Rotary Club of Toronto Charitable Foundation

The Rotary Club of Toronto and The Rotary Club of Toronto Charitable Foundation

Dedicated to "improving the urban community with hope and dignity"

THE ROTARY CLUB OF TORONTO

Organized on November 28th, 1912, as Club No. 55

OFFICERS

President: Sandy Boucher President-Elect: Neil Phillips Vice-President: Richard White Treasurer: Harold Fisher Executive Director: Carol Bieser

DIRECTORS

Don Brooks Jane FitzGerald Rick Goldsmith* Nick Larter** David Libby Catherine Lloyd* Lorraine Lloyd* Jayson Phelps Agnes Walkinshaw John Whincup Ric Williams* David Wilson** Susan Woods* * retiring from Board, ** replacement

Immediate Past President: Peter Love

REPORT FROM THE PRESIDENT

The last year has flown by and I relish the opportunity to recall some of its highpoints. Inevitably the focus of the club and the members was primarily on the preparations for the impending centennial year celebrations. This involved a great deal of hard work by many people including the Centennial Committee itself which guided the planning and oversaw the budget as well as making key decisions on all major steps.

At the beginning of the year the emphasis was still on the $1 million of grants and the ten projects that would receive them. These plans were finalized by each committee and then required approval from the Centennial Committee, the Club Board and the Foundation with the Research and Appeals Committee providing sage advice and guidance throughout the process. The first six projects were unveiled to the world at the Albany Club on May 13, 2011 and the second round at the National Club on September 30, 2011.

Looking back on the process a number of things stand out – the decision to move away from a single project has proved to be inspired and has led not only to ten amazing projects, but also to new vibrant partnerships, significantly enhanced committee involvement from the membership, the development of processes and methodologies that will no doubt serve us well in the future.

With that aspect safely under control, planning efforts moved to the award lunches, speakers, dates and our three signature events, the Founders Lunch, the Tanaka lunch and the Gala. Once again, committees of innovative, hardworking and passionate Rotarians stepped up to the plate to make each a success.

Although this was a major Club focus, our usual work went on just the same with projects and events. The annual Steam Whistle fundraiser was the most successful yet and the opening of the YWCA Elm Centre for which we provided seed funding both was examples of the high caliber work of the membership.

Club service was also a theme we pursued together during the year, looking for ways to ensure our continued success. The most visible of these endeavors was the work of the revamped and expanded Marketing and PR Committee (formerly known as the Communications Committee) The centennial provided an excellent opportunity to significantly rethink the way the club communicates and spreads it message, in particular by an new focus on the use of the internet and social media. The club’s new ClubRunner based website was launched together with its back office and committee functionality. The club also launched a Facebook page, a Twitter account and a LinkedIn site to enhance our ability to raise awareness and attract new members. This is a historic step change and has the potential to significantly enhance our community impact.

The second major project was the launch of the strategic planning exercise, a program that will completely review every aspect of the club’s activities. This is expected to produce a plan for board approval before the end of the year and will set the course for our second century. If the presentation at the annual Club Assembly is any indicator this too will be a significant milestone for the club.

I was privileged to officiate at two of the earliest centennial events, the ground breaking for the Working Women’s Community Centre and the presentation of our first scholarship recipient with our partners the Toronto Argonauts. Another of the highlights of the year for me was awarding almost 50 Rotary Warrior pins to amazing members of our club. It is an honour to serve as Club President and my heartfelt thanks are due to all the members who worked so hard and supported both me and the club in so many ways.

Sandy Boucher President 2011-2012 Aboriginal Service Committee

This was the first year of operation for our committee. Most members were very involved and we all learned a lot.

The committee members were Carolyn Purden, Don Bell, Fred Lawlor, Jackie Davies, Jayson Phelps, John Andras, John Carr, Kim Curry, Matthew Harrison, Peter Love, Robert Smith, Steven Smith and Sandy Boucher.

We also appointed an Advisory Board comprised of Andree Cazabon (film maker), Andrew Wesley (an Anglican Aboriginal Priest), Hanita Tiefenbach (Ont. Ministry of Aboriginal Affairs), James Bartleman (former Lieutenant Governor), Jamie Toguri (Native Child & Family) and Larry Frost (Director, Native Friendship Centre).

The original Aboriginal Taskforce gave us a mandate to proceed as a full fledge committee and the Club gave us a budget of $15,000 to start. A further $6,500 was made available by individual donations.

The following is a summary of our activities:

Program

1) We met once a month in space provided by Native Child & Family Services of Toronto at 30 College Street. The First Nations ambiance gave us a better feel of the First Nations people. 2) We all had some sensitivity training at the Native Friendship Centre in Sept. This was attended by about 20 people. 3) We determined our focus should be on education and being connectors to groups who could help advance the First Nations issues. 4) While we were appreciative of the possibility of a $100,000 Centennial Grant, we did not feel we had the resources or time to vete possible projects properly. We also did not want to be known around the city primarily as a money giving group. 5) We established a good connection with the First Nations School in Toronto and funded a luncheon program for $7,000. We also participated in a Career Day in which Club members participated. This is to be done again next year. We anticipate a long-term partnership. 6) We provided $14,000 to the Native Child & Family Service Program at the Native Learning Centre in Scarborough to assist Aboriginal youth finish their secondary education. 7) We supported Andree Cazabon’s Third World Canada film. We also discussed possible funding of a portion of the Toronto costs. 8) We sent Youth Leadership Nomination forms and promoted the Rotary Youth Day to a number of First Nations organizations. Unfortunately no nominations were received. We will encourage again for next year. We also discussed a possibility of having an award specifically for First Nations youth. We arranged for a number of our Advisory Board members to attend the lunch. We also arranged for Grand Chief Beardy to attend and speak. We have an excellent relationship with Chief Beardy who I snow the Grand Chief for Ontario. 9) We spoke with a number of NGO’s both in and out of the GTA about possible projects including North South Partnership, 4H and other Rotary clubs. 10) We have connected YES and the Native Child & Family Services. They are discussing a youth employment partnership 11) We are discussing with both Native Family & Child Services and First Nations School about a possible mentoring program involving both Rotary members and an outside group. 12) We have met with Hanita Tiefenbach of the Ministry of Aboriginal Affairs about the creation of a coalition of organizations who work with First Nations people. We will also be discussing this with the Lieutenant Governor’s office. Both groups are enthusiastic. 13) We have arranged for a breakout session on Aboriginal services at the combined 7070 & 7080 District Conference in Oct. Third World Canada will also be highlighted. 14) We are creating an information piece about our committee to distribute to other groups.

Other • Requested that in the future an Aboriginal speaker be part of a June program to coincide with First Nations Day. • Participated in the Lieutenant Governor’s Truth & Reconciliation Program Sept.

Summary We all thought we had a most successful, useful and active first year. Most of the committee members will be returning next year.

Chris Snyder, Chair Centennial Committee.

The first official meeting of the Centennial Committee took place in February 2008. The first steps taken were to ensure that we would have some financial resources available to support our celebration, and the Foundation was approached with a request for $1 million – they promptly responded in the affirmative so then we were off and running. How to spend this money? After an initial false start, the committee decided to ask each philanthropic committee to search out a project worth $100,000. In addition, the Past Presidents were given a like amount, the Rotaract Clubs were given $50,000, the committee decided to donate $100,000 to the Rotary International “End Polio Now” initiative, and a special task force was set up to provide a post secondary scholarship to a youth from a disadvantaged background. The process of choosing these projects and doing the required due diligence was demanding and time consuming – congratulations to these groups who worked very hard to ensure that each project met the stringent requirements.

The objectives of the Centennial committee were defined as

1. To create an active and engaged membership 2. The grow the membership 3. To showcase the relevancy of Rotary through community service.

These goals guided the decision making and the committee then set about planning a wide variety of events to surround the Centennial. Special celebrations were planned for the announcement of each project and the communications group worked hard to ensure some publicity for each event.

Other special events planned were: Founders Day Lunch – Nov. 23, 2012, 100 years from the first Rotary Club of Toronto meeting, to be held at the King Edward Hotel (the site of the first meeting of our club); The President of Rotary International will come to receive the cheque for the “End Polio Now” program and that week will be designated Rotary Week in Toronto. In addition, on May 23, 2013 a gala evening at the Royal York will be pure celebration of our 100 years history.

All these activities were supported by a revitalized and reorganized communications program. This group worked hard all through the process, ensuring that we communicated to our Club and to our various stakeholders. A wonderful new “Spirit of Rotary” DVD on our Club was prepared, and a whole new plan to court the media interest was put in place.

Too many people have contributed too much to be able to identify everyone here. But a few have worked with this group for the whole four years and they deserve special mention – Don Bell, who willingly took on a variety of jobs as the need arose, Jai Persaud who acted as our Secretary, and the active engagement and interest of each of the Presidents over those four years.

I want to thank all the members of the committee who worked so hard for so long. Without everybody’s strong support none of these ideas would have come to life – the end result will hopefully lead to new and active members for our Club, so that for the next 100 years the Rotary Club of Toronto will continue to thrive.

Chair

Sylvia Milne

Fundraising Committee

This past Rotary year once again enjoyed a fundraising success with a bit of fellowship and fun on the side for at the Steam Whistle 2012 Annual Fundraiser. With an agile fundraising committee and over 25 volunteers, we raised nearly $40,000 at our third inaugural event.

We opened up the evening with our Centennial video which was certain to encourage greater participation! The food, provided by enVille was again spectacular and fitting for the genre, and Steam Whistle Brewery once again were outstanding hosts to the event.

I pass the fundraising reigns for an exciting 2011/12 year to Pat Neuman, who will continue to be supported by Fabio Ventolini (the man with the rolodex) and a small but focused group as they pull together the 2013 Annual Fundraiser at Steam Whistle Brewery – put March 21 in your calendars now!

Shannon Lundquist, Outgoing Chair

Honours & Awards Committee

The Honors and Awards Committee is responsible for the selection and recommendation to the President and Board of Directors of worthy recipients for various awards bestowed by The Rotary Club of Toronto. These include: Club Builder Award, Paul Harris Fellows/William Peace Award, Pauline Hill Award for Making a Difference, and the RCT Distinguished Service Award. The Committee also makes recommendations, from time to time, for nominations to District or Rotary International awards.

The lead-in year to our Centennial was an active one, and the following members were formally recognized.

Club Builder Award Awarded to Rotarians who have made a very real contribution to our Club, each new Club Builder exemplifies the four way test: Is it the Truth, Is it Fair to All Concerned, Will it Build Goodwill and Better Friendships, and Will it be Beneficial to All Concerned, in Everything They Do. Criteria include being a member for at least three years, and having had active committee or task force membership. They will have consistently and willingly demonstrated the four-way test in outstanding service to the Club and the Community.

Awarded to: Don Brooks David Hetherington Harold Hetherington Shannon Lundquist Rohit Tamhane

Paul Harris Fellow / William Peace Award This award is a great honour bestowed by our Club. The Paul Harris Fellow is given “in appreciation of tangible and significant assistance given for the furtherance of better understanding and friendly relations among people of the world”. The William Peace Award is only available to members of The Rotary Club of Toronto and is named after the first President of our Club. This joint award is made to Rotarians for the highest level of service at the Club level over a number of years, or for an outstanding contribution over the shorter term.

Awarded to: Maureen Bird Margaret Stanowski Paul Westlake

The Pauline Hill Award for Making a Difference This award is granted from time to time, either to a member or non-member of RCT, who exemplifies the traits of our former member, Pauline Hill. Namely: integrity, exceptional commitment to improving the conditions of the less fortunate, indomitable energy in pursuit of such improvement, and a spirit of goodwill and graciousness.

Awarded to: Chris Snyder

The RCT Distinguished Service Award This occasional award, is given to “Honour a Member for their Outstanding Contribution to the Work and Development of the Club”. The recipient must be a William Peace Award recipient.

Awarded to: Michele Guy

Neil C. Phillips President-Elect, 2011-12 International Service Committee

Our committee consists of 18 members with an attendance average of 12. Thank you all.

Budget $30,000 Trump AIDS Poker Walk $13,588 Carry Forward $1,486.37

Sri Lanka school & Provide toilets, water storage, dormitories, $2,000 Orphanages carried forward – to be paid in July Laos: Adopt a Village Rotarian Steve Rutledge $2,000 Rwanda Finish roof on classroom $2,500 RADAR139 Response to having every club involved with $500 AIDS Mauritius Books for poor school $2,000 Honduras Water Partnership with CARE Canada plus $5,000 $15,000 from Toronto Rotary Foundation Cambodia, Siem Reip Sweat equity support for Bakong Technical $3,500 School Rotaract Club of Toronto Matching funds for a Thai community $1,000 Uganda, Barlonya Completion of classrooms for school $2,500 Malawi, Zomba Sweat Equity Support for Mbiti School $2,500 Tanzania, Arusha A technical college in partnership with RC $1,000 Streetsville, District 7080 FV/GG – not paid yet El Salvador Eco-kitchens in schools coupled with tree- $2,100 planting Malawi, Zomba Training for those working with AIDS $5,000 orphans Kenya Ebenezer school expansion – serving AIDS $4,000 orphans Tanzania CSRAI – school bursaries for AIDS orphans $4,000 Lesotho Orphans and Vulnerable Children $5,000 miscellaneous Exchange, wire order fees, more to come $98.55

There is a request pending to the Toronto Rotary Foundation for $5,300, which is eligible for matching 4.3:1 – a water project at a school in Malawi.

It has been a pleasure working with the members of this committee.

Maureen Bird, Chair Marketing and Communication Committee

Committee Members: Greg Vermeulen, Carol Bieser, Dina Rashid, John Fortney, Sandy Boucher, Barbara Thomson, Bill Empey, Richard White, Michele Ho (Rotaracter), Andrea Tirone (Rotaracter), Sylvia Geist (Chair)

This report underscores that the Club’s Centennial Marketing and Communication activities are linked with the understanding that these strategies are closely linked with our goal to increase membership.

In 2012 the following has been accomplished:

a) We have incorporated social media (Twitter, Facebook, Linkedin) into our PR strategies. In this day and age, social media is essential in exchanging instant information and maintaining immediate connection to world local, national and international events; b) Our webpage-----We submit articles about our speakers and Centennial Projects on our Webpage; c) Our invitation-----Every month we send out a professionally designed luncheon invitation to our list of media contacts/ reporters and all the friends of Rotary who have been involved with us at one time or another each time, to come to celebrate with us as we present the $100,000 cheques and to hear our special Guest Speakers. This data base is consistently growing. An example of the invite is available at the Rotary office. d) Canadian Wire Services----We use Canadian Wire Services to send a news releases that we prepare, it is similar to our invitation, and it is sent to all types of media contacts across the GTA. Their contact list includes radio, TV, newspapers, some internet spots are very extensive and comprehensive. Our 5 minute video-“100 Years: In the Spirit of Rotary” has been attached to the Canadian Wire Service and will be seen by the GTA media; e) Centennial Agency Partnerships------We have engaged the Centennial Project Award Agencies as partners in joint marketing and communications plans. They have agreed to use their internet channels, their data bases to post all our materials. At this point, we need to acknowledge all the work and effort of the project liaisons who help to implement these joint PR activities. They are doing an incredible job. f) Our Voice and Centennial Beat---We have created a new look for the 4-page Centennial Voice, the 2- page Voice Extra and have a brand new edition called The Centennial Beat. These publications are placed on your tables, sent to all our club members through Clubrunner and are also posted on the data bases of the agencies. These editions highlight the vibrant history of our Club’s philanthropic committees, claim our pioneer history, and give detailed information on the Centennial Projects and much, much more! Take them home, give them to friends, guests, please, take them home. There should be no copies left on the tables. g) We have an active and energetic MC committee that will continue after the Centennial year and it is the place that club members can bring promotional ideas for discussion and possible implementation;

Work in Progress

1. Developing a Public Service Announcement (PSA) that is only 3 seconds long and will be used as needed when our video is too long for the media spot; 2. Updating “Those Were The Days” history from 1912 to 1990 and take it to 2013; 3. Developing scripts for radio interviews with John Tory during Rotary Week 4. Developing LinkedIn Connections; 5. Creating new PR ideas and strategies and 6. Developing a PR evaluation plan.

In summary, the most effective PR tool that needs to be implemented to its fullest potential is the PR activity of each club member. It is essential that each individual use their social media contacts and their networking circles in order to pass on our invitations, the Voice and any other PR materials. This is imperative in order to widen the work of the Marketing and Communications Committee. Without this type of active involvement, only half of the public relations of the club will be done and it will significantly limit our membership drive as well.

Our continued viability and vitality of our club rests on membership. Please ask people to consider becoming a member of our great club. We were congratulated for surviving 100 years by a recent speaker, we’re celebrating this birthday, but we do have a responsibility to exist for another 100 years.

Chair

Sylvia Geist

Research and Appeals Committee A committee of the Rotary Club of Toronto Charitable Foundation Report for twelve months ended June 30, 2012

The Research and Appeals Committee (“R&A”) reviews unsolicited appeals for funding that are received in the office. Research and Appeals Committee does not solicit or advocate on behalf of any organization. Its role is restricted to carrying out due diligence reviews and making recommendations to the Board of the Rotary Club of Toronto Charitable Foundation (“the Board”). The Board authorizes all grants. Research and Appeals role is strictly advisory.

The Research and Appeals Committee reviews appeals by applying its Project Evaluation Guidelines. The focus is the downtown area with an emphasis on seniors, youth, and community programs. Applications must have registered charitable status to be considered. Grants are not given to individuals.

Each appeal is allocated to a committee member who carries out a review. This may involve visiting the appeal premises, interviewing the appeal Executive Director and examining relevant financial information. The committee member makes a presentation to Research and Appeals Committee which then votes on each appeal. All Research and Appeals recommendations to the Board are the result of a collective decision of the committee.

In 2011 – 2012, Research and Appeals reviewed 37 appeals, of those, 18 were approved by the Board. The successful appeals were:

• Big Brothers Big Sisters • Words in Motion • Artheart Community Centre • SKETCH • Toronto Public Library Foundation • Dress for Success • Voice for Hearing Impaired Children • About Face Trailblazers Camp • AIS Accommodation Information Services • Harmony Hall Centre for Seniors • Talisker Players • Sanctuary Ministries • Romero House • House of Compassion • Christie Refugee Centre • Care Canada – Honduras Water • WASRAG • Writers in Electronic Residence.

These appeals fell into the following categories:

Number of appeals Community 4 International 2 Seniors 3 Youth 9 Total successful appeals 18

A total of $155,671 was approved for payment by the Board in 2011- 2012. The smallest grant was $2,000. The largest grant was $23,000.

Centennial Projects

In 2011-2012, the Research and Appeals Committee took on an additional area of responsibility. At the direction of the Club President, Research and Appeals members assumed the role of monitor of the Centennial projects. This role involves carrying out a review of the Centennial projects before the disbursement of funds. This review is intended to ensure, as far as possible, that the project paperwork is complete and adequate, and that no material changes have been made to the project in the period between the initial approval of the project and the disbursement of funds.

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Chair James Hunter

Senior Citizen’s Committee

The Senior Citizen’s Committee has had a busy year with a full calendar of events and preparations for the implementation of our Centennial Project - The Rotary Health & Wellness Centre at The Good Neighbours’ Club.

The Senior Citizen’s Committee selected The Good Neighbours’ Club as the recipient of a $100,000 donation to construct a health and wellness centre which would provide senior, homeless men with access to respite, frontline medical and dental care, social work services and group therapy. Lieutenant Governor, His Honour David C. Onley performed the official Ribbon-cutting in June 2012.

In addition to the Centennial Year celebrations, the Senior Citizen’s Committee continued its outreach initiatives including two annual Meals-on-Wheels delivery programs, one at Thanksgiving and one at Easter which provides a hot meal to over 150 shut-in seniors. As well, we hosted our annual summer picnic for seniors in partnership with the Second Mile Club and our Seniors’ Christmas Party at the Fairmont Royal York Hotel. The Seniors’ Christmas Party included over 245 guests who enjoyed a delicious turkey dinner with all the trimmings, a selection of Christmas carols, a visit from Santa and live entertainment performed by the Salvation Army Quartet. Many generous Rotarians and friends contributed to make this a special event for these often housebound seniors by donating gifts, providing transportation and by supporting our “Take a Senior to Lunch” program which collected enough lunch tickets to pay for 50 seniors’ Christmas dinners.

Finally, the Senior Citizen’s Committee chose to provide additional funding to The Good Neighbours’ Club in the amount of $7,400 to help them acquire vital medical and dental equipment and supplies for The Rotary Health & Wellness Centre, maintaining our continued support and commitment to them and to needy seniors in the downtown area.

The Senior Citizen’s Committee would like to thank Nick Larter for his years of service as Chair and his guidance in selecting our Centennial Project. Nick left the Committee in January 2012 to take up a new role as a Club Board member and Liaison Director.

Barbara Thomson Chair Youth and Children’s Service Committee

The committee funds programs that support children and youth at risk, and also benefit them in the areas of health, education, social development and life enrichment.

During the year, the committee provided funding to programs that ranged from Canada Youth Boatworks, which engages youth in boat-building and seamanship, to Ground Level Youth Ventures, which teaches youth job and life skills through the operation of a café.

A major commitment of the committee is toward the club’s annual Youth Day. A sub-committee of the Youth and Children’s Service Committee organizes the events of the day and promotes the Youth Day Awards, which are given to outstanding students and funded by the Youth and Children’s Service Committee.

This year’s event was aboriginal-themed and included remarks by Ontario Regional Chief Stan Beardy and performances by First Nations drummers and dancers.

Another sub-committee organizes the popular and long-standing Christmas Party for physically and mentally challenged children. The Youth and Children’s Service Committee provides major funding this annual event, which has grown so large that this year it needed two Santa’s to hear the children’s requests.

The committee is also interested in reactivating the Rotary Student Exchange Program. In the past, the downtown location of our club has proved a challenge in terms of finding local host families for our students, who attend a North Toronto school. However, it is hoped that the program can start up in 2013-2014.

In addition to granting funds to small programs, such as those mentioned above, the committee this year also referred several projects to the Rotary Foundation.

My thanks go to the members of the committee for their hard work during the year.

Carolyn Purden Chair

THE ROTARY CLUB OF TORONTO

2012 Financial Statements THE ROTARY CLUB OF TORONTO 2012 Financial Statements

Contents

Page

Independent Auditor’s Report 1 - 2

Statement of Financial Position 3

Statement of Operations and Changes in Fund Balances 4

Statement of Cash Flows 5

Notes to Financial Statements 6 - 10

Schedule 1 - Philanthropic Fund Revenue and Expenses 11

Schedule 2 - Operating Fund Expenses 12

Independent Auditor’s Report

To the Members of The Rotary Club of Toronto

I have audited the accompanying financial statements of The Rotary Club of Toronto, which comprise the statement of financial position as at June 30, 2012, the statements of operations and changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion.

Basis for qualified opinion In common with many not-for-profit organizations, the Club derives revenue from donations from the public, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, my verification of this revenue was limited to the amounts recorded in the records of the Club and I was not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenses, assets and fund balances.

1 Qualified opinion In my opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Club as at June 30, 2012, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountant, Licensed Public Accountant Toronto, Canada November 21, 2012

2 THE ROTARY CLUB OF TORONTO Statement of Financial Position As at June 30

2012 2011 Operating Philanthropic Fund Fund Total Total ASSETS

Current assets Cash $ 23,480 $ 202,186 $ 225,666 $ 189,888 Accounts receivable 36,005 9,568 45,573 41,961 Investments (note 3) 33,391 636,119 669,510 745,378 Prepaid expenses 2,708 570 3,278 14,797 Interfund balance 146,231 (146,231) - -

$ 241,815 $ 702,212 $ 944,027 $ 992,024

LIABILITIES AND FUND BALANCES

Current liabilities Accounts payable and accrued liabilities $ 36,583 $ 20,809 $ 57,392 $ 78,205 Due to Foundation (note 4) - 83 83 23,526 Deferred contributions (note 5) - 14,580 14,580 26,204 Deferred revenue 3,313 1,414 4,727 13,725 Centennial year accrual (note 6) 51,789 - 51,789 47,245

91,685 36,886 128,571 188,905

Fund balances Internally restricted for designated projects (note 7) - 11,906 11,906 8,030 Unrestricted 150,130 653,420 803,550 795,089

150,130 665,326 815,456 803,119

$ 241,815 $ 702,212 $ 944,027 $ 992,024

See accompanying notes

On behalf of the Board:

Treasurer

Director

3 THE ROTARY CLUB OF TORONTO Statement of Operations and Changes in Fund Balances Year ended June 30

2012 2011 Operating Philanthropic Fund Fund Total Total

Revenue Lunch plan $ 197,961 $ - $ 197,961 $ 202,295 Membership dues 150,722 - 150,722 160,107 Event administration fees 15,896 - 15,896 12,223 Miscellaneous 10,839 - 10,839 6,486 Entrance fees 2,250 - 2,250 6,300 Funds raised by Special Events Committee (schedule 1) - 109,021 109,021 144,875 Restricted donations (schedule 1) - 319,847 319,847 268,994 Donations from Rotary Club of Toronto Charitable Foundation (note 4) - 135,000 135,000 110,000 Investment income - 37,750 37,750 123,813 Other donations - 55,407 55,407 26,122

377,668 657,025 1,034,693 1,061,215

Philanthropic expenses Restricted projects (note 5 and schedule 1) - 319,847 319,847 268,994 Committee activities (schedule 1) - 157,978 157,978 190,863 Special events (schedule 1) - 118,005 118,005 80,201 Donation to Rotary Club of Toronto Charitable Foundation (note 4) - 29,931 29,931 28,331 General - 4,257 4,257 2,941

- 630,018 630,018 571,330

Operating expenses (schedule 2) 479,338 - 479,338 483,640

Recovery from Rotary Club of Toronto Charitable Foundation (note 4) (87,000) - (87,000) (87,000)

392,338 - 392,338 396,640

Excess (deficiency) of revenue over expenses (14,670) 27,007 12,337 93,245

Interfund transfer (note 8) 68,000 (68,000) - -

Fund balances, beginning of year 96,800 706,319 803,119 709,874

Fund balances, end of year $ 150,130 $ 665,326 $ 815,456 $ 803,119

See accompanying notes

4 THE ROTARY CLUB OF TORONTO Statement of Cash Flows Year ended June 30

2012 2011

Operating activities Excess (deficiency) of revenue over expenses $ 12,337 $ 93,245 Items not involving cash Recognition of deferred contributions (319,847) (268,994) Realized gains on investments (9,520) (31,112) Unrealized loss (gains) on investments 4,755 (57,640)

(312,275) (264,501)

Contributions received and deferred 308,223 260,618

Net change in non-cash working capital items Accounts receivable (3,612) (18,771) Prepaid expenses 11,519 (10,450) Accounts payable (20,813) 40,442 Centennial year accrual 4,544 7,995 Due to Foundation (23,443) 10,607 Deferred revenue (8,998) 5,452

(40,803) 35,275

Cash flows from operating activities (44,855) 31,392

Investing activities Proceeds on sale of investments 155,123 116,128 Purchase of investments (74,490) (60,332)

Cash flows from investing activities 80,633 55,796

Net change in cash during the year 35,778 87,188

Cash, beginning of year 189,888 102,700

Cash, end of year $ 225,666 $ 189,888

See accompanying notes

5 THE ROTARY CLUB OF TORONTO Notes to Financial Statements Year ended June 30, 2012

1. Nature of organization

The Rotary Club of Toronto (the “Club”) is a not-for-profit service club. Its members provide community services both locally and internationally. The Club is exempt from income taxes under Section 149 of the Income Tax Act and is a registered charity.

2. Summary of significant accounting policies

The financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles (GAAP), the more significant of which are outlined below.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the statement of financial position, and the reported amounts of revenue and expenses during the year. Actual results could differ from these estimates.

Fund balances

The Club follows the deferral method of accounting within the Operating and Philanthropic funds.

The Operating Fund reflects membership fees, lunch plan revenue and miscellaneous revenues, which are recorded as earned. Fees received in advance are deferred.

Revenue raised by the Club, which is designated to be used for philanthropic activities, including donations directed to other registered charities, is allocated to the Philanthropic Fund. Externally restricted contributions related to special projects in the Philanthropic Fund are deferred and recognized as revenue in the year in which the related expenses are incurred. Other donations and bequests are recorded when received. Proceeds received for philanthropic events in advance are deferred.

Certain of the net assets of the Philanthropic Fund are internally restricted for use in designated projects as reflected in note 7.

Financial instruments

The Canadian Institute of Chartered Accountants (CICA) provides a choice for financial disclosure and the Club has chosen to continue to apply Financial Instruments - Disclosure and Presentation, Section 3861 in place of Financial Instruments - Disclosure, Section 3862 and Financial Instruments - Presentation, Section 3863.

The Club’s financial instruments are comprised of cash, accounts receivable, investments, accounts payable and the balance due to Rotary Club of Toronto Charitable Foundation (the "Foundation").

Cash is stated at fair value.

The recorded amounts of accounts receivable, accounts payable, due to the Foundation approximate their fair values due to their short-term maturities.

6 THE ROTARY CLUB OF TORONTO Notes to Financial Statements Year ended June 30, 2012

2. Summary of significant accounting policies - continued

Financial instruments - continued

Investments have been classified as held for trading and are recorded and carried at fair market value with fair value determined based on active market quoted rates. Unrealized gains and losses arising from the change in fair value of the investments are recorded as a component of investment income or loss.

It is management's opinion that the Club is not exposed to significant interest, currency or credit risks arising from its financial instruments. The Club’s investments are subject to market risk as the value of these investments will change with market fluctuations.

Contributed goods and services

Contributed goods and services are not recorded in the accounts because of the difficulty in determining their fair value.

Objectives, policies and processes for managing capital

The Club considers its capital to consist of its Operating and Philanthropic Fund balances. The Club's objectives when managing its capital are to safeguard the Club's ability to provide quality charitable activities for its members.

There have been no significant changes to the Club's capital management objectives, policies and processes in the year nor has there been any changes in what the Club considers to be its capital.

Future accounting framework

The CICA requires not-for-profit organizations to adopt either International Financial Reporting Standards (IFRS) or accounting standards for not-for-profit organizations (ASNPO). These standards are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2012, with earlier adoption permitted. It is expected that ASNPO will be adopted in fiscal 2013.

7 THE ROTARY CLUB OF TORONTO Notes to Financial Statements Year ended June 30, 2012

3. Investments

2012 2011

Operating Fund Fixed income Ishares Dex S/T Bond $ 19,589 $ 19,522

Shares and trust units Horizons E/I Equity 13,802 19,167

33,391 38,689

Philanthropic Fund Fixed income Ishares DEX S/T Bond 101,569 101,219 Ishares SP/TSX 20,100 -

121,669 101,219

Shares and trust units Altagas 23,160 20,600 Arc Energy 34,350 37,515 BCE 41,980 37,820 Brookfield Renew - 46,020 Canadian Pacific Rail 43,050 30,085 Crescent Point Engy Corp 19,000 22,285 Emera Incorporated 33,610 31,610 Faircourt Gold Income 33,300 28,800 Great West Life 19,863 22,932 Ishares CDSP 16,930 39,860 Labrador Iron Ore 32,400 19,395 Manitoba Telecom 16,580 16,335 Pembina Pipeline 39,030 50,780 Royal Bank of Canada 36,512 55,130 Telus Corp 42,013 51,960 Toronto Dominion Bank 47,808 49,068 Transalta 25,875 30,885 Yellow Pages Inc - 6,000

505,461 597,080

Cash surrender value of life insurance policy 8,390 8,390

$ 668,911 $ 745,378

8 THE ROTARY CLUB OF TORONTO Notes to Financial Statements Year ended June 30, 2012

4. Due to Foundation

The Club's operations and philanthropic activities are supported by the Foundation. The Foundation is a charitable foundation and is exempt from income taxes under Section 149 of the Income Tax Act. The Foundation's primary mission is to fund programs in the City of Toronto, which benefit children and youth in areas of health, women’s initiatives, education, social development, life enrichment, and the prevention of child abuse and neglect. It also funds community programs for the homeless, disabled and seniors and contributes, from time to time, to international Rotary projects which assist children and youth.

The balance of $83 (2011 - $23,526) presented as “Due to Foundation” relates to donations received on behalf of the Foundation. This balance is non-interest bearing and is due on demand.

During the year, the Philanthropic Fund received an unrestricted donation from the Foundation in the amount of $135,000 (2011 - $110,000). The Philanthropic Fund also received from the Foundation a restricted donation in the amount of $3,780 (2011 - $2,537), which is included in restricted donation revenue with the exception of the unspent amount of $716 (2011 - $2,429), which has been deferred at year end. In addition, the Operating Fund received $87,000 (2011 - $87,000) from the Foundation as reimbursement of administration services provided. The Club approved a donation to the Foundation of $29,931 (2011 - $28,331), being the surplus from the annual fundraising event. Related party transactions included in revenue and expenses are recorded at their exchange amounts.

5. Deferred contributions

Deferred contributions of the Operating Fund primarily represent that portion of annual membership fees charged to members’ accounts prior to the fiscal year end of the Club that are applicable to the subsequent fiscal year.

Deferred contributions in the Philanthropic Fund represent unspent externally restricted donations, as follows:

2012 2011

Balance, beginning of year $ 26,204 $ 34,580 Donations received and deferred 308,223 260,618 Donations disbursed and recognized as revenue (319,847) (268,994)

Balance, end of year $ 14,580 $ 26,204

6. Centennial year accrual

In fiscal 2009, the Club made a 5 year commitment to provide for the expenses of the Club’s Centennial year in 2013 at an annual rate of $20,000 (net of expenses incurred). As of June 30, 2012, the Club has incurred total Centennial expenses of $80,000 (2011 - $60,000) and the year accrual, net of expenses incurred is $51,789 (2011 - $47,245).

9 THE ROTARY CLUB OF TORONTO Notes to Financial Statements Year ended June 30, 2012

7. Internally restricted for designated projects

2012 2011

Fund balance, beginning of year $ 8,030 $ 38,124 Amounts received 137,000 128,883 Expenses (133,124) (158,977)

Fund balance, end of year $ 11,906 $ 8,030

The Club’s Board of Directors has designated funds to be used for undertaking special projects. The internally restricted net assets are not available for use without the approval of the Board of Directors.

8. Interfund transfers

The Philanthropic Fund transferred $68,000 (2011 - $68,000) to the Operating Fund on account of shared operating expenses.

9. Commitments

The Club has a stand-by letter of guarantee relating to the Toronto Argonauts raffle ticket sales. The letter of guarantee is in the form of a letter of credit agreement of $15,000 in favour of the City of Toronto.

The Club is committed to the rental of premises until fiscal 2014. Minimum payments required over the next two years are as follows:

2013 $ 21,295 2014 3,556

10. Comparative amounts

Certain comparative amounts have been reclassified from those previously presented to conform to the presentation of the 2012 financial statements.

10 THE ROTARY CLUB OF TORONTO Schedule 1 Philanthropic Fund Revenue and Expenses Year ended June 30

2012 2011

Fundraising by Special Events Committee revenue Steam Whistle Dinner $ 58,874 $ 65,276 Golf Day 35,446 36,830 Argos 50/50 Tickets 10,346 30,627 Ace of Clubs 4,305 10,762 RI Foundation Walk 50 1,380

$ 109,021 $ 144,875

Restricted donations revenue and related expenses (note 6) International Service $ 197,764 $ 92,939 Argos 50/50 Tickets 93,675 69,131 Camp Scugog 7,380 1,781 Purple Pinkies Fundraiser 6,759 - Aboriginal Service 6,350 - Healthy Beginnings 5,594 108 Children's Christmas Party 1,125 1,380 Youth and Children Service 800 7,786 Seniors Christmas Party 400 - Jeremy Bortz and Cabbage Town Friends Event - 95,869

$ 319,847 $ 268,994

Committee activities expenses International Service $ 38,123 $ 33,619 Community Service 25,000 25,000 Youth and Children Service 20,000 68,801 Golf Day donation 16,476 15,849 Aboriginal Service 15,000 - Women’s Initiatives 15,000 15,000 Healthy Beginnings 10,000 10,261 Senior Citizens 10,000 11,296 Argos 50/50 Administration costs 8,379 9,665 RI Foundation Walk - 1,380

$ 157,978 $ 190,863

Special events expenses Power of Rotary $ 40,674 $ - Steam Whistle Dinner 27,125 29,769 Golf Day 18,296 20,989 Children’s Christmas Party 17,396 11,806 Senior’s Christmas Party 14,514 12,370 Ace of Clubs - 5,267

$ 118,005 $ 80,201

See accompanying notes

11 THE ROTARY CLUB OF TORONTO Schedule 2 Operating Fund Expenses Year ended June 30

2012 2011

Office Salaries and benefits $ 119,499 $ 138,290 Professional fees 21,306 17,841 Rent 20,902 21,852 Computer software 10,721 6,301 Miscellaneous 8,150 9,557 Stationery, printing and supplies 5,216 3,862 Telephone 4,556 4,594 Insurance 4,284 3,935 Maintenance and repair 3,741 5,844 Bad debts 1,867 515

200,242 212,591

General Lunch plan costs 170,967 171,841 Centennial events 23,495 20,653 Conferences and conventions 21,232 15,452 Program and Friday meetings 13,873 19,064 Sundry 5,828 3,445 Rosters 5,407 5,134 Badges, pins and banners 2,796 2,068 Presentations and club awards 2,491 2,225 Accompanist 225 600 246,314 240,482

Rotary communications Printing 10,233 9,983 Postage 616 317 10,849 10,300

Rotary per capita levies Rotary International 13,973 14,342 District 7070 7,960 5,925 21,933 20,267

$ 479,338 $ 483,640

See accompanying notes

12 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION

Incorporated July 20, 1951, under the Laws of Ontario

OFFICERS

President: David Hetherington Vice-President: Robert D. Smith Treasurer: James Hunter Secretary: Carol Bieser

BOARD OF DIRECTORS

Sandy Boucher Don Brooks James Hunter Jane Fitzgerald Susan Howson David Libby Neil Phillips Blair Spinney Agnes Walkinshaw Richard White

HONOURARY DIRECTORS

Peter Love Glenn M. Davis Walter B. Thompson Brian C. Westlake ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION

ANNUAL REPORT 2011-2012

In the year 2011-2012 the Foundation managed to operate with a normal philanthropic agenda knowing that the Club was preparing to request funding for its Centennial Year projects. The total amount to fund the 10 Centennial projects will be $1,000,000.

The Rotary Club of Toronto Charitable Foundation donated a total of $715,764 during the year. This total included donations to First Nations Child & Family Caring Society and Lake Scugog Camp. This also included funding or partial funding for a number of the Centennial projects.

The Foundation provided funds to Shelterbox Canada to help it supply emergency aid to various disaster areas around the world. A further $135,000 was donated to the 7 Rotary Club of Toronto philanthropic committees to fund their activities in the local community as well as internationally.

A donation of $50,000 was given to Rotary International to fund their worldwide charitable works; these include the incredible pursuit of polio eradication in the human population.

The Foundation received many appeals for funding during the year which required a tremendous effort by the Research and Appeals Committee to review these requests. The Committee also provided members to act as monitors for each of the Centennial projects. Having the monitors was extremely valuable in keeping the various projects on track. The use of R. & A. monitors provides a solid model to follow for any future “signature projects” that the Club may undertake in the future.

The Foundation is grateful for the efforts of each of the members of the Research and Appeals Committee for the knowledge and experience that they bring to the review process. The Foundation would like to express its gratitude as well to those members that acted as monitors to the Centennial projects. The Committee was ably chaired by James Hunter.

As of June 30, 2012 the assets of the Foundation totaled $14,336,000. The board of the Foundation is thankful for the skill and efforts of the Investment Committee which proficiently managed the investments of the Foundation during the year. The committee administered the assets under the able leadership of Susan Howson.

At this time I would like to express my personal gratitude to the members of the Foundation Board for their selfless giving of their time and effort to the Foundation. As well I thank the members of our Club for their support.

Sincerely,

David Hetherington

President ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION

Mission Statement

The Rotary Club of Toronto Charitable Foundation is the fundraising and granting entity of the Rotary Club of Toronto. Its primary mission is to fund programs, in the City of Toronto, which benefit children and youth in the areas of health, education, child abuse and neglect, social development and life enrichment. It also funds community programs for the homeless, disabled and seniors and contributes, from time to time, to international Rotary projects which assist children and youth.

Values Statement

The Rotary Club of Toronto Charitable Foundation has adopted the following values:

 Excellence in fulfilling its mission and goals  Highest ethical standards and adherence to accepted fundraising and granting practices  Integrity and fairness in all undertakings  Adherence to the guiding principles of Rotary including the four way test  Excellence in the governance and administration of the Foundation's affairs  Compliance with all regulatory and statutory requirements

Approved by the Foundation Board Nov. 2, 2004 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION

2012 Financial Statements ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION 2012 Financial Statements

Contents

Page

Independent Auditor’s Report 1 - 2

Statement of Financial Position 3

Statement of Operations 4

Statement of Changes in Fund Balances 5

Statement of Cash Flows 6

Notes to Financial Statements 7 - 13

Independent Auditor’s Report

To the Board of Directors and Members of Rotary Club of Toronto Charitable Foundation

I have audited the accompanying financial statements of the Rotary Club of Toronto Charitable Foundation, which comprise the statement of financial position as at June 30, 2012, the statements of operations and changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Auditor's responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion.

Basis for qualified opinion In common with many not-for-profit organizations, the Foundation derives revenue from donations from the public, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, my verification of this revenue was limited to the amounts recorded in the records of the Foundation and I was not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenses, assets and fund balances.

1 Qualified opinion In my opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Foundation as at June 30, 2012, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants, Licensed Public Accountant Toronto, Canada November 30, 2012

2 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Statement of Financial Position As at June 30

2012 2011

ASSETS

Current assets Cash $ 734,087 $ 164,341 Due from The Rotary Club of Toronto (note 3) 83 23,526 Investments (note 4) 13,907,625 13,077,419

$ 14,641,795 $ 13,265,286

LIABILITIES AND FUND BALANCES

Current liabilities Accounts payable and accrued liabilities $ 133,000 $ 13,000

Fund balances Unrestricted General Fund 2,933,859 3,042,304 Jean K. Cowan Rotary Memorial Fund 3,811,994 3,952,898

Externally Restricted (note 6) The Laughlen Trust Fund 3,370,861 1,951,544 Andrew Westlake Memorial Fund 67,619 67,066 Pauline Hill Endowment Fund 43,538 41,239 Andras Family Endowment Fund 156,356 128,908 Gerry Nudds Endowment Fund 15,534 17,558

Cumulative Unrealized Gain on Investments Fund 4,109,034 4,050,769

14,508,795 13,252,286

$ 14,641,795 $ 13,265,286

See accompanying notes

On behalf of the Board:

Director

3 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Statement of Operations Year ended June 30

2012 2011

Revenue Donations received (note 3) $ 1,634,379 $ 115,506 Investment income 464,380 454,442 Realized gain / (loss) on investments (84,493) 460,537

2,014,266 1,030,485

Expenditures Charitable donations (notes 3 and 5) 715,764 254,137 Administration and general The Rotary Club of Toronto (note 3) 87,000 87,000 Professional services 13,258 14,924

816,022 356,061

Excess of revenue over expenditures $ 1,198,244 $ 674,424

See accompanying notes

4 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Statement of Changes in Fund Balances Year ended June 30

Unrestricted Cumulative Jean K. Cowan Unrealized Gain General Rotary Memorial Restricted on Investments Total Total Fund Fund Funds Fund 2012 2011 (note 6)

Fund balances, beginning of year $ 3,042,304 $ 3,952,898 $ 2,206,315 $ 4,050,769 $ 13,252,286 $ 11,506,262

Excess of revenue over expenditures (108,445) (140,904) 1,447,593 - 1,198,244 674,424

Increase in unrealized (loss) / gain on investments - - - (7,771) (7,771) 1,668,935

Reclassification adjustment for realized gain on investments included in excess of revenue over expenditures - - - 66,036 66,036 (597,335)

Fund balances, end of year $ 2,933,859 $ 3,811,994 $ 3,653,908 $ 4,109,034 $ 14,508,795 $ 13,252,286

See accompanying notes

5 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Statement of Cash Flows Year ended June 30

2012 2011

Operating activities Excess of revenue over expenses $ 1,198,244 $ 674,424 Item not involving cash Realized gain / (loss) on investments 84,493 (460,537)

1,282,737 213,887

Net change in non-cash working capital items Accounts payable and accrued liabilities 120,000 735 Due from The Rotary Club of Toronto (23,443) (10,607)

Cash flows from operating activities 1,379,294 204,015

Investing activity Purchase of investments, net and cash flows from investing activity (809,548) (88,031)

Net change in cash during the year 569,746 115,984

Cash, beginning of year 164,341 48,357

Cash, end of year $ 734,087 $ 164,341

See accompanying notes

6 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

1. Nature of the Foundation

Rotary Club of Toronto Charitable Foundation (the “Foundation”) is a corporation authorized by Ontario charter to accept gifts and bequests and to administer the income and capital of the funds entrusted to it. The Foundation is a charitable foundation and is exempt from income taxes under Section 149.1(1)(a) of the Income Tax Act.

The Foundation's primary mission is to fund programs in the City of Toronto, which benefit seniors, children and youth in areas of health, the homeless, disabled persons, women’s initiatives, education, social development, aboriginal service, life enrichment and the prevention of child abuse and neglect. It contributes, from time to time, to national and international projects.

2. Summary of significant accounting policies

The financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles (GAAP), the more significant of which are outlined below.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the statement of financial position and the reported amounts of revenue and expenditures during the year. Actual results could differ from these estimates.

Fund balances

The Foundation follows the restricted fund method of accounting for contributions. Designated donations are credited to specific restricted funds as per the donor’s wishes and undesignated donations are credited to the unrestricted funds. Investment income, including realized gains and losses, are allocated to all funds in proportion to opening fund balances. Restricted funds are charged with disbursements for designated charitable donations and with a proportionate share of other expenditures. Unrestricted funds are charged with disbursements for non-designated charitable donations and a proportionate share of other expenditures.

(a) Unrestricted funds

The General Fund and Jean K. Cowan Rotary Memorial Fund include the unrestricted activities of the Foundation.

(b) Restricted funds

Where the funds are restricted as to use, there are no restrictions over the disbursement of capital.

The Laughlen Trust Fund was established in 2005. The purpose of this fund is to serve the needs of senior citizens in the Province of Ontario with priority given to those in the Toronto area.

The Andrew Westlake Memorial Fund was established in 1996. The purpose of this fund is to support educational programs for youth.

The Pauline Hill Endowment Fund was established in 2003. The purpose of this fund is to support charitable initiatives for the well-being of children prenatal to age six and needy mothers who are receiving public assistance. Funding comes from gifts, memorials and tribute giving designated to this fund.

7 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

2. Summary of significant accounting policies - continued

(b) Restricted funds - continued

The Andras Family Endowment Fund was established in 2008. The purpose of this fund is to support the general charitable purposes of The Rotary Club of Toronto (the “Club”) and the Foundation.

The Gerry Nudds Endowment Fund was established in 2008. The purpose of this fund is to support the charitable projects and educational programs for The Rotaract Club of Toronto.

This fund holds the cumulative unrealized gain or loss on individual investments until the year in which an investment is sold. Upon disposition, the cumulative gain or loss on the investment is relieved from this fund and recorded in the statement of operations as realized gains or losses.

Revenue recognition

Donations are recorded at fair value when received. Investment income is recorded on an accrual basis.

Contributed goods and services

Contributed goods and services are not recorded in the accounts because of the difficulty in determining their fair value.

Objectives, policies and procedures for managing capital

The Foundation’s capital is comprised of its fund balances as described above.

The Foundation's objectives when managing its capital are to: (a) provide funding to various charitable organizations so that they can continue to build and sustain an excellence in their performances and programs; and (b) preserve the long-term purchasing power of the Foundation's externally restricted funds to meet the expectations of donors and prospective donors and to ensure that a real (inflation protected) level of operating support for the Club is maintained.

To achieve these objectives, the Foundation has established an Investment Policy Statement and Guidelines that is designed to achieve an appropriate balance between investment returns and risk by monitoring the following on a regular basis: (i) investment mix, (ii) quality of investments, (iii) selection of investment managers, and (iv) relative performance against similar funds.

Financial instruments

The Canadian Institute of Chartered Accountants (CICA) provides a choice for financial disclosure and the Foundation has chosen to continue to apply Financial Instruments - Disclosure and Presentation, Section 3861 in place of Financial Instruments - Disclosure, Section 3862 and Financial Instruments - Presentation, Section 3863.

The Foundation’s financial instruments are comprised of cash, due from The Rotary Club of Toronto, investments and accounts payable.

Cash is stated at fair value.

8 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

2. Summary of significant accounting policies - continued

Financial instruments - continued

Due from The Rotary Club of Toronto and accounts payable approximate fair value due to their short-term maturities.

Investments have been designated as available-for-sale financial assets. Investments are recorded and carried at fair market value with fair value determined based on active market quoted rates. Unrealized gains and losses arising from the change in fair value of the investments are excluded from excess of revenue over expenditures and are recognized as a direct increase or decrease in the Cumulative Unrealized Gain on Investment Fund. Realized gains or losses are recognized in the statement of operations in the year in which the investment is sold or redeemed.

It is management’s opinion that the Foundation is not exposed to significant interest, currency or credit risks arising from its financial instruments. The Foundation’s investments are subject to market risk as fair value will change with market fluctuations.

Future accounting framework

The CICA requires not-for-profit organizations to adopt either International Financial Reporting Standards (IFRS) or accounting standards for not-for-profit organizations (ASNPO). These standards are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2012, with earlier adoption permitted. The Foundation is expected to adopt ASNPO in fiscal 2013.

3. Due from The Rotary Club of Toronto

The Club is a not-for-profit service club, a registered charity, and is exempt from income taxes under Section 149 of the Income Tax Act. The Club’s members provide community services locally, nationally and internationally. The Foundation supports the Club's philanthropic and charitable operations.

The balance of $83 (2011 - $23,526) presented as “Due from The Rotary Club of Toronto” relates to the net proceeds from committee and special event activities of the Club. This balance is non-interest bearing and due on demand.

During the year, the Foundation donated an amount of $138,780 (2011 - $112,537) to the Philanthropic Fund of the Club to support various philanthropic activities (note 5). Included in that amount, was $10,000 (2011 - $10,000) in support of the Senior Citizens committee. In addition, $87,000 (2011 - $87,000) was paid to the Operating Fund of the Club as reimbursement of administration services provided. The Foundation recognized as donations received from the Club, an amount of $29,931 (2011 - $28,331), being the surplus from the annual fundraising event. Related party transactions included in revenue and expenditures are recorded at their exchange amounts.

9 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

4. Investments 2012 2011 Common Stock Algonquin Power & Utilities $ 197,400 $ 171,300 Bank of Montreal 562,600 613,500 BCE Inc. 629,700 567,300 Bristol Myers Squibb Company 146,547 111,554 Brookfield Asset Management 43,823 - Canadian National Railway 198,030 100,282 Canadian Pacific Rail - 78,221 Canadian Tire Corporation Ltd. 137,760 126,200 Cenovus Energy Inc. 64,740 72,800 Emera Incorporated 840,250 790,250 Enbridge Inc. 406,600 313,600 Encana Corporation 63,600 89,340 Faircourt Gold Income - A 296,000 192,000 Financial Sector SPDR - 44,288 Finning International Inc. 59,200 71,500 General Electric Company 84,952 72,649 Genivar Inc. 125,104 72,044 Husky Energy Inc. 111,980 115,720 International Forest Production Ltd. - A - SV 35,700 36,190 Ishares SP/TSX CP MAT 84,650 109,600 Keyera Corporation 221,859 - Leisureworld Sr Care Corporation 117,200 - Manitoba Telecom Services Inc. 215,540 212,355 Microsoft Corporation 124,697 50,076 Newalta Corporation 108,647 - Norbord Inc. 46,305 42,385 Northland Power Inc. 178,400 160,700 Pembina Pipeline Corporation 390,300 380,850 Penn West Petroleum Ltd. 136,600 222,700 Pfizer Inc. 117,196 99,189 Procter & Gamble Company 93,630 91,827 Royal Bank of Canada 521,600 551,300 Seaspan Corporation 88,407 70,347 SEC Technologies SPDR SBI 108,444 - Sector SPDR TR INT-FINL 44,698 - SunLife Financial Services Inc. 167,609 219,821 Technology Sector SPDR - 91,572 Teck Resources Ltd. 126,120 196,080 Telus Corporation 357,420 304,920 Thomson Reuters Corporation 86,910 108,630 Toronto Dominion Bank 796,800 817,800 TransAlta Corporation 258,750 308,850 TransCanada Corporation 768,060 762,300 United Technologies Corporation 115,459 127,852 Units - Labrador Iron Ore 64,800 - Yellow Media Inc. - 24,000

9,344,087 8,591,892

Preferred Shares BCE Inc 1st PFD-R 32,830 33,866 Brookfield Asset - A S10 PF - 25,200 Brookfield Pty - AAA S-H PF 26,350 25,600 Canadian 50 ADV-F T/U 47,460 - Weston George 5.20% - III PF 25,070 23,400

131,710 108,066

Royal Income Trust Fund Units Brookfield Renew Pwr Trust - 87,438 Citadel Income Fund Trust - 71,163 Crombie Real Estate Income Trust 147,000 132,000 Ishares SP/TSX CP Real Estate Income Trust 418,750 373,750

565,750 664,351

Exchange Traded Fund Units Claymore Global Agriculture Fund - 235,950 Citadel Income Fund - 211 Ishares Global AGRI INDEX ETF 234,300 -

234,300 236,161

10 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

4. Investments - continued

2012 2011

Bonds Ishares Dex S/T 406,280 404,880 Ishares 1-5Y LADD CP BD ETF 202,200 - Aberdeen Asia-Pacific Inc. 111,445 113,770 Bell Canada, 6.25%, April 12, 2012 - 258,815 Keyera Convertible, 8.25%, December 31, 2013 - 228,440 Claymore, 1-5 Year Laddered - 202,900 Newalta Convertible Red, 7.00%, November 30, 2012 - 113,575 Barclays E20 SU, 4.15%, April 8, 2012 - 60,947

719,925 1,383,327

Bankers Acceptance CIBC, August 13, 2012 319,561 - TD Bank, September 4, 2012 299,382 - FBA, July 5, 2011 - 449,933 TD Bank, September 12, 2011 - 299,166 CIBC, August 11, 2011 - 272,664

618,943 1,021,763

Other Government of Canada Treasury Bills 1,490,284 335,608 Savings accounts 771,270 697,483 Cash surrender value of life insurance policy 31,356 34,182 Accrued interest receivable - 4,586

2,292,910 1,071,859

Total $ 13,907,625 $ 13,077,419

11 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

5. Charitable donations 2012 2011 About Face International $ 9,171 $ - Andrew Westlake Memorial Race 600 600 ArtHeart 5,000 - Arts For Children And Youth 50,000 - Big Brothers & Big Sisters of Toronto 3,000 - Call - A - Service Inc. 23,000 - Care Canada 15,000 - Christie Refugee Welcome Centre 15,000 - Common Ground Co-operative - 8,000 Ewart Angus Homes Inc. - 1,700 First Nations Child & Family Caring Society of Canada 10,000 - Frontier College Donation 10,000 - House of Compassion 5,000 - Joe Sweeney Fund 5,000 - Lake Scugog United Church Camp Inc. 111,600 - Live to Give Relief Organization 3,000 - Rotary International Foundation of Canada 50,000 50,000 Samaritan’s Purse - Canada 5,000 - Sanctuary Ministries of Toronto 5,500 - Scadding Court Community Centre - 13,200 Second Harvest - 5,000 Shelterbox Canada 24,170 15,000 Sketch Working Arts 17,300 - St. John the Compassionate - 5,000 St. Matthew’s Bracondale house - 1,000 Talisker Players Chamber Music 2,500 - The Argos Foundation - 599 The Good Neighbours’ Club 100,000 - The International Churchill Society - 8,000 The Rotaract Club of Toronto 2,558 450 The Rotary Club of Toronto (note 3) 138,780 112,537 Toronto Public Library Foundation 15,000 - Toronto Refugee Non-Profit Homes & Services 7,000 - Touchstone Youth Centre - 12,672 Voice for Hearing Impaired Children 5,000 - War Child - 5,000 Whitewater Ontario 885 379 Words in Motion 7,500 - Working Women Community Centre 30,000 - World Community Service Foundation - 15,000 Writer’s in Electronic Residence Foundation 5,200 - Youth Employment Services 34,000 -

Total charitable donations $ 715,764 $ 254,137

12 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION Notes to Financial Statements Year ended June 30, 2012

6. Restricted funds

The Laughlen Andrew Westlake Pauline Hill Andras Family Gerry Nudds Trust Memorial Endowment Endowment Endowment Total Total Fund Fund Fund Fund Fund 2012 2011

Fund balances, beginning of year $ 1,951,544 $ 67,066 $ 41,239 $ 128,908 $ 17,558 $ 2,206,315 $ 2,013,015

Excess of revenue over expenditures before the following 59,306 2,038 1,253 3,917 534 67,048 191,940

Donations received 1,506,011 - 4,826 42,431 - 1,553,268 26,625

Charitable donations (146,000) (1,485) (3,780) (18,900) (2,558) (172,723) (25,265)

Fund balances, end of year $ 3,370,861 $ 67,619 $ 43,538 $ 156,356 $ 15,534 $ 3,653,908 $ 2,206,315

13 ROTARY CLUB OF TORONTO CHARITABLE FOUNDATION BENEFACTORS

Ken Andras Gerrard A. Nudds Walter Anderson Patricia A. Sanderson John B. & Marjory Austin Dorothy Saunders Sheri Codd Frederick O. Soughton Jeff Dawson -Hazel Soughton Trust S. Ali Hasnan Anne R. Thompson Mackie Research Capital Corp. Walter B. Thompson Peter Naylor

Corporate Membership

The Rotary Club of Toronto

DGN Marketing Services Ltd. enVille Event Design and Catering

During the past Rotary year many members, individuals or organizations donated to the Club’s Charitable Foundation. The Board of Directors is grateful for this interest and support.

The Foundation relies upon a continuing source of gifts and bequests in order to expand its ability to support Club and community projects.

In Memoriam

We honour the memory and are thankful for the services of these members who passed on during the Club year 2011 -2012

Pauline Hill

Roy A. Phillips

William F. C. Turnbull

David Wilson