A World Free From Cancer. BC Cancer Foundation 2011 Report to Donors
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1 A World Free From Cancer BC Cancer Foundation 2011 Report to Donors For the year ended March 31, 2011
2 Table of Contents Page 3 Page 5 Partners in Discovery A Message from the BC Cancer Foundation Chairman of the Board and the President & CEO Financial Highlights Statement of revenue, expenses and fund balances for the years 2009 through Page 12 Management s Responsibility for Financial Reporting Page 13 Audited Financial Statements For the year ended March 31,
3 Partners in Discovery A Message from the BC Cancer Foundation Chairman of the Board and the President & CEO: The BC Cancer Foundation raises funds exclusively for the BC Cancer Agency that go to supporting innovative cancer research and enhancements to patient care. What we raise in British Columbia stays in British Columbia. Fiscal 2011 was a remarkable year. Our donors generosity took us to new heights, raising $39.3 million, a new record for private philanthropy to our organization. Last October we established a new brand platform for the organization, Partners in Discovery. Through our new brand we invite interested parties to join us in discovery and form partnerships with doctors and researchers to make a difference in the lives of cancer patients throughout British Columbia. Partners in Discovery is representative of the partnership of philanthropy and research coming together to spark change. Philanthropy provides seed funding that fuels discovery-based research taking place at the BC Cancer Agency. New evidence comes from research discoveries and improvements to care and treatment are made based on this newly discovered evidence. The strong donor support demonstrated this past year has allowed us to continue to be the largest charitable funder of cancer research in B.C. Our donors commitment to making a difference gives us hope and optimism for every cancer patient in our province. Working together, we believe we can achieve our vision of a world free from cancer. This year, in partnership with the BC Cancer Agency, we made great strides toward making our vision a reality. A study published in December 2010 in the medical journal The Lancet highlights some important findings. When compared to other countries of similar wealth and universal healthcare systems, Canada s cancer outcomes are some of the best in the world. Five-year survival rates for breast, ovarian, lung and colorectal cancer are steadily improving. In addition, cancer outcomes here in British Columbia are the best of the best. B.C. has the best one and five-year breast and ovarian cancer survival rates and outcomes of women of all ages diagnosed with ovarian cancer improved almost ten per cent over the study s eight-year period. Cancer care and treatments are improving at an unprecedented pace. 3
4 At the BC Cancer Foundation we know we are funding the areas of greatest priority and promise. We know, because we ask the scientists and clinicians at the BC Cancer Agency to identify the priorities and needs that will have the most significant and timely impact on cancer care and treatment. We then partner with our donors to raise the necessary funds in support of this life saving work. Together we are funding and finding solutions that are having a direct impact on improving care for cancer patients in British Columbia. Thank you for being our partners in discovery. You have made a difference. Jess Ketchum Board Chair Douglas Nelson President & CEO 4
5 Financial Highlights Statement of revenue, expenses and fund balances (in $thousands) For the years ended March 31, Total Revenues 28,299 32,689 39,257 Direct Fundraising Costs 11,384 11,166 10,203 Net Fundraising 16,915 21,523 29,054 Direct Fundraising Costs/Total Revenues 40% 34% 26% Foundation Administration 2,097 2,429 2,433 Community Awareness & Public Engagement ,474 Total Expenses 2,773 3,254 3,907 Total Expenses/Total Revenues 10% 10% 10% Excess of revenue over expenses before support of research and other initiatives 14,142 18,269 25,147 Total Support provided to BCCA 15,906 12,800 18,599 Excess (deficiency) of revenue over expenses and support (1,764) 5,469 6,548 Fund Balances Endowments 15,654 19,541 22,126 Restricted 23,393 26,454 33,822 Unrestricted 3,858 5,843 4,111 Total Capital 42,905 51,838 60,059 5
6 Source of Total Revenues - $39.3 million For the year ended March 31, % 6% 56% Individual Philanthropy Charitable Events Investment & Other Income Total revenues for the year ended March 31, 2011 were $39.3 million, a 20% increase over the prior year. Individual Philanthropy represents all donations received as a result of annual fundraising programs, major gifts and bequests. In 2011 revenues from Individual Philanthropy increased by 25% over last year to $21.8 million. Charitable events revenue includes revenues generated primarily from our events The Ride to Conquer Cancer, The Weekend to End Women s Cancers and the Underwear Affair. In 2011 Charitable Event revenue was $15.1 million or 19% higher than the prior year. This was due to the outstanding fundraising success of the Ride to Conquer Cancer. Investment and other income was $2.3 million in 2011 compared to $2.5 million in
7 Use of Net Fundraising Revenues - $29.1 million For the year ended March 31, % 5% 8% 64% Research & Enhancements to Patient Care Future Support & Endowments Community Awareness & Public Engagement Foundation Administration In 2011 the Foundation realized $29.1 million in net fundraising revenues, an increase of 35% over the prior year. This was due primarily to the increase in total revenues and also to a decrease in direct fundraising costs. Direct fundraising costs were 26% of revenues in 2011 compared to 34% in 2010 which represents a significant improvement in our direct cost per dollar raised. Support to the BC Cancer Agency for research and enhancements to patient care totaled $18.6 million in 2011 compared to $12.8 million in Below are a few of the BC Cancer Agency research projects that the BC Cancer Foundation is funding: Pediatric Genome Sequencing Project -- The Agency s Dr. Poul Sorensen leads this project that will expand our knowledge of rare childhood cancers. Through the sequencing of cancer genomes, he hopes to find new knowledge that will lead to more effective treatments to improve and extend the lives of the youngest cancer patients. 7
8 Chair in Cancer Survivorship -- A new research chair has been established by the Agency and Simon Fraser University that will look at the growing issue of cancer survivorship. The Chair will work with patients, clinicians and administrators from across the Agency to ensure that the more than 12,000 cancer survivors each year can be best supported on their journey. PET/CT Scanner -- A second, state-of-the-art PET/CT scanner was purchased and the existing scanner was upgraded to a newer model. Wait times have been reduced and the number of patients able to receive these life-saving scans has more than doubled. Inspire the World Campaign on Vancouver Island -- The campaign to expand and improve patient care, support and research space at the Agency s Vancouver Island Centre in Victoria achieved its fundraising goal. Increased resources for patients care and treatment navigation and their psychosocial needs will give them the tools and support to successfully navigate their cancer journey. Innovation Support Fund -- This fund will support small research equipment needs across the province, so researchers can quickly move ahead with new ideas and new research projects, without having to wait for external or national grants. LEEF Chair in Functional Cancer Imaging -- Dr. François Bénard conducts research in advanced cancer imaging techniques, such as the use of PET/CT scanning. Dr. Bénard is looking for new ways to use this powerful tool to improve diagnosis and monitoring of cancer. The results of his work means unnecessary treatments can be avoided and additional options for patients can be identified sooner. ANGELYC (Analysis of Genomes to Eliminate Lymphoid Cancer) Project -- With plans to analyze the genomes of all types of lymphoid cancers, this project intends to identify a number of possible cancer biomarkers. Each biomarker is a signal or target at which researchers can aim new therapeutics. A deeper understanding of cancer and how to treat it represents a movement away from cancer as a terminal disease and towards it being a chronic one. Such new therapeutics holds the promise for greater treatment efficacy and fewer side effects. And up to 50 per cent of lymphoid cancer patients who cannot be cured with standard therapy, new options hold promise for surviving. 8
9 Ovarian Cancer Research (OvCaRe) Program -- The goal of this collaborative and multidisciplinary research program is to improve the survival rates of ovarian cancer patients through improved identification, understanding, and treatment of the disease. Major research discoveries in recent years have already improved the knowledge, diagnosis and treatment of ovarian cancers in B.C. BC Generations Project -- The BC Generations Project will help researchers learn more about how our environment, lifestyle and genes contribute to cancer and chronic diseases, by collecting health information and biological samples from British Columbians across the province. This project will serve as an invaluable resource for all aspects of cancer prevention research in the generations to come. Deeley Research Centre -- The Deeley Research Centre at the Agency s Vancouver Island Centre is one of only two sites in Canada dedicated to cancer immunology research. By studying how cancer interacts with our immune system, researchers hope to find ways to harness its anti-cancer abilities, as a less invasive and more effective form of treatment. Acute Myeloid Leukemia (AML) Sequencing Project -- Dr. Aly Karsan s project, which involves the genomic sequencing of AML tumours, with the hope of providing information that will lead to improved treatments for AML patients. Radiation Oncology Fellowships -- This funding supports radiation oncology fellowships at the Agency s Centre for the Southern Interior and its Vancouver Island Centre. Supporting the next generation of leaders ensures that the Agency s excellence in cancer control continues and that all patients experience the same outstanding level of care. Future Support & Endowments represents funds raised in the current year but held either in endowment funds or restricted funds for the future support to the BC Cancer Agency. The Foundation works with the Agency to prioritize strategic projects many of which require funding over a multi-year time frame. These funds are held by the Foundation and granted to the Agency over the projected life-cycle of the projects Community Awareness and Public Engagement represents the Foundation s investment in brand awareness and communicating the impact of philanthropy on research with the overall goal of enhancing our support to the Agency. Foundation Administration includes all costs related to general management and administrative activities. 9
10 Total Foundation Capital Resources - $60.1 million For the year ended March 31, % 56% 37% Endowment Fund Restricted Fund Unrestricted Fund The capital resources of the Foundation represent funds held for the future support of the BC Cancer Agency and amounts to sustain future operations. Total capital resources increased to $60.1 million in 2011 from $51.8 million in The Unrestricted Fund accounts for the Foundation s general fundraising and administrative activities. The unrestricted fund holds unrestricted resources available for immediate purposes. The Restricted Fund includes those funds where resources are to be used for an identified purpose as specified by the donor, as stipulated by the fundraising appeal or as determined by the Board. These funds include those which are restricted for use in research, enhancements to patient care and other areas of the Foundation s support grant activities. The Endowment Fund includes those funds where either the donor or internal restrictions require that the principal be maintained by the Foundation on a permanent 10
11 basis. A distribution of income earned is made annually on the recommendation of the Board for spending purposes. Under the Foundation s Investment Policy, the marketable investments of the endowment fund are managed by external investment counselors and monitored by the Investment Committee of the Board. 11
12 MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING The financial statements and the information contained in the report to donors are the responsibility of the management of the BC Cancer Foundation (the Foundation ). The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include, where appropriate, estimates based on the best judgment of management. Financial and operating data elsewhere in the report to donors is consistent with that contained in the accompanying financial statements. As part of its responsibilities, the Foundation maintains systems of internal accounting and administrative controls of high quality, consistent with reasonable cost. Such systems are designed to provide reasonable assurance that the financial information is relevant, reliable and accurate, and that the Foundation s assets are appropriately accounted for and adequately safeguarded. The Board of the Foundation carries out its responsibilities with regard to the financial statements mainly through its Finance and Audit Committee (the Committee ). The Committee reviews the annual financial statements and other information contained in the report to donors and recommends them to the Board for approval. The Committee meets periodically with management and the external auditors. Following these meetings, the Committee meets privately with the auditors to ensure free and open discussion of any subject the Committee or the auditors wish to pursue. The Committee also recommends the engagement or re-appointment of the external auditors, reviews the scope of the audit and approves the fees of the external auditors for audit and non-audit services. The financial statements, audited by KPMG LLP, have been approved by the Board, on the recommendation of the Audit Committee. June 23, 2011 Douglas Nelson President & CEO Luigi Del Gobbo, CA Vice President & CFO 12
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