Tough Love: The Bentalls and Philanthropy
The Bentalls have taken the Cedar Foundation's philanthropy from Canada to Mexico, and are now getting hands-on in South Africa. But giving away $100 million, it seems, is harder than making it.
Bob and Lynda Bentall spent 14 years and about $35 million on the Ailanthus Achievement Centre, a private educational centre for disadvantaged children in Vancouver’s east end before closing it down in 2004; it was, Lynda Bentall says, “pretty much a failure.” They spent millions more over three years in Mexico through their philanthropic fund, the Cedar Foundation – including for construction of a $500,000 education centre in Queretaro – only to lose control of the centre and depart the country last August with their lives under threat. Another education project they launched in Kenya in 2005 was suspended earlier this year because of that country’s civil unrest.
The learning curve of a philanthropist, the Bentalls are discovering, is expensive. “It’s so much easier to make money than it is to give it away,” Bob Bentall tells me. Bentall, a multimillionaire and former CEO and chairman of the Bentall Corp., is 85. Through his investment group at Bentree Investments Inc., he has been trying for over 20 years to give away his income but often gathers more than the $3 million the Cedar Foundation can shovel out annually. The foundation, run out of a stylish 12th-floor office in (where else?) Bentall Centre’s fourth tower, will spend a planned total of $100 million over 35 years. Surprisingly, Bentall knew nothing about the stock market before he retired; he didn’t even have an RRSP, let alone a broker. Now he discusses “long calls” and “married puts” and sends me articles on net overweight stock positions. (For the record: I have known Bob and Lynda Bentall since the late ’80s, when I worked as an independent consultant for his company.)
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Bob Bentall has always been considered, in his own words, something of a “nutbar.” He expects – like Abraham and the other patriarchs of Genesis – to live 100 years or more, and for the past 60 years has dedicated his life physically to achieving that goal with a personal trainer, his own fitness gym and regular exercise four times a week. (He was already jogging in the 1950s – the first person he knew in West Vancouver to do that.) He was one of those gawky kids in elementary school who didn’t have many friends but always had the best grades – it was expected of him. Even when he didn’t require the lessons, his protective mother sent him to tutors to be sure he met the expectations of his larger-than-life father, Charles, the entrepreneurial engineer who controlled Dominion Construction, once advertised as “the company that built Vancouver.”
I became aware in our formal interviews how important it was that I understood that he earned his fortune, that it wasn’t just handed to him. He did, after all, wrest the company from his family’s control and took two other former partners along with him: Paul Worster and Howard, the oldest Bentall brother (now a retired Baptist minister in Alberta). In the settlement, his brother Clark got the construction business; Bob got four million square feet of prime office, shopping-centre and industrial real estate (including the towers) and virtually everything else – which he re-established as the Bentall Group. He guided the company’s expansion in California and Canada and took it public in 1997. (It is now Bentall Capital, which manages and leases about 55 million square feet of commercial real estate, with assets of $15 billion.)
Bentall and Worster, his former partner in the Bentall Group, now manage Bentree’s portfolio (along with four asset managers) – with 70 per cent of the portfolio split evenly between stock and bond holdings and 30 per cent invested in startups (chiefly housing in Western Canada and Washington, and oil and gas in Saskatchewan). Bentree is a private company and, while Bentall declines to discuss the value of the company’s holdings, he did say it has plans to conclude the partnership – essentially because Bentall’s portion of the profit goes directly to Cedar Foundation and Canada’s financial regulations regarding the philanthropic use of pre-tax dollars prevent the company from the kinds of speculative investments that can lead to much more spectacular returns. (Not to put too fine a point on it, but if I understand the complicated tax issues, Worster wants out so he can make more money.)






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