Over the course of the last two months, the Strathcona Regional District (SRD) received funding requests from both of the community foundations operating within its area. At the April 29th Board meeting, they granted a total of $32,500 to the Campbell River Foundation – whose catchment area includes Sayward, Quadra, Cortes and the Oyster River. On May 12, the Cortes Island Foundation asked for $50,000. This prompted an intense discussion of the SRD’s relationship to community foundations at the end of which the Cortes Foundation application was denied.

Points Of Concern

SRD staff was asked to examine how community foundations operate and determine if there could be any areas of concern when the SRD grants them money. They were in communication with both foundations and in a subsequently reported: 

1. “While financial assistance provided by local government is regulated by statute (as well as internal policy) the restrictions placed on community foundations may be different. This means that the possibility exists for funding provided through local government taxation to be used for purposes that are aligned with the community foundation’s objectives but not necessarily with those of the local government. Further, if the recipient of funding derived or partly derived through a local government contribution to a community foundation is not an eligible recipient for direct assistance by the local government, and the local government has not attached appropriate caveats in connection with its contribution to the community foundation, it may be found liable should such contribution be challenged in court.” 
2. “Since the assets of a community foundation are often pooled for purposes of maximizing investment returns it may not be possible for a local government to direct the ultimate recipient of any funding that it provides to a community foundation.”

In Support Of A Cortes Foundation Grant

“I was delighted to see the Campbell River Foundation’s request for funding support and their proactive work with the Campbell River region around COVID response. We are indeed in extraordinary times when governments are mobilizing funds as never before to support all kinds of businesses, service sectors and non-profits,” said Cortes Island Regional Director Noba Anderson. 

“The Cortes Island Foundation established itself, some years ago, to do precisely this kind of work … and like the Campbell River Foundation mobilized the non profit sector and checked in with them around the needs in this time of COVID. Their funding request – while very bold, even more so than the Campbell River –  is clearly not supportable by this board. But I was hoping to see some thoughts in the staff report around what might be an advisable way of developing relationships with these foundations over time.” 

While the work of the Campbell River Foundation is laudable, Director Anderson was informed that “… it is not at this time reaching out to the non profit sector much beyond Campbell River.” 

She proposed that an $8,000 grant to the Cortes Island Foundation might be more appropriate and this amount could be reduced.

Opposition To The Grant

Regional Director Gerald Whalley responded, “I don’t see how Area A, in particular, would be interested in supporting a community foundation on Cortes island. I ‘m not sure how the other areas would feel about this. I don’t think it is appropriate that every single jurisdiction have its own foundation supported out of general administration. I think this is way out of line.” 

To which Campbell River Director Charlie Cornfield added, “I won’t be supporting this motion. I would like to know the allocation out of general admin is, in other words who pays for it. I’m assuming somewhere around 70% is paid for by Campbell River and yet the Cortes Foundation has no boundaries beyond Cortes Island. It is one thing to contribute to a Campbell River foundation, which works on an almost SRD wide basis, and provides services to groups and organizations whose boundaries stretch far beyond the city, but one that is very restrictive and only applies to Cortes I will not support.” 

Chief Administrative Officer David Leitch said that about 62% of the funding for a grant to the Cortes Foundation would come from Campbell River. 

Mayor Andy Adams said he found the Cortes Foundation application “ … a little bit out there. 62% is Campbell River, but I do want to acknowledge the generous contribution from Area D as well and if you add that population in it is certainly higher. If you want to look at a request on a pro-rated basis, the $8,000 is still out of the ball park.” 

Regional Director Jim Abram asked, “How is this any different from a Grant in Aid from Area B, to any of these organizations, which would be funded wholly from Area B (Cortes Island)?”

Final Vote 

Directors Abram, Adams, Colborne, Cornfield, Davis, Ives, Kerr, Leigh, Unger and Whalley all voted against the motion to grant the Cortes Foundation $8,000 and it was defeated.

Top photo credit: Squirrel Cove by Dale simonson via Flicke (CC BY SA, 2.0 License)