Fundraising for Prime Minister’s residence renos called unusual, a ‘misstep’: Charitable advocates

Update, 1:25 p.m. ET: Added statement from Rideau Hall Foundation

Update, 2:10 p.m. ET: Added quotes from Prime Minister Mark Carney

Update, 2:57 p.m. ET: Added statement and release from RAIC

Update, 6:21 p.m. ET: Replaced photograph

Update, 6:42: Added comments from Democracy Watch

Advocates working in the non-profit sector say while they’re glad to see the Prime Minister’s official residence will be restored and upgraded, funds for the renovations should come from government coffers, not fundraisers.

“The government’s way of raising money is taxation, and that’s their tool for funding things,” said Chris Houston, executive director of the Canadian Peace Museum in Bancroft, Ont. “The government taxes things as they see fit and funds it.

“If the government is now itself a fundraiser, if it’s now competing against charities who exist for social good, then that’s the wrong way … It’s never been more difficult to fundraise. We live in economic tough times.”

Houston noted the idea is an atypical step for the Canadian government.

“I’ve not seen an example of this in Canada. I’ve seen an example of it in Washington,” he added, noting the ballroom being built on the White House lawn in the U.S. is being funded partly by donations.

“But it’s an unusual step for Canada. I think it’s a misstep.”

Prime Minister Mark Carney announced on Friday a national design competition and the fundraising campaign for 24 Sussex Drive in Ottawa, the official residence of the prime minister. 

The home hasn’t been used as such for more than a decade, due to remedial work needed to remove hazards such as asbestos and to upgrade security.

Instead, Prime Ministers and their families have been residing in Rideau Cottage on the Rideau Hall grounds.

Taxpayers, said Carney, have been footing the bill for more than 10 years for the house to sit empty, and said the fundraising idea is to help avoid taxpayers paying for more of it.

“Canadians rightly expect their leaders to take decisions where the benefits may only be realised long after they are in office,” he said in a statement.

“Good stewardship demands it, Canadians rightly expect it, and the future of our institutions depends on us leaving them better than we found them. We will restore 24 Sussex Drive to a standard worthy of the country it serves.”

Houston said like there is only one taxpayer, there is also only one philanthropist.

“If you’re fundraising, then you’re going to philanthropists, and that’s, it is a finite bill,” he said. 

“Every dollar that gets given to one entity is a dollar that doesn’t get given to another.”

A second national charitable director, who asked not to be named because their organization works closely with the federal government in Ottawa, agreed.

“I think the intentions here are good but the consequences, they’re real,” she said. “The fundraising pool in Canada is already small and difficult to get access to.”

“(24 Sussex) should have been taken care of long ago,” she added. “Carney is right, you know, in that they should have been taking care of the residence all along, they should have ignored the opposition around it.”

Duff Conacher, co-founder of Democracy Watch, said the idea may violate federal ethics laws.

“It was foolish for the Prime Minister to announce that donations will be allowed without making it clear that there are limits and safeguards already in place to ensure that no donation will be permitted that violates Canada’s federal anti-corruption or anti-foreign interference laws,” said Conacher.

During a press conference Friday, Carney said the Rideau Hall Foundation will make the final rules, but that there will be limits to donations, including size and who can do the donating.

“The list of donors will be public. There will be a limit … the thinking is the limit will be 10 per cent of the overall amount raised, or a specific cap. Individuals and philanthropic organizations, no corporate donations. “

Jill Clark, senior manager of Communications and Media Relations for the Rideau Hall Foundation, said the organization understands the concerns raised by other charitable organizations.

“This campaign is designed to be additive, not competitive,” she wrote in an email to Future of Good.

“It provides an opportunity to all Canadians motivated by this nation-building project to make a contribution to strengthening our country. We believe this project will contribute positively to Canada’s philanthropic landscape for both sustained support to community organizations and other mission-driven causes, alongside targeted contributions to projects of national significance.”

Asked if the model of raising money meant that the federal government couldn’t afford the repairs, Carney said they seized the opportunity to work with the Foundation to reduce the cost.

“So we have the opportunity, with the Rideau Foundation, with the efforts of ex-prime ministers and initiatives of many Canadians, there is the opportunity to reduce the cost – maybe the majority or even the whole cost of the renovation, and we will take this opportunity with the Rideau Foundation process.”

The government chose the design contest idea because it’s an easier process and helps avoid political influence, said Carney, before backtracking slightly on the word “easy.”

“Sorry, sir, it’s not easy to be an architect, but we can design an incredible home.”

Because the foundation will handle fundraising and the expert panel then decides, there will be “no influence” from politicians or organizations that make a significant donation, said Carney.

Conacher pushed back on the idea that the rules outlined so far will ensure compliance with Canada’s ethics laws and the criminal code.

“A big business executive whose business lobbies the federal government would still be allowed to donate that amount, as would a philanthropic foundation run by that big business,” he said.

While a donation of a nominal amount won’t create a serious ethical issue, a substantial amount “will clearly violate the law for whichever PM benefits from the donation by using the property as their residence in the future.”

The home and the renovations have been steered by the National Capital Commission (NCC) since 1988, which said after $4.3 million in abatement and decommissioning that began in 2022, the home is ready for the next phase of development.

During the abatement, every effort was made to carefully remove, catalogue and store heritage elements of the residence, such as doors and mouldings, except where an object’s “heritage significance was too important to remove without a decision on the future of the residence.”

The elements removed could potentially be reused in any upgraded design, they added.

While Carney did not say how much finishing and upgrading 24 Sussex would cost, the NCC estimated in a 2021 report that the residence and caretaker’s house at 10 Sussex Dr. needed $36.3 million in deferred maintenance. 

The design competition will be managed by the Royal Architectural Institute of Canada (RAIC), and the winner will be announced by Canada Day in 2027. While the scope of the competition has not been announced, Carney said the competition is open to Canadian firms, and the winning team will be responsible for both the design and construction of the project.

The judging panel includes an assortment of Canadian and Indigenous architects, designers, and cultural leaders, and will be chaired by architect Moshe Sadie.

It was not immediately apparent if there was a cash prize involved in the competition or how much it would cost to run. The RAIC sent a press release to media Friday afternoon and said they would be responding to further media requests early next week.

However, the RAIC added they are being “retained under a professional services contract to administer the competition and provide advisory services. As with other Government of Canada professional services contracts, the contractual arrangements are managed through federal procurement processes.”