Financial Need and Health of Applicants Policy

1.0 Rationale

The Ontario Trillium Foundation (OTF) assesses the financial health of its applicants to ensure the responsible disbursement of public funds to organizations that demonstrate a need for project related funds and have a sound financial history.

2.0 Policy

OTF has financial statement requirements, posted on its website, which includes a list of the type of financial statements required based on an organization’s gross annual revenues.

Organizations will need to submit their financial statements for the most recent completed year, which contribute to OTF’s assessment of financial need and health of applicants.

• Municipalities and First Nations are exempt from this requirement.
• A satisfactory explanation of the surplus is required for organizations with an accumulated surplus of greater than 12 months. 
• A satisfactory explanation of a deficit, as well as a deficit reduction plan are required for organizations with an accumulated deficit of greater than 10%.
• Financial statements must be consolidated for organizations with branches, chapters, subsidiary companies and or any controlled entities.

In assessing an organization’s application, OTF will consider the following factors together to determine an organization’s overall financial health:

• Ability to manage funds and a sound financial history of responsibly managing OTF funds along with managing grants from other funders (if applicable).
• Demonstrated need for project funds: the current financial situation warrants a request for additional funds. 
• Diversified revenue stream: source of revenues is adequate and suggests financial stability. 
• Viability: the organization is stable and the request for funds is reasonable given the size and scope of the organization
• Sectoral need and context: consideration is given to the organization’s role and standing within the broader context.

2.1 Limited Financial History

Funding will be aligned with an organization’s demonstrated ability to manage a budget like the one requested.

In accordance with our eligibility policy, as a minimum, organizations must be able to demonstrate that they provide community-based programs and services in Ontario and show evidence of their ability to generate additional resources. OTF therefore requires a minimum one fiscal year of financial statements to consider an organization’s eligibility. Organizations with less than one year (twelve months) of financial history reflected in their financial statements will not be eligible to apply to OTF for funding.

2.2 Additional Information from Applicants

OTF reserves the right to request additional financial information from the applicant to assist in the assessment of the proposal.