Benefic spends considerable time reflecting on the systematic changes confronting the benevolent sector such as:

• Demographics and looming wealth transfer
• An increasing gap between rich and poor
• Government downloading social services on to the sector

These factors are likely to increase the financial and administrative burden on the benevolent sector but will also produce opportunities for new funding.

Benefic is also addressing a less publicized challenge facing the benevolent sector, which is that large and well-financed charities are securing an ever greater portion of both government and private sector funding. Governments are increasingly demonstrating that they value size over efficiency and innovation by refusing to fund charities that are too small to carry out large-scale operations. At the same time, large, well-endowed charities are increasingly spending the marketing dollars necessary to establish a "brand" recognizable to small donors, and hiring full-time professional development staff to pursue aggressive fundraising strategies which attract large donors and planned gifts. The convergence of these trends by governments and large charities threatens the future of smaller grassroots charities. The danger is that in the long run the benevolent sector will become an inefficient replication of the government sector rather than the vibrant and innovative force for social change it is meant to be.

Problem Identification:
In today's environment, small charitable organizations struggle to compete with large, well-endowed, charities for charitable dollars, and to make themselves known to wealthy potential donors. To meet these goals, grassroots organizations need access to specialized professional advice, advice they can not always afford.

Solution:
Benefic has an unparalleled record in closing large gifts from donors who are new to the recipient charities. At the same time, Benefic is committed to:

• Assisting donors to access and fund small, cutting edge charities.
• Providing small charities with access to the sophisticated planning advice necessary to close large gifts.

Problem Identification:
Another problem that charities face in seeking funding and carrying out their activities is that the operational environment for registered charities has become increasingly hostile. Complex tax regulations and the threat of penalties and sanctions can not only threaten Benevolent Organizations, but also discourage potential donors from making large gifts.

• Interim sanctions introduced in 2005 have had the effect of intimidating charities into unquestioning compliance with administrative policies rather than law.
• Charities often cannot afford to take legal action against Canada Revenue Agency when they feel they are being treated unfairly.

Solution:
Benefic is committed to protecting the rights of Benevolent Organizations and donors to fair treatment by Canada Revenue Agency, and to challenging Canada Revenue Agency policies that are unfair or inconsistent with the law.

• Benefic has the legal expertise to distinguish between law and administrative policy encouraged by Canada Revenue Agency.
• Benefic helps charities to develop compliance practices that are consistent with the law.

Problem Identification:
One of the greatest problems confronting Benevolent Organizations is that they are so caught up in meeting the daily challenges of funding and compliance that they do not have the energy or perspective to pursue new and innovative ideas. Overwhelmed and overworked, Benevolent Organizations get stuck in a vicious circle of doing the same old things in the same old way.

Solution:

• Benefic supports novel benevolent initiatives developed by socially minded youth who are focused on change.
• Benefic tracks trends in funding and operations so that its clients can balance the view from the trenches with the horizons visible from 30,000 feet.
• Benefic pursues litigation designed to clarify and change the law so that Benevolent Organizations can carry on their work in an enhanced legal environment.