FRESH START RECOVERY CENTRE 411-41 Avenue N. E. Calgary, AB T2E 2N4 Executive Director: Stacey Petersen Board Chair: David Turner Sector: Homeless - Addiction & Mental Health Website: www.freshstartrecovery.ca Operating Charity Charitable Reg. #: 13672 0737 RR0001

About Fresh Start Recovery Centre: Fresh Start (FS) provides treatment and support to Financial Transparency men with addictions through a recovery continuum of effective programs, so they can learn to live clean and sober for life. Audited financial statements for current FS offers a 9-16 week abstinence-based residential and day program anchored in the AA and previous years available on the 12-step recovery model. It's a highly-structured program with curfews, chores, and medi- charity's website tation on top of its basic treatment regime, providing progress testing, individual and Program Cost Coverage group counselling, as well as financial and family reintegration. FS added a 5-week Family Healing Program in 2011 to support any family in Southern Alberta struggling with addic- tion. In 2011, 58 Fresh Start alumni celebrated their first year milestones in recovery, marking 365 days of continuous sobriety. FS had the grand opening of its new 50-bed treatment centre on June 15, 2012, and also gained additional 2nd-stage housing; these facilities combined will allow them to house, treat and support 253 men each year, and help many more addicts and families through their extended programs. Funding Program Financial Review: In F2011, FS's administrative costs were 2% of revenues and fundraising Reserves Costs costs were 1% of donations. Funding reserves cover only 24% of its annual program costs. In F2011, regular donations fell by 14% to $560k; however, funding from the Calgary Spending Breakdown Homeless Foundation for the "Keys to Recovery" program grew from $523k to $1,358k. This program has now become the largest part of FS's activities.

Financial Ratios Fiscal year ending December 31st 2011 2010 2009 Administrative costs as % of revenues 1.5% 1.6% 3.0% Fundraising costs as % of donations 1.3% 0.9% 2.8% Program cost coverage (%) 24.2% 51.2% 6.4%

Summary Financial Statements Full-time Staff # 24 All figures in $s 2011 2010 2009 Avg. Compensation $28,588 Donations 3,060,213 1,467,223 822,877 Top 10 Staff Salary Range Government funding 1,418,833 2,796,292 1,033,006 $350k + Fees for service 490,004 474,692 501,941 $300k-$350k Total revenues 4,969,050 4,738,208 2,357,824 $250k-$300k Program costs 2,302,014 1,177,920 720,670 $200k-$250k Administrative costs 73,366 74,656 67,413 $160k-$200k $120k-$160k Fundraising costs 40,316 13,871 23,429 $80k-$120k 3 Cash flow from operations 2,553,354 3,471,761 1,542,339 $40k-$80k 7 Funding reserves 556,042 603,548 46,081 < $40k Information from most recent CRA Note: Government funding includes capital funding for new facility of $1.4m in F2011, $2.8m in F2010 and $1.0m in Charities Directorate filings for F2011 F2009. Donations include capital funding from donors of $1.1m in F2011, $105k in F2010, and $13k in F2009.

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. FRESH START RECOVERY CENTRE History: Originally founded in 1992 as Year ending December 31st CLASP, the co-ed drug and alcohol Program Data 2011 2010 2009 rehabilitation centre officially changed Program costs 2,302,014 1,177,920 720,670 its denominational name to Fresh Start Program hours 442,161 417,316 375,596R in 1996. Total volunteers 318 385 369 Management: Management brings Volunteer hours 16,879 17,316 14,422 multiple years of professional and Volunteer turnover rate (%) n/a n/a 50% personal experience in addiction Clients served 409 310 159 recovery. FS’s staff has over 230 years Program hours / client 1,081 1,346 2,362 of active recovery experience. FS has Program costs / hour 5.21 2.82 1.92 a new board chair, David Turner and a Program costs / client 5,628 3,800 4,533 new Treasurer, Bruce Wilson. Both were previously on the board. Charity Analysis 2011 2010 2009 Revenues (less interest income) 4,969,050 4,738,208 2,357,824 Value of donated time 253,185 259,740 216,330 Donated goods and services - - - Charity value 5,222,235 4,997,948 2,574,154 Administrative costs 1% 1% 3% (as % of charity value) Local support ($) 3,803,402 2,201,655 1,541,148 Community size (population) 1,096,833 1,074,189 1,052,013 Community ownership $3.47 $2.05 $1.46 (local support $ / pop.)

Social Results: FS achieved a 46% success rate for men who completed treatment in F2010 and celebrated a year of post- treatment sobriety in 2011. This result is up from 44% last year and 41% in F2009. FS’s success rate is more than four times the industry average of 5-10%. FS’s results are noteworthy as almost any man can qualify to enter its program. In F2011, 73 or 92% of people completed the residential program and 29 or 63% completed the day program. Community Need: In F2011, FS’s facilities were at 100% capacity with 187 men on waitlists for residential service over the entire year. Despite the continued wait list, FS has never turned away a client due to an inability to pay. Funding Need: FS needs an additional $1.5m to fund the financing it took to complete its new residence. Donations from individuals and corporations as well as government funding are expected to cover this cost. The new facility is 40,000 sq. ft., compared with the previous residence which was only 6,700 sq. ft. Otherwise, FS is focused on funding for program creation and enhancing the following areas: Physical Fitness/Wellness ($90k), Creative and Spiritual Exploration and Expression ($180k), Family Healing Program ($50k) and their Alumni program ($25k). Investment Highlights: FS is run by staff who have personal experience with addiction and successful recovery. About 20% of former clients volunteer at FS. With the opening of its new building, FS increased its capacity from 28 to 50 beds for its Phase 1 residence and added 14 beds to its Phase 2 capacity. FS also hired 8 additional staff and have cut their client waiting list in half to now average about 30 men, versus 60-70 a year ago. FS is collaborative with community agen- cies and is a partner in Calgary’s 10-year plan to end homelessness. FS holds weekly meetings for over 150 alumni offering continued support, and celebrating sobriety. FS’s funding is diverse with 71% of total funding coming from donors. Donor funds are even more critical for program funding with less than 2% of funds coming from government. Investment Risks: FS’s capacity for expansion remains the primary risk at this time. Although FS’s new building is complete and demand is robust, there is transition risk. Furthermore, FS’s current Program Cost Coverage is low at 24%.

John Grandy, CFA ([email protected]), Arun Lamba ([email protected]) July 18, 2012

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.