Meet Our Kids - Covenant House Toronto

COVENANT HOUSE ANNUAL REPORT 2006
Meet Our Kids
Table of
Contents
Message from the Executive Director. . . . . . . Page 2
Message from the Chair . . . . . . . . . . . . . . . . . Page 3
Message from the President . . . . . . . . . . . . . . Page 4
Achievements 2005-2006 . . . . . . . . . . . . . . . . Page 5
Our Services . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6
Special Events . . . . . . . . . . . . . . . . . . . . . . . . . Page 16
How Dollars are Raised . . . . . . . . . . . . . . . . Page 17
Donor Recognition . . . . . . . . . . . . . . . . . . . . Page 18
Financial Report . . . . . . . . . . . . . . . . . . . . . . . Page 25
Board of Directors . . . . . . . . . . . . . . . . . . . . Page 31
How to Contact Us . . . . . . . . . . . . . . . . . . . . Page 31
IMMEDIACY
ANNUAL REPORT 2006
Kids come to us in crisis, desperately needing help. We provide
for their basic human needs – food, clothing, a shower and medical
attention – immediately.
COVENANT HOUSE
1
SANCTUARY
Kids trying to get off the street are often scared and mistrustful. We
protect our kids from violence and degradation by providing safety.
Our Principles
COMMUNICATING VALUES
We show our youth, by example, that wholesome, caring relationships
are based on trust, respect and honesty.
STRUCTURE
Street life is unstable and unpredictable. We provide structure and
a reasonable set of expectations to give our kids a chance to focus
on their future.
CHOICE
We help our youth make positive choices. We give them the
encouragement they need to believe in themselves and to change.
Vision
Statement
Covenant House Toronto is a leading expert in and advocate
for homeless youth in Canada. We serve the largest homeless
youth population and provide the most complete range
of housing and support services through our facilities, or in
collaboration with community partners, to meet the needs
of street youth.
We are flexible and responsive to emerging needs of homeless
youth. Our actions are supported by information and research
and our operations are second to none.
Our vision and our management philosophy are guided by
our Covenant House Principles.
Our
Mission
...is to serve suffering children of the street
and protect and safeguard all children...
with absolute respect and unconditional love.
ANNUAL REPORT 2006
In the words of a former resident, Covenant House gave him
the chance to “grow up all over again.” His view perhaps best
characterizes what we do for the thousands of young people
who seek refuge and much more at Covenant House.
COVENANT HOUSE
2
Increasingly the needs of homeless youth have become more
complex. They challenge us to do more to give our kids a second
chance to build futures and realize their potential.
I am proud to report on our progress over the past year. We
completed the first year of our new, three-year strategic plan to
improve services to our youth, respond more quickly to their
emerging needs and ensure our financial stability.
Last year, we streamlined our case management process so that
we can connect youth to the supports they need more quickly. We
shifted our street outreach from nights to daytime and increased
our contacts with youth by 10 per cent. By focusing on the
hospitality industry, we helped 32-per-cent more youth get jobs.
We also provided new recreational opportunities for non-residential
youth to help us build stronger relationships with them.
Message from the Executive Director
We have continued to examine how we can better meet the needs
of the increasing number of young people we see with mental health
problems. In the coming year, we will be moving forward with plans
to do more for these youth.
It is only with the continued assistance of so many that we are able
to offer our youth the support and skills to become productive,
independent adults. On behalf of our young people, I wish to express
my sincere gratitude.
Sincerely,
Ruth daCosta
Executive Director
As the theme for this year’s Annual Report suggests, we invite you
to “meet our kids.”
ANNUAL REPORT 2006
Like every young person they have all the promise and potential
that comes with youth.What they need is the support and guidance
that most of us found in our own homes.
COVENANT HOUSE
3
When I first became involved with Covenant House several years
ago, I was impressed by the quality and scope of its programs and
the excellence of the staff. But it was getting to know the young
people here that convinced me of the importance of this cause.
Messa ge from the Chair
This year, I am particularly gratified to see that Covenant House
is in a stronger financial position and is moving in a more strategic
direction for the future.
As I conclude my first year as Board Chair, I wish to thank all
of our Board Members for their support as well as our Executive
Director Ruth daCosta and her staff for their dedication.
On behalf of the Board, I also want to express my gratitude
to the many people who give so generously to help the kids at
Covenant House. The contributions of individuals like Roger
Quesnel, companies like CIBC, Morguard and the Canadian Tire
Foundation for Families as well as our partners including
ShareLife and Covenant House International enable us to
continue to offer our young people every opportunity possible.
I invite you to “meet our kids” on our website at covenanthouse.ca.
Sincerely,
Tom Woods
Board Chair
ANNUAL REPORT 2006
It is the time I spend with the kids in our care in Canada, the U.S.
and Latin America that I treasure most.
4
During this past year in Toronto, I had the privilege to spend some
time with a former resident, Sabri, who overcame the lure of street
gangs and is now working to keep other youth from that perilous
path. He has become an advocate in Toronto’s struggle with this
deadly problem that we see across our international organization.
Whether they are in some of the world’s wealthiest cities or third
world countries, kids on the street feel unwanted and unloved.
Message from the President
Giving them shelter, food, clothing and the educational and
vocational opportunities they need is perhaps the easier part
of what we do at Covenant House. What they need most is
to feel hope and to know that they are loved.
COVENANT HOUSE
It is our mission to protect the children of the street and
safeguard all children.
Our kids need to know they are valued and that, like a family,
they are members of our community. On my visits to Toronto,
I see so many of you demonstrating your generous support
and sincere concern for our youth.
I am proud of Covenant House Toronto’s achievements over the
past year, particularly the work they have accomplished on their
strategic plan.
I am also mindful that it is only with the help of good friends
like you that we can continue to offer our young people the
hope for brighter futures.
God be with you,
Sister Patricia Cruise
President, Covenant House
ANNUAL REPORT 2006
2005-2006 Achievements
COVENANT HOUSE
5
• Some 4,000 youth, most aged 16 to 19,
received services including safe refuge, food,
clothing, counselling, medical attention and
educational and vocational assistance.
• 925 youth used our health care clinic for a
total of 8,259 visits. About 30 per cent were
non-residents as many continue to use our
clinic after they move on.
• 22 young people graduated from our longerterm housing program where youth can stay
for up to 15 months while they work or go
to school and work part time. 18 went on to
live independently or in supportive housing
and four moved to university residences.
Another three left before completing the
program to reunite with their families.
• 141 attended our in-house high school that
is open to residents and non-residential youth.
• 24,147 students and youth group participants
were given presentations about the dangers
of street life and advice to make better
choices.
• Spent over $12 million, or about 75% of total
expenditures, on programs for our youth.
• 2,224 youth used our Community Support
Services for non-residents including food,
clothing, counselling and recreation programs.
Our outreach team also connected with
another 489 kids on the street.
• Enhanced our Community Support Services
for non-residential youth with more opportunities for recreation including basketball
and on-site movie nights.
• Shifted our on-the-street outreach efforts
from night to daytime to reach more youth.
Also, worked to ensure that referral agencies
like child welfare, bail and probation offices
and hospitals are aware of the comprehensive
range of services we offer.
• Focused our efforts on the hospitality
industry to achieve a 32-per-cent increase
in the number of youth finding employment.
As well, we integrated vocational services
and our pre-employment training program
to offer more youth increased support to
prepare for the workplace and find jobs.
• Introduced a new “Social Justice Retreat”
program that brought 933 high school
students to Covenant House to learn more
about the challenges of their homeless
peers.This includes discussion, activities
and a walk around the grittier parts of
the downtown core.
• Launched a new donor recognition program
including a planned giving program,The White
Dove Society, and increased our fund raising
focus on major gifts and bequests.
• Completed the first phase of the redevelopment of our website to create a more
dynamic, interactive site that will enable us to
better communicate with a larger group of
supporters and stakeholders.This coming year,
we will launch a youth section on the site.
• Worked with the Canadian Association of
Children’s Aid Societies to address the problem
of immigrant and refugee youth who leave foster care without status in Canada.These youth
often find themselves in the shelter system.
• Continued efforts to offer better support
to homeless youth with mental health issues
including collaborating with other agencies
and government and continuing to participate
in joint research with Ryerson University
and St. Michael’s Hospital.
• Continued collaboration with the Ontario
Association of Children’s Aid Societies to
identify impacts on and possible interventions
on behalf of vulnerable children and youth
affected by the application of zero tolerance
policies in schools.
• Provided conference speaker to the Ontario
Provincial Police to educate members on the
issues facing homeless youth and a keynote
speaker to the Toronto Police Service’s Annual
Communion Breakfast.
The issues on the street today...
and crack are readily available. Predators involved
in the sex and drug trades are more organized.
ANNUAL REPORT 2006
In 2005, the city marked a tragic record of 52
shooting deaths of its 70 murders. Canada’s police
chiefs report that the city is now home to some
80 criminal organizations. They also warn that
gang activity is spreading into the suburbs and
rural areas.
Even in our schools, an alarming number
of youth in the Greater Toronto Area admit to
carrying weapons. A federal study of the region
found as many as one in 25 students surveyed
said they had taken a handgun to school and
some 20 per cent say they have carried knives.
COVENANT HOUSE
6
Over the past two decades the number of
reports of Canadian youth running away from
home has increased by a dramatic 24 per cent
to about 53,000 annually, according to RCMP
statistics.
Studies repeatedly confirm that about 70 per
cent of runaways flee or are forced out of homes
where there is abuse or neglect. What they leave
behind could be family breakdown, parents with
their own drinking or drug problems, violence
or sexual abuse. Kids may also find themselves
caught between Canadian culture and their more
traditional immigrant parents, bullied at school or
suffering from an undetected mental illness. These
are problems that can happen in any home.
A recent Ottawa area study of homeless youth
found that nine in 10 girls and half of young men
involved in prostitution were sexually abused
before they left home.
Every year in Toronto, an estimated 10,000 youth
spend some time on the street. There the young
are always easy prey to those who will exploit
their need and naivety for their own gain or
gratification.
Today the street is meaner, more desperate and
far more dangerous. Violence has grown deadlier,
with guns more often the weapon of choice.
Cheaper and more potent drugs like crystal meth
These trends are a lethal combination that is
making the street more exploitive, oppressive and
intimidating. Everyday we see more kids whose
fear – real or imagined – is eroding their hope
of finding a way out.
As other services for youth with mental illnesses
grow scarcer, we continue to see more homeless
kids who suffer from depression, anxiety or more
serious conditions.
It is against this backdrop that we at Covenant
House, the country’s largest youth shelter, are
working to reach more youth and enhance our
programs to meet their increasingly complex
needs.
We give kids every opportunity to build
better futures and the belief that they can.
ANNUAL REPORT 2006
YOUTH PROFILE
Name:
Jackie
Age:
17
20 Gerrard Street East
Toronto, ON M5B 2P3
, Ontario
Hometown: Peterborough
Goals:
Covenant
To attend high school at
ger-term
lon
House and move into our
residence.
History:
COVENANT HOUSE
7
mother by Children's
Jackie was taken from her
e of her dad who lived
Aid and placed in the car
problems with drugs and
in Toronto. Her mom had
the relationship with
was often abusive. When
k out, Jackie ran to the
her father failed to wor
street.
m
kie took up an offer fro
With nowhere to go, Jac
ent
nsi
tra
a
in
m
h a roo
a man to provide her wit
to force her into prosti
ted
emp
att
he
re
The
hotel.
and they brought
tution. Police were called
Jackie to Covenant House.
Currently:
ool and is working
Jackie is now in our sch
school diploma. She is
h
hig
towards getting her
Life Skills program.
also participating in our
2006
The above story is true.To protect the privacy of our youth, we have changed the name and used a stock photo.
STAFF PROFIL
E
ANNUAL REPORT 2006
Name:
COVENANT HOUSE
8
Job Title:
20 Gerrard Street
East
Toronto, ON M5
B 2P3
Karen Eacott
Outreach Work
er
What do you se
e on the stre
et:
Youth on the
street who ha
ve had to give
dignity to su
up their
rvive. They ma
y have starte
prostituting,
d out
stealing or se
lling drugs to
material need
meet their
s but now it’s
ab
out giving up
I think youth
their soul.
are more vict
imized and mo
now. There’s mo
re
fearful
re violence, es
pecially guns
addiction an
, drug
d gang activi
ty
.
We’re seeing
more young pe
ople who feel
hopelessness
absolute
that there is
life beyond su
rvival.
Greatest rewa
rd:
Seeing youth
who are happy
because it is
they are genu
rare that
inely happy.
When a young
person trusts
me enough to
more help.
ask for
Why youth ch
oose Covenant
House:
I approach ev
ery youth with
the belief th
deserve to ha
at they
ve an opportun
ity and they
Sometimes they
feel that.
are absolutely
is offering th
shocked that
anyone
em help.
It is our core
belief that th
ere is hope fo
young person
r every
. Our philosop
hy comes thro
youth respond
ugh and
to that. We ar
e open and ho
that is essent
nest and
ial for buildi
ng
trust.
We encourage
young people
until they ar
enough to make
e brave
a change and
then we are th
for them to he
ere
lp them make
that change.
It’s a slow pr
ocess and some
times it can
take years.
2006
Reaching Out
ANNUAL REPORT 2006
ON THE STREET
COVENANT HOUSE
9
For kids on the street, time is the enemy. All too
quickly, hunger, fatigue, cold and loneliness can
force them to do whatever they need to survive.
Our outreach team goes on walkabouts or in our
van to meet kids where they congregate, offering
a friendly face, a sandwich, encouragement and
information about our services. Building relationships with these wary youth, who often fear
reprisals from pimps, johns and dealers, can be
slow and painstaking. Sometimes it can take
years to win their trust.
Last year, we changed our outreach effort from
nights to daytime to reach more youth. This also
allows us to connect with other referral agencies
like child welfare, bail and probation offices
and hospitals to ensure they are aware of the
comprehensive range of services we offer.
489 youth served on the street
COMMUNITY SUPPORT SERVICES
Often young people will take their first tentative
step by coming to our day program that we call
Community Support Services (CSS). Here youth
who are not living at Covenant House can get a
meal, a shower and clean clothes. They can also find
counselling and recreation or connect with any
of our other services like health care, job training
or long-term residence.
Young parents can bring their tots for advice on
parenting and youth who are living independently
can also continue to get some extra help.
A small food bank, baby food, diapers and household items like dishes are available for kids living
in the community.
Youth who come to this program are encouraged
to meet regularly with our staff and develop a plan
to help them achieve their goals. In addition to
our in-house services, we may also help them find
other community supports like drug treatment.
To engage more non-residential youth, CSS
expanded recreational activities to include pick-up
basketball games and more in-house movie nights
last year. As a result, we saw a 15-per-cent increase
in the number of youth using CSS for the first
time – most recommended to come by friends.
2,224 youth served including
306 of their infants and toddlers
47 youth under 16 years old
35 under 13
BETTER
CHOICES
Our Runaway
Prevention Program,
“Before You Run...”,
is the only one of its
kind that is offered in
schools and youth
organizations to help
young people make better choices.
Final Before You Run Logo
Our expert facilitators go into classrooms to give
a realistic look at the dangers of street life through
discussion and a video presentation to students
in Grades 6 to 10 and youth organizations. We
provide advice on issues kids face and distribute
information about specific help available in their
communities.
(CMYK for full colour applications)
By increasing the group size of our presentations,
we were able to reach over 20-per-cent more
young people last year.
In addition, we introduced a new program to teach
students about the challenges facing their homeless
peers and their responsibility to the disadvantaged.
Our new “social justice” retreats brought 933
students to Covenant House for a lively discussion
followed by a walk through the grittier streets
of downtown Toronto.
Total attendance: 24,147
Total # of presentations: 423
ANNUAL REPORT 2006
Living at Covenant House
COVENANT HOUSE
10
A SAFE PLACE TO STAY
Our doors are open 24/7 to offer youth safety,
support and much more.They come to us from
every part of the country and every background.
Most are between 16 (the minimum legal age in
Ontario) and 19.
When young people decide to stay in our 94-bed
emergency shelter, we help them make their own
plan to realize their goals. They may choose to
go back to school with us or in the community,
or find a job and a place to live.
We take care of kids’ immediate needs by providing
a safe place to stay, nutritious meals, clean clothes,
structure and routine.
Much more than a shelter, we offer the widest
range of services under one roof to give youth
every opportunity to change their lives. We bring
together a multi-disciplinary team to care for
each of our youth – mind, body and spirit.
Our youth workers, social workers, health care staff,
and pastoral ministers offer their counsel and guidance.
With the help of our volunteers, we provide recreational opportunities and music and art programs.
In our high school and job centre, we provide
options to enable kids to get and stay off the street.
When young people are ready to live on their own,
our dedicated housing workers help them find a
place, get started with basic household items and
stay in touch to ensure they are making progress.
Perhaps most importantly, we empower young
people to take responsibility for their futures. We
do this by making a “covenant” or commitment
to every youth to support their efforts while they
work to achieve their dreams.
To ensure that our residents are quickly connected
to the support they need, we streamlined our case
management process last year.
We also conducted a youth needs assessment
during the year that found some 30 per cent of our
kids have mental health issues that make it difficult
for them to move forward with school or work
plans. This coming year we will be developing day
programs specific to the needs of these youth.
As well we will continue to work with other
community agencies to better serve them.
OUR RESIDENTS
1,181 youth in emergency shelter
55% from 16 -19 years of age
67% boys, 33% girls
TRANSITIONAL HOUSING
With longer-term stable housing and continued
support, kids are better equipped to achieve
independence.
Once youth in our shelter are making progress,
they may qualify for our transitional housing
program – Rights of Passage (ROP).
Here up to 28 young people, 18 to 22, who are
working or continuing their education and working
part time can have a room of their own for up to
15 months. These young people share responsibility
for common areas, learn life skills like cooking
and budgeting and save money toward their
independence. They are also paired with adult
mentors to guide them.
Working with other local shelters during the past
year, we offered more youth access to this progressive
program.We also partnered with a drug counselling
service to provide weekly visits and ongoing
support for our ROP residents.
Last year, 22 young people graduated from ROP.
18 went on to live independently or in supportive
housing and four moved to university residences.
Another three left to reunite with their families.
ANNUAL REPORT 2006
YOUTH PROFILE
COVENANT HOUSE
11
Name:
Azad
Age:
18
Hometown:
Goal:
20 Gerrard Street East
Toronto, ON M5B 2P3
Northern Iraq
because there
To stay in Canada
unity.
rt
is peace and oppo
History:
h area of the
e northern Kurdis
Azad grew up in th
lled in an
ki
er and uncle were
country. His fath
got a job with
ly
et
cr
hool, Azad se
attack. In high sc
with the U.S.
s doing business
a company that wa
tinued to work
by rebels but con
He was threatened
mained under
even though he re
until graduation
surveillance.
s life. He also
stant fear for hi
Azad lived in con
sis.
war on a daily ba
saw the carnage of
travel out
the opportunity to
In August, he had
ternational
s invited to an in
of Iraq when he wa
in the U.S.
youth conference
Canada as a
there, he came to
After he arrived
nt House.
na
ht help from Cove
refugee and soug
Currently:
for a work
e to live, applying
Looking for a plac
e help of our job
for a job with th
visa and looking
permit, Azad is
rk
its for his wo
wa
he
e
il
Wh
.
re
cent
where he is
recreation centre
volunteering at a
e his English.
working to improv
2006
The above story is true.To protect the privacy of our youth, we have changed the name and used a stock photo.
ANNUAL REPORT 2006
YOUTH PROFILE
Name:
Tonya
Age:
21
Hometown:
Toronto
20 Gerrard Street East
Toronto, ON M5B 2P3
Goals:
To successfully comple
te community college
degree in nursing.
History:
Tonya grew up in dow
ntown Toronto, where
her
single mom worked an
d raised her family.
Tonya became involved
with gangs for safety
and
acceptance. She began
committing petty cri
me
such as theft and bul
lied other youth.
Tonya left home and
came to Covenant Hou
se
determined to make a
change in her life.
She
attended our school
and then school in the
community. She worked
hard to get over her
anger
that the world was aga
inst her.
COVENANT HOUSE
12
Currently:
Tonya is in the second
year of her communit
y
college nursing progra
m and living in a coop with
the continuing suppor
t of our housing wor
kers.
2006
The above story is true.To protect the privacy of our youth, we have changed the name and used a stock photo.
ANNUAL REPORT 2006
Opportunities
COVENANT HOUSE
13
SCHOOL
In our in-house high school with small class
sizes, we offer residents and non-residential
youth the confidence and credits in compulsory
subjects – English, math and social sciences –
to enable them to receive their diploma from
a community school.
While school may once have been a part of a
youth’s problems, our school can be part of the
solution. Here kids can find the structure and
routine of the classroom to make them feel
like any other teens.
Last year, 141 students attended our school
while hundreds more were counselled and
connected with other education programs.
JOB CENTRE
In our Job Centre, we assist young people
with job search strategies, job leads, resume
preparation advice, computer access in our job
lab and interview technique tips. We provide
individual counselling,TTC tokens and appropriate business clothing. We work with
employers to find jobs for our youth.
In addition, we have a more formal preemployment program called Ticket to Life
(TTL). This four-week program provides youth
with the benefit of instruction in workplace
skills such as time management, goal setting
and basic computer skills. This program also
teams youth with volunteer adult mentors
to provide added guidance.
This past year, we strengthened our vocational
services by integrating the support offered
in our job centre with the more structured
elements of our TTL program. 132 youth
benefited from this help.
By focusing our efforts on the hospitality
industry where many of our youth can find
employment, we achieved a 32-per-cent
increase in placements.
As well, we recently partnered with Goodwill’s
REACH (Real Employment to Achieve
Community Health) program to provide
training in warehousing. Fifteen of our youth
have participated in this initiative.
LIFE SKILLS
We offer all of our youth life skills sessions
like cooking, grocery shopping, gardening
on our roof top and household budgeting.
In addition to learning life skills, youth have
the opportunity to give back to the community
by volunteering their time at the Riverdale
Farm, Field To Table/Food Share and other
agencies. Last year, some 254 youth benefited
from this support.
Our on-site health clinic, open to both our residents
and non-residential youth, offers compassionate care to
heal the physical and psychological tolls of the street.
ANNUAL REPORT 2006
We have three full-time and two part-time nurses, a
part-time doctor and a consulting psychiatrist. Our clinic
has two examining rooms and a lab.
Youth get immediate attention regardless of whether
they have health insurance or not. We help cover the
costs of several services including most prescriptions
and eye examinations.
To ensure continued health care support, we help our
kids get health cards and coordinate their care with
other medical services if necessary. We also provide
healthy lifestyle education including advice on nutrition
and substance abuse.
14
COVENANT HOUSE
Compassionate Care
Our specialized care and the understanding of our health
care team often results in youth continuing to use our
clinic after they move on. On average, about a third of
the youth who visit our clinic are non-residents.
Last year, we improved accessibility to our clinic by opening
earlier in the day so that youth are able to come before
work or school.
HEALTH CARE:
Total # of visits 8,259
Total # of youth 925
STAFF PROFILE
Name:
ANNUAL REPORT 2006
Job Title:
15
20 Gerrard Street East
Toronto, ON M5B 2P3
Cheryl Wertman
Leader
Health Clinic Team
the clinic:
What do you see in
post-traumatic
e suffering from
More youth who ar
perienced on the
of what they’ve ex
stress as a result
sexual abuse.
or
like violence
me
ho
at
or
d/
an
street
th issues – a
with mental heal
We see more kids
be the result
, we suspect may
significant portion
of drug use.
exposure to
ow that pre-natal
Because we now kn
mptoms, we are
sy
le
in many subt
lt
su
re
n
ca
ol
coh
al
problems are
whose behavioral
seeing more kids
drinking during
of their mother’s
likely the result
pregnancy.
COVENANT HOUSE
Greatest reward:
lience of these
amazed by the resi
I am continually
als who have
du
are smart indivi
young people. They
that given
ow
kn
I
the streets.
on
ng
vi
li
ed
iv
rv
su
rthwhile.
n do something wo
a chance, they ca
Covenant House:
Why youth choose
. They can ask us
use they feel safe
I think it is beca
sten but don’t
li
anything. We
us
ll
te
d
an
ng
hi
anyt
something these
al relationships,
re
d
il
bu
We
e.
dg
ju
perienced.
kids have never ex
int of contact with
a youth’s first po
Sometimes we are
try staying in
encourage them to
Covenant House. We
ogram.
siting our day pr
our shelter or vi
continue to use
young people who
We also see many
ey come by months
they have left. Th
our clinic after
r.
or even years late
2006
ANNUAL REPORT 2006
Our high-end, niche market special events attracted more guests
and sponsorship last year and, along with events hosted for us
by other groups, raised over $713,000 in gross revenue.
COVENANT HOUSE
16
Set at the elegant Granite Club, the Covenant House
Mother’s Day Celebrity & Fashion Evening was an
opportunity to pamper moms and be dazzled by the fashions of
Canadian designer, Joeffer Caoc. “Funny Mommy” comic Kate
Davis and 97.3 EZ Rock’s host Colleen Rusholme entertained
at the gala that drew 400 and raised $142,612.
Special
Events
Our annual golf fundraiser, the Covenant House Morguard
Celebrity Golf Classic was held at the exclusive Glencairn Golf
Club in Milton. Joining hockey legend Guy Lafleur, our foursomes
enjoyed great golf and fun with sports and media celebrities. The
event raised $241,290.
The Energy Savings Group Wine, Whisky & All That
Jazz, a cool combo of fine wines for auction and classic jazz
held at the chic Liberty Grand, drew some 280 guests and raised
$217,355.The evening offered auction excitement, conducted by
Ritchies’ famed Stephen Ranger and the talents of some of the
best local jazz singers.
We are grateful to the many companies that continue
to support our events.
EVENT SPONSOR
PROFILE
20 Gerrard Street East
Toronto, ON M5B 2P3
Name:
Louie Santaguida
Title:
President, Terras
an Group
Your Involvement:
I’ve been among th
e sponsors of the
Covenant House Mo
ther’s Day Celebr
ity &
Fashion Evening
over the past two
years.
I think it’s a grea
t opportunity
to showcase my com
pany and help youn
g
people who are tr
ying to help them
selves.
Supporting Covena
nt House is a fami
ly
affair for us. My
wife, MaryLou, is
also on
the Mother’s Day or
ganizing committee
.
For the past seve
ral winters, Mary
Lo
u,
our
kids and I have pu
t together a snow
boarding
trip to Georgian
Peaks for Covenant
House youth.
We take a busload
of kids out to the
country
and enjoy a day on
the slopes.
For many of these
kids, this is the
first
time they’ve enjoye
d the kind of fami
ly outing
most of us take fo
r granted. It is
very rewarding
and we have a grea
t time.
Why you choose Co
venant House:
As a parent of te
ens myself, I know
how difficult
an age that can be
even when there is
strong family
support. I think
that Covenant Hous
e provides the
same kind of supp
ort and structure
that we try to
as parents. That’s
what impresses me
most.
I also appreciate
that Covenant Hous
e
offers kids
the skills and op
portunities to en
able them to go
out on their own
and be productive.
2006
ANNUAL REPORT 2006
How Dollars are Raised
COVENANT HOUSE
17
Financially, 2005-06 was a good year for us.
We raised $16.26 million and completed the year
with an operating surplus of $281,000. More than
$13.1 million was raised through donations from
our individual, corporate and foundation donors –
a two-per-cent increase over our previous year.
About $2 million came from government and
the remaining $1.1 million from other sources.
Eighty-one per cent of our fundraising revenue,
or $10.7 million, continues to come from our
direct mail program. We saw growth in our
donor mail program for the first time in two
years, primarily as a result of a very successful
bed replacement campaign. We also realized a
6.5-per-cent increase in our monthly donations
program that we call our Good Samaritans.
Meanwhile special events, run by us or through
the help of others, brought in more than $700,000
or five per cent of the budget.
Over the past year, we have focused our efforts
on increasing the areas of major gifts and bequests.
While we are seeing progress, these new areas
of fundraising are still very much in the develop-
ment stages.We spent the last year building the
appropriate infrastructure to support these areas,
including the launch of a comprehensive donor
recognition program.
A review of our corporate giving program
conducted pro bono by McKinsey & Company
found that we are receiving a disproportionate
amount of revenue from corporations compared
to other similar organizations. Philanthropic gifts
from corporations currently represent three per
cent of our total budget. As a result, we will be
launching a special corporate campaign in the
fall of 2006 to better engage companies in the
work of our agency.
With the re-launch of our website, we completed
the first phase of our plans for a more dynamic,
interactive site that will enable us to better
communicate with a larger group of supporters
and stakeholders. This coming year, we will
continue with enhancements to the site including
a new youth section.
Our communications activities are extremely
important to our ability to generate revenue. Last
year we were able to gain an estimated value of
$2.7 million in free advertising and public relations;
a 35-per-cent increase over the previous year. This
was achieved by cross-promotional partnerships,
public service announcements and news coverage.
A charitable donor familiarity and attitude study
was conducted pro bono last spring by The Verde
Group. Among the findings, we learned that while
we have very strong name recognition, respondents
were vague about the specifics of our services.
These findings will be helpful in the development
of our future communications strategies.
In order to maximize the dollars that support the
youth in our care, Covenant House relies on many
companies that provide us with pro bono services.
We estimate that last year alone we received
$1.8 million in value from advertising, promotional
material development, printing, research, media
placement and more.
Special thanks to TAXI Canada, Media Experts, Fuse
Marketing Group,The Verde Group and McKinsey
& Company for their invaluable contribution over
the past year.
ANNUAL REPORT 2006
Donor Recognition
18
The following individuals and organizations made contributions of $1,000 or more to the operating funds of Covenant House
during our fiscal year 2005-2006. As well, included here are event sponsors and those who provided in-kind items and
services that are essential to our operations. Many others, who made generous contributions, wish to remain anonymous.
To all of our supporters, we express our sincere gratitude. Your assistance enables us to care for the young people who rely
on us. We apologize if we have inadvertently omitted the name of any individual or group and ask that you please advise us.
FRIENDS $1,000+
Individuals
Anonymous
Dr. Bruce Armstrong
Mr. John A. Austin
Richard J. Balfour
COVENANT HOUSE
George W. Battershill
Beatty Family
Mr. & Mrs. David Cameron
Jacquie Fraser
Conti & Wallie Hewitson
Bob Cluett
Iris Gilley
Gundy Jackson
Gordon W. Chappell
Rev. Robert B. Clune
Phillip Giles
Mrs. Joanna Giresi
John and Debi Coburn
Mary and Lionel Goffart
Jane Cooke-Lauder
Clarence Hehn
Kevin R. Coleman
Jan Cooper-Webb
Bonnie Marie Greer
Karen Hinkley
Dr. Sam Jebamani
David E. Jones
Lorraine Joyner
Dr. Akbar Khan
Mary Lynn and Jim Beaven
In Memory of
W. Robert Cormeau
Miss Lillian Birchall
Dr. Anne-Marie Crawford
Mike Preston, Tapestry Group Inc. Chair, decided
Ruth daCosta
this way.
Alexander Becks
Mrs.W. Birchall
Catharina Birchall
The Bissonnette Family
Frances M. Craig
Sandra & Ron Cunningham
Richard & Sandra Boisjoly
Hugues, Siobhan and
Yannick de Milleville
Diane J. Brisebois
Dunne Family
Mr. & Mrs. D. R. Braund
John & Mary Ann Brown
In Memory of Lois &
Carl Brunshaw
Ian Camacho
Josie do Rego
Anne & Ron Fawcett
W. N. (Bill) Fitzpatrick
In Memory of
Sister Alice Fole
With the elimination of the capital gains tax on
charitable donations of gifts of securities in 2006,
to make his most recent gift to Covenant House
The long-time donor and volunteer says he
found the new process simple and easy. He would
encourage everyone to take advantage of the
new incentive that is aimed at increasing
charitable giving.
Donor Recognition
C. Peter and Katherine Kilty
Murray and Nancy Metcalfe
Brigitte St. Pierre
R. K. (Bob) Kostiuck
Miss Joan Mitchell
Rebecca B. Szeto
ANNUAL REPORT 2006
Ms.Teresa Kinver
19
Reginald Kowalchuk
Steven & Deborah Lamb
Leonette Leblanc
Jean-Paul & Bernadette Lemay
Harold Lenfesty
Mrs. Desneiges Levesque
Davin Li, Founder, Salsa For
Charity Salsa Dance School
Mr. & Mrs. Lourdu Raj
Ian F. Lowe
Joyce Lynch
COVENANT HOUSE
Machat Family
L.Tony Maestre
Kevin Markle
Faye McAfee
Dr. James McBurney
Joan & Brian McCann
Glenn & Linda McCurdy
Lynn McDonald
Bruce McDougall
Marion McDougall
Jim and Elaine McGivern
M. Catharine McLean
James McSherry
Dr. Andy Myers & Dr. Allison Turk
Ms. Sharon Rose Mooney
Kathy & Colin Moore
Mrs. N. Morency
Gary Moroney
Mr. A.Warren Moysey
Chloe Barbara Murphy
Mme. Rita S. Nowry
L. Padfield
Francis Pope
Pamela Quirk
Lucille Racine
Dr. John & Lyn Rapin
Don and Ruth Redmond
Brian & Beate Ritchie
Albert M. Stevens
Maria Tarnavskyj
C. Elizabeth Tate
George Thomson &
Judith Beaman
Matthew Teitelbaum &
Susan Cohen
Tucker-Samant Family
Gordon & Allison Uszkay
Reverend Martin A.Vallely
The van Schaik Family
Claude Villeneuve
Michelle & John Visser
Dr. Leo & Mrs. Sandra Vos
Catherine Wakelin
Matthew A. Sammut
Mr. & Mrs. Peter &
Elaine Walkey
John & Carol Saunders
John & Connie Wightman
Monica Sampson, M.D.
John E. Schmidt
Edwin & Annette Schramek
Gerd Schwarzkopf
Peter Semchism
Simonetto-Peter Wedding
Mary and Murray Skitt
Joan Eloise Sproul
Freda V. Wells
Steve and Barbara Williamson
Lorraine Williamson
Becky & Cory Wiseman
Dr. G. Bryan Young
Mr. & Mrs. Michael Zentil
Richard Zurawski
Donor Recognition
Companies, Groups
& Foundations
Eli Lilly Canada Inc.
Paul O’Connor Funeral Home
Amma Foundation of Canada
Evig Foundation
Friends of The Poor (Canada) Inc.
Polymeric Engineering Ltd.
ANNUAL REPORT 2006
A & A King Family Foundation
B. & K. Agency Inc.
Ben and Hilda Katz Charitable
Foundation
Berlitz Canada Inc.Toronto
Language Centre
Candesco Research Corporation
CBC Employees’ Charity Appeal
C. B. Powell Foundation
20
Cantwell Cullen & Company
Incorporated
The C. Dennis Flynn Foundation
COVENANT HOUSE
CFNY Youth Fund at the
Toronto Community Foundation
Cirque du Soleil
Community Foundation of
Oakville
Conn Smythe Foundation
Crane Fund for Widows
and Children
Credit Suisse First Boston Canada
Daughters of Isabella – Trillium –
Ontario State Circle
DayMen Photo Marketing LP
Decoma
Disney
Epstein Cole LLP
Hip Hop Headz
HMCS Toronto
Hydro One Employee’s and
Pensioner’s Charity Trust Fund
Hyperion
Inco
Instil Productions Inc.
Insurance Brokers Association
of Ontario
Investors Group Matching
Gift Program
Jackman Foundation
Jean Machine
Jim Robinson Contracting Inc.
Knights of Columbus #3945
Kodak Employee Chest
Koehler Family Fund at the
Toronto Community Foundation
Lowepro Camera Bags
Luxcom
Maizis & Miller Consultants
Mastermind Educational Toys
Nestlé Purina PetCare
Paramount Canada’s Wonderland
Pfizer Canada
Preston Human Capital Group
Primus Canada
Prorec Inc.
Radke Films
Religious Hospitallers of St. Joseph
Retail Council of Canada
Rideau Orthodontic Mfg. Ltd.
Rogan Foundation
S. C. Land Management
Corporation
School Sisters of Notre Dame
Second Hand Rose Shop
S. M. Blair Family Foundation
St. Henry Catholic School
(Toronto Catholic District
School Board)
St. John The Evangelist
Anglican Church, Conception
Bay South, NL
Steam Films
The Brumara Foundation
The Claudette & Holger Kluge
Family Foundation
The Derrick Brenninkmeyer
Charitable Foundation
The Dominion of Canada
Loretta Quesnel
When Roger Quesnel lost
his 90-year-old sister
recently, he decided to pay
tribute to her by making a
major gift to Covenant
House.
His sister had left him an
annuity, which he decided
to sell and donate the value
to help our kids.
Loretta Quesnel and Roger,
now 84, were among eight
children who grew up on
a Georgian Bay area farm.
Loretta often volunteered
her time and energy to
help others.
We are most grateful for
Roger’s donation in
memory of his sister.
Donor Recognition
General Insurance Company
ANNUAL REPORT 2006
The Guarantee Company
of North America
21
The Hustler Young Men’s
Bible Class Foundation
The Salden Foundation
The Temerty Family Foundation
Trafalgar Group Inc.
UBS Securities Canada Inc.
Unilock Ltd.
Wallenstein Feed Charitable
Foundation
WarrenShepell
Westway Machinery Ltd.
COVENANT HOUSE
Woman’s Christian
Temperance Union
PARTNERS $3,000+
Individuals
Rafe Betro
Mrs. Kathleen P. Carrick
Raffaela Caruso
Steven W. Cheda
David & Joan Cole
Kevin R. Coleman
Stacey Ison
Mrs. Gundy Jackson
Dennis & Cindy Metzler
Mrs. Margaret O’Connor
Eugene Leahy
Ryerson University
Walter Schneider
Mark Maybank
The Robert Campeau
Family Foundation
Brian Reeve
Mr. Addison Sholtz
Jim, Elizabeth, Edith &
Forest Turpel
Lorenzo Verduci
Companies, Groups
& Foundations
CHUM Charitable Foundation
CMCI
Frank Yee-Chuan Loy
Colleen Moorehead and
Daniel McCarthy
Vivienne Poy
Nancy and Michael Preston
Alexandre and Jeannine Raab
P. H. Stewart
Rahul Suri
Creststreet Capital Corporation
Companies, Groups
& Foundations
Hans Chrstrom – “Your
Friendly Neighbourhood
Real Estate Agent”
CIBC World Markets Children’s
Miracle Foundation
DUCA Financial Services
HBC – Zellers,The Bay, Home
Outfitters, Designer Depot
TELUS
TELUS Community Connections
The Sprott Foundation
ADVOCATES $5,000+
Individuals
Eric and Marcia Agius
Fred and Charleen Gorbet
In Memory of Kay and
Nyk Katarynych
Canadian Tire Associate
Store #150
Samuel Group of Companies
The W. Garfield Weston
Foundation
The Julie-Jiggs Foundation
Hannah Taylor –
The Ladybug Foundation
The Paul & Evelyn Higgins
Fund at the Toronto
Community Foundation
The Alastair &
Jennifer Murray Foundation
The Tecolote Foundation
Trillium Architectural
Products Ltd.
F. K. Morrow Foundation
SUSTAINERS
$10,000+
Lee Tak Wai Foundation
Frank Davis
General Electric
Lambda Properties Limited
Loblaw Companies Limited
Meridian Technologies
Mintz + Partners
Molson Donations Fund
Munich Reinsurance Company
P & P Murray Foundation
PricewaterhouseCoopers LLP
Individuals
Kevin & Mary-Martin Morris
Michael S. Penner
Dr. Arthur Rubinoff and
Patricia Regan
Lorne & Marnie Swartz
ANNUAL REPORT 2006
Donor Recognition
COVENANT HOUSE
22
For retired elementary school teacher, Adele Archer, the
decision to include a gift to Covenant House in her will
was a small way for her to continue to support the
work of rescuing and helping homeless youth.
In her 36 years in the classroom, Archer says, she found
she had a great empathy for young people who had to
leave troubled homes. “They were often victims
of circumstance and my heart aches for street kids,” she says.
4 colour version
2 colour
Meanwhile
Tambre Leighn, who operates
herversion
own television and film
production company, sees her legacy gift to Covenant House as a way to
build a larger donation in the future and make a long-term commitment to
our youth.
It is our multi-disciplinary approach – caring for youth mind, body and spirit
– that drew Tambre to support Covenant House, she says.
Slate Grey
Blend
PMS 431
PMS 2945
These monthly donors are now members of our new White Dove Society
that recognizes future bequests.
Companies, Groups
& Foundations
CDI College
Metro Beauty Supply
National Bank Financial
Newman’s Own Foundation
1 colour version
OPG Employees’ & Pensioners’
Charity Trust
RBC Foundation
PMS 2945
Spaenaur Inc.
TAXI Canada Inc.
The Harold E. Ballard
Foundation
PATRONS
$20,000+
Companies, Groups
& Foundations
Anthony M. Grnak
Canadian Tire Foundation
for Families
BMO Fountain of Hope
Individuals
Tony Mancini
B&W version
Tom & Ruth Woods
IBM Canada Employees’
Charitable Fund
ING Insurance
Bridget Kassen & the “Beauty
& Wellness” Committee
Shorcan Brokers Ltd.
Winners HomeSense
ANNUAL REPORT 2006
Donor Recognition
23
HUMANITARIAN
$50,000+
BEQUESTS
EVENT SPONSORS
CIBC
Estate of Jeanne Bourgeois
Estate of Mary Gertrude
Capreol
Aon Reed Stenhouse Inc.
VISIONARIES
$250,000+
Daniel J. O’Neill
ShareLife
PRESIDENT’S SOCIETY
LIFETIME GIFTS
$500,000+
CIBC
Estate of Mary Eleanor
Jean French
Estate of Allan Lester Leifer
The Estate of Clara Linder
Estate of Ivy L. Maynier
Estate of Spence McIntosh
Bertha & Harold Noel Estate
Estate of Ivy L. Maynier
The Estate of Florence
Victoria Preston
ShareLife
Estate of Angela Vice
Daniel J. O’Neill
COVENANT HOUSE
Estate of Claire Cikalik
The Robert Campeau
Family Foundation
Estate of Ilona Varjassy
Estate of Nancy Martha Warren
William Leonard Whitcher
Armor-Tile Tactile Systems
BMO Capital Markets
Cadillac Fairview
Corporation Ltd.
Cilento Wines
Clarins Canada
Cushman Wakefield LePage
EllisDon Corporation
Empire Communities
Pascoal Painting &
Decorating Inc.
PCL Constructors
Canada Inc.
Petroff Partnership
Architects
PLM Group
Polymeric Engineering Ltd.
PricewaterhouseCoopers LLP
RBC Capital Markets
Enwave
Starbucks Coffee
Company Canada
Fraser Milner Casgrain LLP
Terrasan Group
Ernst & Young
Gee Beauty
Manpower
McCarthy Tétrault LLP
McMillan Binch
Mendelsohn LLP
Mercedes Benz Mid-Town
Morguard Investments Ltd.
Oberfeld Snowcap
TELUS Mobility
The Bombay Company
The Energy Savings Group
Thistle Printing
ANNUAL REPORT 2006
Donor Recognition
24
THOSE WHO PROVIDED
PRODUCTS OR SERVICES
$1,000+
PEOPLE WHO GAVE
THEIR TALENT
Joeffer Caoc
Joeffer Caoc
Chris Carbone
Alan Cherry Inc.
McKinsey & Company
Michelle Quance Photography
Please Hold Canada
Product Excellence Inc.
Stephen Ranger, Ritchies Auctioneers
& Appraisers
Karen Rieger
Striation Six Global
COVENANT HOUSE
Sony BMG Music (Canada) Inc.
TAXI Canada Inc.
The Dow Chemical Company
The Verde Group
Umbra Inc.
Orlando Bowen
Glenn Clark
Kate Davis
Bill Derlago
Darren Dreger
Chris Driscoll
Lori Dupuis
Jayna Hefford
Jody Holden
Guy Lafleur
Linda Leatherdale
Gary Leeman
Christine Magee
Peter Martin
Traci Melchor
Scott Morrison
Mike Pelyk
Rose Reisman
Mag Ruffman
Colleen Rusholme
Liisa Savajarvi
Karen Stemmle
Beverly Thompson
Jack Valiquette
Lucy Zilio
THOSE WHO
HELPED GET OUR
MESSAGE OUT
104.5 CHUM FM
1050 CHUM
92.5 JACK FM
97.3 EZ Rock
98.1 CHFI
Canadian Business
Canadian Gardening
Cineplex Media
Citytv
Classical 96.3 FM
Corus Radio
Eucan
FASHION Magazine
IMA Outdoor
JAZZ.FM91
LCBO
Maclean’s
MediaCity
Media Experts
Newstalk 1010 CFRB
OMNI Television
ONESTOP Media Group
Progressive Choices Magazine
Tidings magazine
TIME magazine
Toronto Sun
Tribar Industries
Walrus Magazine
WAVE 94.7
Wish magazine
Auditors’ Report
ANNUAL REPORT 2006
To the Board of Directors of
Covenant House Toronto
COVENANT HOUSE
25
We have audited the statement of financial position of
Covenant House Toronto as at June 30, 2006 and the
statements of revenue and expenses, changes in net assets and
cash flows for the year then ended.These financial statements
are the responsibility of the Agency’s management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with Canadian generally
accepted auditing standards.Those standards require that
we plan and perform an audit to obtain reasonable assurance
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all
material respects, the financial position of the Agency as at
June 30, 2006 and the results of its operations and its cash flows
for the year then ended in accordance with Canadian generally
accepted accounting principles. As required by the Corporations
Act (Ontario), we report that, in our opinion, these principles
have been applied on a basis consistent with that of the
preceding year.
STATEMENT OF FINANCIAL POSITION
As at June 30
1,902,921
1,516,745
123,602
172,571
$
ASSETS
Current
Cash and cash equivalents
Accounts receivable [note 12]
Due from Toronto Hostel Services
Prepaid expenses
Total current assets
169,083
77,681
237,388
56,734
2,273,287
1,983,438
15,257,901
15,338,253
Accounts payable and accrued liabilities [note 11[b]]
1,352,758
1,262,079
Total current liabilities
1,513,843
1,364,516
Investments [note 3]
Capital assets, net [note 4]
4,898,618
22,429,806
4,707,845
22,029,536
LIABILITIES AND NET ASSETS
Current
Deferred revenue
Deferred capital contributions [note 5]
Total liabilities
Contingencies [notes 4[c] and 4[d]]
161,085
11,419,764
12,933,607
102,437
11,497,367
12,861,883
Net assets
Unrestricted
Undesignated
Invested in capital assets [note 6[a]]
Total net assets
Chartered Accountants
2005
$
Internally designated [note 7]
Toronto, Canada,
August 15, 2006.
2006
See accompanying notes
759,444
618,922
3,838,137
3,840,886
4,898,618
4,707,845
4,597,581
9,496,199
22,429,806
4,459,808
9,167,653
22,029,536
STATEMENT OF REVENUE AND EXPENSES
STATEMENT OF CHANGES IN NET ASSETS
Year ended June 30
2006
$
Year ended June 30
2005
$
2006
Undesignated
$
ANNUAL REPORT 2006
REVENUE
COVENANT HOUSE
26
Contributions
Covenant House, New York [note 12[b]]
ShareLife
Service revenue
Toronto Hostel Services
Human Resources and
Skills Development Canada grant
Donations and bequests
Interest
Amortization of deferred capital
contributions [note 5]
Other
EXPENSES [note 9]
Program services [note 8]
Fundraising and communications
Management and general
Excess of revenue over
expenses for the year
See accompanying notes
356,093
540,000
462,328
540,000
1,851,097
1,899,193
177,328
196,862
13,122,521
12,821,690
438,316
404,143
16,743,804
16,600,420
188,949
69,500
123,295
152,909
12,375,359
12,381,766
522,592
541,291
3,517,307
3,248,867
16,415,258
16,171,924
328,546
428,496
Invested
in capital
assets
$
Internally
designated
$
Total
$
Balance, beginning of year
618,922
3,840,886
4,707,845
9,167,653
Excess of revenue over
expenses for the year
328,546
––
––
328,546
––
––
––
190,773
––
759,444
3,838,137
4,898,618
9,496,199
Undesignated
$
Invested
in capital
assets
$
Internally
designated
$
Total
$
Net change in invested in
capital assets [note 6[b]]
2,749
Transfer to internally designated
net assets [note 7]
(190,773)
Balance, end of year
2005
(2,749)
Balance, beginning of year
371,648
4,141,316
4,226,193
8,739,157
Excess of revenue over
expenses for the year
428,496
––
—
428,496
Net change in invested in
capital assets [note 6[b]]
300,430
—
—
Transfer to internally designated
net assets [note 7]
(481,652)
—
481,652
—
Balance, end of year
618,922
3,840,886
4,707,845
9,167,653
See accompanying notes
(300,430)
STATEMENT OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS
Year ended June 30
ANNUAL REPORT 2006
Excess of revenue over expenses for the year
27
Add (deduct) items not involving cash
- Amortization of capital assets
- Amortization of deferred capital contributions
- Gain on sale of capital assets
Changes in non-cash working capital balances
related to operations
328,546
428,496
The Agency is incorporated without share capital under the Corporations Act (Ontario) and
is a charitable organization registered under the Income Tax Act (Canada).
501,415
2. SIGNIFICANT ACCOUNTING POLICIES
(404,143)
428,522
396,329
––
- Prepaid expenses
(20,947)
- Deferred revenue
Cash provided by operating activities
COVENANT HOUSE
538,292
INVESTING ACTIVITIES
$
(438,316)
68,305
- Accounts payable and accrued liabilities
48,969
(129,439)
20,436
(25,261)
(21,408)
90,679
(357,378)
674,176
32,438
58,648
19,720
Purchase of capital assets
(457,940)
(1,093,934)
Purchase of investments, net
(190,773)
(481,652)
Proceeds from sale of capital assets
Cash used in investing activities
FINANCING ACTIVITIES
––
(648,713)
446,659
(1,128,927)
Contributions received for capital purchases
360,713
979,872
Net increase (decrease) in cash during the year
386,176
(116,617)
Cash provided by financing activities
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
See accompanying notes
Covenant House Toronto [the “Agency”] provides care and sanctuary for homeless youth. In
operation since 1982, the Agency provides a continuum of care that includes residential crisis
intervention, assessment, referral, health care, transitional housing, job training, outreach and
community support services and plays a major role in advocacy for street youth.
2005
- Accounts receivable
- Due from Toronto Hostel Services
1. NATURE OF OPERATIONS
2006
$
OPERATING ACTIVITIES
JUNE 30, 2006
360,713
1,516,745
1,902,921
979,872
1,633,362
1,516,745
Basis of presentation
The financial statements have been prepared in accordance with accounting standards recommended
by The Canadian Institute of Chartered Accountants for not-for-profit organizations.
Cash and cash equivalents
Cash and cash equivalents include cash and any short-term investments with original maturity
dates of 90 days or less.
Capital assets
Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair
value at the date of contribution. Capital assets are amortized on the straight-line basis over
their estimated useful lives as follows:
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 years
Furniture and equipment . . . . . . . . . . . . . . . . . . . 5 - 7 years
Post-employment benefits
Contributions to a defined contribution plan are expensed when due.
Revenue recognition
The Agency follows the deferral method of accounting for contributions.
Unrestricted contributions are recognized as revenue when received or receivable if the amount
to be received can be reasonably estimated and collection is reasonably assured. Donations are
recognized on a cash basis since pledges are not legally enforceable claims. Restricted contributions
are initially deferred and recognized as revenue in the year in which the related expenses
are incurred.
Service revenue is recorded as revenue when the services are provided.
Contributed materials and services
Contributed materials and services are not recorded in these financial statements.
Use of estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
3. INVESTMENTS
Investments are comprised of internally designated net assets. These assets are invested in cash and
cash equivalents [note 7].
4. CAPITAL ASSETS
ANNUAL REPORT 2006
[a] Capital assets consist of the following:
28
2006
Cost
$
Land
Buildings
Furniture and equipment
2,795,000
$
––
Furniture and equipment
2,795,000
12,171,252
19,479,128
4,221,227
15,257,901
1,238,725
$
Buildings
$
3,274,151
947,076
2005
Land
Net
book
value
15,445,403
Cost
COVENANT HOUSE
Accumulated
amortization
2,795,000
Accumulated
amortization
$
––
291,649
Net
book
value
$
2,883,440
12,341,379
19,021,188
3,682,935
15,338,253
799,495
[d] The Agency has received funding from Canada Mortgage and Housing Corporation for
major capital renovations at both facilities. This funding was provided in the form of
two separate loans that are forgivable provided the Agency complies with the terms of
the agreements, which require the Agency to continue operating its shelter program.
The first loan totalling $672,000 is covered by an agreement expiring on July 1, 2006.
The second loan totalling $291,347 is covered by a similar agreement expiring on
April 1, 2007. The total amount received of $963,347 has been recorded in deferred
capital contributions. It has not been recorded as a liability since the Agency intends
to utilize the properties as outlined in the agreements and, therefore, expects the
loans to be forgiven on their respective expiry dates.
[e] During the year ended June 30, 2006, the Agency received $64,050 from Toronto
Hostel Services to fund replacement beds. The cost of the beds has been recorded
as a capital asset addition and the funding from Toronto Hostel Services has been
recorded in deferred capital contributions.
[f] The change in the net book value of capital assets is due to the following:
2,795,000
15,224,819
1,001,369
[c] The acquisition, renovation and furnishing costs of the Agency’s facility at 20 Gerrard
Street were in part funded by the Province of Ontario and the City of Toronto in
amounts of $5,400,000 and $1,400,000, respectively. The funding of $5,400,000 from
the Province of Ontario is secured by a registered agreement constituting a first charge
against title to the facility; it is non-interest bearing, with no principal payments due
unless the building is sold or there is a change in use without prior agreement.The
$1,400,000 advanced by the City of Toronto is secured by a mortgage. The mortgage
is non-interest bearing and there are no principal payments due unless the building is
sold or there is a change in use without prior agreement.These amounts have not
been recorded as a liability since the Agency is using this property as provided for
in the funding agreements.
201,874
Balance, beginning of year
Purchase of capital assets internally funded
[b] The Agency’s primary capital assets are facilities at 20 Gerrard Street and 21 McGill Street.
Both facilities are used to provide services to youth.
Purchase of capital assets funded with
restricted contributions
Net book value of capital asset disposals
Amortization of capital assets
Balance, end of year
2006
$
2005
$
15,338,253
15,062,954
264,139
979,872
193,801
––
(538,292)
15,257,901
114,062
(317,220)
(501,415)
15,338,253
5. DEFERRED CAPITAL CONTRIBUTIONS
ANNUAL REPORT 2006
Deferred capital contributions represent the unamortized amount of contributions for the
purchase of capital assets. The amortization of deferred capital contributions is recorded
as revenue in the statement of revenue and expenses. The changes in the deferred capital
contributions balance are as follows:
29
Balance, beginning of year
Add contributions for prior year
capital asset purchases
Add contributions for current year
capital asset purchases
Deduct amortization of deferred
capital contributions
Balance, end of year
2005
$
11,497,367
10,921,638
96,574
––
264,139
438,316
11,419,764
979,872
404,143
11,497,367
[a] Internally designated net assets have been set aside by the Board of Directors for use at
its discretion to fund future growth or for emergency cash flow requirements, as well
as for repairs and replacement of major building systems.
[b] The interfund transfers from undesignated to internally designated net assets consist of
the following:
Transfer for future building renovations and/or
capital replacement expenditures
Transfer for future growth and/or cash flow
requirements in accordance with Board policy
Less amounts financed by deferred capital
contributions [note 5]
2005
$
15,257,901
15,338,253
11,419,764
11,497,367
3,838,137
3,840,886
[b] The net change in net assets invested in capital assets is calculated as follows:
Purchase of capital assets internally funded
Contributions received for prior year
capital asset purchases
Net book value of capital asset disposals
Amortization of capital assets
Amortization of deferred capital contributions
Net change in net assets invested
in capital assets
2006
$
193,801
(96,574)
2005
$
114,062
––
––
(317,220)
438,316
404,143
(538,292)
(2,749)
2005
$
50,251
234,378
140,522
247,274
2006
$
2005
$
190,773
481,652
8. PROGRAM SERVICES
[a] Net assets invested in capital assets is calculated as follows:
2006
$
2006
$
Program services expenses [note 9] consist of the following:
6. NET ASSETS INVESTED IN CAPITAL ASSETS
Capital assets, net [note 4]
COVENANT HOUSE
2006
$
7. INTERNALLY DESIGNATED NET ASSETS
(501,415)
(300,430)
Shelter and Crisis Care
6,297,716
6,187,685
Transitional Housing
1,714,124
1,703,177
Public Education
Community Services
Medical
Ticket to Life Job Training
Outreach
9. COST ALLOCATIONS
2,495,628
1,088,174
480,874
244,136
54,707
12,375,359
2,642,293
1,085,943
440,711
267,289
54,668
12,381,766
Certain administrative and occupancy-related costs have been allocated to the individual
programs included in program services [note 8], fundraising and communications, and
management and general expenses in the statement of revenue and expenses based on the
number of staff involved with each of these functions. Other expenses are allocated based on
the purpose of the expense or the activities of the staff in the department. During the year
ended June 30, 2006, $1,646,000 [2005 – $1,858,000] in fundraising costs have been reclassified
and recorded as public education to reflect the portion of costs that promote the Agency
and its mission.
10. LEASE COMMITMENTS
The Agency is committed under operating leases for office equipment expiring in 2010.
The future minimum annual payments under these leases are as follows:
$
2007
39,427
2009
39,427
ANNUAL REPORT 2006
2008
COVENANT HOUSE
30
39,427
2010
31,213
149,494
11. POST-EMPLOYMENT BENEFITS
12. RELATED PARTY TRANSACTIONS
[a] The Agency provides certain fundraising and administrative services to Covenant
House Vancouver. The cost of providing such services has not been charged to
Covenant House Vancouver by the Agency during the year ended June 30, 2006.
An amount of $36,000 was charged during the year ended June 30, 2005.
As at June 30, 2005, accounts receivable included an amount of $2,750 due
from Covenant House Vancouver. As at June 30, 2006, no amount was due
from Covenant House Vancouver.
[b] The Agency receives an annual contribution from Covenant House, New York
amounting to $356,093 in fiscal 2006 [2005 – $462,328]. As at June 30, 2006,
accounts receivable includes an amount of $27,658 [2005 – $22,010] due
from Covenant House, New York. The amount is non-interest bearing and is
due within 12 months.
[a] Effective January 1, 2004, the Agency implemented a defined contribution Group RRSP.
During the year ended June 30, 2006, total contributions to the Group RRSP were
$346,748 [2005 – $339,351].
13. LINE OF CREDIT
[b] Prior to July 1, 2003, the Agency provided extended health care and dental benefits
to substantially all full-time employees upon retirement from the Agency. However,
effective July 1, 2003, this benefit was eliminated. The Agency’s liability of $56,000 as
at June 30, 2006 [2005 – $64,000] relating to post-employment benefits for retirees
at July 1, 2003 who were “grandfathered” with this benefit has been recorded in
accounts payable and accrued liabilities in the statement of financial position.
14. FINANCIAL INSTRUMENTS
[c] Included within June 30, 2006 and 2005 operating expenses allocated amongst program
services, fundraising and communications, and management and general expenses
in the statement of revenue and expenses are the following amounts related to postemployment benefits:
2006
2005
346,748
339,351
350,302
344,762
$
Group RRSP
Defined benefit plan
3,554
$
5,411
The Agency has a $500,000 unsecured line of credit with interest payable at the
prime rate. As at June 30, 2006, there were no drawings against this line of credit.
The carrying values of financial instruments approximate their fair values.
Covenant House Toronto
Board of Directors
ANNUAL REPORT 2006
CHAIR
COVENANT HOUSE
31
Tom Woods
Senior Executive
Vice-President
& CFO, CIBC
DIRECTORS
Eric Agius
President
Nike Canada
Andrew Black
President & CEO
Virgin Mobile
VICE-CHAIR
Robert Guenette
President
TAXI Toronto
Colin Moore
President, Canada
Starbucks Coffee Company
Colleen Moorehead
President & CEO
Nexient Learning Inc.
Diane J. Brisebois
President & CEO
Retail Council of Canada
Kevin Morris
Partner
Torys LLP
Heather L. Katarynych
Ontario Court of Justice
Bryan J. Murphy
Managing Partner
Quest Partners Ltd.,
North America
Valerie Gibbons
Executive Group
Dr. Richard Meen
Roly Morris
SECRETARY/
TREASURER
Fred Gorbet
G. Michael Preston, Chair
Tapestry Group Inc.
Z. Cathy Preston, President
Preston Human Capital
Group Inc.
Father Gordon Rixon
Regis College
Kim Samuel-Johnson
President
The Samuel Family Foundation
Michael S.Whelan
Lisa Zbitnew, President
Sony BMG Music (Canada) Inc.
SENIOR MANAGEMENT
Ruth daCosta
Executive Director
Josie do Rego
Director, Development
& Communications
Carol Howes, Director
Residence & Outreach
Ian Jones, Director
Special Program Services
Faye McAfee
Associate Executive Director
Cindy Metzler, Director
Finance & Operations
ANNUAL REPORT 2006
Covenant House Toronto
20 Gerrard Street East
Toronto, ON M5B 2P3
Telephone: 416-598-4898
Fax: 416-204-7030
E-mail:
[email protected]
www.covenanthouse.ca