BOUNDLESS ADVENTURES Sector

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BOUNDLESS ADVENTURES 203 Lonsmount Drive Toronto, ON M5P 2Y6 Executive Director: Steven Gottlieb Board President: Stan Segal Sector: Education Website: www.boundlessadventures.org Operating Charity Charitable Reg. #: 12422 5855 RR0001

About Boundless Adventures: Boundless aims to improve the lives of a diverse group of Financial Transparency at-risk youth, adults with severe mental illness, addiction, and acquired brain injury, aboriginals, and women fleeing domestic abuse. Their programs combine an array of Audited financial statements available activities, with an outdoor adventure component. Working in partnership with several only upon request Ontario-based community agencies mostly from Toronto, the programs strive to help youth return to high school and graduate. At-risk youth are referred to Boundless by Program Cost Coverage schools or parents and fees are heavily subsidized by donations. In 2004, Boundless became certified as an independent school. It develops its own math and English curriculum, and a financial literacy education program was launched last year. Credits are issued at Boundless to help students complete remaining credits or earn lost credits. Financial Review: Administrative costs are 15% of revenues and fundraising costs represent 5% of donations. Funding reserves cover 31% of annual program costs. Fees for service relates to Boundless High School where "affluent" children pay for a 2-week Funding Program Ontario Ministry-approved high school credit course. The profits of this program fund the Reserves Costs at-risk youth programs. Spending Breakdown Financial Ratios Fiscal year ending March 2012 2011 2010 Administrative costs as % of revenues 15.3% 15.1% 15.8% Fundraising costs as % of donations 4.6% 4.3% 4.9% Program cost coverage (%) 31.3% 31.1% 31.4%

Summary Financial Statements All figures in $s 2012 2011 2010 Donations 351,782 331,383 258,352 Government funding 500,082 489,075 528,709 Full-time Staff # 8 Fees for service 668,966 772,044 657,209 Avg. Compensation $55,052 Business activities (net) 9,850 2,139 1,899 Top 10 Staff Salary Range Investment income 35,095 15,230 44,334 $350k + Other income 75,000 0 0 $300k-$350k Total revenues 1,640,775 1,609,871 1,490,503 $250k-$300k $200k-$250k Program costs 1,173,537 1,134,041 1,068,795 $160k-$200k Administrative costs 245,449 241,309 228,978 $120k-$160k Fundraising costs 16,239 14,280 12,570 $80k-$120k 1 Bank And other charges 10,715 655 980 $40k-$80k 3 Cash flow from operations 194,835 219,586 179,180 < $40k 4 Information from most recent CRA Funding reserves 367,602 352,345 335,349 Charities Directorate filings for F2011 Note: Salaries for administration were calculated as 50% of the executive director's salary plus one full time staff's salary, per Boundless' suggestion.

The information in this report was prepared by Charity Intelligence Canada and its independent analysts. Factual material information is obtained from the charitable agency and reliable sources. Information may be available to Charity Intelligence Canada or its analysts that is not reflected in this report. Charity Intelligence Canada and its analysts have made endeavours to ensure that the data in this report is accurate and complete, but accept no liability. 25

BOUNDLESS ADVENTURES History: In the early 1980s, Steven Year ending March 31st Gottlieb started running a summer Program Data 2012 2011 2010 camp for youth with mental health Program costs 1,173,537 1,134,041 1,068,795 problems in Toronto. The Community Program hours 69,960 62,592 58,704 of Social Services funded his pilot Total volunteers 69 59 n/a project. A few years later Boundless Volunteer hours 3,036 2,537 n/a was registered as a charity with its Volunteer turnover rate (%) 30% 30% n/a camp location in Palmer Rapids, ON. Clients served 565 684 695 Management: Steven is the recipient Program hours / client 124 92 84 of the ELJB Foundation scholarship Program costs / hour 17 18 18 for Top Leadership. The management Program costs / client 2,077 1,658 1,538 team has been working together for several years. The Board is comprised Charity Analysis 2012 2011 2010 of experienced professionals with Revenues (less interest income) 1,605,680 1,594,641 1,446,169 health care and not-for-profit back- Value of volunteer time 45,540 38,055 - grounds. Last year, Boundless received Donated goods and services - - - a $75,000 community achievement Charity value 1,651,220 1,632,696 1,446,169 award from Toronto Kiwanis. Administrative costs 15% 15% 16% (as % of charity value) Community support ($) 1,066,288 1,141,482 915,561 Community size (population) 2,638,000 2,615,000 2,592,000 Community ownership $0.40 $0.44 $0.35 (local support $ / pop.)

Social Results: In F2012, 93% of youths completed the program (of 138), with 328 high school credits issued (59% increase over F2011). 23 youths will complete high school at Boundless and, of the rest, 94% returned to a full-time school program. Over the last year (F2012), of the 138 students who were served, 97% had credits below their grade level, 59% had been suspended or expelled in the past, 64% had criminal histories and 59% were taking psychiatric medication. Community Need: Boundless continues to see strong demand for its education program, both from the expanding network of affiliated schools and from affluent families who pay to enrol their kids in the programs. There is a greater need for longer term support for the more challenged at-risk youth. Funding Need: Boundless relies on donations to cover a major portion of its program costs. Further funding is now required to support the development of the long-term program (the “boarding school model”, discussed below) and to reduce the need to subsidize the program with capacity allocation to full fee-paying “affluent” students. Investment Highlights: Boundless works with relatively high-risk youth who are lagging behind academically and have concurrent substance abuse and mental health issues. Its short-term programs (1-2 weeks) provide exposure to the outdoors and help participants catch up on one or two credits; through its piloted long-term program, the “boarding school model”, students remain at the camp for extended periods, earn multiple credits, and receive a diploma at Boundless. This longer-term program is seen by management as the future direction of the charity. Investment Risks: Investments intended to fund the education program will face the competing priority of reserve accu- mulation for the purchase of its property. About $1.4m is currently reserved with a target of about $2m for the next 3-5 years. The purchase will save $100k+ in annual rent expenses and give Boundless control over its property.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 30, 2012

CORNWALL ALTERNATIVE SCHOOL 40 Dixon Crescent Regina, SK S4N 1V4 Executive Director: Monica Garinger Board Chair: David Halvorsen Sector: Education Website: www.cornwallalternativeschool.com Operating Charity Charitable Reg. #: 11887 6226 RR0001

About Cornwall Alternative School: Cornwall Alternative School (CAS) offers intensive Financial Transparency teaching to youth in grades 7-10 who are referred by local school boards because they are deemed at risk of failing due to non-attendance, poor behaviour, or refusal to complete Audited financial statements available their work in the classroom. Approximately 85% of CAS youth are First Nations, with many only upon request involved in gangs, prostitution, drugs, and alcohol, and having average reading levels one to two years behind grade level. These youths are identified as having the potential for Program Cost Coverage success if learning is intensive and they are kept engaged. Through a holistic and trust- worthy learning environment with small class sizes, CAS works to re-engage youth with learning, bringing them academically up to grade level and enabling them to return to the regular school system. CAS provides transit vouchers for the youths to get to school and provides them with hearty meals. An ongoing student incentive program offers students the opportunity to win prizes and participate in outings every two weeks as a reward for attendance and work completion. Funding Program Financial Review: CAS continues to be a cost-efficient organization with administrative Reserves Costs costs at 1.5% of revenues and fundraising costs less than 1% of donations. Program cost Spending Breakdown coverage has reached 58% in line with a CAS objective of achieving a 6-month contin- gency reserve. Further increases in the coverage ratio could suggest diminished financial efficiency given the relative security of the primary CAS funding channels and the relatively high marginal impact of additional dollar inputs to the CAS program.

Financial Ratios Fiscal year ending March 2012 2011 2010 Administrative costs as % of revenues 1.5% 1.3% 1.3% Fundraising costs as % of donations 0.9% 0.3% 0.5% Program cost coverage (%) 58.2% 54.0% 41.7% Full-time Staff # 8 Summary Financial Statements Avg. Compensation $73,984 All figures in $s 2012 2011 2010 Top 10 Staff Salary Range Donations 180,987 156,066 185,888 $350k + Government funding 725,524 714,802 707,725 $300k-$350k Special events 2,641 1,884 2,040 $250k-$300k Investment income 2,733 969 1,093 $200k-$250k Total revenues 911,885 873,721 896,746 $160k-$200k $120k-$160k Program costs 811,739 746,636 740,037 $80k-$120k 2 Administrative costs 13,321 11,611 11,275 $40k-$80k 6 Fundraising costs 1,572 548 928 < $40k Bank And Other Charges 1,008 2,622 1,592 Information from most recent CRA Cash flow from operations 84,245 112,304 142,914 Charities Directorate filings for F2012

Funding reserves 472,403 403,032 308,797

CORNWALL ALTERNATIVE SCHOOL History: Established in 1972 by two Year ending March 31st social workers, CAS started in a base- Program Data 2012 2011 2010 ment, moved to a staff member’s Program costs 811,739 746,636 740,037 apartment, and in 1994 took over an Program hours 55,160 40,392 40,392 abandoned school house where it Total volunteers 75 75 75 remains today. Volunteer hours 45,000 45,000 45,000 Management: Monica Garinger has Volunteer turnover rate (%) n/a n/a n/a taken over the role of CEO, replacing Clients served 35 39 50 Vonnie Schmidt who had the role for Program hours / client 1,576 1,036 808 4 years. While this CEO turnover rate Program costs / hour $15 $18 $18 is probably not ideal for the organiza- Program costs / client $23,193 $19,145 $14,801 tion, there continues to be a significant amount of experience and Charity Analysis 2012 2011 2010 continuity among the key personnel. Revenues (less interest income) 909,152 872,752 895,653 Monica was promoted internally – Value of volunteer time - 675,000 675,000 she previously headed the successful Donated goods and services - - - grade 10 pilot program. She brings Charity value 909,152 1,547,752 1,570,653 experience in teaching, correctional, Administrative costs 0.8% 0.8% 0.7% and government roles. (as % of charity value) Local support ($) 1,584,152 1,547,752 1,570,653 Community size (population) 196,000 193,000 190,000 Community ownership $8.08 $8.02 $8.27 (local support $ / pop.)

Social Results: Structural changes within the school systems from which CAS draws its intake have resulted in reduced referrals over the past couple of years. At the same time, management has previously made the case that longer dura- tion of stay at CAS is a positive for individuals because the extended contact time strengthens opportunity for behavioural turnarounds and positive habit formation. In the past year, there were 40 referrals, 35 admissions, 8 re-integrations to the school system, and 5 CAS alumni graduated from high school. Funding Need: Because of the relative certainty of revenue from government funding and the lack of any significant growth plans, and because reserves have been steadily increasing and are now in excess of their targeted 6 months of program cost coverage, it is perhaps hard to make the case that there is a dire funding need. For modest grants and donations there are great opportunities to fund programs such as the student incentive program. For larger scope investments, management would need to look at strategic opportunities. There are likely many possibilities. Investment Highlights: The CAS nutritional program is something that we have failed to properly highlight in the past and is an example of where CAS deals with basic lifestyle needs beyond academic education. Students learn about what constitutes a healthy diet, learn how to prepare such food, and take turns working alongside the CAS chef in preparing meals for students. Additionally, CAS under its new CEO, will look to expand the cultural aspects of the program by increasing the involvement of community elders, as well as expanding the parenting curriculum by increasing the frequency of meetings to once a month. Investment Risks: The headline risks at present are CEO turnover and declining client numbers. Despite these, CAS remains one of the lowest risk charities in the sector, by virtue of the consistency with which they produce measurable long term impact for individuals within the highest difficulty/highest need populations in the country. The data still suggests that CAS succeeds where most other programs in the sector would not venture.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 30, 2012

EAST YORK LEARNING EXPERIENCE 266 Donlands Ave. Toronto, ON M4J 5B1 Director: Gail McCullough Board Chair: Devon Hone Sector: Education Website: www.eyle.toronto.on.ca Operating Charity Charitable Reg. #: 10727 4839 RR0001

About East York Learning Experience: In F2011, East York Learning Experience (EYLE) staff Financial Transparency and 65 trained volunteers provided one-on-one free literacy tutoring to 109 adult (aged 18+) low-level learners. Students range from being pre-literate to learning literacy and Most recent audited financial statements basic skills, such as learning the alphabet, writing their address, and basic sight words. available on the charity's website Others are fine-tuning skills to enter a GED preparation program, adult high school, or even college, with the remainder focusing on developing essential skills for the workplace. Program Cost Coverage In addition to challenges with low literacy levels, approximately one third of EYLE students suffer from undiagnosed learning disabilities. Depending on the individual need, students receive tutoring for up to five years, typically at a rate of two hours per week. Tutoring is customized, friendly, and supports adult learning so students can develop their reading, writing, and/or basic math and computer literacy skills outside of the classroom environment. EYLE matches students with tutors drawn from a volunteer base that consists of many long-serving volunteers, some with Funding Program more than 10 years of working with EYLE. Reserves Costs Financial Review: EYLE continues to operate as one of the most efficient organizations in Spending Breakdown the sector by leveraging a modest budget to furnish a volunteer base with curriculum training and infrastructure to meet community demand. Administrative costs are 4% of revenues, and fundraising costs are 3% of total donations. Likewise, EYLE is capital efficient with funding reserves to cover 22% of program costs.

Financial Ratios Fiscal year ending December 31st 2011 2010 2009 Administrative costs as % of revenues 4.0% 2.9% 2.3% Fundraising costs as % of donations 3.4% 2.7% 7.9% Program cost coverage (%) 22.3% 22.6% 41.9% Full-time Staff # 1 Summary Financial Statements Avg. Compensation n/a Top 10 Staff Salary Range All figures in $s 2011 2010 2009 $350k + Donations 13,907 5,318 9,418 $300k-$350k Government funding 125,258 146,371 146,329 $250k-$300k Special events 4,362 249 1,866 $200k-$250k Investment income 31 50 49 $160k-$200k Other income 0 22 85 $120k-$160k Total revenues 143,558 152,010 157,747 $80k-$120k Program costs 138,714 156,538 132,042 $40k-$80k 1 Administrative costs 5,746 4,452 3,656 < $40k Fundraising costs 621 150 891 Information from most recent CRA Charities Directorate filings for F2010 Bank And other charges 509 419 539 Cash flow from operations (2,032) (9,549) 20,619

Funding reserves 30,972 35,323 55,305

EAST YORK LEARNING EXPERIENCE History: EYLE was initiated by Year ending December 31st another literacy program, East End Program Data 2011 2010 2009 Literacy, in 1986, as a pilot project to Program costs 138,714 156,538 132,042 serve learners in East York. In 1987, a Program hours 3,813 4,511 4,456 full-time coordinator was hired and Total volunteers 65 82 75 EYLE became a separate entity with Volunteer hours 4,014 5,531 3,961 a Board of Directors. EYLE has just Volunteer turnover rate (%) n/a n/a n/a celebrated its 25th anniversary. Clients served 109 107 107 Management: Director Gail McCullough Program hours / client 35 42 42 has over 20 years of experience in Program costs / hour $36 $35 $30 the education sector. She is active in Program costs / client $1,273 $1,463 $1,234 collaborating with agencies for cross referrals and participates on a Charity Analysis 2011 2010 2009 committee in Toronto that works Revenues (less interest income) 143,527 151,960 157,698 toward mapping current literacy Value of volunteer time 60,210 82,965 59,415 services needs and gaps, and mini- Donated goods and services - - - mizing duplication of services. Charity value 203,737 234,925 217,113 Administrative costs 3% 2% 2% (as % of charity value) Local support ($) 191,344 230,704 212,854 Community size (population) 2,615,000 2,592,000 2,570,000 Community ownership $0.07 $0.09 $0.08 (local support $ / pop.)

Social Results: The 109 students served in 2011 was roughly consistent with the 107 figure in each of 2010 and 2009. Of the students that exited EYLE’s programs during 2011, 48% became employed (up from 46% in 2010) and 40% went on to training and education (up from 22%). The 88% placement rate (68% in 2010, and 80% in 2009) combining employment, training and education of the exiting students is considerably above the 70% government benchmark. 78% of learners were at reading levels 1 and 2 (lowest levels). Community Need: EYLE was initiated in response to a needs assessment study that identified a high need for literacy training in the Borough of East York. EYLE has since evolved and diversified its offerings in response to additional needs that represent barriers to employment, progression in education, household management and personal independence. Funding Need: The EYLE program can readily be scaled up by about 10% with modest increments in funding levels to cover an administrator shifting from three days a week to five. Expansion beyond this would likely require some strategic direction from management. Revenue equating to approximately 95 students is relatively risk-free. Remaining revenue is risky and requires ongoing fundraising. Investment Highlights: Results of the new task-based curriculum instituted by the Ministry of Training Colleges & Univer- sities continue to be positive, with the exception of some onerous and inefficient administrative requirements. Female student numbers were up in 2011 as a result of increased participation from the Homeward Bound residence for single parent families. Investment Risks: EYLE program impact is relatively low risk because of the directness and efficiency with which the program tackles specific barriers, and the immediacy of the measurable outcomes that we see in the exit metrics. Modest investments in EYLE will almost certainly flow through to yield relatively high impact at the program margin.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 30, 2012

JUMP MATH 1 Yonge Street, Suite 1006 Toronto, ON M5E 1E5 CEO: Scott McMeekin Board Chair: Vinay Sarin Sector: Education Website: www.jumpmath.org Operating Charity Charitable Reg. #: 86432 6814 RR0001

About JUMP Math: JUMP Math (JUMP) provides an improved approach to teaching mathe- Financial Transparency matics compared to traditional methods. It does this through an offering of methodologies and materials based on current trends in cognitive science. Audited financial statements for current JUMP was founded by mathematician John Mighton on the basis of his experience as a teacher and previous years available on the of mathematics and as someone who himself initially struggled to learn mathematics. charity's website Believing that mainstream methods of teaching mathematics fail to show adequate regard Program Cost Coverage for the specific strengths and weaknesses of the mind as identified by cognitive science, John devised a method that is better adapted to cognitive resources and limitations when learning. The success of this method through his early tutoring days formed the impetus for JUMP. Financial Review: JUMP has a unique financial position for a charity in that it has a strong core product offering that provides significant revenues from business activities. This product suite, comprised of core curriculum materials, has been produced to date at healthy Funding Program margins of approximately 30% and has shown significant sales growth over the past few Reserves Costs years and affording JUMP considerable funding leverage over its current donation base. Spending Breakdown Financial Ratios Fiscal year ending March 2011 2010 2009 Administrative costs as % of revenues 9.0% 7.1% 8.7% Fundraising costs as % of donations 0.0% 0.0% 0.0% Program cost coverage (%) 15.5% 24.2% 37.0%

Summary Financial Statements All figures in $s 2011 2010 2009 Donations 263,433 561,677 602,943 Government funding 0 0 2,819 Full-time Staff # 9 Fees for service 1,083,244 777,523 644,562 Avg. Compensation $63,525 Special events 307 4,615 0 Top 10 Staff Salary Range Investment income 1,312 476 4,425 $350k + Total revenues 1,348,296 1,344,291 1,254,749 $300k-$350k $250k-$300k Program costs 1,192,231 1,278,225 1,110,768 $200k-$250k Administrative costs 121,207 95,629 109,206 $160k-$200k Fundraising costs 0 0 0 $120k-$160k Cash flow from operations 34,858 (29,563) 34,775 $80k-$120k 2 Funding reserves 185,046 329,954 410,973 $40k-$80k 8 < $40k Note: Deferred revenues have been recognized in the year received, decreasing donations by $72k in F2011 and $22k in F2010 and increasing donations by $39k in F2009. Information from most recent CRA Charities Directorate filings for F2011

JUMP Math History: JUMP was founded by John Year ending June 30th Mighton as a tutoring service in Program Data 2011 2010 2009 1998. It was established as a Cana- Program costs 1,192,231 1,278,225 1,110,768 dian charity in 2002. Program hours n/a n/a n/a Management: John Mighton remains Total volunteers n/a n/a n/a a central figure in the organization. Volunteer hours n/a n/a n/a He currently focuses on further Volunteer turnover rate (%) n/a n/a n/a development of the JUMP Math Clients served – students 65,000 48,000 44,000 program and building strategic rela- Clients served – teachers 3,650 3,250 2,400 tionships. Former management Program costs / hour n/a n/a n/a consultant Scott McMeekin is in his Program costs / student $18.34 $26.63 $25.24 third year as CEO. Ewart Newton is the Director of Development and Charity Analysis 2011 2010 2009 plays a key role in JUMP’s expansion. Revenues (less interest income) 1,346,984 1,343,815 1,250,324 Other key personnel include the Value of volunteer time n/a n/a n/a writers of the curriculum materials, Donated goods and services n/a n/a n/a as well as teacher support, and Charity value 1,346,984 1,343,815 1,250,324 outreach managers who train and Administrative costs 9.0% 7.1% 8.7% support teachers and tutors. (as % of charity value) Local support ($) n/a n/a n/a Community size (population) n/a n/a n/a Community ownership n/a n/a n/a (local support $ / pop.)

Social Results: The JUMP program now extends to over 95,000 students (2012). From this figure, we can assume a fairly high base level of societal impact, given the robust empirical support of program efficacy, including a recent independent randomized control study in which JUMP students progressed at twice the rate of the control group, which used one of Canada’s two leading math programs. Community Need: Deficiencies in numeracy represent barriers to both graduation and employment. These barriers are in many cases unnecessary, and are solved in these cases by using better methodology in teaching. Funding Need: An interesting question for JUMP is whether they “need money” when their underlying business activities show sales growth rates and profitability superior to some high profile tech stocks. Our view is that funding need is more a function of investment opportunity than revenue constraint and that the JUMP opportunity is sufficiently 1) compel- ling; and 2) time critical to warrant material increases in donations to leverage current opportunities. The foremost opportunity is a shot at replacing inferior incumbents en masse on the back of a curriculum refresh cycle in the United States that temporarily opens the door for competitive entrants into mainstream schooling. Leveraging this opportunity could trigger a wave of uptake and provide organic financing and political motivation for widespread Canadian adoption. This would create significant potential for a self-sustaining organization focused less on profit and more on leveraging cognitive science to systematically improve learning in our school systems. The opportunities to impact education on a national and global scale would be substantial. Investment Highlights: JUMP is positioned to increasingly leverage technology to improve the methods by which students learn. Whereas this presently takes the form of offerings such as web-enabled learning for teachers and tutors, “game changing” opportunities exist to bring learning technology into the classroom. Investment Risks: At a base level of impact, investment risk is especially low given the empirical support of the program and the uniformity by which it can be scaled. For the greater upside aspects of the investment thesis, such as positive multiplier effects, future technology capabilities, and school system uptake, the risks are higher.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 31, 2012

PATHWAYS TO EDUCATION 439 University Avenue, 16th Floor Toronto, ON M5G 1Y8 President & CEO: David Hughes Board Chair: Samuel L. Duboc

Sector: Education Website: www.pathwayscanada.ca Operating Charity Charitable Reg. #: 86190 8499 RR0001

About Pathways to Education: Pathways to Education Canada is the national organization Financial Transparency that oversees the development, funding, evaluation and expansion of the Pathways to Education program. The Pathways program works with high school students from low- Audited financial statements for current income areas that have high dropout rates. The program complements the work of public and previous years available on the schools by providing integrated support: academic help through after-school tutoring charity's website provided by volunteers, social support, counselling, advocacy, and financial help. Program Cost Coverage In September 2007, Pathways expanded its program from its initial Regent Park location into 5 new communities (Generation 2). In September 2009, it continued its expansion into Hamilton and Scarborough (Generation 3) and in September 2010 into Winnipeg, Kingston, and Halifax (Generation 4). In September 2012, it launched its newest program in Shawinigan, Quebec. Pathways partners with community agencies, provides funding, and facilitates knowledge transfer and training. While Pathways oversees the programs, local agencies are responsible for recruiting students and volunteers, managing staff, and delivering the program. Funding Program Reserves Costs Financial Review: Administrative costs as a percentage of revenue remained low at 3%. Fundraising costs were 11% of donations. Program cost coverage continued to trend Spending Breakdown downward to 46% in F2012, as reserves from prior expansion funding were put to work in expanded program costs.

Financial Ratios Fiscal year ending March 31st 2012 2011 2010 Administrative costs as % of revenues 3.4% 3.7% 5.6% Fundraising costs as % of donations 11.4% 5.7% 3.3% Program cost coverage (%) 45.8% 81.6% 171.9%

Summary Financial Statements Full-time Staff # 20 All figures in $000s 2012 2011 2010 Avg. Compensation $111,077 Donations 4,457 7,787 5,338 Top 10 Staff Salary Range Goods in kind 214 23 117 $350k + Government funding 15,537 2,232 184 $300k-$350k Special events 528 519 357 $250k-$300k Investment income 93 49 13 $200k-$250k 1 Total revenues 20,828 10,610 6,009 $160k-$200k $120k-$160k 4 Program costs 21,884 15,024 10,197 $80k-$120k 2 Administrative costs 705 390 338 $40k-$80k 3 Fundraising costs 566 475 188 < $40k Bank And Other Charges 14 15 9 Information from most recent CRA Cash flow from operations (2,342) (5,293) (4,724) Charities Directorate filings for F2011 Funding reserves 10,031 12,267 17,524

PATHWAYS TO EDUCATION History: In 2001, Pathways was Year ending March 31st developed out of the Regent Park Program Data 2012 2011 2010 C o m m u n i t y H e a l t h C e n t r e , l o c a t e d i n Program costs 21,884,497 15,024,123 10,196,771 one of Toronto’s poorest neighbour- Program hours n / a n / a n / a hoods. Following the success of Total volunteers 1,164 1,190 745 Pathways Regent Park, Pathways to Volunteer hours n/a 30,000 26,000 Education Canada was formed as a Volunteer turnover rate (%) n/a n/a n/a public foundation to assist in repli- Clients served 3,983 3,347 2,524 cating its highly successful program Program hours / client n / a n / a n / a across Canada. Program costs / hour n/a n/a n/a Management: The management Program costs / client 5,494 4,489 4,040 team at Pathways bring over 75 years of experience in the non-profit sector. Charity Analysis 2012 2011 2010 David Hughes was hired as President Revenues (less interest income) 20,734,321 10,560,724 5,996,057 and CEO to oversee the expansion of Value of donated time n/a 450,000 390,000 the program to 9 new communities. Donated goods and services - - - Hughes has experience working for Charity value 20,734,321 11,010,724 6,386,057 other national, “franchised” chari- Administrative costs 3.3% 3.7% 5.6% table organizations. (as % of charity value) Local support ($) 14,484,157 8,755,763 6,085,041 Community size (population) 9,940,000 9,839,000 9,739,000 Community ownership $1.46 $0.89 $0.62 (local support $ / pop.)

Social Results: Pathways’ programs extended to 3,983 students in the past year and are projected to expand to 10,000 students across 16 communities by 2016. This expansion aims to scale the success of the first Pathways’ community in Regent Park where the dropout rate was reduced by 70% and post-secondary participation rates increased by 300%. A Boston Consulting Group study on Pathways Regent Park concluded that every dollar invested in the program generates a $24 return to society. Community Need: Charity Intelligence has identified graduation rate as the most critical metric in the Education sector. No other charity in the sector focuses on graduation rates as directly and successfully as Pathways. This charity has the potential to ultimately move the needle on graduation rates on a national level. Funding Need: There is significant unmet demand in Canada’s low-income urban communities. Pathways seeks funding for program delivery, expansion, improvement, including training and resource materials for staff, and to broaden impact through research and policy discussions. Investment Highlights: There are over 1000 Pathways graduates to date, of which 73% went on to post-secondary programs. Four-year graduation rate increases are being seen across the Generation 2 locations for the 2007 cohorts: Rexdale 63% (pre-Pathways: 39%), Lawrence Heights 51% (43%), Ottawa 66% (47%), Kitchener 40% (32%). Investment Risks: In many ways, Pathways sets the sector standard for data collection and program performance measurement. The measurability of success through changes in graduation rates goes a long way to reducing risk for investors with regard to impact assuredness. Any concerns around financial inefficiency are merely symbolic until there is a program alternative that delivers equivalent success at a more cost-efficient rate. To this point, the successes seem worth the price and Pathways remains the blue chip program in the space. For the sector as a whole, a future risk could be de facto monopoly power inhibiting competitive new entrants.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 30, 2012

YOUTH FUSION JEUNESSE 6708 Saint-Hubert Street Montreal, QC H2S 2M6 Executive Director: Gabriel Bran Lopez Board President: L. Jacques Menard Sector: Education Website: www.youthfusionquebec.org/en Operating Charity Charitable Reg. #: 84585 0858 RR0001

About Youth Fusion Jeunesse: Youth Fusion Jeunesse (YFJ) began as a pilot project in two Financial Transparency high schools in 2009, and was registered as a charity in 2010. Encouraged by the results from the pilot project, YFJ expanded across Quebec to over 20 schools in eight different Audited financial statements for current school boards, with support from several universities and donors. The charity and its and previous years available on the executive director won several awards for their work, such as Ernst & Young's 2011 Social charity's website Entrepreneur of the Year for Quebec. Program Cost Coverage YFJ aims to increase attendance and high school graduation rates of at-risk youth through hands-on, extra-curricular and in-class activities, community engagement and academic support. The school boards help YFJ target at-risk schools in disadvantaged areas. YFJ partners with universities to hire Coordinators (university students and graduates) to work at the targeted schools. The Coordinators have expertise in multimedia, robotics, sports, creative arts, leadership, and business. Last year, YFJ's over 105 university students worked 15 to 25 hours a week in designated high schools for the entire 36-week long school year. Funding Program Reserves Costs YFJ currently works with over 50 schools across the province, including eight in Aboriginal communities. Spending Breakdown Financial Review: YFJ's administrative costs were 18% of revenues; however, fundraising costs were not disclosed separately on the audited financial statements. Its reserves cover only 13% of annual program costs.

Financial Ratios Fiscal year ending March 2011 2010 2009 Administrative costs as % of revenues 18.4% 36.2% 38.4% Fundraising costs as % of donations 0.4% 0.1% 0.0% Program cost coverage (%) 13.1% 36.9% 167.9% Full-time Staff # 7 Summary Financial Statements Avg. Compensation $41,863 All figures in $s 2011 2010 2009 Top 10 Staff Salary Range Donations 1,044,297 314,374 175,750 $350k + Government funding 121,285 78,520 34,301 $300k-$350k Fees for service 165,992 38,510 40,000 $250k-$300k Total revenues 1,331,474 431,404 250,051 $200k-$250k $160k-$200k Program costs 1,009,162 280,663 55,803 $120k-$160k Administrative costs 245,547 156,331 96,085 $80k-$120k Fundraising costs 3,863 400 0 $40k-$80k 5 Bank And Other Charges 957 308 250 < $40k 2 Cash flow from operations 71,945 (6,298) 97,913 Information from most recent CRA Charities Directorate filings for F2011 Funding reserves 132,208 103,524 93,685

Note: The charity changed its year end from December to August in 2010 because of which 2010 numbers are for the 8-month period from that year. Fundraising expenses were not disclosed separately on the financial statements; actual fundraising effort is higher than what the ratios indicate. The information in this report was prepared by Charity Intelligence Canada and its independent analysts. Factual material information is obtained from the charitable agency and reliable sources. Information may be available to Charity Intelligence Canada or its analysts that is not reflected in this report. Charity Intelligence Canada and its analysts have made endeavours to ensure that the data in this report is accurate and complete, but accept no liability. 35

YOUTH FUSION JEUNESSE History: Registered as a charity in Year ending August 31st 2010, YFJ started as a pilot project in Program Data 2011 2010 2009 two high schools in 2009 under the Program costs 1,034,717 291,050 55,803 leadership of its founder Gabriel Program hours 2,106,000 972,000 324,000 Bran-Lopez. Prior to founding YFJ, Total volunteers 300 75 3 Bran-Lopez visited several poorly Volunteer hours 2,590 625 50 performing high schools, talked to Volunteer turnover rate (%) n/a n/a n/a several students and identified a Clients served 6,500 3,000 1,000 need for hands-on, practical projects Program hours / client 324 324 324 to motivate students. Program costs / hour $0.49 $0.30 $0.17 Management: Mr. Bran-Lopez, the Program costs / client $159 $97 $56 founder, is the executive director of YFJ. He is supported by a senior Charity Analysis 2011 2010 2009 management team with 7 to 30 years Revenues (less interest income) 1,331,474 431,404 250,051 of sector experience. Included in the Value of donated time 38,850 9,375 750 team are two retired school princi- Donated goods and services 45,000 42,000 5,000 pals from Quebec and a director who Charity value 1,415,324 482,779 255,801 focuses on Northern Quebec. The Administrative costs 18% 35% 38% charity also recently added a Director (as % of charity value) of Development. Community support ($) 1,415,324 482,779 255,801 Community size (population) 3,824,000 3,786,000 3,748,000 Community ownership $0.37 $0.13 $0.07 (local support $ / pop.)

Social Results: Programs now reach 6,500 students in 45 schools, up from approximately 3,000 in 2011, and approximately 1,500 in 2010. YFJ tracks attendance rates, grades, etc. in addition to the primary metric of school-wide drop-out rates. The data so far is promising with drop-out rates falling in the early adopter schools, in one case from 82.6% to 65.1%. Community Need: Charity Intelligence identifies graduation rate as the highest priority sector metric. YFJ specifically targets graduation rates among high need schools and adapts its programs to serve the highest need students. Funding Need: The funding model YFJ pursues should be relatively low risk in a steady state (no growth) because it draws variable funding from across its stakeholders (e.g., participating school, university, corporates specific to location). YFJ is in considerable demand by schools at present (waiting list of 15 schools) and funding is required to pursue these opportunities and service the administrative demands of the expanding network of partnerships and participants. Investment Highlights: A key piece of the YFJ program set is the Academic Engagement Program (AEP). While the other programs deal with applied learning projects that are broadly in line with curriculum, the AEP involves targeted tutoring in core curriculum for those students identified as highest need. In the first year, 732 students participated. In 2011, YFJ launched FIRST Robotics Quebec, an initiative that engages students through projects in science and technology. Plans are to roll the program out to over 8,000 students in F2012. Investment Risks: YFJ has a measurement model in place that will go a long way to providing a low-impact risk opportunity for investment. The programs are directly purposed to lower drop-out rates and feature additional targeted support for highest need individuals. There are risks inherent to the rapid expansion and still not a large enough dataset from inception to infer high certainty of success, but the charity is especially promising from a risk-reward standpoint with targeted focus on a sector priority metric, its efficiency, and its performance measurability.

Michael Phillips, CFA ([email protected]), Aswani Pulipaka ([email protected]) August 24, 2012