What happened to transparency? Black Opportunity Fund writes letter regarding Government Endowment Fund process

BY PAUL JUNOR

It was on August 19^th, 2022, that the Government of Canada announced the Canada Cultural Investment Fund. The Endowment Incentives component encourages private donors to contribute to endowment funds for a not-for-profit professional arts organization so that they can access new sources of funding for the future. Raising capital and creating endowments give these organizations greater capacity for realizing artistic expression by supporting their long-term stability. There was great excitement in the Black communities as having access to stable funding for Black groups is an ongoing battle.

Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, issued a call for concepts for the $200 million Black-led Philanthropic Endowment Fund. This call was issued as a result of the May 2021 consultations, which were seeking innovative ideas from Black communities to ensure the fund meets their expectations and addresses the unique challenges they face. The announcement of this fund was made during budget 2021 when it was mentioned that it would be dedicated to supporting Black-led charities and organizations serving youth and social initiatives and would create a sustainable source of funding to improve the social and economic outcomes in Black communities. The Government invited Black-led organizations, charities, and interested Canadians to participate in this call.

With respect to the call for concepts, the Government of Canada wants to know:

• How can the fund’s philanthropic principles centre the lived experiences and realities of Black communities, including governance?
• How can the Fund remain accountable to Black communities and its governance reflect the diversity of these communities?
• How should the Endowment Fund prioritize its investment and its granting?
• What should we consider when selecting an entity or entities responsible for the Endowment Fund?

An open process was launched after the completion of the consultation engagement process to find one, or more Black-led foundations that would manage and administer the fund in order to create a long-term self-sustaining source of funding for Black community organizations.

On Wednesday, February 8^th, 2023, Honourable Ahmed Hussen announced that the Foundation for Black Communities was selected to enter into negotiations for the administration of the Black-led Philanthropic Endowment Fund. Minister Hussen states, “This selection is a significant step toward building a more inclusive and more equitable Canada where no one is left behind.”

Gladys Ahovi, President and CEO of Foundation for Black Communities states, “We are committed to ensuring this investment directly benefits Black Canadians across our nation and empowers transformational community-led change. We are excited to work collaboratively with Black-led organizations to advance projects through the endowment and improve economic and social outcomes for Black communities.”

The Black Opportunity Fund (BOF) has questioned the openness and transparency of the process involved in the selection. In a letter from Ray Williams, President of the BOF notes, “There has been no engagement at all regarding the proposal, with the BOF or any of our partners: Toronto Foundation, MichaelleJean Foundation, RockCreek and the Canadian Black Fundraisers.”

The letter continues, “The expectation was that the government would undergo a thorough, rigorous and transparent process to select the steward of the fund. The lack of rigour and transparency, in this case, is in direct contrast with the processes undertaken in other similar procurements, including the $300 million Equality Fund. The absence of any engagement and the apparent rapid selection of a proponent (only two months since the application date closed), is shocking and indicates that there are serious due process issues with respect to this procurement.”