Financial Need and Health of Applicants Policy

Type: Granting

Target audience: Applicants, Grantees

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 funds and have a sound financial record.

2.0 Purpose

To invest funds responsibly, OTF must ensure that organizations that receive funding demonstrate a need for public funds and have a healthy financial position and background.

3.0 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 most recent financial statements which contribute to OTF’s assessment of financial need and health of applicants. (NOTE: municipalities, First Nations, Metis, Inuit, and other Indigenous communities are exempt from this requirement).

A surplus explanation is required for organizations with an accumulated surplus greater than 12 months.

A deficit explanation and reduction plan are required for organizations with an accumulated deficit greater than 10%.

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: a sound financial record of responsibly managing funds, including managing grants from other funders
  • Demonstrated need for funds: the current financial situation warrants a request for additional funds
  • History of managing OTF funds: previous grants from OTF demonstrate their capacity to manage grant funds appropriately (if applicable)
  • 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

When circumstances and context warrant, the final assessment of the financial health and need of an organization rests with a member of OTF’s Leadership Team. 

3.1 Limited Financial History

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

In accordance with our eligibility policy, as a minimum, organizations must be able to demonstrate that they provide services in Ontario, and show evidence of their ability to generate additional resources. OTF therefore requires at 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.

3.2 Additional Information from Applicants

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