Welcome to the world of charity, where everyone is a critic, your books are all subject the mob's ‘quest for truth’ and where the complex realities of the real world don’t apply to you: your solutions have to be explainable in a sound bite.
The public shaming of PHS highlights once again our misguided views of doing good. It highlights how we consider it the public duty to tell any group who has dedicated their lives to literally solving the most complicated societal issues they’re doing it wrong if we don’t like something, and how we always want the black and white, the ‘cut and dry’ when dealing in a very grey world. I can’t go line by line down the audit to defend the actions of a man and organization I’ve never met or dealt with. What I can do is suggest that our witch hunt is completely misguided and supremely detrimental to the sector and society at large.
Lets forget for a moment the irony of our government “stepping in” and firing an independent charitable organization’s leadership because of excessive spending, the very government that spends millions suing their own teachers, providing compensation for disgraced politicians and more. And lets focus on three obvious ways the conversation is being steered down a destructive path.
Suggesting PHS ‘stole’ from public funds or “took money away from the homeless” to pay for cruises is entirely misleading. Money was allocated for admin costs (9%) at the governments’ demand (more on this later) and PHS delivered a service that the government deemed to be “highly effective” for 9%. By this logic we are suggesting that any appropriation of funds not spent on the homeless is stealing from the homeless. Somehow the person on the DTES is a criminal and a thief for spending money we deem inappropriately because it was ‘meant for the poor’ but your GP receiving a salary of $300 000 and up (that comes from that same theoretical purse) is somehow not ? It’s a complete double standard. We’ve decided that either you can help the poor on the "government dime" or you can be rich, you cannot be both.
Second, criticizing a 9% overhead on a 28 million dollar budget and wondering why perhaps their accountants aren’t top notch is foolishness. The day that Nike makes shoes and returns a 91% profit after all expenses are paid is the day that they get enshrined as the greatest company ever to exist. The government has forced PHS to deliver an incredibly complicated service, manage a 28 million dollar budget and operate in the toughest neighbourhood in Canada, and do so while only spending 9% on non program expenses. 91% goes towards programs - a ratio mandated by the government - and we wonder why they’re not ‘better run’? What percentage of funds do you think your 28 million dollar corporation wastes? Dan Pallota said it best: "we have confused frugality with morality."
Finally, it’s just none of our damn business. If you think receiving government support gives the public and reporters the moral authority to investigate, criticize and “uncover” the scandal in an organization then you better start witch hunting every mining company, every film company, oil co, every tech co, medical clinic and so on. The government tasked the PHS to deliver an incredibly complicated service and gave the rule of only 9% can go to non program expense. PHS agreed to this, and delivered. The governments own audit deemed their program delivery exceptional. How they manage the 9% is irrelevant to you.
To be clear, skimming off the top is obviously wrong, as is excessive spending along with mismanagement. Charities, like businesses need to keep clear financial records and comply to the laws of the land. But context is key. For every one charity that keeps poor records (due to a mandated 9% overhead ratio and or just a bad attitude) there are thousands of businesses who fall the same, one is not worse than the other. No one is above reproach and it may be that Mark and the PHS crew needed to go. But the conversation principally needs to be one around quality of service performed, agreements being kept and results delivered. Any other conversation is a distraction. Let us focus on the real issues at hand, the complexity of the problems on the downtown east side, the new ways we need to fund the organizations working there and the innovation needed to tackle the biggest problems facing humanity.
BIO: Jeff Golby works for Chimp Foundation, an online bank that allows people to manage and amplify their charitable giving. His role is to create a space where creativity, law, charity, money and trust come together in a way that inspires and motivates people to give.
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