the resources to do what they really could do better.
CV: How do evaluations fit into your grantmaking process?
KF: Evaluations are very much a part of what we do. We feel that it is something we can offer to organizations even if they don't receive a grant. Many organizations haven't thought about some of the things we ask them, for a number of reasons. We've heard back from many organizations that they appreciate the fact that the evaluation has caused them to think through what they are actually trying to do and how they are trying to do it.
CV: Given that the past few years has been a time of change
and evolution for the foundation, where are you headed in the next few
years?
KF: For this foundation, one of the keys to its future development is going
to be the next generation of Loewen family, who will bring their own
perspectives, expertise, and interests to the foundation. I suspect
that education will continue to remain a high priority for the foundation,
and I am confident that the Loewen culture of giving will continue with
the next generation.
Ken Friesen was involved in municipal politics, including Deputy Mayor of Steinbach from 1992 - 2002, and since 1998 has been a partner in a Manitoba-based environmental consulting firm. In 1999, he was appointed as the Loewen Foundation's first-ever executive director. For more information about the C. P. Loewen Family Foundation, visit www.loewenfoundation.com.
