Financial Need and Health of Applicants Policy

Type: Investment

Target audience: Applicant organization, Grantees, Staff, Volunteers

Document ID POL-INV-02

Approved by Board

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 sound financial health. 

3.0 Policy

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 size and scope of 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 from the community and other sectors. OTF therefore requires at least 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 and/or an audited financial statement from the applicant to assist in the assessment of the proposal.