4. Funding

The final amount granted will be determined once all applications have been assessed. Recommended applicants receive a grant from the Department to match the funds raised from donations up to a maximum of one dollar for each dollar raised, depending on the availability of funds and the number of successful applicants.

4.1 Maximum amount of funding

The maximum amount eligible in each fiscal year is the lesser of $2,000,000 or 50% of the average value of the total revenues for the past three completed fiscal years.

The maximum an organization can receive from this component is $10,000,000 over the life of this program.

4.2 Considerations

  • To be considered for matching funds, donations must come from private sources. These can include non-governmental sources such as gifts from individuals, corporations or non-government foundations. These can also include an amount an arts organization has decided to donate in perpetuity, out of its own assets, to the endowment fund held by its partner foundation.
  • Public funds, from any level of government, including their agencies will not be considered for matching.
  • Only secured donations are eligible to be matched. Pledges and bequests are not eligible.
  • As a condition of the receipt of matching funds, the associated foundation must demonstrate that the accumulated funds (funds raised and the matching grant) be protected and capitalized in perpetuity and only the income generated by the funds is made available to the associated independent not-for-profit arts organization.
  • The cost of fundraising activities must be borne by the operational budgets of the beneficiary arts organization if the beneficiary arts organization is partnering with a foundation other than its own.
  • Administration costs of the grant shall not exceed 1% of the value of the grant as recorded for the preceding fiscal year.
  • The foundation and the beneficiary arts organization must be able to certify that current or former public office holders or public servants in their employ are in compliance with the Values and Ethics Code for the Public Service, the Conflict of Interest and the Post Employment Code for Public holders in all matters relating to the affairs of the applicants.

4.3 Calculating the maximum potential grant

To estimate the potential for matching funds, the applicant arts organization should:

  • calculate its average annual operating revenue based on the last three completed fiscal years, from the date of application;
  • calculate 50% of this amount.

The following represents hypothetical situations only. These examples are meant to assist with calculations and do not prescribe either the fiscal years or the revenues for participation in this component.

Example A

Step 1: Calculate Average Annual Operating Revenue

  • Fiscal Years: 2006-2007
    • Annual Operating Revenue: $3,000,000
  • Fiscal Years: 2007-2008
    • Annual Operating Revenue: $2,500,000
  • Fiscal Years: 2008-2009
    • Annual Operating Revenue: $3,500,000
  • Total: $9,000,000

Average Annual Operating Revenue (divide by three) $3,000,000

Step 2: The maximum potential grant for a successful applicant is the lesser of 50% of this amount or $2,000,000.

Step 3: $3,000,000 x 50% = $1,500,000

For this applicant, $1,500,000 is the maximum that can be matched for the December 1, 2009 deadline under the Endowment Incentives Component, provided the applicant has not reached the total maximum accumulated amount of $10,000,000.

Example B

Step 1: Calculate Average Annual Operating Revenue

  • Fiscal Years: 2006-2007
    • Annual Operating Revenue: $25,000,000
  • Fiscal Years: 2007-2008
    • Annual Operating Revenue: $21,000,000
  • Fiscal Years: 2008-2009
    • Annual Operating Revenue: $26,000,000
  • Total: $72,000,000

Average Annual Operating Revenue (divide by three) $24,000,000

Step 2: The maximum potential grant for a successful applicant is the lesser of 50% of this amount or $2,000,000.

Step 3: $24,000,000 x 50% = $12,000,000

For this applicant, the maximum allowable match is $2,000,000, for the December 1, 2009 deadline under the Endowment Incentives Component, provided the applicant has not reached the total maximum accumulated amount of $10,000,000.

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