The Foundation of Greater Montreal (FGM) is celebrating its 25th anniversary this year. With our 800 philanthropic funds, half a billion in assets, and the approximately $200 million we have distributed to hundreds of local community organizations over the years, FGM now aspires to multiply our impact to meet the challenges of our time.

Since the creation of FGM, Quebec’s GDP per capita has increased by 86%. And yet, we are in the midst of a crisis. People are struggling to house and feed themselves, even though collectively we’ve never been richer. The ecological crisis is worsening and accelerating. Our economy creates wealth, but at the cost of our future and that of our children, and without effectively meeting our basic needs.

Historically, philanthropy’s role was to mitigate the shortcomings of our economic model. But today, that’s no longer enough. That’s why philanthropy must transform its practices. While needs are exploding, the number of donors is falling and donations are stagnating. In Canada, there are currently 800,000 fewer donors than there were 12 years ago.

Despite this decline, the value of donations increased by $3 billion to reach $11.4 billion in 2022. How is this possible? Because less than 1% of donors now contribute 38% of total donations. Reflecting growing inequalities, philanthropy is increasingly concentrated in the hands of major donors. This concentration is harmful to the vitality, diversity, and independence of the charitable sector.

The Growth of Philanthropic Capital in Canada

Over the last 12 years, while the value of donations increased by only 36%, philanthropic capital grew by 285%. This exponential growth represents an opportunity we simply cannot afford to ignore. If donations aren’t keeping pace with growing needs, we must ask ourselves the following question: How can we maximize the impact of every philanthropic dollar?

To achieve this, philanthropy needs to think outside the box. This starts with supporting populations and issues that it has historically neglected. Housing affordability, the strengthening of democracy, climate resilience, or protecting the rights of racialized, Indigenous or gender diverse communities: these causes receive only a tiny sliver of available grants. This must change.

Mobilizing Capital

Philanthropic capital can also no longer be solely a tool for generating returns, it must become a tool for creating change. Instead of asking what return we can get with these funds, shouldn’t we be asking how many people we can house, feed, educate, or care for with this money? Imagine for a moment if the well-being of your community was an investment you could put your money into. That’s what impact investing allows, by combining financial returns with social and environmental impact.

The value of philanthropic capital in Montreal is estimated at between $20 and $25 billion. Imagine if Montreal foundations and donors came together to invest a portion of these assets in a Montreal impact fund rather than in the financial markets, all without loss of returns? Within a few years, we would have several hundred million dollars to deploy in support of thousands of affordable and ecological housing units, dozens of social economy or minority-owned businesses supported in their growth, thousands of tons of greenhouse gas emissions reduced in our commercial buildings, and so much more. This list is limited only by our capacity to innovate.

The ambition of the Foundation of Greater Montreal is to create an impact fund that will enable Montreal’s philanthropic stakeholders to invest a portion of their assets here. A fund that will generate competitive risk-adjusted returns, and measurable impacts on the ground.

Today, we’re reaching out to the entire Montreal philanthropic community. Let’s work together to create this impact fund that will deploy the philanthropic resources our community so desperately needs.