A
AlvinofDiaspar
Guest
From the Globe:
MasterCard bets $1.4-billion on Canada
TAVIA GRANT
From Thursday's Globe and Mail
TORONTO — When MasterCard Inc. created a billion-dollar global foundation last year, it could have set up shop in any city in the world, from London to Shanghai.
It chose Toronto, quietly establishing the largest foundation in Canada -- and signalling that the value of the Maple Leaf may be, well, priceless.
"Toronto is a diverse, dynamic city; it's the centre of finance in Canada and it's got a reputation as an international player," said Deanna Rosenswig, president and chief executive of the $1.4-billion (U.S.) foundation that will invest in charitable causes around the world, largely in developing countries.
"If you're MasterCard, and you're sitting in New York and saying to yourself, 'I represent MasterCard worldwide, I want this to be an international player' -- why not Toronto?"
An English-speaking, diverse and highly skilled population are partly why. But the move also comes as MasterCard -- headquartered in Purchase, N.Y. -- is rebranding itself as a global company.
A MasterCard spokeswoman confirmed the company wanted to put the foundation "in a place that reflected our global nature." She added that Toronto "reflects both North American and European roots."
To be announced today, the MasterCard Foundation will be overseen by an eight-person board tilted toward the United States. Five American directors will be joined by two Canadians -- David Johnston, president of the University of Waterloo, and Nigel Wright, managing director of Onex Corp. -- and former Irish president Mary Robinson.
American Lois Juliber, formerly chief operating officer of Colgate-Palmolive, will be chairwoman.
None of the board members, who are unpaid, works for MasterCard Inc., and the foundation will run at arm's length from the company.
It won't lack for funds. The world's No. 2 credit-card firm created the registered charity as part of an initial public offering last May with a donation of about 13.5 million shares.
Since its listing, the value of the shares has more than doubled.
The move has sweetened the fortunes of the foundation, but at a price: the company's profit tumbled 81 per cent last year on the cost of donating the shares. MasterCard also gave $20-million to the foundation last year and will hand over at least $20-million more in the next three years. The foundation, which can't cash the shares for at least four years, will also get regular dividends.
The trick now is spending the money. Canadian law requires charities to spend 3.5 per cent a year of their total value, on average, over 10 years.
None of that has to be spent in Canada.
Ms. Rosenswig expects to spend at least $70-million over the next decade, beginning next year, largely on projects aimed at education and microfinance for the world's poor. None of the funds has been allocated yet.
"We want to empower people -- these are not handouts," she said.
MasterCard, which offers debit and credit services, operates in about 210 countries. Before last year's share offering, it was a closely held co-operative owned by 1,400 financial institutions.
Ms. Rosenswig -- a diminutive Montreal native packed with energy -- spent three decades in banking, much of it as an executive at the Bank of Montreal.
She has worked in microfinance for 25 years, written a book titled Dreams Have No Expiry Date and sits on the boards of several other large foundations.
She starts her job just as microfinance -- or financial services for the poor -- is blossoming worldwide. The movement began with microcredit, or small loans to people who wouldn't otherwise get them. It became famous for its high repayment rates and focus on women.
It has since expanded into savings programs, insurance and mortgages, and financial training.
Foreign funding for microfinance is expected to soar sixfold over the next several years as the likes of Bill Gates, Warren Buffett and e-Bay founder Pierre Omidyar allocate money to the sector. At the other end, as many as 10,000 microfinance institutions have sprouted to reach the estimated three billion people globally who are "unbanked."
"Finding the right place will be a challenge. But there are billions of people living on under a dollar a day, so there's lots of opportunity," Ms. Rosenswig said.
Still, "I do worry about the capacity of those institutions to absorb large amounts of capital and how will they best use it."
Ten biggest foundations
        Year est.         City         Assets ($)
Fondation Lucie et André Chagnon        2000        Montreal        1.3-billion
Vancouver Foundation        1943        Vancouver        565-million
J.W. McConnell Family Foundation        1937        Montreal        472-million
Sick Kids Foundation        1972        Toronto        471-million
Winnipeg Foundation        1921        Winnipeg        347-million
Calgary Foundation        1955        Calgary        295-million
Fondation Marcelle et Jean Coutu        1990        Montreal        228-million
Jewish Community Foundation of Montreal        1971        Montreal        191-million
Loyalty Foundation        2003        Vancouver        182-million
Edmonton Community Foundation        1989        Edmonton        145-million
SOURCE: CANADIAN DIRECTORY TO FOUNDATIONS AND GRANTS
_________________________________________________
I thought the Lee Ka Shing Foundation (Canada) in Toronto also has about $1B in assets...
AoD
MasterCard bets $1.4-billion on Canada
TAVIA GRANT
From Thursday's Globe and Mail
TORONTO — When MasterCard Inc. created a billion-dollar global foundation last year, it could have set up shop in any city in the world, from London to Shanghai.
It chose Toronto, quietly establishing the largest foundation in Canada -- and signalling that the value of the Maple Leaf may be, well, priceless.
"Toronto is a diverse, dynamic city; it's the centre of finance in Canada and it's got a reputation as an international player," said Deanna Rosenswig, president and chief executive of the $1.4-billion (U.S.) foundation that will invest in charitable causes around the world, largely in developing countries.
"If you're MasterCard, and you're sitting in New York and saying to yourself, 'I represent MasterCard worldwide, I want this to be an international player' -- why not Toronto?"
An English-speaking, diverse and highly skilled population are partly why. But the move also comes as MasterCard -- headquartered in Purchase, N.Y. -- is rebranding itself as a global company.
A MasterCard spokeswoman confirmed the company wanted to put the foundation "in a place that reflected our global nature." She added that Toronto "reflects both North American and European roots."
To be announced today, the MasterCard Foundation will be overseen by an eight-person board tilted toward the United States. Five American directors will be joined by two Canadians -- David Johnston, president of the University of Waterloo, and Nigel Wright, managing director of Onex Corp. -- and former Irish president Mary Robinson.
American Lois Juliber, formerly chief operating officer of Colgate-Palmolive, will be chairwoman.
None of the board members, who are unpaid, works for MasterCard Inc., and the foundation will run at arm's length from the company.
It won't lack for funds. The world's No. 2 credit-card firm created the registered charity as part of an initial public offering last May with a donation of about 13.5 million shares.
Since its listing, the value of the shares has more than doubled.
The move has sweetened the fortunes of the foundation, but at a price: the company's profit tumbled 81 per cent last year on the cost of donating the shares. MasterCard also gave $20-million to the foundation last year and will hand over at least $20-million more in the next three years. The foundation, which can't cash the shares for at least four years, will also get regular dividends.
The trick now is spending the money. Canadian law requires charities to spend 3.5 per cent a year of their total value, on average, over 10 years.
None of that has to be spent in Canada.
Ms. Rosenswig expects to spend at least $70-million over the next decade, beginning next year, largely on projects aimed at education and microfinance for the world's poor. None of the funds has been allocated yet.
"We want to empower people -- these are not handouts," she said.
MasterCard, which offers debit and credit services, operates in about 210 countries. Before last year's share offering, it was a closely held co-operative owned by 1,400 financial institutions.
Ms. Rosenswig -- a diminutive Montreal native packed with energy -- spent three decades in banking, much of it as an executive at the Bank of Montreal.
She has worked in microfinance for 25 years, written a book titled Dreams Have No Expiry Date and sits on the boards of several other large foundations.
She starts her job just as microfinance -- or financial services for the poor -- is blossoming worldwide. The movement began with microcredit, or small loans to people who wouldn't otherwise get them. It became famous for its high repayment rates and focus on women.
It has since expanded into savings programs, insurance and mortgages, and financial training.
Foreign funding for microfinance is expected to soar sixfold over the next several years as the likes of Bill Gates, Warren Buffett and e-Bay founder Pierre Omidyar allocate money to the sector. At the other end, as many as 10,000 microfinance institutions have sprouted to reach the estimated three billion people globally who are "unbanked."
"Finding the right place will be a challenge. But there are billions of people living on under a dollar a day, so there's lots of opportunity," Ms. Rosenswig said.
Still, "I do worry about the capacity of those institutions to absorb large amounts of capital and how will they best use it."
Ten biggest foundations
        Year est.         City         Assets ($)
Fondation Lucie et André Chagnon        2000        Montreal        1.3-billion
Vancouver Foundation        1943        Vancouver        565-million
J.W. McConnell Family Foundation        1937        Montreal        472-million
Sick Kids Foundation        1972        Toronto        471-million
Winnipeg Foundation        1921        Winnipeg        347-million
Calgary Foundation        1955        Calgary        295-million
Fondation Marcelle et Jean Coutu        1990        Montreal        228-million
Jewish Community Foundation of Montreal        1971        Montreal        191-million
Loyalty Foundation        2003        Vancouver        182-million
Edmonton Community Foundation        1989        Edmonton        145-million
SOURCE: CANADIAN DIRECTORY TO FOUNDATIONS AND GRANTS
_________________________________________________
I thought the Lee Ka Shing Foundation (Canada) in Toronto also has about $1B in assets...
AoD
