To Prem Watsa
Dear Prem,
Canadians need to be more pretentious.
Let me explain, my friend. The people at Rideau Hall recently concluded a nation-wide consultation with experts in philanthropy. Those round tables brought to light many surprising facts. One stood out to me: Canadians refrain from making large philanthropic gifts for fear of being thought of as pretentious. If wealthy Canadians give at all, they often give quietly. The Canadian trait of humility is usually an attractive and commendable one. Not in this instance though. I think we Canadians need to shed our timidity when it comes to making large philanthropic gifts.
What steps could we take to encourage more Canadians of great wealth to make large philanthropic gifts, and in so doing develop a culture of major giving in our country? Some would argue, I’m sure, that we need to change our tax code to nurture this kind of culture. I don’t want to go there right away. I think we can take other actions beyond those that require the participation of our governments. We need to step up and step out.
Stepping out means we need to become more innovative about how we give. Why innovative? As you are well aware, we’re living through an extraordinary moment in time, a hinge point in history. It’s a time of profound globalization, of disruptive technological changes, of major demographic shifts, of momentous concerns related to our natural environment, and of changing attitudes toward – and expectations of – governments and public services. The argument I’ve heard from many – and that I agree with – is that too much of major giving today perpetuates the status quo; it doesn’t do enough to replace the status quo with a better state of affairs. Canadian giving needs to become much more innovative to reflect the new realities. Just as we must innovate in science, engineering, medicine, and education, Canadians must innovate in how we make major philanthropic gifts. We must use them to reach marginalized people and unaddressed collective needs. We must give in ways that ensure every single Canadian can reach his or her full potential and enjoy a life of dignity and meaning. Above all, we must give using increasingly effective and more ambitious methods to overcome the daunting challenges we face right now in our time.
What does stepping out look like? Here’s an example. Members of the G7 Social Impact Investment Taskforce held their first meeting at Toronto’s MaRS Centre for Impact Investing. These men and women used the gathering to gain a better understanding of how to harness private capital for public good while generating financial returns for investors. This kind of investing recognizes that Canada, like its G7 partners, faces significant social, environmental, and financial challenges. The scope and gravity of these challenges call on us to be innovative, because governments sometimes lack the ability or the flexibility to respond adequately. It’s not that there isn’t enough money in the world to address these challenges; it’s that the money is tied up in financial markets, held as interest-earning investments rather than being deployed where it’s needed most. No one has recognized this fact more than you do. Yet when we invest in helping people, communities, and countries overcome challenges – all while generating returns for investors – that’s innovative giving.
This social finance is a great example of smart giving, not least because of its focus on measuring impact. Measuring enables us to chart progress, improve performance and communicate value. It also makes it possible for us to avoid unnecessarily duplicating efforts and administrative costs. How would this principle work in practice? If you want to use a major gift to support a good cause, job number one is to find a charity with the same aim. If there isn’t one, job number two is to ask whether you might help an existing charity innovate to fulfill that particular aim. And, if you still can’t find a match, job number three is to fill that gap with an entirely new charity.
Using innovative giving that upends the status quo – stepping out – is only one way to encourage more Canadians of great wealth to make large philanthropic gifts and develop a culture of major giving in our country. Another is mentorship, or stepping up. I’m thinking most here about mentoring supplied by top philanthropists from Canadian business. Our country’s business elite stands on a different hill. You enjoy a splendid view that others can only imagine. And in your gaze, you can see earlier and more clearly how forces are shaping up and what may be done to take advantage of them. So what then, beyond your own growth and security, is your responsibility? You men and women have unique power. You possess rare knowledge, skills, and wisdom gained from a lifetime at the highest levels of Canadian business. You’ve shown fierce ambition, drive, and intelligence to reach the top of your game and stay there. You’ve cultivated rich networks of professional and personal contacts throughout the country. It’s those traits, values, and relationships that have made you such successful business people, executives, investors, and entrepreneurs. I would like you to put those traits, values, and relationships to work to revolutionize philanthropy in our country. Think of it: just as ingenuity is the life force of business, the sciences, education, and virtually all other disciplines in our age, ingenuity must be the life force of philanthropy in Canada. I know it can. I want our country’s top philanthropist business people to use all the tools, tricks, and techniques that have made them such successful leaders in Canada – all their knowledge, skills, and experiences, all their ambition, drive, and intelligence, all their professional and personal contacts – and use them to nurture the next generation of Canadian philanthropists.
Specifically, I urge them to widen the circle of giving by mentoring five young, successful business people or professionals to be ingenious philanthropists. You know how to get things done. You’ve proven it all your lives. As a generation of proven business leaders and philanthropists, use your unique power. Work with five young, successful protegés to really shake up philanthropy in Canada. And make sure many of them are women. Make a point of nurturing successful young female business people and professionals into ingenious philanthropists. Canadian women have always been at the forefront of truly transformative social changes in our country. Help women tap into the natural inclination toward equality, fairness, and sharing that lies within them.
Some may very well say my call to you and to other successful business leaders to step up and step out is brash or pretentious. That’s fine with me. I’m all for appearing a little pushy if it encourages more Canadians of great wealth to make large philanthropic gifts and helps us to develop a culture of major giving in our country.
Yours in friendship,
David
Prem Watsa is founder, chairman, and chief executive of Fairfax Financial Holdings, one of Canada’s largest and most successful holding companies. Prem was born and raised in India. His father, orphaned at thirteen and raised by Jesuits, eventually became a college principal. Prem earned a scholarship to attend the Indian Institute of Technology at Madras. Soon after graduation, he emigrated to Canada with $500 in his pocket to seek and make his fortune. Devout and generous, he gives regularly and abundantly of his time, talent, and treasure to many worthy causes. A member of the Order of Canada, he serves as trustee and advisor to many non-profit institutions and was chancellor of the University of Waterloo from 2009 to 2015.