Businessman Peter Munk is expected to donate more than $25-million to the Toronto General Hospital today, the largest gift ever made to a Canadian hospital.
Mr. Munk's gift will be the second major donation announced this month. Two weeks ago, Toronto businessman Larry Tanenbaum said he was giving $50-million worth of stock to the UJA Federation of Greater Toronto, the city's major Jewish charitable organization.
Many people involved in the charitable sector say these large gifts are only the start of things to come. Thanks to changes in federal tax rules announced in the recent budget, a booming stock market and an aging population with about $1-trillion to pass on, there has never been a better time for giving, experts say.
"You are going to see some extraordinarily large gifts across Canada," said Nick Offord, a fundraising consultant and former head of Mount Sinai Hospital Foundation in Toronto. "It's an exciting time."
By some estimates, donations to charities could rise by as much as $500-million annually thanks largely to the tax changes announced in the recent federal budget, which make it easier to donate publicly traded securities.
Mr. Munk, who founded Barrick Gold Corp., is earmarking his gift to the Peter Munk Cardiac Centre at the hospital. He helped create the centre in 1997 with a $6-million gift. Mr. Munk lost his father, grandfather and uncle to heart disease and he has donated smaller amounts to the hospital over the years.
"He has been persuaded by the incredible impact that the cardiac centre has had on cardiology in Canada and North America," a source close to Mr. Munk said. "It is important to him."
Mr. Munk was unavailable and a hospital spokesman declined comment. The donation is expected to be announced this morning by Dr. Robert Bell, chief executive of University Health Network, which includes Toronto General, and by Ontario Health Minister George Smitherman.
The largest gift to a Canadian hospital has stood at $25-million. The Campbell family of Toronto and Li Ka Shing each donated that amount to two Toronto hospitals. Vancouver businessman Jimmy Pattison has given $20-million to the Vancouver General Hospital.
Mr. Munk created Barrick 21 years ago and the company is now the world's largest gold producer. Sources say Mr. Munk, 78, has been eager to leave a lasting legacy primarily through the cardiac centre.
Philanthropic legacies have become popular among large donors who have more money to give away than ever, charity experts say.
Experts say charities have become much better at developing relationships with major donors, frequently allowing them to target where they want their money to go.
Canada's financial institutions have also clued into the trend and begun creating special accounts that help clients make "donor-directed gifts."
Last week, RBC Dominion Securities announced a charitable-gift program that will allow clients to put money into a foundation and then help direct where it should be donated. The program is similar to one set up by the Toronto-Dominion Bank in 2004. Hospital donations
Some other major gifts to
Canadian hospitals:
$25-million: Audrey Campbell and her daughters to the Institute for Breast Cancer Research at Princess Margaret Hospital,
Toronto, 2004
$25-million: Li Ka Shing to create the Li Ka Shing Knowledge Institute at St. Michael's Hospital, Toronto, 2005
$20-million: Jimmy Pattison to create a prostate cancer
research centre at the Vancouver General Hospital, 1999
$15-million: Alvin and Mona Libin to establish the Libin Cardiovascular Institute, Calgary, 2003
$10-million: Robert McEwen to create the McEwen Centre for Regenerative Medicine at University Health Network, Toronto, 2003
Paul Waldie