Through its review of the role of municipalities in early learning and care, this paper aims both to present information on the current municipal models available in Alberta and to promote discussion on the potential for such models to play a greater role in the Alberta early learning and care landscape.An Alternative Approach to the Funding and Delivery of Early Learning and Care for Children and their Families
YWCA Toronto’s first foray into social financing has been a success.
The Muttart Foundation, a private foundation based in Edmonton, has agreed to purchase a $1-million community housing bond being issued by YWCA Toronto to support the capital cost of its new YWCA Elm Centre.
“All of this money will help as we open our new facility in downtown Toronto that will offer 300 units of safe, affordable housing to women and their children,” said YWCA Toronto CEO Heather McGregor.
Social finance, sometimes called “impact investing,” describes an area where investors take into account the social impact of the investment as well as financial returns. In some cases, an investor is prepared to take a lower financial return to support a social good.
From the perspective of The Muttart Foundation, the decision to purchase the YWCA Toronto community housing bond continues a practice it has engaged in for almost 20 years. Bob Wyatt, executive director of the foundation, said that with the purchase of the YWCA Toronto community housing bond, about $2 million of its investments – slightly less than 5% of its endowment – are in program-related investments.
“This is not a new field, but it is one that few have participated in,” said Wyatt. He said that dating back to the early 1990s, the Foundation has provided lines of credit, loans and mortgages to some charities. Some have been provided at no interest, while others carry a less-than-market rate of interest.
The commitment to purchase YWCA Toronto’s community housing bond recognizes the importance and innovation of the YWCA Elm Centre, the superb management and governance that exists within YWCA Toronto and a careful analysis of risk, said Wyatt.
“Our Board of Directors is impressed with what YWCA Toronto has done over its long and sterling history,” said Wyatt, “and was particularly impressed by the Elm Centre initiative.”
“The Directors believe that this is a prudent investment of its assets. The bond will pay a reasonable rate of interest and our assessment is that it is a relatively low-risk investment,” he said.
McGregor said that the interest being paid is less than the cost of borrowing money from other sources, meaning more funds for the operation of the YWCA Elm Centre.
McGregor and Wyatt both caution that issuing bonds or otherwise taking on debt is not something that is right for every charity. “Social finance is not a silver bullet,” said Wyatt. Taking an investment like this to market, and accumulating debt that will have to be repaid, is something that requires a great deal of work by a charity.
“Our Board of Directors considered this matter at length,” said McGregor. “A charity has to ensure that it has the resources – financial and human – to take on a debt of this magnitude and to repay it.”
Investors such as Muttart do not abandon their responsibility to complete a due-diligence review of a loan or investment just because a charity is involved, said Wyatt.
The YWCA Elm Centre is an innovative residential community located in the heart of downtown Toronto. The Elm Centre will have 300 affordable apartments for single low-income women, women with children, women living with mental health and addiction issues and families of Aboriginal ancestry. It will also house YWCA Toronto’s new administrative headquarters, the 200-seat Nancy’s Auditorium, a Women’s Community Meeting Room, meeting spaces and a restaurant.
The bond is being issued for a 10-year term and will pay interest of 4% annually. YWCA Toronto will have the right to redeem the bond after three years.
YWCA Toronto is a multi-service organization dedicated to improving the lives of women and girls.
The Muttart Foundation was created in 1953 by the late Gladys and Merrill Muttart. It has awarded grants of more than $65 million since its creation.
For further information, contact:
Director of Advocacy & Communications
Executive Director, The Muttart Foundation
Phone: (780) 421-0261
Mobile: (780) 913-8881
An Op Ed piece written by a Director and the Assistant Executive Director of The Muttart Foundation to support National Child Day on November 20th.
November 20th marks National Child Day in Canada, the day when we wear royal blue ribbons to show our support for the children in our lives and communities.
And yet for many who participate in the celebrations, the purpose behind day is often lost – a rather profound oversight given that the intent of National Child Day is to focus on the rights of children and our collective obligations to see that these rights are met.
This summary report outlines the major themes that emerged from a plenary forum with fifty-one participants involved in early childhood education and care in Alberta, hosted by The Muttart Foundation and Success By 6.
The plenary forum was organized both to review findings from a series of five regional forums organized to discuss the Foundation’s paper “A Plenary Discussion of Early Childhood Education and Care in Alberta”and to consider the broad outlines of a possible path forward for strengthening early childhood education and care in the Province.
In fall 2010, the Foundation released a discussion paper entitled ‘In the Best Interests of Children and Families: A Discussion of Early Childhood Education and Care in Alberta’. The paper was developed to stimulate discussion on how Alberta might best approach the funding and delivery of early childhood education and care in Alberta. Following release of that paper, the Foundation, with support from its local partners, hosted five regional forums across the province to consider the ideas presented in that paper.
This current report summarizes the key themes that emerged from those discussions and provides a synthesis of participants’ thoughts and responses to the discussion paper.
In the Best Interests of Children and Families: A Discussion of Early Childhood Education and Care in Alberta
Released in November 2010, the discussion paper provides an overview of the current funding and delivery of early childhood education and care in Alberta as well as an alternate vision for how early childhood education and care can be approached and supported to better meet the needs of Alberta’s children and their families.
In conjunction with the release of the discussion paper, the Foundation held five discussion forums in Edmonton, Grande Prairie, Calgary, Red Deer and Medicine Hat/Lethbridge to allow key stakeholders the opportunity to consider the paper and begin a broader dialogue on the options it presented for advancing the funding and delivery of early childhood education and care (2010-2011).A Synthesis of Regional Discussions