Abstract
This research examines the role that myths play in sustaining the institutional position of philanthropy in a context of sector reinvention during the COVID-19 recovery. Specifically, we study discourse around the post-pandemic philanthropic sector reforms to the Disbursement Quota (DQ) in Canada. The DQ is the minimum asset payout rate that philanthropic foundations in Canada must maintain to enjoy charitable status and associated tax benefits. We examine submissions to government, media articles, and public statements by philanthropic sector advocates to analyze the ideological work of DQ-related discourses in creating and entrenching philanthropic myths. Our findings coalesce around three philanthropic myths: (1) the Modernization Myth (2) the Goodness Myth; and (3) the Equity Myth. We argue that these philanthropic myths function to maintain the institutional position of philanthropy in this moment of sector reinvention by obscuring the sector’s colonial-capitalist histories and institutional contradictions.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
The federal government in Canada terms eligible charities as “qualified donees.” This restriction is currently being re-examined as part of Senate bill S-216 to increase eligibility of nonprofits and unregistered community groups to benefit from foundation grants (Pickering, 2022).
The DQ was originally set at 5 percent, before being lowered to 4.5 percent in 1984. In 2004, as part of a broader reform of the Income Tax Act, the DQ was reduced from 4.5 percent to 3.5 percent. This was based on the view that the reduced figure better represented long term investment returns. By asking foundations to only disburse a percentage of assets that matched market returns, the DQ policy affirmed that the government thought it appropriate for foundations to maintain a capital asset base for the long-term (Department of Finance Canada, 2004).
Between 2014 and 2020, total assets of private foundations in Canada have risen from approximately $34 billion to $81 billion (PFC, n.d.).
References
AACS (2021). Advisory Committee to the Charitable Sector (ACCS) Submission to Finance Canada on Disbursement Quota Reform. https://www.carters.ca/pub/article/charity/2021/ACCS-Submission.pdf
Ahmed, S. (2012). On being included: Racism and diversity in institutional life. Duke University Press.
Anheier, H. K., & Leat, D. (2006). Creative philanthropy: Toward a new philanthropy for the twenty-first century. Routledge. https://doi.org/10.4324/9780203030752
Arnove, R. F. (1984). Philanthropy and cultural imperialism: The foundations at home and abroad. Journal of Business Ethics, 3(1), 69–89.
Arvidson, M., & Lyon, F. (2014). Social impact measurement and non-profit organisations: Compliance, resistance, and promotion. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 25(4), 869–886. https://doi.org/10.1007/s11266-013-9373-6
Azevedo, L., Bell, A., & Medina, P. (2022). Community foundations provide collaborative responses and local leadership in midst of COVID-19. Nonprofit Management and Leadership, 32(3), 475–485. https://doi.org/10.1002/nml.21490
Barkan, J. (2013). Plutocrats at work: How big philanthropy undermines democracy. Social Research, 80(2), 635–652.
Barthes, R. (1972). Critical essays. Northwestern University Press.
Blumberg, M., & Lang, J. (2021). Should the disbursement quota for registered charities in Canada change or be left alone? Blumbergs. https://www.canadiancharitylaw.ca/wp-content/uploads/2021/09/Should-the-disbursement-quota-for-registered-charities-in-Canada-change-or-be-left-alone-final.pdf
Breeze, B. (2021). In defence of philanthropy. Agenda Publishing.
Bronwell, C. (2021). Uncharitable: As Canada’s charitable foundations grow, some of the biggest are spending less than required. The Logic. https://thelogic.co/news/investigation/uncharitable-as-canadas-charitable-foundations-grow-some-of-the-biggest-are-spending-less-than-required/#:~:text=Some%20of%20Canada's%20biggest%20charitable,by%20The%20Logic%20has%20revealed
Brousselle, A., Brunet-Jailly, E., Kennedy, C., Phillips, S. D., Quigley, K., & Roberts, A. (2020). Beyond COVID-19: Five commentaries on reimagining governance for future crises and resilience. Canadian Public Administration, 63(3), 369–408. https://doi.org/10.1111/capa.12388
CAGP (2021). Written Submission to the Department of Finance “Consultation: Boosting Charitable Spending in our Communities.” https://www.cagp-acpdp.org/sites/default/files/cagp_submission_-_boosting_charitable_spending_in_our_communities_-_sept_2021.pdf
Canada Gives (2022). Our view on the Budget 2022 proposal to hike disbursement quotas. https://www.canadagives.ca/our-view-on-the-budget-2022-proposal-to-hike-disbursement-quotas
Carroll, W., Graham, N., & Shakespear, M. (2020). Foundations, ENGOs, clean-growth networks and the integral state. Canadian Journal of Sociology. https://doi.org/10.29173/cjs29638
CBA. (2021). Increasing disbursement quota not the way to help charities. https://www.cba.org/Our-Work/cbainfluence/Submissions/2021/August/Increasing-disbursement-quota-not-the-way-to-help
CFC. (2021). Rebooting philanthropy: A partner in transforming Canada. Community Foundations Canada.
CFC (2021b). Moving beyond the disbursement quota towards transformative change. Future of Philanthropy. https://communityfoundations.ca/boosting-charitable-spending/
Charity Intelligence Canada (2021). Raise the disbursement rate. https://www.charityintelligence.ca/research-and-news/ci-views/45-r-d/693-raise-the-disbursement-rate
Chouliaraki, L. (2012). The theatricality of humanitarianism: A critique of celebrity advocacy. Communication and Critical/cultural Studies, 9(1), 1–21. https://doi.org/10.1080/14791420.2011.637055
Coule, T. M., Dodge, J., & Eikenberry, A. M. (2022). Toward a typology of critical nonprofit studies: A literature review. Nonprofit and Voluntary Sector Quarterly, 51(3), 478–506. https://doi.org/10.1177/0899764020919807
CRA (2000). Circular RC 4108(E): Registered Charities and the Income Tax Act. https://www.canadiancharitylaw.ca/uploads/RC4108_Registered_Charities_and_the_Income_Tax_Act.pdf
Department of Finance Canada (2004). New agenda for achievement: The budget plan 2004 (No. F1-23/2004-3E). https://www.budget.canada.ca/pdfarch/budget04/pdf/bp2004e.pdf
Department of Finance Canada (2021). Government launches consultations on boosting charitable spending in our communities. https://www.canada.ca/en/department-finance/news/2021/08/government-launches-consultations-on-boosting-charitable-spending-in-our-communities.html
Dey, P., & Steyaert, C. (2018). Social Entrepreneurship: An Affirmative Critique. Edward Elgar Publishing.
Ebrahim, A. (2003). Accountability in practice: Mechanisms for NGOs. World Development, 31(5), 813–829. https://doi.org/10.1016/S0305-750X(03)00014-7
Edwards, M. (2015). From love to money: Can philanthropy ever foster social transformation? In B. Morvaridi (Ed.), New philanthropy and social justice: Debating the conceptual and policy discourse. Policy Press.
Eikenberry, A. M. (2006). Philanthropy and governance. Administrative Theory & Praxis, 28(4), 586–592.
Eikenberry, A. M., & Mirabella, R. M. (2018). Extreme philanthropy: Philanthrocapitalism, effective altruism, and the discourse of neoliberalism. PS: Political Science & Politics, 51(1), 43–47. https://doi.org/10.1017/S1049096517001378
Fairclough, N. (2012). Critical discourse analysis. In M. Handford & J. P. Gee (Eds.), The Routledge handbook of discourse analysis (pp. 9–20). Routledge.
Finchum-Mason, E., Husted, K., & Suárez, D. (2020). Philanthropic foundation responses to COVID-19. Nonprofit and Voluntary Sector Quarterly, 49(6), 1129–1141. https://doi.org/10.1177/0899764020966047
Foster, J. B., Clark, B., & York, R. (2011). The ecological rift: Capitalism’s war on the earth. NYU Press.
Gilmore, R. W. (2016). In the shadow of the shadow state. S&F Online, 13(2), 1–7.
Government of Canada (2021). Backgrounder for disbursement quota consultation. https://www.canada.ca/en/department-finance/programs/consultations/2021/boosting-charitable-spending-communities/backgrounder-disbursement-quota-consultation.html
Government of Canada (2022). Budget 2022, Chapter 8: Safe and inclusive communities. Department of Finance. https://www.budget.canada.ca/2022/report-rapport/chap8-en.html
Hall, S. (1982). The rediscovery of ‘ideology’; return of the repressed in media studies. In M. Gurevitch, T. Bennett, J. Curran, & J. Wollacott (Eds.), Culture, society and the media. Berlin: Routledge.
Harvey, D. (2005). The new imperialism. Oxford University Press.
Herschberg-Pierrot, A. (2002). Barthes and doxa. Poetics Today, 23(3), 427–442.
Imagine Canada (2021). Consultation: Boosting charitable spending in our communities; Recommendations submitted by Imagine Canada. https://www.imaginecanada.ca/sites/default/files/disbursement-quota-submission-Imagine-Canada.pdf
Jensen, C. (2013). Foundations and the discourse of philanthropy. Administrative Theory & Praxis, 35(1), 106–127. https://doi.org/10.2753/ATP1084-1806350107
Kapoor, I. (2012). Celebrity humanitarianism: The ideology of global charity. Routledge.
Kapoor, I. (2016). Billionaire philanthropy: ‘Decaf capitalism. In I. Hay & J. V. Beavrstock (Eds.), Handbook on wealth and the super-rich (pp. 113–131). Edward Elgar Publishing.
Karl, B. D., & Katz, S. N. (1987). Foundations and ruling class elites. Daedalus, 116(1), 1–40.
Kim, M., & Raggo, P. (2022). Taking stock on how we research the third sector: diversity, pluralism, and openness. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. https://doi.org/10.1007/s11266-022-00548-6
Kohl-Arenas, E. (2015). The self-help myth: Towards a theory of philanthropy as consensus broker. American Journal of Economics and Sociology, 74(4), 796–825. https://doi.org/10.1111/ajes.12114
Kohl-Arenas, E. (2016). The self-help myth: How philanthropy fails to alleviate poverty. Univ of California Press.
Kraeger, P. (2022). Shifting philanthropic engagement: Moving from funding to deliberation in the eras of the COVID -19 global pandemic and black lives matter. Local Development & Society, 3(2), 298–311. https://doi.org/10.1080/26883597.2021.1939766
Lawrence, K. (2002). Reconsidering community building: Philanthropy through a structural racism lens. Souls, 4(1), 45–53. https://doi.org/10.1080/109999402760286873
Leat, D. (2016). Philanthropic foundations. Public Good and Public Policy.
Lorino, J. (2021). A brewing showdown over disbursement quotas. The Philanthropist Journal. https://thephilanthropist.ca/2021/06/a-brewing-showdown-over-disbursement-quotas/
Lukacs, G. (1972). History and class consciousness: Studies in marxist dialectics. MIT Press.
Mallett, S. (2021). The disbursement quota and an opportunity for change. Rozsa Foundation. https://www.rozsafoundation.com/post/the-disbursement-quota-and-an-opportunity-for-change
McGoey, L. (2012). Philanthrocapitalism and its critics. Poetics, 40(2), 185–199. https://doi.org/10.1016/j.poetic.2012.02.006
McGoey, L. (2015). No such thing as a free gift: The gates foundation and the price of philanthropy. Verso Books.
Mercer Consulting (2022). Increased disbursement quota: A new challenge for Canadian Endowments & Foundations. https://www.mercer.com/content/dam/mercer/attachments/north-america/canada/Increased%20Disbursement%20Quota.pdf
Mitchell, K., & Pallister-Wilkins, P. (Eds.). (2023). The Routledge handbook of critical philanthropy and humanitarianism. Routledge.
Morvaridi, B. (2012). Capitalist philanthropy and hegemonic partnerships. Third World Quarterly, 33(7), 1191–1210. https://doi.org/10.1080/01436597.2012.691827
Oatley, G. (2023). CRA guidance on non-qualified donees a ‘good first draft’ but leaders are pushing for several big changes before government finalizes policy. Future of Good. https://futureofgood.co/cra-guidance-on-non-qualified-donees/
Orensten, N., & Buteau, E. (2020). Foundations respond to crisis: Toward greater flexibility and responsiveness? Centre for Effective Philanthropy. http://cep.org/wp-content/uploads/2020/12/CEP_Foundations-Respond-to-Crisis_Toward-Greater-Flexibility-and-Responsiveness_2020-1.pdf
Ostrander, S. A. (2007). The growth of donor control: Revisiting the social relations of philanthropy. Nonprofit and Voluntary Sector Quarterly, 36(2), 356–372. https://doi.org/10.1177/0899764007300386
Pearson, H. (2021). The federal government should not overhaul charity rules during a pandemic. Policy Options. https://policyoptions.irpp.org/magazines/october-2021/the-federal-government-should-not-overhaul-charity-rules-during-a-pandemic/
Pereira, R., Abokor, L., Ahmad, F., & Adbikkarim, F. (2020). Unfunded: Black communities overlooked by Canadian philanthropy. Foundation for Black Communities. https://www.forblackcommunities.org/assets/docs/Unfunded-Report.pdf
PFC (n.d.). Canadian Foundation Facts. Philanthropic Foundations Canada. https://pfc.ca/canadian-foundation-facts/
PFC (2021a). Policy brief regarding the federal consultations on the disbursement quota and related policy issues: PFC membership consultations. Philanthropic Foundations Canada.
PFC (2021b). Consultations by the government of canada on boosting charitable spending in our communities. Philanthropic Foundations Canada. https://pfc.ca/documents/consultations-by-the-government-of-canada-on-boosting-charitable-spending-in-our-communities/
Phillips, S. D. (2018). Dancing with giraffes: Why philanthropy matters for public management. Canadian Public Administration, 61(2), 151–183. https://doi.org/10.1111/capa.12273
Pickering, C. (2022). Explainer: The effective and accountable charities act (bill s-216) – what you need to know. Future of Good. https://futureofgood.co/bill-s216/
Reich, R., Cordelli, C., & Bernholz, L. (2016). Philanthropy in democratic societies: History, institutions. University of Chicago Press.
Richey, L. A., & Ponte, S. (2008). Better (Red)™ than dead? Celebrities, consumption and international aid. Third World Quarterly, 29(4), 711–729.
Roelofs, J. (2015). How foundations exercise power. American Journal of Economics and Sociology, 74(4), 654–675. https://doi.org/10.1111/ajes.12112
Rojc, P. (2022). Philanthropy trend watch: A few ways the sector is changing for the better—And the worse. Inside Philanthropy. https://www.insidephilanthropy.com/home/2022/12/21/philanthropy-trend-watch-a-few-ways-the-sector-is-changing-for-the-better-and-the-worse
Rosenman, E. (2023). Social impact investing. In K. Mitchell & P. Pallister-Wilkins (Eds.), The Routledge international handbook of critical philanthropy and humanitarianism (pp. 26–38). Routledge.
Saltman, K. (2010). The gift of education: Public education and venture philanthropy. Springer.
Saifer, A. (2019). Imagining the exceptional Canada: Nation, art, and social change in Canada’s charitable sector. Journal of Canadian Studies, 53(1), 95–122. https://doi.org/10.3138/jcs.2018-0003
Saifer, A., Sidorovska, I. G., Litalien, M., Jean-Marc, F., & Duprez, C. (2021). Examining the COVID-19 response of Canadian grantmaking foundations: possibilities, tensions, and long-term implications. Canadian Journal of Nonprofit and Social Economy Research, 12(S1), Article S1. https://doi.org/10.29173/cjnser.2021v12nS1a408
Shea, C. (2016). State of the Work: Stories from the Movement to Advance Diversity, Equity, and Inclusion (Year 5). D5coalition.org. https://www.d5coalition.org/wp-content/uploads/2016/04/D5-SOTW-2016-Final-web-pages.pdf
Sidorovska, I. G. (2020). Indigenous Peoples Resilience Fund: Building infrastructure for Indigenous philanthropy. PhiLab. https://philab.uqam.ca/wp-content/uploads/2020/11/Indigenous_FINAL_2.pdf
Taylor, C. (2021). Consultation: Boosting charitable spending in our communities. Ontario Nonprofit Network. https://theonn.ca/wp-content/uploads/2021/10/Disbursement-Quota-Consultation-ONN-submission-Sept-29-2021.pdf
Villanueva, E. (2018). Decolonizing wealth: Indigenous wisdom to heal divides and restore balance. Berrett-Koehler Publishers.
von Schnurbein, G., Rey-Garcia, M., & Neumayr, M. (2021). Contemporary philanthropy in the spotlight: Pushing the boundaries of research on a global and contested social practice. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 32(2), 185–193. https://doi.org/10.1007/s11266-021-00343-9
Walcott, R. (2019). The end of diversity. Public Culture, 31(2), 393–408. https://doi.org/10.1215/08992363-7286885
Will, M. G., & Pies, I. (2017). Discourse failures and the NGO sector: How campaigning can undermine advocacy. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 28(3), 1078–1109. https://doi.org/10.1007/s11266-016-9770-8
Wilson, J. (2014). Fantasy machine: Philanthrocapitalism as an ideological formation. Third World Quarterly, 35(7), 1144–1161. https://doi.org/10.1080/01436597.2014.926102
Wirgau, J. S., Farley, K. W., & Jensen, C. (2010). Is business discourse colonizing philanthropy? A critical discourse analysis of (PRODUCT) RED. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 21(4), 611–630. https://doi.org/10.1007/s11266-010-9122-z
Acknowledgements
The authors are grateful to feedback received on a draft version of this paper presented at the Association for Nonprofit and Social Economy Research (ANSER) conference in 2021. We would also like to thank Sanaa Ali-Mohammed, PhD candidate in Policy Studies at Toronto Metropolitan University, who helped with searching media articles for our dataset.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Ahmad, F., Saifer, A. The Ideological Work of Philanthropic Myths: A Study of Post-pandemic Disbursement Quota Reforms in Canada. Voluntas (2023). https://doi.org/10.1007/s11266-023-00628-1
Accepted:
Published:
DOI: https://doi.org/10.1007/s11266-023-00628-1