Leadership in Focus: Martin Connell
By Elisa Birnbaum
February 1, 2010
This month in our Leadership in Focus series, we feature Martin Connell, a successful businessman and one of Canada’s most venerable philanthropists. Among his many initiatives, Connell, a strong believer in the potential of micro-lending to heal injustice in the developing world, co-founded Calmeadow with his wife. Current chair of the Toronto Community Foundation, Connell’s philanthropy and ongoing involvement in the charitable sector has led to a number of esteemed accolades including the Humanitarian Award in 2006, the Officer of the Order of Canada in 1998 and the Pearson Medal of Peace in 1994.
CharityVillage: You’ve been involved in philanthropy for a long while - can you recall what originally inspired your philanthropic initiatives? Does it still inspire you today?
Martin Connell:
I really came alive around 1980. I think what triggered it was I had just finished a trip to Egypt and I came home with a sense of outrage at the injustice which became even more clear as I traveled to the developing countries and saw the random and incomprehensible allocation of opportunity. It still moves me, for sure, I still feel a sense of injustice and a lack of fairness at the allocation of opportunity.
CV: In your opinion, how vital are micro-lending efforts today, whether in Canada or beyond?
MC: In Canada, I don’t think microfinance has ever taken root, or in most of developed world either, primarily because there are so many credit options available to people. Oftentimes, at issue is the pricing of the credit which seems to have a heavy political weight attached to it. In the developing world, initiatives start up all over the place and the credit pricing is less important because you’re basically assisting people to put their sweat equity to work. And it’s really about leveraging that sweat equity. So whether that money costs 3% a month or 4%, it’s not going to deter them; it’s a chance to get money they wouldn’t otherwise get, (other than through a money lender).
In Canada, it’s not quite the same. There is a lot of credit available, whether with credit cards, Money Mart etc; the only issue is pricing. And there’s a strong political resistance to pricing anything over the credit card rate, in effect, the 18% seems to be the notional cap. I don’t know anyone who can make a microcredit program work at 18%. That’s why it hasn’t emerged, nor will it ever until someone says, "we’re going to have to charge what the costs are and people are going to have to pay if they want the money." But in the developing world it’s now commercially viable and there’s been an incredible explosion of commercial micro-finance institutions globally.
CV: Have you been known to associate yourself with other philanthropists or philanthropic organizations?
MC: I guess, over the years, one has the natural tendency to fall in with those who share similar passions so there’s a built-in human nature bias to seek out and spend time with people who are most closely aligned. It’s like picking a political party; you’re not going to jump into one that goes against your value system.
CV: How are Canadians doing overall when it comes to philanthropy?
MC: My fundamental view is that philanthropy is alive and well in Canada. It’s a balancing act in terms of what our government does for us and what we have to do for ourselves. Philanthropy basically fills in the gaps where government can’t. We’ve been blessed in our country with a truly progressive social system that has largely met most of our societal needs. And I’d say that philanthropy continues to do what it’s supposed to do to fill the gaps that have been left behind. Of course, there’s never enough money so there’s always a need for more.
"One could argue that Canadians aren’t digging deep enough. I think they’re digging a lot deeper than they were even 10 years ago." |
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One could argue that Canadians aren’t digging deep enough. I think they’re digging a lot deeper than they were even 10 years ago. And I think the level of giving is not evenly distributed. There are some who give absolutely nothing and a few who do a lot. But that’s always been the case, I don’t think that’s anything new. And I think the interesting thing is that so much of what goes on in philanthropy is what I call informal philanthropy, neighbour-to-neighbour and member of congregation to another member. It doesn’t get written up or get publicized because it has no dollar attached to it and it’s not formal in the traditional sense of philanthropy I think, by and large, we continue to be a generous society.
CV: Do you think we’re doing enough to foster the desire to give back among young people today?
MC: I think it’s one of the areas where there’s always more to be done but I’m encouraged to see the amount of activity taking place with younger people. I see their energy, passion, and idealism and I see the results of some of their creative initiatives. So I have a positive take on what I see and I think building philanthropy into the curriculum has been a very positive thing even though some argue it’s a bit of a sham. I take the view that it’s put the profile of volunteering at a much higher level than it used to be and kids are now taking it more seriously.
CV: As the chair of a nonprofit board, do you feel there’s a responsibility on behalf of board members toward fundraising?
MC: The fundraising model of charity, such that it is, implies that unless they are constantly supported by government or fees etc, they have to raise money on an annual basis to keep their doors open and execute their mission. As a result, I think the large part of a charity’s activities revolve around fundraising. And if the board members aren’t prepared to participate in that, they shouldn’t belong to the board. I’m a strong believer in board participation in fundraising as a prerequisite of participation.
CV: What are the greatest challenges, in your opinion, for board members today?
MC: Keeping the organization solvent, ensuring the right CEO is running the organization and sticking to one’s mission. It’s easy to deviate from all three. You can get mission drift when you start having to be pragmatic about where your money is coming from. And if you have the wrong CEO, and if he’s averse to fundraising, it can sink the ship. And keeping solvent is at the bottom of it all. If you can’t get your bills paid, you’re not going to stay in business.
CV: As someone who’s had experience in the private and nonprofit sector, what is the most significant thing one sector can learn from the other?
MC: They are both, more or less, results-driven. In that sense, there’s a lot of similarity. But the funding model is obviously different. Corporations only need to raise funds periodically but charities are constantly in the fundraising mode. Corporations have a long way to go in terms of embracing social responsibility as being a critical part of their success and I think there’s a lot they can learn from the nonprofit sector in that regard. And I similarly feel the nonprofit sector can learn what I’ll call business practices, in terms of business management, to a greater extent than they have in the past.
CV: What qualities make people successful leaders?
MC: Passion, determination, patience, endurance, humour and knowing when to pass on the leadership to the next person.
Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is also president of Elle Communications and can be reached at: info@ellecommunications.ca.
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