Financial Matters

Under what circumstances would you fund an organization with a deficit?

Generally, we won’t fund an organization with an accumulated deficit greater than 10 per cent of its annual operating budget. There are some exceptional circumstances to this policy and applicants are encouraged to contact a Program Manager or Grants Associate in their area before applying. Organizations with an accumulated deficit that is less than 10 per cent of their annual operating budget may be recommended for funding if the following is in place:

1. There is no planned operating deficit for the current year.
2. There is a realistic plan for eliminating the accumulated deficit within a period of three to five years.

Under what circumstances would you fund an organization with a surplus?

Since our grants are made to organizations that demonstrate a significant need for funding, we generally won’t fund an organization whose net assets (not including externally restricted assets) are equivalent to more than one year’s operating expenses.