Global Philanthropic Canada has partnered with the BarterPay It Forward Foundation and Imagine Canada to launch a new system for charities to receive funds from business that donate goods and services.
Officially launching February 5, the Foundation provides charities with a simple way to monetize “gifts-in-kind” that are often generously offered but not always useful. It is also designed to provide businesses with more ways to be philanthropic and get involved in local charities. It works like this:
- Step 1: The donating business signs up to the BarterPay Network.
- Step 2: BarterPay monetizes gifts-in-kind into TRADEdollars for fair market value.
- Step 3: The business donates TRADEdollars to BarterPay It Forward Foundation and gets a tax receipt for full market value.
- Step 4: BarterPay It Forward donates TRADEdollars to participating charities across Canada.
- Step 5: Charities spend TRADEdollars within the BarterPay network to purchase goods and services.
“Our goal is to revolutionize the charitable industry in Canada by creating a marketplace that allows businesses to donate idle time and/or excess inventory to support charities,” says John Porter, BarterPay Founder and CEO. “Business owners have told us they want to give back more, but they are often squeezed for cash. This provides a win/win solution,” he said.
“BarterPay It Forward provides an innovative, new channel for philanthropy that helps address the most critical issue threatening the charitable sector today: the number of donors in Canada is decreasing,” says Guy Mallabone, President and CEO, Global Philanthropic Inc. “By growing the number of donors through a new barter economy, Canadian charities are better positioned to deliver on their mission.”
The Foundation has been quietly supporting Canadian charities over the past six years and donated more than $1.75 million TRADEdollars. The goals are to donate $1 million in 2019 and $50 million per year in new net giving by 2025.
BarterPay It Forward is also launching a TV show on YouTube, featuring charities that are harnessing the power of BarterPay It Forward. https://barterpayitforward.org/watch-our-show/
“BarterPay It Forward’s streamlining of in-kind giving will make a meaningful difference to Canadian charities,” says Bruce MacDonald, President and CEO, Imagine Canada. ”Many charities have in-kind policies that limit or even refuse in-kind gifts because of the work involved in assigning value to the donation, accounting procedures, or lack of storage. By creating a marketplace for in-kind giving that addresses these problems, we’re lifting barriers to millions in giving each year that has traditionally been turned down.”
Demand for essential services from charities and nonprofits is projected to spike over the next decade, creating a “social deficit” as needs go unmet. Based on current demographic trends and average GDP growth of 1.8 per cent (source: Parliamentary budget office and Conference Board estimates), Canada’s charities and nonprofits will need about $25 billion more than they raise today to meet rising demand for their services.
Charities and businesses can learn more and sign up at www.barterpayitforward.org
BarterPay is Canada’s only national business-to-business barter system headquartered in Hamilton, Ontario. Established in 1996, BarterPay helps businesses source goods and services without spending cash by bartering inventory and/or services. In 2018, BarterPay brokered over $35 million in barter transactions between its member businesses. The network currently represents close to 4,000 businesses in 18 Canadian cities. BarterPay plans to open 15 new franchised locations and grow to 25,000+ members in the next three years. Learn more at www.barterpay.ca.
About Imagine Canada
Imagine Canada is a national charitable organization whose cause is to support Canada’s charities by amplifying the sector’s collective voice, creating opportunities to connect and learn from each other, and building the sector’s capacity to succeed. Imagine Canada’s Caring Company designation encourages companies to adopt a leadership role as investors of 1% of pre-tax profit into stronger communities.