A Message from the President & CEO
The economics and accounting for fundraising in Canada are complex and can be challenging to understand. At The Princess Margaret Cancer Foundation (The PMCF), we view our organization as a social enterprise, rather than a not-for-profit. We also strive to operate with the efficiency and effectiveness of a private sector leader, but with the vision and mission of a not-for-profit cause. At The PMCF, the most important measure of efficiency is net fundraising and lottery revenue per employee. In fiscal 2016 with net revenue of $103.8 million The PMCF raised $1.4 million per full-time employee, making it one of the most efficient and effective charities in Canada. Our general fundraising and administrative expenses were 10.3% making it among the best in class relative to our peers across the country.
The PMCF has one of the most diverse portfolios in the social enterprise sector in Canada. Of the $166.7 million in gross fundraising and lottery revenue PMCF raised in Fiscal 2016 it breaks out as follows: Lotteries 43%, Major Gifts and Bequests 21%, Strategic Events 16%, Annual Programs 12% and Other Programs 8%. We have two distinct revenue streams: Fundraising revenue and Lottery revenue. Cost ratios associated with these revenue streams are treated differently by Canada Revenue Agency (CRA). Here is a printable Financial Summary document
of The Princess Margaret Cancer Foundation for Fiscal Year 2016.
In fundraising revenue our gross was $95.8 million in FY 16, and our direct fundraising expenses including costs for logistics, marketing and other costs directly related to strategic events and annual programs was 17.5% of gross revenue. Our net fundraising revenue was $79 million or 82.5% of gross fundraising revenue. A report on the use of funds for our strategic brands the Enbridge Ride to Conquer Cancer, Rexall OneWalk to Conquer Cancer
and Road Hockey To Conquer Cancer
can be found on our website under Our Impact – Major Event Impact
Lottery revenue, which is non-tax receipted, is viewed differently by CRA. The lotteries are a unique fundraising vehicle and are absolutely essential to The Princess Margaret research program and have helped fund one of the top 5 cancer research centres in the world. In FY 2016, net lottery revenues were $24.8 million (35% of gross revenue of $71 million), an all-time record. We view our lotteries as one of the most important social enterprises in our portfolio. The PMCF lottery net revenue return of 35% compares favourably to the industry average return of 20.3% based on the three largest charitable lotteries in Canada. The PMCF lottery cost of 65% is substantially lower than CRA acceptable guidelines of 70% or higher.
We take the stewardship of all monies raised for the Princess Margaret Margaret Cancer Centre very seriously and have three strong committees on the Board of The PMCF, Audit and Risk, Governance, and Granting, Stewardship and Impact reviewing all relevant aspects of our fundraising and granting efforts.
Our mission is to raise and steward funds to deliver breakthrough research, exemplary teaching, and compassionate care at the Princess Margaret Cancer Centre, one of the top 5 cancer research centres in the world.
President & CEO