Applicant’s Guide 2009-2010

Deadline for filing applications: April 15, 2009. If this date falls on a weekend or statutory holiday, the deadline moves to the next business day.

How to reach us:

Canada Magazine Fund Support for Arts and Literary Magazines Department of Canadian Heritage 15 Eddy Street, 4th Floor (15-4-F) Gatineau, Quebec K1A 0M5 Toll free number: 1-888-357-3116 Facsimile: 819-953-7782 E-mail: fcm-cmf@pch.gc.ca

© Her Majesty the Queen in Right of Canada, 2009
Catalogue No.: CH41-6/2009E-PDF
ISBN 978-1-100-11641-9

Table of contents

• Part I Program objectives, eligibility criteria and funding conditions
  1. Canada Magazine Fund
  2. Support for Arts and Literary Magazines
     1. Environmentally friendly paper
  3. Eligibility criteria
     1. ELIGIBLE PUBLISHERS
     2. ELIGIBLE MAGAZINES
     3. INELIGIBLE PUBLICATIONS
  4. Expenses
     1. ELIGIBLE EXPENSES
     2. INELIGIBLE EXPENSES
  5. Application to more than one component of the CMF
  6. Contribution agreement
  7. Use of financial assistance
  8. Department of Canadian Heritage provisions
     1. ACKNOWLEDGEMENT
     2. MINISTER’S DISCRETION AND DECISIONS
     3. AUDITS OF RECIPIENTS
     4. EVALUATION OF THE CMF
     5. STUDIES
     6. INFORMATION SHARED WITH THE CANADA COUNCIL FOR THE ARTS
     7. ACCESS TO INFORMATION ACT
     8. PUBLIC INFORMATION
  
  
• Part II Application process
  1. Deadline
  2. Application instructions
     1. BEFORE COMPLETING THE FORM AND PREPARING THE REQUIRED DOCUMENTS
     2. BEFORE SENDING YOUR APPLICATION TO THE CMF
     3. APPLICATION TO THE CANADA COUNCIL FOR THE ARTS (CCA)
     4. FOR ASSISTANCE
     5. OUR ADDRESS
  3. Application evaluation process
  
  
• Part III Application requirements
  • Support for Arts and Literary Magazines (SALM) application form
  • Report on the use of financial assistance
  • Issues of the magazine
  • Marked issue
  • One copy of the magazine’s most recent issue
  • Photocopy of the applicant’s complete CCA application
  
  
• Part IV Definitions

Part I Program objectives, eligibility criteria and funding conditions

1. Canada Magazine Fund

The Canada Magazine Fund (CMF) was established to enhance the competitiveness of Canadian-content magazines in an open marketplace by supporting the creation of diverse Canadian editorial content that will attract Canadian readers, by strengthening the sustainability and infrastructure of the Canadian magazine industry as a whole, and by assisting Canadian magazines in exploring options for growth and development that will provide greater access to Canadian readers.

The objectives of the CMF are:

• Content - To promote the creation of Canadian editorial content for Canadian readers in order to enhance the ability of Canadian magazines to compete in an open marketplace.

• Sustainability - To strengthen the sustainability and infrastructure of magazines and the magazine industry in the context of a difficult competitive environment that is changing in the face of new technologies and evolving business models and distribution methods.

The CMF delivers on these objectives through four components:

• Formula-based Support for Editorial Content (SEC): This component targets those magazines most at risk in a changing advertising services market and assists eligible Canadian publishers to offset the cost of producing Canadian content.
• Formula-based Support for Arts and Literary Magazines (SALM): this component provides support to maintain high levels of Canadian editorial content in high-quality Canadian cultural magazines which nurture the vitality of Canadian cultural expression.
• Project-based Support for Business Development for Magazine Publishers (SBDMP): this component supports the growth and sustainability of small and medium-sized titles by investing in group and individual publisher projects that increase circulation, advertising revenue, operational efficiencies, and professional development.
• Project-based Support for Industry Development (SID): this component provides project based support for association based initiatives that will benefit the sustainability of the industry as a whole, such as projects in the area of marketing, promotion, distribution, professional development, etc.

The objectives of the CMF are designed to complement and reinforce the objectives of the Publications Assistance Program (PAP), which supports access to Canadian magazines and non-daily newspapers by Canadian readers through a postal subsidy. The objectives of the PAP are to ensure that Canadians continue to have access to Canadian magazines and non-daily newspapers with high levels of Canadian content; that Canadian magazines and non-daily newspapers reflecting diverse Canadian communities continue to be available to Canadians; and that Canadian creators of content continue to have magazines and non-daily newspapers showcasing their work distributed to Canadian readers.

Together, the CMF and the PAP work to ensure that Canadian content is produced by a viable Canadian magazine industry that can respond to a complex marketplace, and that this content is made available to Canadian readers.

A) Environmentally friendly paper

The Government of Canada is committed to sustainable development technologies and practices, including the use of environmentally friendly paper. Whenever possible, we encourage publishers to use recycled paper or paper that has been certified by an independent forest certification organization.

2. Support for Arts and Literary Magazines

The Support for Arts and Literary Magazines component will help nurture and develop magazines that foster awareness of the arts and literature in Canada, ensuring Canadian readers have high-quality choices in the domestic magazine market. The assistance will be provided through formula-calculated funding, based on Canadian editorial content and production costs, to magazines that meet all the SALM eligibility criteria and are recognized for their excellence by the Canada Council for the Arts (CCA).

The maximum contribution to be granted by the SALM component will be $49,999. The maximum contribution of the CMF combined with other federal funding sources will be in accordance with the Treasury Board policy on transfer payments.

3. Eligibility criteria

At the time of submitting an application, applicants must be eligible magazines published by eligible publishers and meet all SALM eligibility criteria.

A) ELIGIBLE PUBLISHERS

To be eligible for the Support for Arts and Literary Magazines component of the CMF, a publisher must:

• be majority Canadian-owned and -controlled-in-fact by Canadians (see Part IV — Definitions);
• have its principal place of business in Canada; and
• respect all contractual agreements with its authors.

B) ELIGIBLE MAGAZINES

To be eligible for the Support for Arts and Literary Magazines component of the CMF, a magazine must:

• be published by an eligible publisher;
• be recognized for excellence and awarded a grant by the Canada Council for the Arts in 2009-2010;
• be published at the time of this application and during the application process; and
• have completed a full twelve (12) month publishing cycle and have been in operation for a complete financial year prior to the application.

In addition to these criteria, the following publishing and distribution activities must have all occurred during the previous fiscal year referenced in the Canada Council for the Arts application, and must be true at the time of this application.

To be eligible a magazine must also:

• be edited, designed, assembled, published, and printed in Canada;
• appear in consecutively numbered or dated issues, published under a common title, at regular intervals, not more than once every week, and at least twice every year;
• have a minimum paid circulation of 50% of total circulation;
• contain an average of at least 80% Canadian editorial content. Canadian editorial content will be calculated as a percentage of total editorial content;
• contain no more than 70% advertising content. Advertising content will be calculated as a percentage of total advertising and editorial content in a magazine. For the purposes of the CMF, advertorial content is considered advertising content (see definition of advertorial).

C) INELIGIBLE PUBLICATIONS

Certain magazines are considered ineligible under the CMF, including publications that are:

1. published or produced only electronically;
2. published for the purpose of promoting the interest of the principal business of the person who publishes or at whose direction the magazine is published, where the principal business is other than magazine publishing;
3. published directly or indirectly by groups or associations such as fraternal, trade, professional or other similar associations, trade unions, credit unions, co-operatives, religious, community, recreational or business organizations and which primarily report on the activities of the group or organization, or which primarily promote the interests of the group or organization, or its members;
4. published directly or indirectly by one or more individuals, groups, organizations, or corporations providing goods or services, where the principal goal of the publication is to enhance or to promote the sales of such goods or services;
5. distributed to Canadians from any location outside Canada;
6. whose editorial content is primarily reproduced or repeated from current or previous issues of the same publication or of other publications;
7. in loose-leaf format;
8. published directly or indirectly by any government or its agencies;
9. primarily or a combination of newsletters, comic books, newspapers, community newspapers, weekly community newspapers, alternative newsweeklies, directories, guides, financial reports, catalogues, magalogues, schedules, calendars, timetables or listings, (see Part IV — Definitions);
10. produced or published under contract by a non-Canadian entity on behalf of a Canadian client, or produced or published under contract by a Canadian entity for a non-Canadian client; and
11. publications that include, in the opinion of the Department of Canadian Heritage, the following types of content:
    • material that is hate propaganda, obscene or child pornography, or any other illegal material, as defined in the Criminal Code;
    • pornography or other material having significant sexual content unless it can be demonstrated that there is an overriding educational or other similar purpose;
    • material that contains excessive or gratuitous violence;
    • material that is denigrating to an identifiable group;
    • any other similarly offensive material.

4. Expenses

A) ELIGIBLE EXPENSES

A magazine’s contribution amount will be calculated based on the total eligible Canadian editorial expenses and production expenses directly attributable to the production of the print version of the magazine. These expenses must have occurred during the previous fiscal year stated in the publisher’s application to the CCA. These expenses include:

1. Editorial activities

   Costs covering all creation activities leading up to the production of a work, including:

   1. Editorial salaries and fees: payment for editing, including that part of the editor’s salary devoted to preparing content. Include payments to guest editors, copy editors, proofreaders, fact checkers and editorial board members (for editing).
   2. Writers’ fees: payment for articles, poems and other written material, including rights, permissions and translations. Do not include staff salaries.
   3. Art and photo fees: payment for images, e.g. photography and illustrations. Do not include those used in advertising.
   
   
2. Production activities
   1. Pre-press: costs of design, layout and proofing, including professional fees. Examples are costs of page or photo preparation (including digital files), proofs, film and plates.
   2. Printing and binding.
   
   
3. Publisher’s salary

   Publishers can claim a portion of their salary (if not already included in the editorial expenses) if they work directly on the production of the magazine and/or on the creation of Canadian editorial content, meaning creation activities including writing articles, design and assembly, photography, proofreading, illustrating, translating or editing.

4. Other eligible expenses

   In addition to the expenses listed above, the CMF will allow all applicants to claim 15% of their total editorial and production costs for other eligible expenses such as the cost and fees related to professional development, research, and travel.

B) INELIGIBLE EXPENSES

Ineligible expenses include:

• capital costs that are amortized such as those associated with office space, furniture, computers, or other equipment;
• operating costs, such as fax, copying, courier, delivery or similar expenses;
• salaries or wages for employees other than those involved in the creation of editorial content and production activities for the magazine, i.e. administration, advertising, distribution, marketing, promotion, publicity;
• text, photographs, graphics, and illustrations that are not Canadian or for which the publisher cannot identify their origin (see Note for clarification purposes below);
• costs related to the creation and maintenance of a Web site;
• costs related to the installation of Internet services;
• costs related to the electronic version of the magazine;
• membership dues.

Note for clarification purposes: Canadian and foreign editorial content

Canadian editorial content is editorial content (text, photographs, graphics, illustrations) created or translated by a Canadian citizen or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act. Canadian editorial content adapted or condensed by a Canadian citizen or permanent resident, and derived from content authored by a Canadian citizen or a permanent resident, will be considered Canadian editorial content for the purposes of the CMF.

Editorial content is considered non-Canadian if the author of the text, photographs, graphics or illustrations is non-Canadian, or if the authorship cannot be established. Texts obtained from Internet sites or CDs where authors are often unknown or unidentified, and photographs, graphics and illustrations downloaded from databases or CDs not credited to specific creators are considered, for the purposes of the CMF, to be foreign content since their origin cannot be proven. Foreign editorial content adapted or condensed by a Canadian or a permanent resident is still considered to be foreign editorial content. For example, a press release written by a foreigner who is an employee of a foreign company and condensed by a Canadian citizen or a permanent resident is considered to be foreign editorial content. Photography is considered editorial content and therefore is subject to the same rule. Applicants must mark their magazines accordingly.

5. Application to more than one component of the CMF

Eligible magazines can only receive funding from the SEC, the SBDMP component or the SALM component in a given fiscal year.

Magazines currently receiving multi-year project funding under the SBDMP component should contact the CMF for further information.

6. Contribution agreement

Magazines that are approved for funding under the Support for Arts and Literary Magazines component must invest all financial assistance received in the Canadian editorial content and production costs of the printed version of the magazine. To comply with this requirement, the recipient must:

• sign a contribution agreement with the Department of Canadian Heritage. This contribution agreement stipulates that all financial assistance will be invested in the magazine’s Canadian editorial and production expenses and will not be paid out in the form of dividends, bonuses, or other budgetary compensation to shareholders or proprietors. The agreement will also contain other conditions reflected in this guide;
• account for the use of the funding received and demonstrate how the funding has contributed to the creation of Canadian editorial content as well as to the viability of the magazine.

If a term or condition or commitment provided for in the contribution agreement signed between the Minister and the recipient has not been respected by the recipient, or an application requirement specified in the SALM Applicant’s Guide is not met, the Canada Magazine Fund can require that the recipient conform itself, within a set time period, to the term, condition, commitment or requirement which has not been met in prior or current applications to the Fund. The Canada Magazine Fund can also choose to withhold a contribution until the specific term, condition, commitment or requirement is met. The approval of funding by the CMF in one year does not automatically confer approval of funding in future years. All files are examined on their merits and against existing policy and program standards each year. No applicant should assume approval, or make business plans upon that basis, until final approval is granted by the Minister.

Ceasing publication

A contribution recipient must advise the Department as soon as the magazine ceases publication. Please note that if a recipient’s magazine ceases publication, all or part of the contribution will have to be reimbursed. The amount of the reimbursement will be based on the number of issues of the magazine actually produced compared to the number of issues of the magazine that would have been produced.

Sale of magazine or publishing firm

A contribution is awarded to a magazine owned by a publishing firm. Should shares or assets of the magazine or the publishing firm be sold, merged or by any other mean transferred, resulting in a change of control of the specific publishing firm or of the specific magazine, the Department must be advised before the transaction is finalized, in order to determine whether the magazine and new owner remain eligible. If applicable, it is the entire responsibility of the parties to agree on the value of the assets to be sold, which includes the financial contribution of the Department. The current owner will have to send a copy of the sale contract to the Department. The contract will specify the intention of both parties vis-à-vis the contribution. If applicable, the publishing firms must sign an Assignment and Assumption Agreement and the new owner will have to submit proof that they are Canadian-owned and -controlled. Otherwise, the contribution recipient will cease to be eligible to the Program. All or part of the contribution will have to be reimbursed, if the contribution recipient ceases to be eligible during any part of 2009-2010.

7. Use of financial assistance

Funds must be expended in 2009-2010. All SALM recipients must complete and submit a report on the use of financial assistance by June 30, 2010 [ PDF Version | Microsoft Word Version ]. Publishers must complete this report in as much detail as possible, using the template that will be provided to them. Please note that a completed example will be posted on the CMF Web site at: www.canadianheritage.gc.ca/cmf.

All financial assistance received under the Support for Arts and Literary Magazines component must be invested in the Canadian editorial content and production costs of the printed version of the magazine. Expenses for which the funds must be used are the following: editorial salaries and fees, writers’ fees, art and photo fees, pre-press costs, printing and binding. Publisher’s salary, professional development, research, travel, surveys, conference fees, subscriptions to publications and subscription fees to press agencies related to editorial activities are also allowable expenses. These are defined in section 4 — Eligible expenses.

It is in the publisher’s best interest to describe in detail the impact that the CMF funding has had on its magazine. These reports will assist the Department of Canadian Heritage to assess the effectiveness of the contribution program in relation to its objectives.

8. Department of Canadian Heritage provisions

A) ACKNOWLEDGEMENT

Recipients must recognize the financial support provided by the Government of Canada through the CMF under the Support for Arts and Literary Magazines component by printing the “Canada” wordmark and including the following acknowledgement in all issues of the magazine’s masthead for the duration of one year:

“We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial and production costs.”

If a recipient is a beneficiary of both the Canada Magazine Fund and the Publications Assistance Program, the recipient must recognize the financial support provided by the Government of Canada by printing the “Canada” wordmark and including the following acknowledgement in all issues of the magazine’s masthead for the duration of one year:

“We acknowledge the financial support of the Government of Canada through the Publications Assistance Program and the Canada Magazine Fund toward our mailing, editorial and production costs.”

The “Canada” wordmark logo is available in electronic format.

B) MINISTER’S DISCRETION AND DECISIONS

As in other funding programs, the eligibility criteria and guidelines for the CMF will not restrict the discretionary power of the Minister of Canadian Heritage or the Minister’s representatives to refuse a request for financial assistance.

Decisions of the Minister regarding the eligibility of applicants and contribution amounts will be final.

C) AUDITS OF RECIPIENTS

The Department of Canadian Heritage conducts financial and circulation audits of CMF recipients. During the course of an audit the recipients must make available any records, documents or other information that may be required to perform the audit. The Department will assume the auditor’s costs.

A recipient found to have submitted false information must refund the whole or part of any contribution received and may be declared ineligible for CMF assistance for a period of two years thereafter.

Publishers must maintain accounting records to meet year-end audit requirements. Original receipts must be available in the event of an audit. Cancelled cheques, invoices, and bank statements must be retained for five years.

Random circulation audits may be performed post-funding (similar to post-funding financial audits). Magazines awarded a contribution from the CMF must therefore keep copies of relevant proof of circulation for a period of five years after receipt of funding.

D) EVALUATION OF THE CMF

The Department conducts periodic evaluations of the CMF. During the course of an evaluation, recipients must make available any records, documents, or other information that may be required to perform the evaluation. The criteria to be used to assess the effectiveness of the contribution in relation to its objectives shall be determined by the Minister or the Minister’s representatives.

E) STUDIES

Magazines receiving CMF funding must participate in comparative financial studies, trend analysis, and other studies supported and funded by the Department of Canadian Heritage.

To protect the privacy of individual business information, reporting will be done only on an aggregate basis, and not on individual publishers or titles. Should the Department of Canadian Heritage provide comparative reports to publishers receiving assistance from the CMF, individual publishers will not have access to the business information of other publishers in any other than aggregate form.

F) INFORMATION SHARED WITH THE CANADA COUNCIL FOR THE ARTS

On a confidential basis, the Canada Magazine Fund may share information related to applications with officials of the Canada Council for the Arts to assist with program planning and application evaluation.

G) ACCESS TO INFORMATION ACT

Under the Access to Information Act, members of the public may request and obtain access to information held in federal government records. Should a request be received for information about an application, the Access to Information and Privacy Secretariat will consult the applicant regarding the disclosure of any information submitted to the Department.

H) PUBLIC INFORMATION

When funding is approved, the amount of funding, the purpose for which the funds were granted, and the name of the recipient are considered public information. This information is disclosed without consulting contribution recipients.

The CMF will make public a list of all recipients and their contribution amounts on an annual basis.

Part II Application process

1. Deadline

April 15, 2009

Applications post-marked after the deadline date will not be accepted. If this date falls on a weekend or statutory holiday, the deadline moves to the next business day.

2. Application instructions

The following instructions will help you prepare your application and ensure that it is complete.

A) BEFORE COMPLETING THE FORM AND PREPARING THE REQUIRED DOCUMENTS

Read the Applicant’s Guide for the Support for Arts and Literary Magazines component carefully, including the definitions, to ensure that you meet the publisher and magazine eligibility criteria (see Part I, section 3).

B) BEFORE SENDING YOUR APPLICATION TO THE CMF

• Verify that the form [ PDF Version | Microsoft Word Version ] is fully completed, signed and dated wherever required, and that totals and all other information are accurate.
• Make a copy for your records.

C) APPLICATION TO THE CANADA COUNCIL FOR THE ARTS (CCA)

Make a photocopy of your CCA application for 2009-2010 and the support material and include these with your application to the CMF.

D) FOR ASSISTANCE

Toll free number: 1-888-357-3116 Facsimile: 819-953-7782 E-mail: cmf-fcm@pch.gc.ca

The electronic version of the Guide and application form in downloadable format is available at www.canadianheritage.gc.ca/cmf.

E) OUR ADDRESS

Send your application and supporting documents to:

Canada Magazine Fund Support for Arts and Literary Magazines Department of Canadian Heritage 15 Eddy Street, 4th Floor (15-4-F) Gatineau, Quebec K1A 0M5

3. Application evaluation process

The deadline for filing applications is April 15, 2009. Applications post-marked after the deadline date will not be accepted. If this date falls on a weekend or statutory holiday, the deadline moves to the next business day.

1. An acknowledgement letter will be sent to the applicant after the deadline date.
2. A program officer will contact the applicant if required documents or information are missing or unclear.
3. The deadline date for missing documents or information will be established and communicated to the applicant. Failure to submit the missing documents or information by the deadline date can render a magazine ineligible.
4. An applicant can withdraw an application at any time. A written confirmation of withdrawal by the applicant must be sent to the CMF. An acknowledgement of withdrawal will then be forwarded to the applicant.
5. An application for funding which is recommended for rejection after analysis by a program officer is submitted to a committee for review. Should the committee recommend the file for rejection, the applicant will be advised by a representative of the CMF. There is no appeal process.
6. The publisher or person accountable for funding mentioned in A3 of the SALM application form will be advised of the eligibility of the magazine.
7. The publisher or person accountable for funding mentioned in A3 of the SALM application form will receive three (3) copies of the contribution agreement for signature. All of the signed copies must be returned to the CMF as soon as possible. The third copy of the contribution agreement will be returned to the publisher or person accountable for funding once it has been signed by the Department's representatives.
8. The CMF will make public a list of all recipients and their contribution amounts upon receipt and processing of all contribution agreements.
9. Applicants who are not awarded a grant by the Canada Council for the Arts in 2009-2010 will not be eligible for funding under the SALM component.

Part III Application requirements

DEADLINE FOR FILING APPLICATIONS: April 15, 2009. Applications post-marked after the deadline date will not be accepted. If this date falls on a weekend or statutory holiday, the deadline moves to the next business day.

Applicants must submit original copies of the following documents:

• Support for Arts and Literary Magazines (SALM) application
  A completed application form for Support for Arts and Literary Magazines.

  [ PDF Version | Microsoft Word Version ]

• Report on the use of financial assistance
  This report is not required at the time of application. However, all SALM recipients who will received funding for their magazine in 2009-2010, must complete and submit a report on the use of financial assistance [ PDF Version | Microsoft Word Version ]. Publishers must complete this report in as much detail as possible, using the template provided to them. This report must be signed by the publisher of the magazine. Please note that a completed example will be posted on the CMF Web site at: www.canadianheritage.gc.ca/cmf.

• Issues of the magazine
  All regular and special issues of the magazine, published during the previous fiscal year stated in the publishers’ application to the CCA (one copy only of each issue).

• Marked issue
  Using the letters shown below, applicants must identify with a BLACK MARKER through one or more of the issues provided, the following categories (see Part IV — Definitions):

  • C – Canadian editorial content
  • F – Foreign editorial content
  • A – Advertising pages
  • N – Non-revenue pages

  Please mark all text, photographs, and illustrations SEPARATELY.

  Applicants whose magazines seem to contain more foreign editorial content than stated in their application form could be asked to mark all issues submitted with their application.

• One copy of the magazine’s most recent issue

• All applicants must also provide photocopies of their complete 2009-2010 CCA application and supporting documents, that is:
  1. the CCA application form;
  2. profile of the magazine;
  3. report on the publishing program;
  4. a sample contract with contributors;
  5. sample promotional material;
  6. statement of sales;
  7. statement of mailing;
  8. a printing bill;
  9. list of distributors;
  10. financial statements at the proper level as specified in the CCA application form, i.e. “a copy of the most recent audited financial statements, accompanied by a balance sheet and notes to the statements (for magazines awarded $60,000 or more in 2008); or a copy of the most recent independent review undertaken by a qualified accounting firm (for magazines awarded between $30,000 and $60,000 in 2008); or a copy of the most recent financial statement (for all others).”

Part IV Definitions*

Advertising content

Paid pages or fractions of pages (including contra or in-kind) of a magazine that are designed to convince people to buy products or services from particular suppliers (manufacturer, distributor, or agent) including advertorial material that is specifically designed to resemble editorial content. Charitable, public service and house ads are excluded and are not considered part of the calculation of the magazine’s advertising content.

Advertorial

A publication is considered to be of advertising nature if it promotes or presents the interests, opinions, services or products of an advertiser (manufacturer, distributor or agent) in a similar style, format and layout of an editorial or journalistic report. The purpose of an advertorial is to gain monetary value by selling an opinion, service or product to its reader or consumer. For the purposes of the CMF, the editorial content of an advertorial is considered advertising.

Alternative newsweekly

Published in a tabloid format focusing primarily on local news and coverage containing primarily local advertising, and available free of charge in publicly accessible places.

Art and photo fees (eligible expense)

Payment for images, e.g. photography and illustrations. Do not include those used in advertising.

Association magazine

A magazine published for or by an association.

Canadian editorial content

Editorial content (text, photographs, graphics, illustrations) authored or translated by a Canadian citizen or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act. Canadian editorial content adapted or condensed by a Canadian citizen or permanent resident and derived from content created by a Canadian citizen or a permanent resident of Canada will be considered Canadian editorial content for the purposes of the CMF.

Canadian ownership and control

An eligible magazine must be owned and controlled-in-fact by a Canadian. For the purposes of the CMF, “Canadian” means:

1. a Canadian citizen;
2. a permanent resident within the meaning of the Immigration and Refugee Protection Act;
3. a Canadian corporation as defined in the Applicant’s Guide;
4. a partnership, trust or joint venture in which a person or any combination of persons referred to in a), b) or c), beneficially owns and controls, directly or indirectly, interests representing in value at least 51% of the total value of the assets of the partnership, trust or joint venture, as the case may be, and of which the president or other presiding officer, and more than half of the directors or other similar officers are persons referred to in a) or b) above;
5. a not-for-profit organization in which at least 51% of its members and directors are persons referred to in a) or b) above.

“Canadian corporation” means:

1. a corporation that is incorporated under the laws of Canada, a province or a territory;
2. a corporation whose principal place of business is in Canada;
3. a corporation whose president or other presiding officer, and more than half of the directors or other similar officers are Canadian citizens or permanent residents within the meaning of the Immigration and Refugee Protection Act;
4. a corporation, in the case of a corporation with share capital, of which Canadians beneficially own and control, other than by way of shares held only as security, directly or indirectly, in the aggregate at least 51% of all the issued and outstanding voting shares representing more than half of the votes;
5. a corporation, in the case of a corporation without share capital, of which Canadians beneficially own and control, directly or indirectly, interests representing in value at least 51% of the total value of the assets.

For the purposes of the CMF, an entity who is controlled in any manner by a person or entity that is not a Canadian that results in control in fact, whether directly through the ownership of securities or indirectly through a trust, an agreement, an arrangement or otherwise, is deemed not to be a Canadian.

Contribution agreement

A contribution agreement is an undertaking between a donor department and a prospective recipient of a contribution, which describes the obligations of each.

Edited in Canada

The commissioning of editorial material and artwork; directing writers, illustrators, and photographers regarding the final form of the material; as well as laying out, copy editing and proofreading, and otherwise preparing the contents for printing; must be done in Canada.

Editorial expenses (eligible expense)

Costs covering all creation activities leading up to the production of a Canadian work.

1. Editorial salaries and fees: payment for editing, including that part of the editor’s salary devoted to preparing content. Include payments to guest editors, copy editors, proofreaders, fact checkers and editorial board members (for editing).
2. Writers’ fees: payment for articles, poems and other written material, including rights, permissions and translations. Do not include staff salaries.
3. Art and photo fees: payment for images, e.g. photography and illustrations. Do not include those used in advertising.

Editorial content

The space in a magazine, excluding advertising and non-revenue pages, which consists of text, photographs, graphics, and illustrations.

Editorial salaries and fees (eligible expense)

Payment for editing, including that part of the editor’s salary devoted to preparing content. Include payments to guest editors, copy editors, proofreaders, fact checkers and editorial board members (for editing).

Entity

1. a Canadian citizen;
2. a permanent resident within the meaning of the Immigration and Refugee Protection Act;
3. a Canadian corporation as defined in the Applicant’s Guide;
4. a partnership, trust or joint venture in which a person or any combination of persons referred to in a), b) or c), beneficially owns and controls, directly or indirectly, interests representing in value at least 51% of the total value of the assets of the partnership, trust or joint venture, as the case may be, and of which the president or other presiding officer, and more than half of the directors or other similar officers are persons referred to in a) or b) above;
5. a not-for-profit organization in which at least 51% of its members and directors are persons referred to in a) or b) above.

Foreign editorial content

Editorial content is considered non-Canadian if the author of the text, photograph, graphic or illustration is non-Canadian or if the authorship cannot be established. For example, texts and images obtained from graphics sites or CDs where authors are often unknown or unidentified are considered, for the purposes of the CMF, non-Canadian editorial content and must be treated as such in the page count.

Guide

A publication which exists primarily for information purposes, that is to say that it is primarily comprised of listings, enhanced listings, maps, schedules, timetables or calendars, or a combination of the above.

Listings

Two definitions of listings will be taken into consideration.

• Basic listing:
  A simple listing of information, with no added content whatsoever. Any publication which is made up of more than 50% basic listings is to be considered primarily a listing for the purposes of the CMF, and would thus be ineligible under program criteria.

• Enhanced listing:
  Unlike basic listings, enhanced listings will include explanatory text. Despite the fact that editorial work is involved in selecting and preparing such enhanced listings, they are not considered original editorial content for the purposes of the CMF, as they do not add analysis, opinion or other value added material. However, in recognition of the fact that additional editorial work is required, the threshold for being called primarily a listing is different for enhanced listings. Any publication which contains more than 66% enhanced listings will be called primarily a listing and will not be eligible.

Magalogue

A printed publication that primarily combines the style, format and layout of a magazine and/or catalogue in order to sell, promote or present a product or service from a company (manufacturer, distributor or agent). A magalogue may include informative articles, pictures, high-end graphics, product descriptions, and entertainment in the style of a magazine, but all for the purpose of gaining monetary value.

Magazine

A printed publication that is commonly recognized as a magazine and appears in consecutively numbered or dated issues, and is published under a common title at regular intervals, not less than twice a year and not more than 52 times a year. For the purposes of the CMF, the magazine category does not include newsletters, comic books, newspapers, community newspapers, weekly community newspapers, alternative newsweeklies, directories, guides, financial reports, catalogues, magalogues, schedules, calendars, timetables, or listings.

Newspaper

A publication that is commonly recognized as a newspaper due to possessing a number of characteristics common to newspapers (i.e. produced in a tabloid or broadsheet format regardless of its frequency, unbound, self-identified as a newspaper, etc.). In all cases where there is disagreement as to whether the publication is a newspaper or a magazine, a scale will be applied, and all publications showing more than a minimum number of characteristics common to newspapers will be considered newspapers for the purposes of the CMF. Please refer to the newspaper scale on the CMF Website at: www.canadianheritage.gc.ca/cmf.

Non-revenue pages

All pages other than paid advertising, contra or in-kind, or editorial content. They can include self-promotional pages, pages donated to local charities or business with no payment, delivery of in-kind services or other consideration, etc.

Pre-press (eligible expense)

Costs of design, layout and proofing, including professional fees. Examples are costs of page or photo preparation (including digital files), proofs, film and plates.

Production activities (eligible expense)

1. Costs of design, layout and proofing, including professional fees. Examples are costs of page or photo preparation (including digital files), proofs, film and plates.
2. Printing and binding.

Publisher (publishing entity)

The publisher is the entity responsible for the publication of a magazine (see definition of entity).

Publisher’s salary (eligible expense)

The publisher is the individual with overall responsibility for managing one or more than one magazine including administrating, editing, marketing/selling, and other activities. Publishers can claim a portion of their salary (if not already included in the editorial expenses) if they work directly on the production of the magazine and/or on the creation of Canadian editorial content, meaning creation activities including writing articles, design and assembly, photography, proofreading, illustrating, translating or editing.

Special issues

For the purposes of the CMF, a special issue is an issue which is published as an addition to the regular publishing cycle, e.g. if a magazine publishes six issues per year, a seventh issue published to focus on an event, theme or topic will be considered a special issue.

The eligible editorial expenses of a special issue can be claimed if the special issue is included in the subscription price of the magazine, if it is an eligible magazine under the SALM criteria and if it meets all other applicable eligibility criteria. Up to four special issues a year can be claimed.

Please note that a special issue is not eligible if it is published with a different title, volume number or ISSN number or if it is not included in the subscription price of the magazine. In this case, editorial expenses cannot be claimed.

A special issue is considered to increase the frequency of the magazine only if it is an addition to the regular publishing cycle and sent separately from the regular issues of the magazine.

Writers’ fees (eligible expense)

Payment for articles, poems and other written material, including rights, permissions and translations. Do not include staff salaries.

* For the purposes of the SALM component of the CMF.

Support for Arts and Literary Magazines

Deadline for filing applications: April 15, 2009. If this date falls on a weekend or statutory holiday, the deadline moves to the next business day.

How to reach us:

Canada Magazine Fund Support for Arts and Literary Magazines Department of Canadian Heritage 15 Eddy Street, 4th Floor (15-4-F) Gatineau, Quebec K1A 0M5 Toll free number: 1-888-357-3116 Facsimile: 819-953-7782 E-mail: fcm-cmf@pch.gc.ca