Flames Foundation lags in committing donations to causes, watchdog says

A national charity watchdog says the Calgary Flames Foundation funnelled only 30 cents on each dollar raised back to the community, while keeping as much as $8 million in reserves.

And while the group Charity Intelligence says that figure is a less-than-reasonable balance, the head of the NHL squad’s charitable arm questioned the accuracy of the analysis and said those reserve donations will ultimately be spent.

In its report on Canadian pro sports teams’ charitable foundations, Charity Intelligence said the Flames’ body lagged behind counterparts in committing donations to causes last year.

By comparison, the group found, the Toronto Maple Leafs-linked MLSE Foundation in 2017 pushed out to charitable causes nearly 80 cents of each dollar collected, the most of any of the groups.

“They spend each year the money raised, rather than building up large investment portfolios to manage,” states the report, also referring to the Canucks for Kids foundation, which spent 73 cents of each dollar raised.

The Flames Foundation percentage, it said, has been “falling outside of Charity Intelligence’s reasonable range for overhead spending.”

It cited the Flames Foundation and the Ottawa Sens Foundation as having high fundraising costs.

With a national average for foundations of 75 cents on the dollar going to charity, it said many of the NHL teams’ foundations could increase their performance.

“Hopefully Canada’s sports teams can improve, and the charities they run can improve, too. That would be something worth cheering for,” it states.

But Flames Foundation president John Bean said the $7.7 million the body had in reserve at the end of last year will ultimately benefit health and wellness, sports and education activities in southern Alberta.

“The fact we have some cash set aside is prudent, so we don’t make commitments we can’t fund,” he said. “It will be distributed — it’s not a matter of if but when.”

Given that, and overhead expenses of $500,000 subtracted from $4 million raised in a year, means the foundation will be pumping 88 per cent of money raised into the community, said Bean.

In the past three decades, the foundation has delivered $32 million to charitable causes in southern Alberta, including a recent $1 million to pediatric hospice Rotary Flames House it helped create

Hopefully Canada’s sports teams can improve, and the charities they run can improve, too.

nearly a decade ago, he noted.

The Charity Intelligence report gave the Flames Foundation second-to-top marks, or a B, for accountability.

The Flames Foundation’s sizable reserve is a wise hedge against unforeseen circumstances, said Eva Friesen, president of the Calgary Foundation, which supports a variety of charities. “It behooves all charitable foundations to have some reserves,” she said.

Having worked with the Flames Foundation on charitable projects, Friesen said she’s confident in the organization’s ability and intent to use those reserves constructively.

“The Flames Foundation is doing great things in this city,” she said.