ASK ANNE: THE TRILLIUM FAQ

Q.	Where does Trillium's funding come from?

A.	Most of Trillium funds come from lottery revenues, via the Ontario government's consolidated revenues. At this point, Trillium receives about 2% of lottery profits. A second, smaller source of revenue is interest on the funds Trillium maintains in reserve for future payments on grants that are already pledged.

Q.	How much money does Trillium get each year? Has your funding been cut in recent years? What is the outlook for the future?

A.	In 1995/96, we received $12,867,621, reduced from $16,772,900 in the previous year. This fiscal year we've been fortunate in that our funding was not cut further, plus we received a one-time payment of $4,500,000 to use for the Community Connections program, the Access Fund, and other smaller projects in partnership with the Ministry of Citizenship, Culture and Recreation. We have been notified of a further cut of $1.1 million for fiscal year 1997/98. We don't know what the future holds, but we're optimistic, because we think we have a valuable contribution to make to the people of Ontario.

Q.	How much of Trillium's funding is spent on operating the Foundation?

A.	All of Trillium's operating costs are funded out of our investment income, which means that all the funds we receive from the lottery are used for grants. In terms of actual operation costs, over the past 5 years, operating costs have averaged 7% of our grants budget - that is, for every $1 granted, we spent 7¢ on operating costs - less than half of the operating costs of other foundations of comparable size.

Q.	How are Trillium's funds managed?

A.	Our funds are managed on a daily basis by myself, Anne Pashley, Director of Finance & Technology, working with David Burn, our volunteer Treasurer. I have been with Trillium for more than 10 years and am a University of Toronto MBA graduate. In his "day job" David is Vice-President, Taxation for Northern Telecom. And of course, our financial activities are monitored by the Executive Director and the Foundation Board's Executive Committee. By using an effective combination of staff and volunteers, in 1995/96 we managed a portfolio averaging $22 million for under $5,000, or .02%. We incur no fees for any of our investment activities, and pay no bank service charges.

Q.	How does Trillium demonstrate its fiscal responsibility and accountability?

A.	I'm glad you asked that question - this is something we feel very strongly about, and we're proud of our activities in this regard. First of all, every year we undergo a rigorous external audit with Ernst and Young, and we have always received a clean opinion. This audit, together with a report on our financial and granting activities, is submitted to the Minister every year and is available on our Web site and to any member of the public who contacts the office. To us, fiscal accountability also means making the best use of our resources. As I explained above, every penny that comes to us from the Government is used for granting, as we fund our operating costs from our investment income. We have a rigorous budgeting process, and we have always lived within our budget. And finally, we ensure that we always have sufficient money in our reserves to cover the balance of funds owing on our pledges to grantees, so that we are always "living within our means" - that is, we don't promise funds we do not yet have.

Q.	If an organization doesn't use all its grant as scheduled, what happens - does Trillium take the money back?

A.	We recognize that often activities are delayed, and when this happens we usually adjust the original payment schedule to reflect the new timelines, and we would not ordinarily request that the money be returned. Where there are significant changes in an organization's plans, we will work with the organization and may reschedule the grant payments or reallocate some of the funds to a different purpose. In most cases, though, if a grantee does not use all of Trillium's funds, we expect it back.

Q.	And what happens when an organization runs into serious problems?

A.	Of course, our first concern is enabling our grantees to achieve success, and we try to be supportive and technically helpful. Where there are serious problems or dramatic shifts in priorities, we may request that grant monies be returned, or cancel future payments. Sometimes an organization will return unspent money to us voluntarily. When funds are returned or grant pledges cancelled, the amounts appear under "Recovered or rescinded grants" in our audited financial statements; last year these totalled $261,700 - approximately 1.7% of the total pledged.