COVENANT HOUSE ANNUAL REPORT 2005

T 2005 AL REPOR

ANNU Our Principles

Table of Contents IMMEDIACY ANT HOUSE Kids come to us in crisis, desperately needing help.We provide VEN Message from the Executive Director . . 3 for their basic human needs – food, clothing, a shower and O

C medical attention – immediately. Message from the Chair ...... 4

Message from the President ...... 5 SANCTUARY

Achievements 2004-2005 ...... 6 Kids trying to get off the street are often scared and mistrustful. We protect our kids from violence and degradation by providing Our Programs and Services ...... 7 safety. How Dollars Are Raised ...... 12 VALUE COMMUNICATION Special Events ...... 13 We show our , by example, that wholesome, caring Donor Recognition ...... 14 relationships are based on trust, respect and honesty.

Financial Report ...... 19 STRUCTURE Board of Directors ...... 25 Street life is unstable and unpredictable.We provide structure How to Contact Us ...... 25 and a reasonable set of expectations to give our kids a chance to focus on their future.

CHOICE

We help our youth make positive choices.We give them the encouragement they need to believe in themselves and to change.

1 T 2005 AL REPOR

ANNU Our New vision Statement ANT HOUSE VEN O

C Covenant House is a leading expert in and advocate for homeless youth in Canada.We serve the largest homeless youth population and provide the most complete range of housing and support services through our facilities, or in collaboration with community partners, to meet the needs of street youth.

We are flexible and responsive to emerging needs of homeless youth. Our actions are supported by information and research and our operations are second to none.

Our vision and our management philosophy are guided by our Covenant House Principles.

2 T 2005

AL REPOR Message from the Executive Director ANNU

Giving young people every opportunity Most importantly we were able to gather possible to turn their lives around is at the better information about the needs of our core of our mission at Covenant House. youth.We identified new trends, in particular

ANT HOUSE the increasing prevalence of mental health That is why I’m particularly proud to report issues and a need to reach at-risk youth.We VEN on the exciting work we’ve undertaken this

O will address these issues in the coming year

C past year that will enable us to offer better while we continue to keep abreast of the services to more youth. We’ve developed a emerging needs of our youth. new vision supported by a three-year strategic plan that will allow us to improve services to On behalf of the youth at Covenant House, our youth, respond more quickly to their I want to express my thanks to everyone emerging needs, strengthen our advocacy who gave so much over the past year. It is efforts and ensure our financial stability. As only with your help that we can offer our kids part of this effort, we surveyed our youth, staff a second chance. and other community agencies for their input. Sincerely, In addition, we conducted a complete operational review and implemented a continuous improve- ment model to ensure that our program and administration operate as effectively and efficiently as possible. Ruth daCosta Already we are seeing positive results.We have Executive Director realized administrative savings and increased time youth workers can spend with residents by streamlining paperwork requirements.

3 T 2005

AL REPOR Message from the Chair ANNU

It is with mixed emotions that I find myself On behalf of the Board, I also want to express about to wrap up my term as Chair of my sincerest thanks to the many people who Covenant House Toronto’s Board of Directors. give so generously to help the kids at Covenant ANT HOUSE While I’m sad to be moving on, I’m so proud of House.The contributions of individuals like Dan

VEN our achievements over the past year. O’Neill, companies like CIBC and our partners O including the Archdiocese of Toronto and C For me it is all about the kids. Like all kids, Covenant House, International enable us to they have so much potential and energy.The give our kids the chance they need. difference is that most of them have faced circumstances we’d find hard to imagine. I don’t expect to ever be far from Covenant House and the young people here. I urge you I’m particularly gratified to see that Covenant to join us as we continue to “fight the good House is in a stronger position for the future fight” for street kids who are in such urgent as a result of the work done this past year need of our assistance. on a new strategic plan and the implementation of a continuous improvement model in its Sincerely, operations.

My thanks to all of our Board Members for their support, to Executive Director Ruth daCosta for her guidance and her staff for Paul Alofs their help during my term. I’m confident they Board Chair will continue to do a great job and I wish my successor,Tom Woods, all the best.

4 T 2005

AL REPOR Message from the President ANNU

Whether in Toronto, Philadelphia or effective operation. I am also encouraged Guatemala, the 76,000 youth in our care to see that they will make reaching more last year came to us with more complex at-risk youth a goal for the coming year.

ANT HOUSE needs and facing even tougher barriers as At our corporate headquarters in New they struggle to rebuild their lives.

VEN York, we have also begun a review of our O

C Dangerous trends like the globalization of programs, services and operations this past drug and prostitution rings are putting year and we will be going forward with more children at terrible risk across North this initiative in the coming year. I expect and Latin America and around the world. we will find the work done in Toronto a At home, domestic violence and family benefit to us as we proceed. breakdown continue to take an increasingly I want to thank everyone involved at painful toll on our young people. Covenant House Toronto, and all of our Our theme this year is,“Covenant House: generous donors. It is only with your help Shaping the Agenda for At-Risk Youth in the that we can continue in our mission to Americas”.As we seek ways to address this help street youth, particularly those who challenge, I look forward to being among have nowhere else to turn. national childcare leaders when we meet God be with you. with First Lady Laura Bush, who has made the welfare of children her priority.

I commend Covenant House Toronto for its achievements this past year in planning and Sister Patricia Cruise implementing changes to ensure the best President, Covenant House possible services to our youth and an

5 T 2005

AL REPOR 2004 - 2005 Achievements ANNU

• Some 4,000 youth, most aged from 16 to 19, • Spent over $12 million, about 77% of our total • Participated in an effort by the received services, including safe refuge, food, expenditures, on programs for our youth. Association of Children’s Aid Societies to find clothing, counselling, medical attention and ways to improve educational outcomes for

ANT HOUSE • Introduced a continuous improvement model to educational and vocational assistance. vulnerable youth, including increasing access to ensure our program and administration are as financial support for post-secondary education. VEN • 863 youth used our health care clinic for a total of efficient and effective as possible. As a result, O

C 8,575 visits. About 35 percent were non-residents as realized administrative savings and increased • Collaborated with the Downtown Yonge Business many continue to use our clinic after they move on. time youth workers can spend with residents Improvement Area to help reduce the impact of by streamlining paperwork requirements. homelessness through activities like encouraging • Up to 28 youth lived in our longer-term housing businesses to hire and mentor homeless youth. facility and received the support of all of our • Helped secure a site and capital funding for programs while they worked and/or continued 25 housing units for homeless teen parents as • Delivered a poster presentation at the first their education. 19 youth graduated from this part of an effort by community agencies. national conference on homelessness that program last year and eight others were reunited brought together academics, homeless people • Involved 30 residents in a downtown garbage with their families. and frontline agencies to help find solutions. clean-up project and provided a youth speaker for • 162 attended our in-house high school that is the media launch of Shelter Awareness Week in • Delivered a presentation to the Youth Court open to residents and non-residential youth. Toronto at City Hall to demonstrate their abilities Advisory Committee to raise awareness of and help dispel negative perceptions of street youth. the problems of homeless youth so that those • 19,163 students in schools and youth groups were in the judicial system can better understand given presentations about the dangers of street • Collaborated with other community agencies and their issues. life and safer alternatives to running to the street. provided youth participants for research projects including a study of the problems of high school • Developed a new vision statement supported by a dropouts for the Ontario government, a national three-year strategic plan focused on better services investigation into strategies used by youth to exit to more youth. As part of this planning process, the streets and a study of the mental health needs we surveyed our youth, staff and other community of street youth. agencies for feedback on our programs and to gain a better understanding of how best to meet the current and emerging needs of our youth.

6 T 2005

AL REPOR Program Overview ANNU

Every year there are about 53,000 reports of Canadian We found disturbing trends including the fact that we kids running away from home according to the RCMP. are seeing more youth with mental health problems, In human terms, the police stress that, for the most part, more are struggling with changes in Ontario’s education ANT HOUSE children do not run from their homes unless they are system and more are at risk of ending up on the street. having serious problems. VEN Youth with mental health problems are increasingly “I believe I’m only alive because O

C These problems can include abuse, neglect and/or relying on shelters for services they can no longer find somebody up there was looking difficulties with peers and school.“Running away,” the RCMP elsewhere. So that agencies like ours can better help out for me,” says 22-year old Jack, report concludes,“must be seen as a cry for help.” them, we participated in the design of a study of the after a near-fatal addiction to mental health needs of street youth with other crystal meth. An estimated 10,000 young people spend some time on community agencies. What was to be a Vancouver the streets in Toronto annually. Most have fled or been holiday for the 18-year-old, turned thrown out of homes where there is abuse or neglect. We also found that there are more youth at risk of ‘‘ into a four-year nightmare after Problems like physical or sexual abuse, parents who have drifting to the street.We are hearing from more troubled friends there offered him the drug alcohol or drug problems and being unwanted young people looking for help on our website. that is raising national alarm. by a new stepparent can happen in any home. Significant problems in the education system are also Hospitalized after a severe beating What kids find on the street can be dangerous and contributing to putting more youth at risk, particularly by fellow users last year, Jack sometimes deadly. A grim picture emerged from a recent those who lack family support.The province’s dropout decided to turn his life around Toronto study that found that half the street youth rate has reached a staggering 33 percent, an increase of and found his way to us. surveyed were eating food from garbage cans and almost 10 percent in the past five years since the introduction of Now working for a deli catering 25 percent of young women were trading sex for food. the new curriculum.This rate combined with inadequate business and counselling other options to zero tolerance policies, is leaving youth on the dangers of crystal As the country’s largest shelter for homeless youth, thousands of youth idle and vulnerable. meth, Jack is living in our Covenant House offers a second chance to thousands transitional housing. every year. Most are from 16 to 19 and their needs In the coming year, we plan to do more to reach at-risk are increasingly complex. youth to provide them with counselling that may help them stay at home or find safer alternatives if needed. Last year, we surveyed our kids, staff and other community agencies as part of our strategic planning process to ensure we are in touch with the current and emerging needs of our youth. ’’ 7 T 2005

AL REPOR Living at Covenant House ANNU

Our doors are open 24/7 to desperate young people We do this by making a “covenant” or agreement To help kids stay in school or continue with who find their way to us from every part of the with every kid to stand behind their efforts to post-secondary education, we enhanced the eligibility country and every background.When kids decide change their lives.We do this with unconditional for the program last year.Three of our ROP residents ANT HOUSE to stay in our 94-bed shelter, we work with them love and respect. will be attending university this fall with external to help them realize their goals and dreams. financial assistance or scholarships. VEN Through our survey, we learned that our kids O

C We take care of our kids’ immediate needs with want more community involvement where they Last year, 19 youth graduated from ROP while eight nutritious meals, clean clothes, safety and routine. can demonstrate their abilities and improve the others were reunited with their families. With the help of volunteers, we also provide image of homeless youth.We will work with them recreational opportunities. For those who need to find empowering opportunities like volunteering OUR KIDS: extra emotional support, we have social workers with seniors or playing basketball with police. # of youth in emergency shelter: 1,198 and pastoral ministers to help. 52.3% from 16 to 18 years of age TRANSITIONAL HOUSING We offer all of our youth life skills sessions, such 68.3% boys, 31.7% girls as basic cooking and household management as Our experience bears out numerous studies that well as volunteer opportunities in the community. show homeless youth continue to need support for This year some 242 youth participated in our life a better chance at success as they move towards skills program. independence. Once our youth are making progress they can opt to move to our longer-term transitional Much more than a shelter, we have a full range of housing program, Rights of Passage (ROP). services under one roof and bring a multi-disciplinary team together to care for the mind, body and spirit Up to 28 young people have a room of their own of every youth.We empower young people to take and life skills training for 12 to 15 months while responsibility for their futures with our support. they work and/or continue their education and save money toward their independence.These youth are also paired with an adult mentor.

8 T 2005

AL REPOR Reaching Out ANNU

COMMUNITY SUPPORT SERVICE BETTER CHOICES ON THE STREET

We want to be there for kids who need us, When our residents told us they wish they had The longer kids stay on the street, the greater regardless of whether they’re staying in our shelter known there were other ways to get help than the peril and the harder the road back. Early ANT HOUSE or not.Young people can come to our centre that running to the street, we developed a program intervention is critical.

VEN we call Community Support Services (CSS) for a that offers young people information on safer

O We reach out to kids by going out on the street to meal, a shower, counselling and clean clothes or alternatives. C let them know about our services and we partner to participate in a life skills program.Young parents Our program,“Before you run…”, is the only one with the Salvation Army to provide counsellors for can bring their tots for advice on parenting. of its kind that is offered in schools and to youth its mobile outreach van equipped with a kitchen A small food bank, baby food, diapers and house- organizations free of charge. and medical supplies. hold items like dishes are available for kids living Our staff go into classrooms to give a realistic look in the community. 539 youth served on the street at the dangers of street life through discussion and Youth who come to this program area are a video presentation to students in Grades 6 to 10. encouraged to meet regularly with our staff We also distribute information about specific help and to work on a plan to achieve their goals. available in local communities.

To reach as many youth as possible, 2,552 youth served including we created a web-based version of our 358 of their infants and toddlers presentation.This on-line program was 71 youth were under 16 tested with youth last year and will be

51 were under 13 revised this year based on their input.

Total attendance: 19,163

Total # of presentations: 456

Youth can pick up supplies they need from our food bank.

9 T 2005

AL REPOR Opportunities ANNU

SCHOOL JOBS

In our in-house high school, we offer specially tailored Meaningful employment is key to independent living. courses to give residents and non-residential youth the We offer our youth vocational resources to help them ANT HOUSE confidence and credits to enable them to receive their get started in the working world.

VEN diploma from a community school.

O Equipped with instruction in job search strategies,

C Where once school may have been a part of a youth’s resume preparation and mock interviews, our youth problems, our school can be part of the solution as kids are better prepared to make their way into the job again find the structure and routine of the classroom market. to make them feel like any other teen while they get Some 417 young people benefited from our vocational individual attention. support services and gained work experience through Last year, 162 youth attended our school while hundreds our partnerships with employers such as Turnaround more were counselled and connected with other Courier, a delivery company dedicated to helping street education programs. youth and an Etobicoke-area Great Canadian Bagel.

To improve the odds of success in the workplace, we also offer our own pre-employment program,Ticket to Life (TTL) to provide youth with computer training and workplace skills such as time management.TTL participants are also teamed with volunteer mentors for additional support. Almost 75 percent of graduates of this program got jobs as a result.

10 T 2005

AL REPOR Compassionate Care ANNU

Our on-site health clinic, open to both our residents and The increasingly complex needs of kids we are seeing non-residential youth, offers compassionate care to heal has resulted in greater use of our clinic. Last year, youth the physical and psychological tolls of street life with used our health care service more frequently or about three full-time nurses, a visiting doctor and a consulting 10 times each, up from eight times each the previous year. ANT HOUSE psychiatrist. To help heal the spirit,our two pastoral ministers VEN

O Youth get the immediate attention they need whether offer guidance and moral support. C they have health insurance cards or not.We will cover the costs of numerous services including medical staff, HEALTH CARE: prescriptions, lab work and eye examinations.To ensure Total # of visits: 8,575 continued health care support, we help our kids get health Total # of youth: 863 cards, coordinate their care with other medical services if necessary and provide healthy lifestyle education.

Our specialized care and the understanding of our health team often results in youth continuing to use our clinic after they move on. About 35 percent of youth who visited last year were non-residents.

11 T 2005

AL REPOR How Dollars are Raised ANNU

To offer our youth the full range of services to help We have made the areas of major gifts and planned them turn their lives around, Covenant House relied giving a top priority for our fundraising plan in the on donors for 77 percent of our $16-million operating coming year. We now have dedicated staff who are

ANT HOUSE budget last year. This was five percent lower than working to develop programs focused on these areas. total revenue raised the previous year mostly due to VEN In addition, this past year we have increased our efforts “I saw a side of the city that I didn’t

O bequest revenue of $1.5 million in that year versus want to see,” says Tania,20. C to tap the tremendous potential of partnering with $487,000 last year. corporations and foundations.We started to focus on Like many first generation Canadian Fundraising revenue, excluding bequests, increased better matching donors' interests with our programs youth,Tania, found herself in $220,000 over the previous year. Although a modest and we will continue to look for those companies and conflict with the traditional values increase, it is a good indication that we are stabilizing foundations that are most likely to be best “fits” with of her Portuguese parents.When our revenue base and moving in an upward direction. our programs. the stressed‘‘ boiled over she ran and found refuge with a friend. Our direct mail program remains the largest source of Meanwhile some six percent of our support came from “People take advantage.You our revenue and accounted for 80 percent of the total special events – either events run by us or held by really are forced to do drugs or raised.Through better use of technology and analysis, others on our behalf. prostitution,” she says.“If I hadn’t we made significant progress over the prior year in Last year we shifted our strategy from creating new come here, I’d be living on the street learning how our donors want to support us and we events to maximizing the return on existing events by or dead,” she says.“Covenant House are directing our programs to better match those needs. helps you stick to your goals.” expanding our sponsorship opportunities.To achieve Many of our donors opt to give on a monthly basis. Last this goal, we provided sponsors with more value-added This summer she found full-time year, we raised 19 percent more revenue through our promotional opportunities and we will continue with work at a summer camp for monthly donor club by introducing fundraising strategies this approach. children with behavioral problems, that offered donors more options to get involved. She’s also in touch with her family and their relationship has improved. Moving forward we will focus some of our efforts on on-line giving opportunities.

’’ 12 T 2005

AL REPOR Special Events ANNU

Our revitalized and expanded signature special events Luncheon was an opportunity to pamper moms, mingle were more successful last year. Along with events hosted with the famous and get an inside track on the latest for us by other groups, we raised over $697,000 in fashions. Hosted by Broadcaster Erin Davis, the event

ANT HOUSE gross revenue. drew 200 guests and netted more than $45,000.

VEN Wine,Whisky & All That Jazz, a cool combo of fine wine Our annual golf fundraiser, the Covenant House

O and classic jazz, held at the chic Liberty Grand drew Morguard Celebrity Golf Classic was held this year at C more than 400 guests and netted a record $220,000. the exclusive Glencairn Golf Club in Milton. Sponsored Hosted by Jaymz Bee, the evening offered a fine wine by Morguard Investments Limited and hosted by auction, conducted by Ritchie’s famed Stephen Ranger JACKfm’s Rob Christie, our foursomes enjoyed great and the musical stylings of some of the best local jazz golf and fun with sports and media celebrities.The talent. event netted more than $100,000.

Set in the elegant King Edward Hotel, our second annual We are most grateful to the many companies that Covenant House Mother’s Day Celebrity and Fashion continue to support our events.

13 T 2005 Donor Recognition AL REPOR ANNU INDIVIDUAL Steven Chepa Joseph Fehrenbach Dr. Sam Jebamani,Winnipeg DONORS Bernard Clermont Mr. & Mrs. K. Feikes Andre Jolette Martha & Paul Alofs John and Debi Coburn Sally Feore Dr. Donald T. Jolly M.D. The following individuals and Anonymous Lynne Cohoe Mr. Edward L. Frankel David E. Jones organizations made contributions G. David & Joan Cole and Family H. L. Katarynych ANT HOUSE Bruce Armstrong Sheila Gallagher of $1,000 or more to the operating John Marcus Auffret Kevin R. Coleman Mr. W. J. Keating

VEN funds of Covenant House during Sylvia Gerencher-Jansen Richard J. Balfour Dr. Shelagh Connors Jessie Kelsey O our fiscal year 2004-2005.

C Valerie Gibbons Paul L. Barnicke Jane Cooke-Lauder, Kathryn Kennedy Bataleur Enterprises, Inc. Iris Gilley As well, included here are those who Patrick James Barry Lori Kennett provided in-kind items and services Stephen & Jennifer Corbett Mary & Lionel Goffart, George Thomson and Paul & Dorothy Kenny Chestnut Park Real Estate that are essential to our operations. Judith Beaman Lisa J. Coulman and Family Many others, who made generous Limited Christina Beatty and Family Elizabeth Crawford Mr. & Mrs. Stan & contributions, wish to remain Fred Gorbet Christopher Crump Susan Kerswill anonymous. Mary Lynn and Jim Beaven Joseph Greenwood Paula Kirk-Hosick In Memory of Matilda Beth Nowers and Jack Fernand Helie To all of our supporters, we express Bertucci Curtin Mr.and Mrs. Reginald our sincere gratitude.Your assistance Andrew & Helen Hendriks Kowalchuk Rafe Betro Ruth daCosta enables us to care for the young Lionel W. Houle Matilda Kwok Paul Blundy Mr. & Mrs. Stephen de Souze people who rely on us. Ms. Gundy Jackson Patricia & Roger Lace Donna M. Blythe Josie do Rego We apologize if we have inadver- Dr. Peter Boersma tently omitted the name of any Stuart D. Bookalam DANIEL ONEILL individual or group and ask that you please advise us. Giselle S. Branget CA, CFA His strong belief in youth and a desire to help young adults reach their potential Jean-Louis Breault moved Daniel O’Neill to make a major gift of $500,000 over the next two years. Monique Brown “Young people have so many challenges and distractions facing them today and the need for parents to be involved is crucial,” Mr. O’Neill says.“Living alone on the streets Charlie & Miki Bryant with no one to turn to for guidance is no place for anyone to be.” David & Ruth Burtnik “There is a critical need for a place like Covenant House and hopefully my donation Elmar & Tracy Busch may help improve someone’s future,” he adds. Dr. & Mrs.Wayne Carr His decision to contribute was also influenced by the range of programs offered to R. Caruso give youth real options to the street.“I am impressed with the quality and scope of Mr. Gil R. Casados program that gives young people the opportunity to move forward and be successful.” Mrs. Phyllis B. Casados Covenant House is most grateful for Mr. O’Neill’s generous donation.

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AL REPOR Donor Recognition ANNU

Victoria & Stuart Lazier Michael C. Nicholas Mike & Bea Stephen CORPORATE SUPPORTERS Leonette Leblanc J. O’Connor Stephen Suske Family 1606183 Ontario Ltd. M. Olivia Lee Paul & Margaret O'Connor Maria Tarnavskyj 490824 Ontario Ltd.

ANT HOUSE Mr. & Mrs. Ken Lefebvre Hans Ohrstrom Lee T.Taylor Ambassador Brokererage Limited Jean Paul & Bruce and Tania Orr Stephen Taylor

VEN AMEX Canada Inc. Bernadette Lemay

O Lionel Pineau Lucia M.Ten Kortenaar Avery Dennison C Mr. & Mrs. P.Lerner Cathy Preston and Family E.Thompson Beacon Group Real Estate Services Inc. Keith & Michele Loach Anna & Bosko Prkacin Brian J.Thompson Bell & McKenzie Co. Ltd. Francesca Lobo Mr. & Mrs.Alexandre Desmond G.Thompson Belle-Pak Packaging Inc. L.Tony Maestre & Jeannine Raab Ann-Marie Toccacelli Cadillac Fairview “TD Centre Ann Matthews Lizotte Real Rev. Martin A.Vallely Night of Dreams” Faye McAfee Don & Ruth Redmond Dr. Leo & Mrs. Sandra Vos Canadian Tire Associate Store # 150 Dr. James McBurney Dr. Donald S. & Michael & Karen Vukets Canadian Tire Corporation, Limited Joan & Brian McCann Mrs.Anne Reimer Mildred Wakely Casco Inc. Daniel J. McCarthy A. G. Robertson Maurice & Gloria Walsh CB Richard Ellis Bruce McDougall Beatrice Royle Gaw John & Josie Watson CIBC Ed McKay Matthew A. Sammut John & Connie Wightman Colliers International – Scott Addison Diana M. McVitty John E. Schmidt Charles Wickett Covenant House, New York Cindy & Dennis Metzler Walter Schneider Geraldine F. Williams Creststreet Capital Corporation Dr. Stanley Miller Mr. Gerd Schwarzkopf Lorraine Williams Crestview Investment Corporation Mrs.T. D. Morris Peter Semchism Mrs. G. E.Wilson DayMen Photo Marketing Ltd. Colleen Moorehead Helen Shanks Becky Wiseman Deloitte & Touche Bryan J. Murphy Mark Shishakly In Memory of John & Anne Piquet-Lake Tom & Ruth Woods Domino Printing Solutions Mary and Michael Murphy Mary and Murray Skitt Junko Yamamoto DUCA Financial Services Brenda M. Ness Allan Slaight Dennis Zettler E*TRADE Canada Kim Tam Dieu Hua Nguyen Cleone Sorensen Richard J. Zurawski Eli Lilly Canada

15 T 2005 Donor Recognition AL REPOR ANNU Fire Engine Inc. Morneau Sobeco Inc. Sony BMG (Canada) Inc. EVENT SPONSORS Four Seasons Hotels & Resorts Motion Picture Distributing LP Spaenaur Inc. Aecon Buildings Fraser MilnerCasgrain LLP Munich Reinsurance Company of Canada Spectrum Power CCL Industries Systems Inc. Fuse Marketing Group Inc. National Bank Financial CIBC Gaertner Tobin LLP National Life Assurance Starbucks Coffee Company ANT HOUSE Enwave Energy Corporation of Canada Stikeman Elliott LLP General Electric Canada Inc. Ken & Lily Szekely, Engineered Plastics

VEN Nestlé Purina Pet Care SummitREIT Property Management Ltd. Great West Life, London Life & KRG Children's Charities O

C Canada Life Nike Canada Ltd. Sun Life Financial Louie Santaguida,Terrasan Environmental Greenpark Homes O & Y Enterprise SYSCO Food Services of Toronto McLean Budden Hyperion Solutions of Canada Ltd. Ontario Power Generation TELUS Community Connections Morguard Investments Limited Imaginus Canada Limited Otis Canada, Inc. The Co-operators Pascoal Painting & Decorating Inco Limited Owen and Associates The Great Atlantic & Pacific Polymeric Engineering Limited Indigo Palmer Diversified Corporation Company of Canada Pricewaterhouse Coopers LLP Infosys Technologies Limited Parmalat The Guarantee Company of North America RBC Capital Markets Instil Productions Inc. PCL Constructors Canada Inc. The Investment Funds Institute of Canada Rosewood Flooring Co. Intercon Security Penson Financial Services Canada Inc. The Loose Moose Tap & Grill on Front Starbucks Coffee Company Canada John G. Hofland Limited PMA Brethour Group of Companies Street TELUS Mobility Jump Communications Inc. Polymeric Engineering Limited The Mitchell Partnership Inc. The Energy Savings Group KingStreet Capital Partners Primus Canada Trafalgar Group Inc. Lambda Properties Limited Radke Films Tyco Electronics FOUNDATIONS Luc Wintzen Design Inc., Ram Forest Products Inc. UBS Bunting Warburg Inc. A & A King Family Foundation Malcolm Preston & Huggins Rice Financial Group Inc. Unilock Ltd. Amma Foundation of Canada Search Partners Rogers AT&T Wireless Weir Foulds LLP Ben and Hilda Katz Charitable Foundation McMillan Binch Royal LePage Commercial Inc. Mendelsohn LLP Winners HomeSense CAF America Samuel Group of Companies Mercer Human Resource Consulting Canadian Tire Foundation for Families Scotiabank Meridian Technologies Inc. Wyeth Pharmaceuticals C.B. Powell Foundation Second Hand Rose Shop Miller Dallas Inc. York Heating and Air Conditioning CHUM Charitable Foundation Shorcan Brokers Limited Morguard Investments Limited CIBC World Markets Children’s Miracle Foundation

16 T 2005 Donor Recognition AL REPOR ANNU Conn Smythe Foundation Toronto Automobile Dealers Foundation School Sisters of Notre Dame – Jody Holden, Olympic Beach Volleyball Crane Fund for Widows Toronto Community Foundation Waterdown , Rough Riders and Children Wallenstein Feed Charitable Foundation ShareLife Alumni Evig Foundation Woman’s Christian Temperance Union Sisters of Service of Canada Mohanza Kelly, Singer ING Foundation Soeurs De La Charité D’Ottawa , NHL Alumni ANT HOUSE J. P.Bickell Foundation EMPLOYEE GROUPS St. Michael Roman Catholic Parish Linda Leatherdale,Toronto Sun

VEN K.M. Hunter Charitable Foundation Bell Canada, Helping Hands Open Hearts St. Ninian’s Church Scarborough Christine Magee, SleepCountry Canada

O BMO Fountain of Hope – Employees’

C Lee Tak Wai Foundation The Sisters, Faithful Companions of Jesus Peter Martin, Alumni Foundation Morton & Ethel Fields Foundation Marnie McBean, Olympic Rower CBC Employees’ Charity Appeal PEOPLE WHO GAVE Murray Family Charitable Foundation Georgia Mensé-Chase,Wine Ladies Hydro One Employee’s and Pensioner’s OF THEIR TALENT Newman's Own Foundation Julia Michels, Singer Charity Trust Fund Barbara Atkin, Holt Renfrew P & P Murray Foundation Scott Morrison, Sports Net IBM Canada Employees’ Charitable Fund Jaymz Bee and the Royal Jelly Orchestra RBC Financial Group Through Alex Pangam, Singer Kodak Employee Chest Alan Cairns,Toronto Sun RBC Foundation Maie Pauts, CHUM FM OPG Employees’ & Pensioners’ Rob Christie, JACKfm S. M. Blair Family Foundation Charity Trust Rose Reisman,The Art of Living Well Inc. Glenn Clark,Toronto Rock The Brumara Foundation RBC Employees’ Charity Trust Rhonda Rovan, Canadian Living Judy Croon, Mix 99.9 The C. Dennis Flynn Foundation Sears Employee Charitable Fund Mag Ruffman, Repair Expert Christine Cushing, Christine Cushing Live The Derick Brenninkmeyer Susanne Seelig-Mensé,Wine Ladies Charitable Foundation COMMUNITY PARTNER Erin Davis, Broadcaster Kimberley Seldon, Design for Living The George Kostiuk Family Birchcliff Bluffs United Church Laura Di Battista, CityTV Private Foundation Serafin, Singer First Lutheran Church , CFL Alumni The Hustler Young Men's Bible Connie Sinclair, Newstalk 1010 CFRB Knights of Columbus Humber Valley Lee Eckley, CHUM FM Class Foundation Adrion Smith,Toronto Argonauts Council 3945 Jane Francisco,Wish Magazine The Hylcan Foundation Karen Stemmle, Olympic Skier Ontario English Catholic Teachers Estelle Gee, Orderly Lives The Mimi & Sam Pollock Foundation Association Beverly Thomson, Canada AM Genevieve, Singer The Robert Campeau Family Foundation Overcomers Christian Fellowship Lyne Tremblay, Singer Marieve Herington, Singer The Sprott Foundation Religious Hospitallers of St. Joseph , The Tecolote Foundation

17

T 2005 Donor Recognition AL REPOR ANNU THOSE WHO PROVIDED PEOPLE WHO BEQUESTS PRODUCTS OR SERVICES HELPED GET OUR Estate of Helen M. Côté MESSAGE OUT Martha and Paul Alofs Michael S. Penner, Estate of Robert L. Holmes Body Blue Inc. CA.IFA/CBV 680 NEWS Estate of Florence Johnston Joeffer Caoc Florence & Robert 92.5 JACKfm

ANT HOUSE Estate of Mildred Pietrobon, Zaneen Chris Carbone 97.3EZROCK C. Johnston Thanks to capital grants totaling more Group Inc.

VEN Cilento Wines Concourse Media Estate of Allan L. Leifer, than $979,000 from Canadian Mortgage Please Hold Canada O Corus Radio Toronto Late of Russell, Manitoba C Digital Spectrum Inc. and Housing (CMHC) and Supporting Stephen Ranger, Ritchie’s Estate of Ivy L. Maynier Anthony Grnak Auctioneers & Appraisers Eucan (urban equipment Communities Partnership Initiative (SCPI), of Canada) Estate of William Sims Hudson Bay Company Karen Rieger FASHION & Wish we were able to complete major renovations H. L. Katarynych Rahul Suri Magazine and upgrades to both of our facilities LCBO Wine Tasting Frank Tallarico FLOW 93.5 including a new accessibility elevator, power McKay Designs The Home Depot IMA Outdoor Inc. Nike Canada Ltd. generator, roofing, floors and stairways. Thistle Printing Ltd. JAZZ.FM91 Nova Diamonds WestJet Media City TV Boards Peter Mielzynski Tom and Ruth Woods Media Experts Agencies Ltd. TAXI Toronto NEWSTALK 1010 CFRB ONESTOP Toronto Inc. Outdoor Broadcast Network Inc. Toronto Sun

IVY MAYNIER Ivy Lawrence Maynier battled racial and sexual discrimination to achieve international success as a lawyer, and devoted her life to fighting for the disadvantaged to earn an education. Born in Montreal to Trinidadian parents, Ivy graduated from McGill University and then attended the University of Toronto Law School. Covenant House is most grateful for the bequest of $949,414 made to us by Ivy Maynier over the past five years.

18 AUDITORS REPORT STATEMENT OF FINANCIAL POSITION T 2005 As at June 30

To the Board of Directors of 2005 2004 AL REPOR Covenant House Toronto $ $

ANNU We have audited the statement of financial position of ASSETS Covenant House Toronto as at June 30, 2005 and the statements of revenue and expenses, changes in net assets Current and cash flows for the year then ended.These financial Cash and cash equivalents 1,516,745 1,633,362 statements are the responsibility of the Agency's management. Accounts receivable [note 12] 237,388 257,824 Our responsibility is to express an opinion on these financial Due from Toronto Hostel Services 172,571 147,310 ANT HOUSE statements based on our audit. Prepaid expenses 56,734 35,326 Total current assets 1,983,438 VEN 2,073,822

O Investments [note 3] 4,707,845 4,226,193

C We conducted our audit in accordance with Canadian generally accepted auditing standards.Those standards require that we Capital assets, net [note 4] 15,338,253 15,062,954 plan and perform an audit to obtain reasonable assurance 22,029,536 21,362,969 whether the financial statements are free of material misstate- ment. An audit includes examining, on a test basis, evidence LIABILITIES AND NET ASSETS supporting the amounts and disclosures in the financial Current statements.An audit also includes assessing the accounting [notes 11[b] and 12[a]] 1,262,079 principles used and significant estimates made by management, as Accounts payable and accrued liabilities 1,619,457 102,437 well as evaluating the overall financial statement presentation. Deferred revenue 82,717 Total current liabilities 1,364,516 1,702,174 [note 5] 11,497,367 In our opinion, these financial statements present fairly, in all Deferred capital contributions 10,921,638 Total liabilities 12,861,883 material respects, the financial position of the Agency as at June 12,623,812 [notes 4[c] and 4[d]] 30, 2005 and the results of its operations and its cash flows Contingencies Net assets for the year then ended in accordance with Canadian generally accepted accounting principles.As required by the Corporations Unrestricted 618,922 Act (Ontario), we report that, in our opinion, these principles Undesignated 371,648 [note 6[a]] 3,840,886 have been applied on a basis consistent with that of the Invested in capital assets 4,141,316 4,459,808 preceding year. 4,512,964 Internally designated [note 7] 4,707,845 4,226,193 Total net assets 9,167,653 8,739,157 22,029,536 21,362,969

Toronto, Canada, See accompanying notes August 19, 2005. Chartered Accountants

19 STATEMENT OF REVENUE AND EXPENSES STATEMENT OF CHANGES IN NET ASSETS Year ended June 30 Year ended June 30

2005 2004 2005 $ $ Invested in capital Internally Undesignated assets designated Total $$ $$ REVENUE Contributions Balance, beginning of year 371,648 4,141,316 4,226,193 8,739,157 - Covenant House, New York [note 12[b]] 462,328 720,411 540,000 - ShareLife 540,000 Excess of revenue over Service revenue expenses for the year 428,496 ——428,496 - Toronto Hostel Services 1,899,193 1,855,185 Net change in invested in - Human Resources and capital assets [note 6[b]] 300,430 (300,430) —— Skills Development Canada grant 196,862 218,186 Donations and bequests 12,821,690 13,642,440 Transfer to internally designated net assets [note 7] (481,652) — 481,652 — Interest 123,295 98,017 Amortization of deferred capital Balance, end of year 618,922 3,840,886 4,707,845 9,167,653 contributions [note 5] 404,143 390,525 Other 152,909 14,561 16,600,420 17,479,325 2004 Invested in capital Internally EXPENSES [note 9] Undesignated assets designated Total $$ $$ Program services [note 8] 12,381,766 13,026,075 Fundraising and communications 3,248,867 3,196,397 Balance, beginning of year (98,202) 4,340,540 3,798,766 8,041,104 Management and general 541,291 558,800 16,171,924 16,781,272 Excess of revenue over Excess of revenue over expenses for the year 698,053 — — 698,053 expenses for the year 428,496 698,053 Net change in invested in capital assets [note 6[b]] 199,224 (199,224) — —

See accompanying notes Transfer to internally designated net assets [note 7] (427,427) — 427,427 —

Balance, end of year 371,648 4,141,316 4,226,193 8,739,157

See accompanying notes

20 STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS June 30, 2005 Year ended June 30 1. NATURE OF OPERATIONS

2005 2004 Covenant House Toronto [the “Agency”] provides care and sanctuary for homeless youth. In operation since 1982, the Agency provides a continuum of care that includes residential crisis $ $ intervention, assessment, referral, health care, transitional housing, job training and community support services and plays a major role in advocacy for street youth. OPERATING ACTIVITIES The Agency is incorporated without share capital under the Corporations Act (Ontario) and 428,496 Excess of revenue over expenses for the year 698,053 is a charitable organization registered under the Income Tax Act (Canada). Add (deduct) items not involving cash - Gain on sale of capital assets (129,439) — 2. SIGNIFICANT ACCOUNTING POLICIES - Amortization of capital assets 501,415 509,384 Basis of presentation - Amortization of deferred capital contributions (404,143) (390,525) The financial statements have been prepared in accordance with accounting standards recommended 396,329 816,912 by The Canadian Institute of Chartered Accountants for not-for-profit organizations. Changes in non-cash working capital balances Cash and cash equivalents related to operations Cash and cash equivalents include cash and any short-term investments with original maturity dates - Accounts receivable 20,436 143,348 of 90 days or less. - Due from Toronto Hostel Services (25,261) (3,619) - Prepaid expenses (21,408) 55,266 Capital assets - Accounts payable and accrued liabilities (357,378) 478,632 Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value - Deferred revenue 19,720 50,019 at the date of contribution. Capital assets are amortized on the straight-line basis over their estimated useful lives as follows: Cash provided by operating activities 32,438 1,540,558 Buildings ...... 40 years Furniture and equipment ...... 5 - 7 years

INVESTING ACTIVITIES Post-employment benefits Purchase of capital assets (1,093,934) (33,635) Contributions to a defined contribution plan are expensed when due. Proceeds from sale of capital assets 446,659 — Revenue recognition Purchase of investments, net (481,652) (427,427) The Agency follows the deferral method of accounting for contributions. Cash used in investing activities (1,128,927) (461,062) Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Donations are rec- ognized on a cash basis since pledges are not legally enforceable claims. Restricted contributions are FINANCING ACTIVITIES initially deferred and recognized as revenue in the year in which the related expenses are incurred. Contributions received for capital purposes 979,872 114,000 Service revenue is recorded as revenue when the services are provided. Cash provided by financing activities 979,872 114,000 Contributed materials and services Contributed materials and services are not recorded in these financial statements. Net increase (decrease) in cash during the year (116,617) 1,193,496 1,633,362 Cash and cash equivalents, beginning of year 439,866 Use of estimates Cash and cash equivalents, end of year 1,516,745 1,633,362 The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities See accompanying notes at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.Actual amounts could differ from those estimates. 21 3. INVESTMENTS [c] The acquisition, renovation and furnishing costs of the Agency's facility at 20 Gerrard Investments are comprised of internally designated net assets.These assets are invested in cash and Street were in part funded by the Province of Ontario and the City of Toronto in amounts cash equivalents [note 7]. of $5,400,000 and $1,400,000, respectively.The funding of $5,400,000 from the Province of Ontario is secured by a registered agreement constituting a first charge against title to the facility; it is non-interest bearing, with no principal payments due unless the building is 4. CAPITAL ASSETS sold or there is a change in use without prior agreement.The $1,400,000 advanced by the [a] Capital assets consist of the following: City of Toronto is secured by a mortgage in the amount of $1,400,000.The mortgage is non-interest bearing and there are no principal payments due unless the building is sold or there is a change in use without prior agreement.These amounts have not been recorded 2005 as a liability since the Agency is using this property as provided for in the funding agreements. Net Accumulated book [d] During the fiscal year ended June 30, 2005, the Agency was awarded funding by Canada Cost amortization value Mortgage and Housing Corporation ["CMHC"] for major capital renovations at both $$$facilities.This funding is to be provided as two separate loans that are forgivable provided the Agency complies with the terms of the agreements which require the Agency to continue operating its shelter program. Of the total funding recorded to date of $858,122, Land 2,795,000 — 2,795,000 $672,000 is covered by an agreement expiring on July 1, 2006.The balance of the funding will be covered by a similar agreement expiring one year after the related capital projects Buildings 15,224,819 2,883,440 12,341,379 are completed. It is anticipated that this second agreement will expire in September or 1,001,369 799,495 201,874 Furniture and equipment October 2006, and will cover total funding of approximately $250,000 when finalized.The 19,021,188 3,682,935 15,338,253 amounts received to date have been recorded as deferred capital contributions.They have not been recorded as a liability since the Agency intends to utilize the properties as out- lined in the CMHC agreements, and therefore, expects the loans to be forgiven as provided for in the agreements. 2004 Net [e] The change in the net book value of capital assets is due to the following: Accumulated book Cost amortization value $$$ 2005 2004 $$

Land 2,895,000 — 2,895,000 Balance, beginning of year 15,062,954 Buildings 14,383,345 2,550,236 11,833,109 15,538,703 114,062 Furniture and equipment 1,001,369 666,524 334,845 Purchase of capital assets internally funded 33,635 18,279,714 3,216,760 15,062,954 Purchase of capital assets funded with restricted contributions 979,872 — Net book value of capital asset disposals (317,220) — Amortization of capital assets (501,415) (509,384) [b] The Agency's primary capital assets are facilities at 20 Gerrard Street and 21 McGill Street. Both Balance, end of year 15,338,253 15,062,954 facilities are used to provide services to youth.

22 5. DEFERRED CAPITAL CONTRIBUTIONS 7. INTERNALLY DESIGNATED NET ASSETS [a] Internally designated net assets have been set aside by the Board of Directors for use at its Deferred capital contributions represent the unamortized amount of contributions for the discretion to fund future growth or for emergency cash flow requirements, as well as for repairs purchase of capital assets.The amortization of deferred capital contributions is recorded as and replacement of major building systems. revenue in the statement of revenue and expenses.The changes in the deferred capital contributions balance are as follows: [b] The interfund transfers from undesignated to internally designated net assets consist 2005 2004 of the following: $$ 2005 2004 Balance, beginning of year 10,921,638 11,198,163 $$ Add contributions for prior year Transfer for future building renovations and/or capital asset purchases — 114,000 capital replacement expenditures 234,378 20,451 Add contributions for current year Transfer for future growth and/or cash flow capital asset purchases 979,872 — requirements in accordance with Board policy 247,274 406,976 Deduct amortization of deferred 481,652 427,427 capital contributions 404,143 390,525 Balance, end of year 11,497,367 10,921,638 8. PROGRAM SERVICES Program services expenses consist of the following: 6. NET ASSETS INVESTED IN CAPITAL ASSETS

[a] Net assets invested in capital assets is calculated as follows: 2005 2004 $$ 2005 2004 Shelter and Crisis Care 6,187,685 6,892,372 $$ Public Education 2,642,293 2,580,115 Capital assets, net 15,338,253 15,062,954 Transitional Housing 1,703,177 1,627,895 Less amounts financed by deferred capital Community Services 1,085,943 1,066,507 contributions [note 5] 11,497,367 10,921,638 Medical 440,711 459,488 3,840,886 4,141,316 Ticket to Life Job Training 267,289 340,776 Outreach 54,668 58,922 12,381,766 13,026,075 [b] The net change in net assets invested in capital assets is calculated as follows:

2005 2004 $$9. COST ALLOCATIONS Certain administrative and occupancy-related costs have been allocated to the individual Purchase of capital assets internally funded 114,062 33,635 programs included in program services [note 8], fundraising and communications, and Contributions received for prior year management and general expenses in the statement of revenue and expenses based on the capital asset purchases — (114,000) number of staff involved with each of these functions. Other expenses are allocated based on Net book value of capital asset disposals (317,220) — the purpose of the expense or the activities of the staff in the department. Amortization of capital assets (501,415) (509,384) Amortization of deferred capital contributions 404,143 390,525 Decrease in net assets invested in capital assets (300,430) (199,224)

23 10. LEASE COMMITMENTS 12. RELATED PARTY TRANSACTIONS The Agency is committed under operating leases for office equipment expiring in 2010. [a] The Agency provides certain fundraising and administrative services to Covenant The future minimum annual payments under these leases are as follows: House Vancouver.A portion of the salaries and benefits and other costs of providing such services have been charged to Covenant House Vancouver by the Agency.This amount totalled $36,000 for the fiscal year ended June 30, 2005 [2004 - $37,500]. $ As at June 30, 2005, accounts receivable includes an amount of $2,750 [2004 - nil] due from Covenant House Vancouver.This amount is non-interest bearing and due 2006 22,856 within 12 months.As at June 30, 2004, accounts payable and accrued liabilities 2007 39,605 includes an amount of $29,235 due to Covenant House Vancouver. 2008 39,605 2009 39,605 [b] The Agency receives an annual contribution from Covenant House, New York 2010 31,354 amounting to $462,328 in fiscal 2005 [2004 - $720,411].As at June 30, 2005, accounts receivable includes an amount of $22,010 [2004 - $59,973] due from 173,025 Covenant House, New York.The amount is non-interest bearing and is due within 12 months.

11. POST-EMPLOYMENT BENEFITS [a] Effective December 31, 2003, the Agency terminated its defined contribution pension plan 13. LINE OF CREDIT and replaced it with a Group RRSP.During the year ended June 30, 2005, total contributions The Agency has a $500,000 unsecured line of credit with interest payable at the to the Group RRSP were $339,351 [2004 - $192,806]. In addition, fiscal 2004 contributions to prime rate.As of June 30, 2005, there were no drawings against this line of credit. the defined contribution pension plan for the six months ended December 31, 2003 were $182,936.

14. FINANCIAL INSTRUMENTS [b] Prior to July 1, 2003, the Agency provided extended health care and dental benefits to substantially all full-time employees upon retirement from the Agency. However, effective The carrying values of financial instruments approximate their fair values. July 1, 2003, this benefit was eliminated.The Agency's liability of $64,000 as at June 30, 2005 [2004 - $72,000] relating to post-employment benefits for retirees at July 1, 2003 who were "grandfathered" with this benefit has been recorded in accounts payable and accrued liabilities in the statement of financial position.

[c] Included within June 30, 2005 and 2004 operating expenses allocated amongst program services, fundraising and communications, and management and general expenses in the state- ment of revenue and expenses is the following amount related to post-employment benefits:

2005 2004 $ $

Defined contribution pension plan — 182,936 Group RRSP 339,351 192,806 Defined benefit plan 5,411 9,687 344,762 385,429

24

T 2005

AL REPOR Board of Directors ANNU

CHAIR VICE-CHAIR / SECRETARY Paul Alofs, President & CEO TREASURER Fred Gorbet The Princess Margaret Tom Woods, Senior Executive ANT HOUSE Hospital Foundation Vice-President & CFO CIBC VEN O

C DIRECTORS

Eric Agius, President Colin Moore, Z. Cathy Preston, Partner Nike Canada Ltd. President, Canada Malcolm Preston & Huggins Starbucks Coffee Company Search Partners Giselle S. Branget, CA, CFA COVENANT HOUSE Colleen Moorehead Father Gordon Rixon Diane J. Brisebois, Regis College President & CEO Roly Morris Retail Council of Canada Kim Samuel-Johnson, President Bryan J. Murphy The Samuel Family Foundation Robert Guenette, President Annual Report 2005 TAXI Toronto G. Michael Preston, Stephen Taylor, President & COO Chairman Morguard Investments Limited Covenant House Toronto Heather L. Katarynych Clearsight Wealth Ontario Court of Justice Management Inc. Lisa Zbitnew, President 20 Gerrard Street East Sony BMG Music (Canada) Inc. Toronto, ON, M5B 2P3 Dr. Richard Meen Telephone:416-598-4898 Fax: 416-204-7030 SENIOR MANAGEMENT E-mail: [email protected] Ruth daCosta, Carol Howes, Director, Faye McAfee, Executive Director Residence & Outreach Associate Executive Director www.covenanthouse.ca

Josie do Rego, Ian Jones, Director, Special Cindy Metzler, Director, Director, Development Program Services Finance & Operations & Communications

25