Business Plan 2017/18 – 2019/20

Approved by

OTF Board of Directors December 1, 2016

Ontario Trillium Foundation

800 Bay Street, Fifth Floor, Toronto ON M5S 3A9

Telephone: 416.963.4927 Toll-free: 1.800.263.2887

Fax: 416.963.8781 TTY: 416.963.7905

www.otf.ca

The Ontario Trillium Foundation is an agency of the Government of Ontario

Business plan: 2017/18 – 2019/20

Table of Contents 1. Mandate .......................................................................................................................................... 2

2. Strategic Directions of the Foundation ....................................................................................... 3

3. Overview of OTF’s current and forthcoming programs/activities ........................................... 8

4. Resources Needed to Meet Goals and Objectives .................................................................. 11

5. Risk Identification, Assessment, and Mitigation Strategies ................................................... 12

6. Environmental Scan ..................................................................................................................... 14

7. Human Resources ........................................................................................................................ 21

8. Performance Measures and Targets ......................................................................................... 22

9. Financial Budget and Staffing ..................................................................................................... 34

10. Information Management ......................................................................................................... 35

11. Initiatives Involving Third Party Partnerships ......................................................................... 38

12. Implementation Plan .................................................................................................................. 40

13. Communications Plan ................................................................................................................ 48

Appendix A: OTF RISK ASSESSMENT SUMMARY ......................................................................... 58

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1. Mandate The Ontario Trillium Foundation, one of Canada’s leading grantmaking foundations, is an agency of the Ministry of Tourism, Culture and Sport. The Foundation’s Mission is to build healthy and vibrant communities throughout Ontario by strengthening the capacity of the voluntary sector through investments in community-based initiatives. To this end, the Foundation provides funds in a cost-efficient manner with community involvement in decision-making (16 local Grant Review Teams), and by way of supplementing rather than replacing regular sources of income, to eligible charitable and public benefit organizations. According to the OTF Supplementary Letters Patent, the funds are provided to:

• Help finance programs undertaken by these organizations, through time-limited, results-oriented grants; and

• Help finance initiatives that increase organizational and/or community capacity.

The Foundation fulfills its mandate by funding organizations working in six Action Areas, in alignment with its Investment Strategy. Those Action Areas are:

• Active People: Fostering more active lifestyles • Inspired People: Enriching people’s lives through arts, culture, and heritage • Connected People: Building inclusive and engaged communities together • Prosperous People: Enhancing people’s economic wellbeing • Promising Young People: Supporting the positive development of children and

youth • Green People: Encouraging people to support a healthy and sustainable

environment Our four funding streams are designed to catalyze more innovation in the sector, expand and replicate more programs that work, ensure safe and accessible community space across the province, and invest more in multi-sectoral collaborations that address systemic and complex problems:

• Seed: Starting projects at the idea or conceptual stage • Capital: Broadening access to and improving community spaces • Grow: Building on the success of a proven model or program • Collective Impact: Bringing about fundamental change with collective action

OTF volunteers are integral to the achievement of the Mission. The up to 25 volunteers on the Board of Directors provide strategic leadership and approve all grant decisions. The

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up to 326 volunteers on community Grant Review Teams recommend grants within Board-approved policy in their catchment areas.

2. Strategic Directions of the Foundation Mandate Letter & OTF Response

As outlined in the Mandate Letter from Minister McMahon, to ensure that Ontario’s agencies provide services to Ontarians with confidence, OTF will focus on the following.

Please note, some priorities are built into our planning and governance approach while others have specific actions associated with them.

Mandate Letter OTF Response

Aligning agency planning with Ministry priorities

As an agency of the Government of Ontario, the Foundation is required under its Memorandum of Understanding to have programs that are consistent with the government’s policy directions

Establishing strategies to support Ministry priorities

OTF’s Investment Strategy supports the Government of Ontario’s new Culture Strategy, Poverty Reduction Strategy, Climate Change Action Plan, and Enhanced Youth Action Plan.

Meeting high standards and best practices of governance, fiscal management and sustainability, and accountability

OTF will build on its track record of high quality governance, fiscal management and accountability, as demonstrated by a long history of clean financial audits.

Maintaining an effective system of internal controls and compliance with applicable requirements to promote transparency and accountability

OTF promotes accountability and transparency through our Quality Assurance and Risk Management Framework, our ongoing financial stewardship verified by an annual audit of finances, our Open Data initiative, regular grantee reporting, and our robust communications strategy, including www.otf.ca

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Managing the operational, strategic and financial risks encountered by the Ontario Trillium Foundation to help ensure business objectives are met

See Section 5 on Risk.

In 2017 OTF will be launching an enterprise-wide approach to risk management that aligns with OTF’s strategy, industry standards, and government requirements. We will also be automating and streamlining quality assurance systems for enhanced efficiency.

Effectively managing the Ontario Trillium Foundation’s expenses to align with the government’s fiscal objectives to ensure efficiency and sustainability

See Resources Required section of this document. OTF maintains a system of regular financial controllership verified by an annual audit of finances.

Following new Regulations and Treasury Board direction with respect to executive salaries and compensation

The OTF Board approved a new compensation structure that is compliant with the requirements of the Executive Compensation Framework. OTF is working on the executive compensation program to be posted by September 2017.

Measuring and reporting on progress of the OTF's investment strategy

In addition to its Balanced Scorecard, OTF uses a comprehensive set of measures internally, through which we are able to “drill down” to the program level to explain our results in greater detail as needed. These include numerous operational, financial, and programmatic goals that are reported on regularly through OTF Business Plans, reports to the Board of Directors, our Annual Reports, and other updates.

Supporting the goals of the Ontario Culture Strategy including contributing to an Arts Policy Framework

The Ontario Trillium Foundation supports the Province’s Cultural Strategy in envisioning an Ontario where every person has the opportunity for creative expression and cultural participation. OTF continues to invest in Inspired People across four funding streams.

Working with government partners to administer granting programs in support of key government initiatives including the Youth Opportunities Fund, the Local Poverty Reduction Fund

OTF’s partnership efforts with other government ministries and agencies will continue. YOF now addresses the needs of youth across the province facing multiple barriers to success. LPRF will make another round of grants in 2017 and will, along with

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and the Ontario150 Community Capital Program

Ontario150, have many active grants under management.

Supporting government initiatives that strengthen our relationship with Indigenous communities and work towards reconciliation

OTF supports the Circle on Philanthropy and Aboriginal Peoples in Canada.

OTF is also a signatory to the Canadian Philanthropic Community's Declaration of Action in response to the Truth and Reconciliation Commission’s findings.

OTF was a contributor to the Foundations Partnering for Reconciliation Summit on June 16, 2016, hosted by the Lieutenant Governor of Ontario. OTF is facilitating follow-up conversations to develop a framework for establishing, measuring and evaluating the impact of Reconciliation-related philanthropic gifts and partnerships.

OTF has met with the Ministry of Indigenous Relations and Reconciliation to discuss opportunities for collaboration and partnership.

In 2017/18 OTF will be placing an enhanced emphasis on support and advice to community groups and applying organizations so that they feel well equipped to make competitive applications. This plan will build on the success of YOF and LPRF in conducting successful targeted, enhanced outreach to Indigenous communities, as well as training of staff and volunteers.

OTF will also be forming an Affinity Group to support relationships and reconciliation, better understanding of Indigenous communities, and improved outreach.

We Continue to Improve Last year, OTF launched a series of reforms to the granting process called ReDesign2015. As part of that process we created new investment streams, simplified our application process, clarified our objectives, and worked to generate even stronger results and better, measurable outcomes.

Reaction to these changes has been very positive. In fact, OTF has processed over one billion dollars in applications (declined and approved) since the launch of the new strategy.

OTF is dedicated to a process of continuous learning and improvement to further our ongoing commitment to reforms that ensure OTF operations are more streamlined, simplified and responsive to the needs of community organizations.

Building on the successful outcomes-based investment strategy launched last year, and reflecting feedback from key stakeholders including community organizations from every region and community in the province, OTF will implement changes in order to:

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• Make the process simpler, less burdensome, and more accessible for all applicants • Be even more fair to all parts and regions of the province • Ensure that merit is the core consideration in awarding grants There are three cornerstones of this new approach: a shift to a simple, single annual calendar for all granting programs; enhanced support for applicants; and system and process improvements for applicants and grantees.

One Deadline per Stream OTF’s three investment streams – Seed, Capital, and Grow – will now have one distinct deadline per year each, not multiple deadlines per year. This will eliminate confusion and overlap, streamlining the process and providing clearer, better access and support for all.

The deadlines for 2017/18 will be as follows: February 22 for Seed, June 28 for Grow, and October 25 for Capital. Collective Impact grants will continue to be open to applications year-round.

These changes are being undertaken after long and careful consultations including stakeholders from all parts of the province. Not only is a single deadline best practice for organizations such as ours – e.g. the Ontario Music Fund and the Ontario Media Development Corporation – but indeed, most comparable organizations moved to a single annual intake process years ago. This creates a number of benefits for the public and organizations with which we work, including a more simplified and straightforward application process with access to larger grants. This will be especially welcome news to potential applicants in Northern and rural Ontario, who will benefit from better access to a larger funding pool per stream.

In addition, the two other programs administered by OTF – the Youth Opportunities Fund and the Local Poverty Reduction Fund – will continue to be available to eligible community organizations.

Enhanced Support for Applicants In addition to the new deadlines, OTF plans to deliver enhanced support to community organizations across Ontario, building their capacity to submit stronger and more competitive grant applications.

This plan will include individual support to community organizations.

Advice and support is the single greatest request community groups make of OTF. We believe this move will be well received by the public and should lead to both higher quality grant applications and a stronger connection with the organizations we serve on a community-by-community basis.

Initially, we considered a plan to broadly restructure our regional operations and boundaries. While that approach would have generated a number of benefits, we also heard from a number of stakeholders that it would bring disruption and drawbacks in other ways. We are therefore not going down that road at this time. We do, however,

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recommend that the future restructuring of boundaries be considered and pursued over a longer timeframe with broader consultations and in line with government objectives.

What changes as a result of this plan? 1. Increased fairness to smaller, northern and rural communities 2. Better customer service and robust support to applicants and grantees will lead to

• Increased quality of applications • Fewer declines based on not understanding criteria or expectations, thus

increasing fairness • Access to applicant support after a decline • Improved “linking” of applicants with other potential funders and co-funders

3. Focussed, “like to like” assessments that ensure

• OTF invests in the best grants that will have the most impact in the community

• Our assessment process is fair and not contingent on variable competition and demand between each grant cycle

To support this approach, OTF will be dedicating resources to supporting applicants and building the capacity of the sector to develop strong budgets, project plans, and funding proposals. This will include a dedicated team of specialists working across Ontario to enhance support and services to the community.

System and process improvements Building upon the success of the ReDesign 2015 effort, OTF will be implementing system and process improvements as part of the ReDesign 2.0 initiative in 2017/18. This initiative is part of our commitment to continuous quality improvement and represents a direct response to feedback from community groups, OTF staff, and volunteers.

These system and process improvements will:

• Provide equitable access for rural and small communities

• Improve customer service and knowledge sharing

• Enable higher impact granting

• Improve the effectiveness of the granting process

• Produce staff and volunteer workload efficiencies

All of these benefits ultimately help OTF focus on building healthy and vibrant communities while continuing to maintain the integrity of OTF’s Investment Strategy.

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3. Overview of OTF’s current and forthcoming programs/activities 3.1 Core Business – Investment of Public Funds in High Impact Grants In the spring of 2015 OTF launched a new Investment Strategy. Grants are now provided under four streams: Capital, Seed, Grow, and Collective Impact. Capital grants support accessible public space in communities. Seed grants focus on starting projects at the idea or conceptual stage. Grow grants build on the success of a proven model or concept. Lastly, Collective Impact grants rely on collaborations to bring about system change. All grants align with the new Investment Framework with 12 Priority Outcomes, supporting six Action Areas, aligned with the Canadian Index of Wellbeing. OTF has also introduced standardized grant results and metrics and related tools to enable grantees to better demonstrate the results of their impact in communities. OTF continues to be a grantmaker of choice for the Government of Ontario. In 2015/16 the Youth Opportunities Fund, a program funded by the Ministry of Children and Youth Services, expanded beyond the GTA to address the needs of Ontario youth facing multiple barriers to success, part of the province’s new Youth Action Plan. This expansion will be fully phased in as of 2016/17. As well, OTF is administering the Local Poverty Reduction Fund, a program of the Poverty Reduction Strategy Office, and the Ontario150 Community Capital Program to celebrate the sesquicentennial of Confederation and the Province of Ontario. In 2017/18, YOF will continue to address the needs of youth across the province who are facing multiple barriers to success. LPRF will make another round of grants in 2017. Both LPRF and Ontario150 will have many active grants under management in the year ahead.

3.2 Planning Assumptions

This Business Plan is based on the following key assumptions: • The Foundation’s plan will support the overall policy direction of the Government of

Ontario, as well as the Vision and Strategies of the Ministry of Tourism, Culture and Sport.

• The need for OTF to measure and demonstrate the impact of its grants and of the Foundation as a whole will remain high.

• A robust infrastructure to support effective granting and reporting on results is critical.

• The Government of Ontario will provide OTF with an annual core allocation of at least $115 million in 2017/18, as well as in the subsequent two years.

• The achievement of the outcomes outlined in this plan will only be possible with granting and operating budgets that allow for the full implementation of the plan’s activities.

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• There will be sufficient numbers of Grant Review Team appointments and renewals to allow for effective functioning and decision-making.

• Appointments and renewals to Grant Review Teams will address volunteer shortages and the lack of diversity on Grant Review Teams, including insufficient numbers of volunteers from the Francophone, Indigenous, and other equity-seeking communities.

3.3 Goals

In the three years beginning in 2017-18 the Foundation will focus on the four Goals identified in our Strategy Map (see Section 8), supported by the four key objectives below that will guide the successful implementation of our strategy, as well as a set of core organizational values adopted by the Board in 2014.

1. Bring value to our stakeholders 2. Maximize our financial resources 3. Implement effective organizational practices 4. Enhance learning and growth

3.4 Objectives, Programs, and Activities to Achieve Goals

GOAL 1: BRING VALUE TO OUR STAKEHOLDERS

Objective 1: Invest in the highest impact grants to catalyze positive change in communities

• Invest in grants with the highest community impact for dollars expended • Ensure that the best applications are funded by shifting to a simple, single annual

calendar for all granting programs • Ensure that applying organizations are well-equipped to make strong applications

by boosting support and advice to community groups • Implement business intelligence solution and analytics strategy to measure long-

term aggregated impact of OTF funding

Objective 2: Support the public benefit sector to amplify its impact

• Provide non-monetary assistance beyond the grant (Services to the Community), including:

o Enhancing evaluation capacity for the Public Benefit Sector o Enhancing governance, financial literacy and sustainability for the sector o Supporting shared platforms for low capacity and volunteer organizations

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GOAL 2: MAXIMIZE OUR FINANCIAL RESOURCES

Objective 1: Invest in a balanced portfolio of grants for immediate and long-term positive change

• Deliver and refine a balanced portfolio of evidence-based investments through four clearly differentiated funding streams – Capital, Seed, Grow, and Collective Impact

• Build on regular grantee monitoring to create a higher engagement approach in order to ensure grantee success in delivering outcomes

Objective 2: Deliver value for money in the use of public funds

• Implement an enterprise risk management approach that aligns with OTF Strategy, industry standards, and Government of Ontario requirements (TPAD)

• Automate and streamline Quality Assurance systems for enhanced efficiency • Continue to be the grantmaker of choice for the Government of Ontario • Publicly communicate the value of our impact (Core and Provincial Programs)

GOAL 3: IMPLEMENT EFFECTIVE ORGANIZATIONAL PRACTICES

Objective 1:

Cultivate high performance by staff and volunteers

• Implement a talent management strategy to support a high-performance culture • Implement an enhanced performance management system to support high

performance • Implement a training and development plan to support volunteers in delivering

effective and timely grant recommendations • Deliver excellent customer service to the public, grantees, and other stakeholders

Objective 2: Ensure accountable and accessible granting practices

• Implement plan to create equitable access and consistent implementation of the new Investment Strategy across the province

• Carry out continuous quality improvements to our system and processes to ensure the best grants get funded and to improve the applicant and grantee experience

• Complete annual internal audit projects, to ensure grants are monitored according to OTF standards and grantees are compliant with OTF requirements

• Increase access for under-represented groups by educating staff and volunteers on the needs of equity-seeking groups and targeting outreach efforts to those areas and/or populations that are underrepresented

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GOAL 4: ENHANCE LEARNING AND GROWTH Objective 1: Foster learning and knowledge sharing to enhance impact in our Action Areas

• Monitor, adapt and learn from the launch of the Knowledge Centre to continue to support the sector in delivering evidence-based results in these areas

• Broaden and deepen internal expertise in the Action Areas across the province Objective 2: Advance and share our practice in outcomes-based funding and evaluation

Promote outcome evaluation and support the capacity of the sector to measure and improve impact.

4. Resources Needed to Meet Goals and Objectives Projected Revenues and Expenditures (For Human Resources requirements, see Sections 7 and 9)

2016/17 2017/18 2018/19 2019/20

Revenues: (est.)

MTCS: Operating grant 90.0 115.0 115.0 115.0 MCYS: Youth Opportunities Fund 13.5 13.0 13.0 13.0 TBS: Local Poverty Reduction Fund 8.5 14.0 14.0 8.0 MTCS: Ontario 150 Community Capital Fund 25.0 - - -

Investment income 1 1.4 1.3 1.2 1.4 Unspent funds from previous years 2 1.0 3.5 3.1 2.7

Total Revenues 139.4 146.8 146.3 140.1

Expenditures:

Grants 117.3 123.4 122.5 116.7

Services to the Community 1.4 1.8 1.8 1.8 Operating costs, all programs 3 20.7 21.6 22.0 21.6

Total Expenditures 139.4 146.8 146.3 140.1

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Notes:

1) Based on government interest rate forecasts and Foundation cash flow projections, an interest revenue forecasting model was designed in consultation with the Ontario Financing Authority.

2) Deferred contributions and rescinded grants from previous years. 3) Includes Depreciation costs of approx. $0.45 per year, based on Capital spending of approx.

$0.3 to $0.4 million per year.

5. Risk Identification, Assessment, and Mitigation Strategies

The Foundation monitors its risks on an ongoing basis and submits a quarterly Risk Assessment to the Ministry. The Risk Register below is based on the most recent Risk Assessment submitted to MTCS (August 2016).

Risk mitigation is included in Appendix A.

OTF RISK REGISTER – August 2016

Risk Category / Description (Overall Risk Level Assessment)

1. Strategic/Policy/Performance Risks

1.A OTF’s grantees fail to achieve expected outcomes. (Medium)

1.B Continued significant decrease in OTF’s funding. (High)

1.C Issues arising from OTF investments are not appropriately anticipated, identified, and managed. (Medium)

1.D The costs of implementing provincial government programs exceed the allocation provided by the Ministry partners, placing undue strain on, and negatively impacting, OTF’s core programs. (Medium)

1.E New OTF strategy leads to higher than anticipated volume of grant applications resulting in an imbalance between demand and available resources to ensure quality assessment and investment decisions. (High)

1.F Unintended consequences of the Open Data initiative lead to damage to the Foundation’s reputation. (Medium)

1.G Implementation of the Ontario150 Community Capital Program is not successful due to characteristics of the program or other reasons. (High)

2. Governance/Organizational Risks

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2.A GRT volunteers deviate from prescribed policies or processes, negatively impacting OTF’s ability to ensure consistent, fair, and equitable granting decisions. (Medium)

2.B A significant number of volunteers are not adequately trained and/or fail to fully comprehend and utilize the tools and resources provided, negatively impacting OTF’s ability to ensure consistent, fair, and equitable granting decisions. (Medium)

3. Legal/Compliance Risks

3.A More stringent government legislation and regulations regarding transparency and accountability put significant pressure on OTF’s ability to maintain a low operating cost ratio. (High)

3.B Risks of privacy breaches (data loss and/or misuse) or inappropriate disclosure of confidential information by staff or volunteers that could negatively impact OTF’s reputation and jeopardize relationships with stakeholders are not adequately anticipated, identified, and managed. (High)

4. Operational/Service Delivery Risks

4.A OTF grants are not equitably distributed and/or accessible to all Ontarians.

4.B The recent $25 million cut in OTF’s core funding jeopardizes achievement of the Foundation’s Business Plan goals. (High)

5. Workforce Risks

5.A The Government continues to fail to appoint sufficient numbers of GRT volunteers, jeopardizing the ability of one or more GRTs to carry out their business. (High)

5.B The complement of Francophone GRT members within each catchment area is insufficient to adequately assess the volume of Francophone applications, impacting OTF’s ability to ensure equitable granting decisions. (High)

5.C Conflicts of interest with applications under review are not adequately managed.

5.D Poor labour relations impact OTF’s ability to build and maintain the high performance culture necessary for achieving its business objectives. (Medium)

6. Information Technology & Infrastructure Risks

6.A Physical damage to hardware, software, data – e.g. power outages, fire, damage to the server room. (Medium)

6.B Security threats to OTF data and infrastructure. (High)

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7. All Other Risks

7.A Actual Investment income earned in a given year is significantly less than what was forecast. (Medium)

6. Environmental Scan

OTF has many external stakeholders, including the Ministry of Tourism, Culture and Sport, the Ministry of Children and Youth Services, the Poverty Reduction Strategy Office, other Ontario Government ministries, MPPs from all parties, grantee and applicant organizations, voluntary sector organizations, private sector partners, and users of OTF-funded programs and services.

The Foundation maintains awareness on an ongoing basis of key trends and challenges facing its stakeholders. This is done through various means: the collection of information through grantee reporting, needs assessments, and evaluations, as well as from external sources including Statistics Canada, the Canadian Index of Wellbeing, and research reports. The Foundation also supplements its knowledge base on trends and other stakeholder input through consultation and convening activities.

As part of its planning process, OTF monitors trends affecting the public benefit sector in the legislative, regulatory, policy, and fiscal environments as well as trends in the Foundation’s six Action Areas.

The key developments and trends related to the Investment Strategy (externally-focused) and Strategy Map (internally-focused) that are the basis of the current Business Plan are summarized below.

Historical Milestones

2017 is a significant year of celebration for Ontarians as the 150th anniversary of the creation of Ontario and of Confederation. As we reflect on the past and look forward to the future, Ontario is working to address the legacy of residential schools, remove barriers and reconcile relationships with Indigenous peoples.

Legislative, regulatory, and policy environment

Four developments in the legislative, regulatory, and policy environment were considered in preparing this Business Plan:

• Ontario’s Not-for-Profit Corporations Act, 2010 (ONCA) has been delayed to allow time for technical amendments and technology upgrades. The government has committed to giving the public benefit sector 24 months’ notice before ONCA takes effect. In addition, organizations will have three years following that date to make

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any required changes to their incorporation or documentation. Once implemented, ONCA provides a clearer definition of “public benefit corporations” and standards for financial reporting, including minimum requirements based on organization size. OTF has adopted the new language and emphasis on the “public benefit” sector in its strategy and Business Plan to align with the new directions of the Act.

• Social finance has been gaining attention at both the federal and provincial levels. As governments adjust regulations and policies to enable social finance, there may be implications for the public benefit sector. Social finance mechanisms such as Social Impact Bonds may increase accountability and impact evaluation among relevant not- for-profits. OTF has been exploring options and opportunities for participating in social finance initiatives where appropriate, in cooperation with the province’s Office of Social Enterprise, and this ongoing interest is reflected in this Business Plan.

• The implementation of the Accessibility for Ontarians with Disabilities Act (AODA) continues to impact the sector in terms of the requirements to increase the accessibility of goods, services, and facilities offered to the public. OTF has been a major funder of projects to make new or redeveloped community spaces and services accessible across the province, which will continue under this Business Plan.

• The introduction within the government of a Centre of Excellence for Evidence-Based Decision Making will help ministries build capacity to assess how programs are performing, using evidence to inform choices and lead change in critical public services. OTF’s investment strategy is well aligned with this new direction within government, and activities in this Business Plan will continue to contribute to improvements in this area.

• The Province’s increased emphasis on shared space for multi-service delivery models, through the Community Hubs Secretariat, reinforces the importance of investments OTF continues to make in these areas.

And through this Business Plan OTF will continue its leadership in supporting the Ontario Open Government Initiative and the Open Data Directive, as well as efforts through the Transfer Payment Administrative Modernization process to deliver more streamlined and efficient funding practices across provincial ministries.

Fiscal environments and economic outlook

The total economic impact of Ontario's public benefit sector is estimated at $50 billion annually, representing more than 7% of GDP, a figure greater than the automobile and construction industries combined. The sector employs almost one million Ontarians – 15% of Ontario's total workforce. In addition, the sector partners with over five million Ontarians

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who volunteer more than 800 million hours annually.

The public benefit sector in Ontario delivers vital services to families and helps sustain economically vibrant communities. The impact of the sector in Ontario can be seen through its many contributions, including programs supporting the province's health, culture, social services, housing, environmental conservation, and economic development activities.

With the expectation of an extended period of slow economic growth, governments at all levels (federal, provincial, municipal) face ongoing fiscal challenges. The effects of slower economic growth and government deficits will inevitably be felt in Ontario’s public benefit sector – both in the impact on revenues, and, for many, the demand for increased services from clientele affected by related shifts in the economy.

Key implications for OTF include:

• The public benefit sector continues to show signs of growing financial pressures, which increases the demand for OTF funds. The shifting funding landscape has included changes to local, provincial, and federal funding sources, and in an increasingly competitive environment the organizations OTF funds face challenges to their ability to raise revenues.

• There is increasing interest and demand in the sector in the development of social enterprise and other innovative solutions, as organizations seek out diversified ways to achieve sustainability.

• The capacity gap in the sector also impacts on organizations’ ability to apply for and manage grants from the Foundation. There is a need to provide an array of services to the community that will support increased organizational capacity and sustainability.

• From a budgetary perspective, sustained low interest rates have meant that the Foundation has not been able to rely on additional income from interest to fund organizational activities, which puts additional pressure on the granting budget.

Trends in OTF’s Six Action Areas

This Business Plan also takes into account key evidence showing why OTF’s six Action Areas are important to the building of healthy and vibrant communities, and the key trends and challenges in each Action Area.

A. Active People

This Action Area was developed to combat the social and health challenges arising from Ontario’s epidemic levels of physical inactivity. For the first time in recorded history, younger generations of Canadians are expected to live shorter lives than their parents due to obesity and chronic diseases. The estimated annual cost of diabetes in Ontario is $7.7 billion; cases of diabetes in the province are projected to rise by 48% from 2015 to 2025. Obesity and lack

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of physical activity are responsible for nearly 95% of Type 2 diabetes cases.

Although the benefits are well-known, there is a significant gap between how people perceive their behavior and the benefits they are actually realizing. While 55% of Canadians report they are physically active, only 15% of adults and 5% of children engage in enough physical activity to derive health benefits. Furthermore, Ontario’s estimated recreation infrastructure deficit is greater than $5 billion, creating a substantial and ongoing demand for OTF capital investments.

Research indicates that active lifestyles lead to healthy growth, improved school performance, and social development in children. Further benefits include reduced risk of chronic disease and improved mental health in the general population. Active people are more productive, more connected in their communities, and more likely to avoid illness and injury throughout their lives.

As a result, OTF will continue to focus on two Priority Outcomes: 1) higher quality programming and infrastructure to support physical activity; and 2) more people becoming active.

B. Connected People

2016 was a year of contrasts: Ontarians generously reached out to support Syrian refugee families. On the other hand, we have witnessed the global trend towards alt-right populism and related incidents of race-based violence. Ontario is not immune and must be vigilant in promoting diversity as a platform for inclusion.

Research shows that when individuals feel a greater sense of belonging and have strong connections to the people around them, they contribute more to society. According to the Canadian Index of Wellbeing (CIW), trust in others and a strong social network are two important measures of community vitality. However, since 2008, the CIW reports that our trust in others has declined by 15%, and the number of Ontarians with strong social networks has declined by 24%.

Ontario’s population is also constantly changing, largely as a result of two key demographic trends: migration and aging. Currently, about one-third of Ontario’s population was born outside Canada, and about 15% of Ontarians are seniors aged 65 years and older. With this level of diversity, our province has the potential to be a truly interwoven landscape of ideas, life experiences, cultures, languages, identities, and perspectives.

OTF’s strategy recognizes Ontario’s diversity as a vibrant source of ideas and approaches for building and maintaining the social infrastructure that makes communities stronger and more integrated. When that happens, people can access the supports they need for personal wellbeing, decision makers are more responsive to the community, and groups that are otherwise disconnected find opportunities to collaborate for shared benefit. The key is to invest in this diversity as a platform for inclusion in a meaningful and respectful way. This is why OTF supports initiatives that build on this platform to enable all Ontarians to fully participate in building and improving our communities.

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The Connected People Action Area recognizes that when everyone feels at home, and is able to play a meaningful role in their community, everyone benefits. People who are connected to those around them are more likely to reach out, participate in, and actively engage in their community’s economic, social, cultural, and political institutions. This leads to better health outcomes, fresh ideas and approaches, and better and more responsive programs and policies.

Thus the Priority Outcomes under OTF’s Connected People Action Area are 1) Diverse groups work better together to shape community; and 2) Reduced social isolation.

C. Green People

Ontario is home to a rich biodiversity, with over 250,000 lakes, 18% of Canada’s forests, and more than 30,000 known species. This biodiversity has an intrinsic value but is also a fundamental driver of Ontario’s economy.

Addressing Ontario’s environmental challenges is complex and long-term. Ontario has one of the largest ecological footprints in the world, and habitat continues to be lost at an alarming rate. Ontario has conserved only 11.2% of its terrestrial habitats (against a goal of 17%) and just over 4% in Southern Ontario. However, recent strategies such as Ontario’s Climate Change Action Plan (2016), Biodiversity Strategy (2011), Great Lakes Strategy (2012) and Invasive Species Strategy (2012) all lay out comprehensive roadmaps for success. The 2015 State of Ontario’s Biodiversity Report highlights several areas of progress, but stresses that continued and accelerated action is required if we are to protect all that sustains us.

There is also a growing body of evidence regarding the importance of nature to our physical and mental wellbeing. As stewards of our natural resources, Ontarians have a responsibility to ensure that future generations continue to benefit from all that our environment provides.

OTF’s Green People Action Area recognizes that a healthy environment is critical to the wellbeing and long-term prosperity of our communities. As the largest funder of the public benefit sector in Ontario, OTF has an opportunity to capitalize on current momentum and help realize a cleaner, greener future for all Ontarians.

OTF’s strategy therefore aims to ensure that 1) More ecosystems are protected and restored; and 2) People reduce their impact on the environment, the two Priority Outcomes for this Action Area.

D. Inspired People OTF supports the Province’s Cultural Strategy in envisioning an Ontario where every person has the opportunity for creative expression and cultural participation, and where the diversity of our stories and communities is reflected, valued, and celebrated, now and as part of our legacy to future generations. This Inspired People Action Area is built on the recognition that culture, heritage, and the

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arts have intrinsic value to the health and vibrancy of communities. Research has also shown that community-based arts and heritage initiatives engender inter-cultural understanding, a sense of belonging, and greater civic engagement. Research from the Canadian Index of Wellbeing shows that even though Ontarians enjoy an abundant offering of culture, heritage, and the arts, the actual time spent by individuals on these activities declined by 12% from 1994 to 2010. Evidence also shows that when artists are provided with well-equipped spaces to present their work, it enriches the audience experience and engages participants more deeply. However, 72% of Ontario’s arts organizations report insufficient access to space and specialized equipment. Communities with good cultural infrastructure and high levels of participation have a stronger sense of social cohesion. Children and youth with access to arts-based learning perform and socialize at a higher level. And there is no better way to activate new pathways of thinking, understanding, and doing than through deeper engagement in the culture, heritage, and the arts. OTF investments will focus on raising the quality of available programs and creating more opportunities for people to connect with culture, heritage, and the arts. We will support initiatives that foster the development of talent, deliver training to artists and curatorial staff, provide relevant, meaningful programming, and create spaces where that programming is accessible to all. Thus the Priority Outcomes for this Action Area are 1) Better quality programming and infrastructure to experience culture, heritage, and the arts; and 2) More people connect with culture, heritage, and the arts. These Priority Outcomes support the Ontario Culture Strategy goals of 1) Promoting cultural engagement and inclusion; and 2) Strengthening culture in communities.

E. Promising Young People

Evidence shows that to become healthy and productive adults, children and youth need a specific set of skills, relationships, and experiences to support their transition to different life stages.

Children and youth with strong social and emotional skills are more likely to have fewer behaviour problems, experience less emotional distress (e.g. anxiety and depression), and exhibit prosocial behaviors. Youth who are engaged and those with strong emotional and social skills experience improved outcomes in education, health, income, and employment. Youth who volunteer, take on leadership roles, and engaged in creating solutions to community challenges not only gain valuable leadership skills but also provide the sector with better decisions and more innovative solutions. They are also more likely to stay connected to family, friends, and communities.

This Action Area is designed to foster the positive development of Ontario’s children and youth so they have better chances of success in life, consistent with the research and

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priorities established by the Government of Ontario. It supports the Enhanced Youth Action Plan strategy of the Ministry of Children and Youth Services, and leverages the work of the Ministry of Education to promote wellbeing efforts in schools. This Action Area also aligned with some of the priorities of Ontario’s Poverty Reduction Strategy.

Our investments focus on two Priority Outcomes: 1) More children and youth have emotional and social strengths; and 2) More youth are meaningfully engaged in the community.

F. Prosperous People

The landscape of poverty and employment in Ontario is vast, multifaceted, and complex. Living standards in Ontario today lag far behind those of Canada as a whole. Over 1.5 million people are living in poverty. One in 13 Ontarians is unemployed, and of those people, one out of two are youth aged 15-24. Since 2009, Ontario has experienced a 50% increase in involuntary part-time employment and 75% growth in long-term unemployment. The quality of employment has declined, and the precarious work arrangements that are contract, short term, and shift-based or even full-time at minimum wage are leaving children, youth, and families in poverty.

Evidence tells us that economic security improves when the risks of poverty are reduced and economic opportunities are enhanced, especially for those who are most vulnerable. When people’s basic needs are met, they are in a better position to succeed. Improved access to food, housing, counselling, and other community supports can reduce or eliminate barriers to economic wellbeing. Ensuring people have the knowledge, skills, and tools for greater financial independence and are better able to find meaningful livelihoods, including becoming entrepeneurs, also leads to increased economic wellbeing

The Prosperous People Action Area is strategically aligned with several Ontario government mandates and priorities. These include the Province of Ontario’s Poverty Reduction Strategy (2014- 2019); the Ministry of Economic Development, Employment and Infrastructure Youth Entrepreneurship Partnership program (2015); Ontario’s Youth Job Strategy (2015); Financial Empowerment Initiatives (2016); Employment Strategy for People with Disabilities (2016); The Social Enterprise Strategy for Ontario (2015); Ontario’s long Term Affordable Housing Strategy (2010); and the Private Sector and Mentorship Initiative through the Ontario Ministry of Child and Youth Services’ Enhanced Youth Action Plan (2015). To address these realities, OTF will continue to focus on two Priority Outcomes: 1) Increased economic stability; and 2) Increased economic opportunity.

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7. Human Resources

The Foundation’s Human Resources are made up of staff and volunteers. As Volunteer Resources are managed by the Public Affairs Department, information on volunteers is contained in Section 13, Communications Plan.

Overview OTF strives to build a great workplace and retain skilled and dedicated staff and leadership teams. The priority for the next year is to cultivate a high-performance culture at the Foundation. OTF’s Compensation Strategy The Foundation takes a comprehensive approach to rewards, recognizing that non-financial rewards play a key role in attracting, retaining, developing, and motivating engaged and committed high-calibre staff.

This year, OTF engaged Hay Group to complete a compensation review. Generally, OTF’s current compensation is close to that of the median of the market. The new compensation structure that is put into place is fully compliant with the requirements of the Executive Compensation Framework. HR Priorities The following are HR priorities over the next three years:

• To align all HR functions (recruitment, training and development, performance management, succession planning, and compensation) to support a high performance culture

• To build the capacity of the Talent and Engagement team to help drive organizational decisions through people, data, and insights

• To allocate the human resources required to meet our legal obligations • To continue to monitor the organizational structure and roles to ensure they are

aligned to support the Foundation’s Operational Plan and Strategic Plan • To monitor compensation trends to ensure employees are rewarded

appropriately

Planned activities 2017/18

1. Implement Talent Management Strategy The strategy outlines the roadmap to get, keep, and grow talent at OTF. In particular, it includes Employer Branding and attracting talent that fits OTF’s culture and core competencies; a retention strategy for critical roles and high-performers within the Foundation; and a plan to build leadership capacity.

2. Ongoing review to assign staffing as needed in support of the Foundation’s Strategy This will ensure that OTF’s complement of human resources and its organizational structure are well positioned to meet its strategic directions. OTF’s

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operations will be supported by well-trained staff.

3. New Approach to Performance Management Effective performance management is critical in driving a high-performance culture. New core competencies have been developed in consultation with staff and leadership that will inform performance conversations. OTF will move away from cumbersome annual reviews to more agile quarterly check-ins. Training will be provided to management and staff to support rolling out the new performance management tools.

4. Continue to allocate the resources required to meet our legal requirements In an environment of increasing legal obligations, OTF must ensure we are delivering effective training programs, plans, and policies in compliance with Ontario legislation, including:

• The Public Service of Ontario Act • The Ontario Health and Safety Act and Bills 168 and 132 on Workplace Violence

and Harassment • The Accessibility for Ontarians with Disabilities Act (AODA)

5. Competitive Compensation

The Foundation does an extensive market survey every three years. This year, OTF engaged Hay Group to complete a compensation review. An updated salary grid will be rolled out, and a total compensation approach will be maintained in order to remain competitive with organizations such as Government Ministries and other grantmaking foundations.

8. Performance Measures and Targets - Outcomes-Based Granting under OTF’s Investment Strategy

In the fiscal year 2015/16, the Foundation transformed its Investment Strategy to a new outcome-based approach that aligns the strategy, granting methodology, and data architecture with the Canadian Index of Wellbeing (CIW) framework so that we can better track, measure, and report on the impact of our investments.

We embedded a data model into all our strategic and operational systems in order to keep the organization accountable by providing the Board of Directors and Senior Leadership with timely and actionable data about its performance and progress.

We measure the outcomes of the grants in our Seed, Capital, and Grow streams with standardized grant results that are tied to metrics. For our more significant Grow investments, we also use standardized pre- and post-evaluation surveys. All of these metrics are electronically available and hence can be analyzed to ensure that OTF makes both operational and strategic decisions that are evidence-based.

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Outcome-based Investment Strategy Each element of OTF’s Investment Strategy builds on the next to measure the short, medium, and long term outcomes of our granting, as illustrated below.

Each grant reports on one standardized metric specific to the grant result and stream. These were designed so over time OTF can report to the community in a transparent and accountable way on the impact it is having in each Action Area. Over the long term (about 10 years), these can be aligned to population-level changes to be measured via the Canadian Index of Wellbeing. Additionally, each granting stream is designed to have results and impact over a different time frame. Referred to as our “Balanced Portfolio Approach”, this ensures that we invest for short, medium, and longer term changes. Please see the Investment Strategy on the following page for details of the Grant Results, Priority Outcomes, and CIW indicators.

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Demonstrating Impact The Foundation’s investment strategy has been designed to enable to the Foundation to clearly and accurately predict and demonstrate the outcomes of our investments in the short, medium, and long term. Currently the Foundation is able to project the scope of our impact based on applications received and investments made. For example, we expect that within 12-36 months, OTF investments will impact over 3 million Ontarians through Grow grants made in the last 18 months. Please see map below for details.

As another example, we expect that our grantees will renovate over 1 million square feet of new or renovated space across the province and make over 15,000 new hours available for programming. Given the length of the investments (12-36 months depending on the stream), OTF will have enough grantees reporting on the outcomes or metrics tied to their grants in 12-24 months. This will enable the Foundation to not only project expected impact but measure and demonstrate the actual impact of our investments. By Q4 of 2017-18 we will have enough closed Capital and Seed grants to conduct meaningful analysis. In 2018-19 we will be able to conduct analysis on the longer-term Grow grants. The Foundation also collects information about the economic impact of our investments as well as the volunteer contribution made to support the efforts of our grantees at the end of each grant.

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Grow Grants Grants in the Grow stream are up to three years and $750,000. For them, OTF has selected standardized pre- and post- evaluation tools, following a thorough analysis of 300 existing surveys, for 13 Grant Results. To date, 129 grow grantees are using pre and post standardized tools as part of the grant evaluation, with over 4,000 people around Ontario filling out the surveys to provide feedback on the grant programs. These tools are enabling grantees to the carry out detailed evaluations of the pre- and post- impact of their initiatives and learn from the results for future improvement of their programs or interventions.

This approach will also make it possible to measure and demonstrate OTF’s aggregated impact in Ontario communities over time. The ability to integrate outcome and evaluation data specific to interventions will enable OTF to provide analysis of its impact in Ontario communities in a way that has never been possible before. This analysis can begin late in 2018-19, when enough Grow grantees have reported results.

Grant Results that Require Pre- and Post- Surveys

Of the 25 Grant Results relevant to the Grow Investment Stream, 13 will be evaluated using pre- and post- surveys, posted on our website here.

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We believe that the ability to reliable track and understand outcomes is of value to funders, as much as it is to communities and organizations themselves. We have designed and implemented an online survey administration and reporting platform, working with our third party research partner. Grow grantees use the platform to administer the surveys and track the results as they come in. Each grantee can see the results of their own program surveys, access it in different formats and leverage for other uses – such as securing funding, learning and improvement, and evaluation. In turn OTF has a universal view of all responses (anonymized) so that we can conduct aggregate level analysis.

Please see below for an example of the survey administration platform:

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Seed and Capital Grants

For Seed and Capital grants the expected results and outcomes that we are tracking are shorter term. While we anticipate that these grants will have positive impact over the longer term, the volume, size, and duration of these grants requires evaluation at the grant-result level.

With our Capital grants we are able to roll up our results. For example, with Active People OTF is measuring the amount of new and renovated space made available for structured and unstructured activities. Within 12 months, we expect to see over one million square feet of renovated or new space across the province as a result of our investments in the past 18 months. We are confident in these predictions: in the last 3 quarters, 100% of Capital grants that have reported on their grants have met or exceeded their outcomes. For our Seed stream, our smallest stream, grantees will be asked to report on their end-of-grant result, and what the group has been able to learn from the grant, which we anticipate will lead to longer-term outcomes. Individual Seed grantees can use their learnings to seed their project into a Grow grant and achieve longer-term outcomes. We will also conduct aggregated qualitative analysis of the Seed learnings that can lead to improved Seed projects for short-term outcomes. Measuring OTF’s Performance – Balanced Scorecard Presented in this section are the measures and targets that make up OTF’s Balanced Scorecard.

OTF continues to revise and improve how it measures and tracks the overall performance of the Foundation through the Balanced Scorecard. Some improvements of note:

Customer Satisfaction As part of the Balanced Scorecard, the Foundation launched a customer satisfaction process to survey all types of Foundation customers – applicants, unsuccessful applicants, grantees, event participants, etc. – to better understand how the Foundation is faring in terms of customer satisfaction. An independent research company randomly selects OTF customers after their interaction with Foundation staff and sends them an online satisfaction survey. To date, over 2000 people have completed surveys providing feedback to OTF. Grant Distribution Equity Index

One of the objectives in the Strategy Map is “Ensure accountable and accessible granting practices.” A measure for that objective is “Grant Distribution Equity: investments proportionate to population (e.g. by geography, rural/urban, demographics, type of organization)”.

OTF measures Grant Distribution Equity through a composite index (GDEI). The GDEI was developed by OTF in the absence of any other tool or measure. Although granting equity is

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an important objective for many foundations, no other foundation has a specific tool to measure success.

The index examines 17 different indicators, comprised of population groups, age groups, community size, organization size, and organization leadership, and calculates how closely the distribution of OTF investments mirrors population and not-for-profit organization statistics.

The index score reflects the sum of the deviations. This represents the total, across all OTF indicators, where granting is disproportionate to the population.

If OTF investments mirrored exactly population and organization statistics, the score would be zero. On the other hand, if 15% of Ontarians have disabilities, and only 12% of OTF’s investments support people with disabilities, that represents a 20% deviation from the actual, and 20 points towards the index score.

Over the first two quarters of 2016-17, the index score was 619 during the first quarter, and 694 in the second. The average of the two quarters, 657, was used as the baseline score to determine future targets.

The goal of 550 after three years was determined by examining OTF’s demand rates as a proxy for need, as well as the best possible outcome from between the two quarters to date, based on this demand. We feel that is a realistic target that would reflect an important improvement.

Regardless of the approach, the real value of the index is not only in creating one number to easily identify how well OTF is doing, but in the data used to create that index score. By tracking the proportion OTF funds towards one group against actual population and organization statistics, OTF can easily and quickly identify areas where we might be lagging, and take action.

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OTF Strategy Map

Balanced Scorecard Targets Please note: measures apply to OTF’s core program, except where indicated.

Goal 1: Bring value to our stakeholders Objectives Measures Targets

2017/18 Targets 2018/19

Targets 2019/20

Invest in the highest impact grants to catalyze positive change in communities

% of grants achieving outcomes

75% 80% 80%

% of grants aligned with OTF grant results

90% 95% 95%

Support the public benefit

% of grantees that received non- monetary assistance

40% 45% 50%

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sector to amplify its impact

% of grantees that found non-monetary

85% 90% 90%

% of participants who rated services to community programs helpful

85% 90% 90%

Goal 2: Maximize our financial resources Objectives Measures Targets

2017/1

Targets 2018/19

Targets 2019/20

Invest in a balanced portfolio of grants for immediate and long-term results

% investments by stream within target ranges

100% 100% 100%

Deliver value for money in the use of public funds

Operating costs as a

% of total expenditures

≤15% ≤15% ≤15%

% of grantees compliant with grant contract terms**

85% 87% 90%

**Includes all programs including YOF and LPRF

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Goal 3: Implement effective organizational practices Objectives Measures Targets

2017/18 Targets 2018/19

Targets 2019/20

Cultivate high performance by staff and volunteers

Cultivate high performance by staff and volunteers

% of quarterly staff performance check-ins completed

85% 90% 95%

% favourable Employer Net Promoter Score

Baseline +5% +7

% customer satisfaction

85% 87% 90%

% of GRT members scoring all file

85% 90% 95%

Ensure accountable and accessible granting practices

Grant distribution equity – investment proportionate to population (e.g. by geography, rural/urban, demographics, type of organization)

657 585 550

% of grants that have been monitored according to standards **

75% 80% 85%

**Includes all programs including LPRF and YOF

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Goal 4: Enhance learning and growth Objectives Measures Targets

2017/18 Targets 2018/19

Targets 2019/20

Foster learning and knowledge sharing to enhance impact in our Action Areas

Number of users registered in the OTF Knowledge Centre (external and internal)

Baseline +10% +10%

Advance and share our practice in outcomes- based funding and evaluation

% of users actively engaging outcomes- based funding and evaluation content on the OTF Knowledge Centre

60% 70% 80%

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9. Financial Budget and Staffing

AGENCY: FINANCIAL FORECAST SUMMARY

Ontario Trillium Foundation 2014-15 2015-16 2016-17 2016-17 2017-18 2018-19 2019-20

ACTUAL ACTUAL BUDGET PROJECTED BUDGET FORECAST

PROVINCE OF ONTARIO

MTCS Operating (including maintenance) 115,000,000 115,000,000 90,000,000 90,000,000 115,000,000 115,000,000 115,000,000

MTCS - ON150 25,000,000 25,000,000

MTCS - CCF

Ministry of Children and Youth Services - YOF 5,000,000 8,710,000 12,945,000 13,491,843 12,951,000 12,951,000 12,951,000

Treasury Board Secretariat - LPRF 3,117,100 8,500,000 8,500,000 14,000,000 14,000,000 8,000,000

1> TOTAL PROVINCIAL FUNDING 120,000,000 126,827,100 136,445,000 136,991,843 141,951,000 141,951,000 135,951,000

OTHER GOVERNMENT

2> TOTAL OTHER GOV'T FUNDING 0 0 0 0 0 0 0

SELF GENERATED REVENUES

Investment Income 2,318,955 1,828,535 972,613 1,420,770 1,326,393 1,217,502 1,363,396

Non-Government Grants

Other:

(To) From Deferred Contributions -141,272 -3,475,715 -2,049,822 -1,349,513 1,080,624 356,991

Rescinded or Recovered Grants 2,572,084 3,937,788 2,670,000 2,370,000 2,500,000 2,800,000 2,800,000

3> TOTAL SELF GENERATED 4,749,767 2,290,608 1,592,791 2,441,257 4,907,017 4,374,493 4,163,396

4> TOTAL REVENUE: 1+2+3 124,749,767 129,117,708 138,037,791 139,433,100 146,858,017 146,325,493 140,114,396

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EXPENDITURES

Salaries & Benefits 11,806,185 12,264,324 13,633,927 14,235,100 14,090,677 14,400,672 14,615,287

Grants 108,317,000 111,597,500 116,457,305 117,300,000 123,415,824 122,495,057 116,690,366

Program Delivery 2,172,451 2,234,832 3,852,570 3,820,000 4,668,592 4,747,039 4,311,971

Administration 442,566 470,963 623,259 611,000 755,273 767,964 697,580

Occupancy/Lease 1,143,751 1,122,902 1,137,888 1,145,000 1,147,888 1,157,888 1,167,888

Maintenance/Utilities 9,112 13,243 10,000 12,000 12,118 12,322 11,192

Marketing & Communications 351,628 448,632 801,673 815,000 971,478 987,802 897,269

Other (specify):

Services to the community 475,878 1,092,987 1,045,000 1,351,269 1,297,269 1,261,269

5> TOTAL EXPENDITURES 124,242,693 128,628,274 137,609,610 138,983,100 146,413,119 145,866,013 139,652,824

Net Income Surplus/(Deficit): 4-5 507,074 489,434 428,180 450,000 444,897 459,479 461,573

Amortization of deferred capital contributions

Amortization of capital assets 507,074 489,434 428,180 450,000 444,897 459,479 461,573

Net Income Surplus/(Deficit) After Amortization 0 0 0 0 0 0 0

Net assets (deficit), beginning of year 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042

Net assets (deficit), end of year 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042 2,572,042

B. Summary of Staff Numbers

The current staffing complement of the Foundation’s operations, including YOF and LPRF, consists of 127.6 FTEs. Of this FTE number, 116.6 are permanent staff, and 11.0 are contract staff.

10. Information Management For the fiscal year 2017/18, OTF will:

1. Continue to develop solutions that address people, process, and technology to enhance OTF’s ability to make evidence-based decisions.

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2. Continue to improve OTF’s IT infrastructure, reliability, and security. 3. Enhance systems that were implemented or updated in the previous year,

including our granting system, Customer Relationship Management system, and other business applications (Finance, HRIS, and others).

4. Continue to implement our Business Intelligence strategy to support integrated reporting of operational and investment results.

5. Continue to implement our Knowledge Management strategy by publicly launching a Knowledge Centre that will support the public benefit sector and OTF to have impact in our Action Areas.

6. Support increased technical literacy for our staff and volunteers to use the digital tools that are in place.

7. Continue to be a sector lead on the Open Data/Open Government initiative.

With a solid three-year Information Management (IM) strategy in place, 2016/17 continued to be a transformational one for all aspects of IM, as current best practices in people, process, and technology were implemented across the Foundation. 2017/18 will see fewer new systems and dramatic changes required, now that the foundation has been laid and aging and unsecure infrastructure replaced. Instead we will focus on continued optimization of our investments in technology and enhancement of systems which have been implemented but are not being fully utilized.

Key areas of focus for growth will continue to be Business Intelligence (BI) and Knowledge Management (KM). They will both require new infrastructure and staff training as well as significant change management. OTF has already seen significant benefits from having a data model embedded in its granting methodology, as we are now able to report more broadly and in depth, including reporting on our impact through the outcomes of our grants. The next phase will bring in a truly integrated architecture so we are able to manage both operationally and strategically, based on evidence emerging from not just the granting system but from all administrative and knowledge systems, including human resources, payroll, finance, Customer Relationship Management, Knowledge Management, and others, all of which have recently been upgraded or implemented.

As part of our KM strategy, in 2016/17 we designed and developed an online knowledge hub for the public benefit sector – the OTF Knowledge Centre. Once fully launched, we envision the Knowledge Centre becoming a hub of digital communities of practice where the public benefit sector and OTF will convene to share learning and knowledge and deepen expertise around community impact. The Knowledge Centre is part of OTF’s commitment to support Ontario communities “beyond the grant” by giving the public the opportunity to (1) help build the capacity of the sector in learning about our Action Areas, Measurement, Open Data, and other topics of importance to the sector as they emerge, and (2) build innovative and more personalized digital relationships with OTF and organizations across the province and sector. The full public launch of the Knowledge

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Centre is expected in 2017/18, once the Beta launch period closes and we gather feedback from early adopters across Ontario.

Salesforce - our Customer Relationship Management system – together with our new Knowledge Management tools, will enable us to leverage a combination of content, processes, and technologies to engage stakeholders with information at the right time in the right place, and eventually create digital relationships with Ontarians.

Risks have been minimized on the infrastructure side, as we have outsourced our granting platform and, whenever possible, chosen cloud solutions for new systems. In 2017/18, OTF will be contracting a third party to carry out a Security Audit to ensure we are meeting public sector best practices. The audit will chart the direction for continued improvements to be made as we grow and likely begin to manage more sensitive data through the Local Poverty Reduction Fund and the expanded Youth Opportunities Fund.

Technical literacy continues to be a challenge with both staff and volunteers, and we need to continue to enhance technical training to enable them to function effectively in the paperless OTF environment. To date, all training has been in person and dependent on one staff member. We plan to develop a more sophisticated training strategy that leverages online tools and other existing assets from vendors.

Open Data

OTF has led in the Open Data/Open Government movement this past year, and we are fully committed to continue to be leaders in the public benefit and philanthropic sectors. We not only met, but exceeded all legislative requirements of the Open Data Directive and posted our Board of Directors’ Investment Summary Reports on our website. This has positioned the Foundation as a thought leader in this field: in 2016/17, we trained staff from over 30 agencies and delivered numerous knowledge sharing products. We hope to continue to work with the Open Government office as they test new tools with agencies in an effort to implement government-wide initiatives in this area.

We believe that Open Data can drive innovation and collaboration in a way that was never possible before. Through the OTF Knowledge Centre, we are launching an Open Data digital community of practice. Once fully launched in 2017/18, this digital community will provide the public, researchers, and others with the ability to interact with our data and each other to develop better policies and new solutions to complex community problems. In February 2017, we are co-hosting Canada’s first Open Data conference with the Stanford Center on Philanthropy and Civil Society (PACS) and the MaRS Discovery District.

In summary, 2017/18 will be a year in which we build on our investments in infrastructure in order to successfully deliver on our BI strategy – including measurement and Open Data

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– as well as KM initiatives, to advance the sector in our Action Areas and to create communities of practice.

11. Initiatives Involving Third Party Partnerships

The large majority of our third-party partners are our grantees who receive grants, a form of transfer payment. In this regard, OTF is fully compliant with the Transfer Payment Accountability Directive, and signs a statement to this effect on an annual basis.

In addition, since its inception OTF has partnered informally with private, public, and corporate funders to support shared goals, priorities, and sector needs in Ontario in order to achieve its mission.

From 2013/14 through 2015/16, OTF adopted a more strategic approach to partnering through the development of a Social Investment Partnerships Framework, approved by the Foundation’s Board in March 2014. This framework outlined an approach to engaging third parties in a more cohesive manner and described the details of OTF’s overarching strategy to engage and leverage the resources of other public and private funders to increase the impact of its investments.

Under that framework, the Foundation engaged partners in 17 initiatives that leveraged over $10M in partner contributions, based on an OTF investment of $4M, primarily funded through grants.

Beginning in 2016/17, the Foundation’s approach to partnerships had two priority areas: 1) investigation of co-funding opportunities that would benefit Collective Impact initiatives, and 2) through the Services to the Community Program, an even more targeted approach to non-granting expenditures that engage third parties in ways that support key Foundation objectives. This program is now the primary focus of OTF’s capacity building and other technical assistance to support the impact of future and current grantees, which will continue under this Business Plan.

Services to the Community

The Center for Effective Philanthropy has identified fourteen types of assistance “beyond the grant cheque” that fall into this category of activities. These services are most commonly “capacity building” and “technical assistance” delivered by foundation staff, intermediaries and/or consultants, to enable more effective grantmaking and support grantee success.

A number of Canadian and American foundations and funders set aside annual expenditures for such activities. A 2007 survey conducted by the Foundation Center found

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that approximately 25% of small US foundations (under $10M in granting) and 50% of larger foundations (over $10M in granting) engage in what are termed “direct charitable activities.”

The OTF Board recognizes funding these activities is an important way to support key Business Plan goals that are distinct from both granting and operations. In the past OTF frequently used its granting or operating budgets to fund these activities. Starting in 2015/16, with the implementation of our new Investment Strategy, such grants are no longer eligible for funding, as all grants need to focus on one of twelve grant outcomes.

As a result, in 2015/16 the Board approved carrying out this important work that benefits the not-for-profit sector through a separate category of expenditures, Services to the Community. The goals to be supported through this program are: a) Support the public benefit sector to amplify its impact, 2) Foster learning and knowledge sharing to enhance impact in our Action Areas, and 3) Advance and share our practice in outcomes-based funding and evaluation.

Given the role that OTF has traditionally played in building sector capacity, and given that this role is part of our mission, setting aside a specific budget for this work will help ensure the success of grantees and the achievement of intended outcomes.

The Board also established a ceiling of 1.5% of total Foundation expenditures for spending on Services to the Community, consistent with what other funders such as the United Way Toronto and York Region, the Canada Council for the Arts, and the Ontario Arts Council commit to similar activities.

During the first eighteen months under the new program a number of important services have been delivered directly or procured, including:

1. Capacity building workshops and online resources on Collective Impact as an approach to achieving multi-stakeholder impact on complex social and environmental challenges facing communities, delivered in partnership with the Tamarack Institute.

2. The provision by OTF staff experts of sector-focused technical support around evaluation and measurement.

3. Professional development opportunities to enhance financial leadership in the sector, delivered in partnership with Certified Professional Accountants of Ontario.

4. Collaboration with other funders to develop a shared charitable platform for small, independent, grassroots artists and groups in the arts and culture sector.

5. Supporting OTF’s Open Data initiative to provide broad public access to all Foundation data.

6. Providing a range of capacity building supports for OTF applicants and grantees, including information sessions and workshops in communities across the province, online webinars and resources available through OTF’s Knowledge Centre, and individualized coaching at the local level.

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7. Consultations with key sector leaders and stakeholders to assist the Foundation in setting priorities for its Services to the Community offerings over the next three years.

The remaining expenditures are directed toward services such as knowledge sharing, convening, and social investment partnerships.

Under this Business Plan, the first six priorities will continue to be the focus for the Foundation’s Services to the Community program. Additional priorities will be identified once we have completed the consultation with stakeholders referred to in item 7 above.

12. Implementation Plan OTF’s Business Planning Process is to identify the goals and broad outline of the upcoming year with approval from the Board in Q3. The detailed Implementation Plan for the strategies described in the Business Plan are then developed and completed by year-end, in conjunction with departmental planning and budgeting activities throughout the Foundation. The following is a tentative, draft implementation plan to be fleshed out in greater detail in January 2017. GOAL 1: BRING VALUE TO OUR STAKEHOLDERS Objective 1: Invest in the highest impact grants to catalyze positive change in communities

Activities Tactics Timelines 2017-18 Invest in grants with the highest community impact for dollars expended.

Improve consistent application of strategy through improved understanding of streams, action areas, etc.

Improve capacity of staff, volunteers and sector to do evidence based granting and programing.

Q1 & 2—OTF Strategy Refresher for all volunteers; Q1-4 training and enhanced learning experiences at GRT Meetings

Q1-4—develop knowledge products for the Knowledge Center to foster sector capacity on evidence, impact, and best practices, both in general terms and for our specific Action Areas

Ensure that the best applications are funded by shifting to a simple, single annual calendar for all granting programs.

See below Q1-4: Enhanced outreach and applicant support focused on each of the granting streams.

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Ensure that applying organizations are well-equipped to make strong applications by boosting support and advice to community groups

Improved customer service and applicant support through enhanced bundle of services: staff specialization, all-channel outreach and support strategy

The reorganization of program managers into three areas of specialization has begun: outreach, assessment and monitoring. This specialization will allow OTF to launch the enhanced outreach and support initiatives in time for the February 2017 Seed deadline while maintaining objectivity and transparency during the assessment process.

To be implemented in January 2017 and on-going though 2017-18 and beyond, OTF is developing an “all channel” approach to enhanced support, including in-person information sessions, coaching clinics for potential applicants, webinars and social media information sessions, access to one-on-one Program Manager advice, and continued support though our call centre. All channels will provide access to content experts through our specialist program managers and strategy leads, and applicant and program advice that the sector has so clearly requested.

Implement business intelligence solution and analytics strategy to measure long-term aggregated impact of OTF funding

Key areas of focus for growth will continue to be Business Intelligence (BI) and Knowledge Management (KM). Both require new infrastructure and staff training as well as significant change management.

By Q4 OTF will have a more robust database of outcomes related to granting, and will begin reporting on grant outcomes and telling the story of our impact.

We will invest in infrastructure to integrate outcomes data with evaluation tools and other systems to maximize our ability to measure and report on long term impact.

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OTF Streamlined Calendar for 2017-18 SEED GROW CAPITAL YOF* LPRF** Org Reg Deadline

February 1, 2017

June 7, 2017

October 4, 2017

July 19, 2017 May 24, 2017

Application Deadline

February 22, 2017

June 28, 2017

October 25, 2017

EOI Deadline: August 2, 2017 EOI Shortlist: Sep 27, 2017 Full Appl. Deadline: Nov 15, 2017

June 21, 2017

BOD Meeting

June 15, 2017

November 9, 2017

February 22, 2018

February 22, 2018

PRSO Announcement: October 16-20, 2017 BOD notification: next available BOD mtg following public announcement (likely Nov 9, 2017)

*YOF dates are To Be Confirmed

**LPRF dates are To Be Confirmed

Objective 2: Support the public benefit sector to amplify its impact

Activities Tactics Timelines 2017-18 Provide non-monetary assistance beyond the grant (Services to the Community), including: • Enhancing evaluation capacity

for the Public Benefit Sector • Financial literacy and

sustainability for the sector • Capacity to deliver collective

impact initiatives in Ontario Build capacity of the sector to enhance sustainability and evidence-based and outcomes based programs/goals/services

Enhanced support for the public benefit sector.

Q1-4 Continue with Evaluation Capacity Building session, work with Chartered Professional Accountants Ontario to enhance sector capacity regarding financial literacy, etc., support communities to deliver collective impact initiatives

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GOAL 2: MAXIMIZE OUR FINANCIAL RESOURCES Objective 1: Invest in a balanced portfolio of grants for immediate and long-term positive change

Activities Tactics Timelines 2017-18 Deliver and refine a balanced portfolio of evidence based investments through four clearly differentiated funding streams – Capital, Seed, Grow, and Collective Impact

Develop and achieve stream targets via outreach and allocation for local catchments and OTF overall; relies on one clear calendar of deadlines

Targets set by January 2017 will become the basis for outreach and applicant support activities across the province, Q1-4

Build on regular grantee monitoring to create a higher engagement approach in order to ensure grantee success in delivering outcomes.

Staff specialization to improve monitoring, grantee support; high engagement approach refined and consistently applied

The reorganization of program managers into three areas of specialization has begun: outreach, assessment and monitoring. By Q1 2017-18 monitoring specialist will be working with grantees to clarify expectations, and offer guidance and support to enhance grantee success.

Objective 2: Deliver value for money in the use of public funds

Activities Tactics Timelines 2017-18 Implement an enterprise risk management approach that aligns with OTF Strategy, industry standards, and Government of Ontario requirements (TPAD)

In order to ensure grants that have been monitored according to standards OTF will be launching systems improvements in Q1 to implement an enterprise risk management system.

System enhancements will be launched in Q1 of 2017-18, followed by staff training and full implementation Q2-4.

Automate and streamline Quality Assurance systems for enhanced efficiency

OTF will improve and enhance internal audit activities through a more automated and streamlined QA system.

System enhancements will be launched in Q1 of 2017-18, applicable to OTF core programs and YOF and LPRF grants.

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Publicly communicate the value of our impact

Long term goal, once OTF’s database of grantee outcomes is more robust, is to link the story of OTF’s impact with data and analysis using a digital strategy for all programs.

Please see the Communications section for a list of objectives and tactics. By Q4 OTF will develop a communications strategy that includes core streams, YOF and LPRF

GOAL 3: IMPLEMENT EFFECTIVE ORGANIZATIONAL PRACTICES Objective 1: Cultivate high performance by staff and volunteers

Activities Tactics Timelines 2017-18 Implement a talent management strategy to support a high-performance culture

OTF will align all HR functions (recruitment, training and development, performance management, succession planning, and compensation) to support a high performance culture,

On-going The talent management strategy is currently being developed and will provide a roadmap to get, keep, and grow talent at OTF.

The plan includes a focus on: Employer Branding and attracting talent that fits OTF’s culture and core competencies; a retention strategy for critical roles and high-performers within the Foundation; and a plan to build leadership capacity.

Quarterly pulse checks with staff beginning in Q1 will help OTF monitor engagement and performance.

Implement an enhanced performance management system to support high performance

OTF will move away from cumbersome annual reviews to more agile quarterly check-ins.

The new performance management system is currently being developed. New core competencies have been developed in consultation with staff and

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leadership that will inform performance planning leading into Q1 of 2017-18. Training will be provided to management and staff in Q4 2016-17 to support rolling out the new performance management tools.

Implement a training and development plan to support volunteers in delivering effective and timely grant recommendations

Volunteers have asked for more learning opportunities at GRT Meetings

During each grant round, OTF will use grantee presentations, sector expertise, and local data to help volunteers to better understand their catchment area needs, the OTF strategy, and what to look for in assessing applications in each stream.

Deliver excellent customer service to the public, grantees, and other stakeholders.

Leverage the efforts to enhance outreach and applicant support to improve customer service.

OTF will be restructuring its application support centre to align with enhanced outreach and applicant support initiatives, and providing specific training to front-line customer service staff.

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Objective 2: Ensure accountable and accessible granting practices

Activities Tactics Timelines Implement single deadline per stream to create equitable access and consistent implementation of the new Investment Strategy across the province.

One single deadline per year per stream help creates equitable access for the following reasons: • One larger budget per

stream in each catchment allows GRTs to recommend the best grants in the right amount

• The assessment process is fair and not contingent on variable competition and demand between each grant cycle

See table of deadlines, above.

Carry out continuous quality improvement to our system and processes to ensure the best grants get funded and improve the applicant and grantee experience

Building upon the success of the ReDesign 2015 effort, OTF will be implementing system and process improvements as part of the ReDesign 2.0 initiative in 2017/18. This initiative is part of our commitment to continuous quality improvement and represents a direct response to feedback from community groups, OTF staff, and volunteers.

Q1: system improvements including improved application questions, better communication tools

Q2 and following: enhanced processes including consistent number of volunteers scoring each Seed, Grow and Capital application; streamlined org registration

Complete annual internal audit projects, to ensure grants are monitored according to OTF standards

On-going

Increase access to under-represented groups by educating staff and volunteers on the needs of equity seeking groups and targeting outreach efforts to those areas and/or populations that are underrepresented.

• Targeted outreach and support to groups underrepresented in grant decisions

• Supporting volunteers and staff to understand the needs of equity seeking groups and eliminate unintended bias

Q1—formation of LGBTQ, Francophone and Indigenous Affinity Groups to develop strategies to improve understanding of these equity-seeking groups among staff and volunteers; education sessions as part of GRT

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meetings each grant cycle.

Q1 and on-going: enhanced engagement and capacity building with Francophone communities to support strong, fundable applications.

GOAL 3: IMPLEMENT EFFECTIVE ORGANIZATIONAL PRACTICES Objective 1: Fostering learning and knowledge sharing to enhance impact in our Action Areas

Actions Tactics Timelines 2017-18 Monitor, adapt and learn from the launch of the Knowledge Centre to continue to support the sector in delivering evidence-based results in these areas

Enhance the Knowledge Management strategy, including an e-learning platform and tools, communities of practice and an on-line portal.

The Knowledge Centre was launched to a pilot group of sector leaders in Q3 of 2016-17. It will be fully launched to the broader public benefit sector by Q1 of 2017-18 and animated with subject matter expertise throughout the rest of the year.

Broaden and deepen internal expertise in the Action Areas across the regions

OTF will more deeply embed action area expertise across teams.

On-going As part of the new performance management system staff will identify action area expertise in their professional development plans beginning in Q1.

Strategy Leads will develop a peer-to-peer knowledge sharing plan, leveraging the mechanisms that are already in place: the Knowledge Centre, lunch and learn sessions, all staff meetings, etc.

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Objective 2: Advance and share our practice in outcomes-based funding and evaluation

Action Tactics Timelines 2017-18 Promote outcome evaluation and support the capacity of the sector to measure and improve impact.

Continue supporting this through thought leadership and sectoral conversations. Continue to advance an open data plan consistent with the Province’s Open Data strategy, enabling better analytics and, long-term, improved measurement and impact

On-going

13. Communications Plan

Communications environment

A number of factors inform the OTF communications environment. Most of them are long-term trends that have influenced OTF communications strategy and practices for quite some time; others are more time-sensitive and specific to this current plan.

Immediate and specific factors:

• OTF entirely revamped its granting programs in 2015 and has gone through a first full year of granting under its new Investment Strategy. As an effort to simplify our application process and clarify our objectives and vision for healthier and more vibrant Ontario communities, it seems to have worked. We recently closed our first grants awarded under this new approach and found that we met or exceeded the targeted outcomes. In measuring stakeholder feedback, we found a satisfaction rate of 85% and, in particular, not-for-profits indicated their approval of the changes. Our communications plan will support the success of this strategy in the long run, build on this success and further our efforts to strengthen outcomes.

• For 2017/18, OTF will be implementing changes as part of our commitment to continuous quality improvement. A single calendar of deadlines and enhanced applicant support will make the process simpler, less burdensome, and more accessible for all applicants; it will be even fairer to all parts and regions of the province; and it will ensure that merit is the core consideration in awarding grants.

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A unified communications plan with clear messaging is key to the success of this strategy in the long run.

• OTF successfully implemented all FIPPA requirements in the summer of 2016 following the passing of the Public Sector and MPP Accountability and Transparency Act in December 2014. OTF will continue to demonstrate leadership regarding privacy and access to information and is committed to staying open and responsive to requests for information about applications and its grant approval processes.

• Since the release of its granting data in an Open Data format in August 2015 – a first among grantmaking foundation in Canada – OTF has continued to lead the way among MTCS agencies to drive innovation and collaboration. OTF has since then conducted several workshops on best practices related to Open Data and has released publically on its website the Investment Summary Report intended for the Foundation’s Board. This is in line with the Ontario government’s recent priority of being the most open and transparent government in Canada. OTF will adopt the same “open by default” approach when appropriate and will continue to show leadership in this area among government agencies.

Long-term trends:

• The commitment to demonstrate the impact of OTF investments – at the local as well as the provincial level – is a driving force behind new approaches and activities of the OTF Public Affairs department.

• The Foundation has significant positive influence and impact in communities across the province, and this ensures that the public and media remain interested in the work of OTF. Media releases and local announcements, held in concert with MPPs, contribute to an enhanced awareness on an ongoing basis. These recognition efforts are enhanced by using social media tools such as Twitter and Facebook.

• OTF annually tracks several thousand media and online stories regarding grantees that reference the Foundation. However, OTF is better known in some parts of the province than in others. In larger centres, particularly Toronto, OTF announcements compete with a significant volume of other philanthropic announcements and activities, many of which involve high-profile community members. Our efforts will continue to position OTF as a thought leader in the not-for-profit sector, specifically through OTF Leadership appearances at key venues and platforms.

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• The communications environment has evolved greatly in recent years. Print media are on the decline. Areas of growth include e-mail marketing, mobile and online communications, and social media. These are trends that OTF follows in order to stay in touch with its stakeholders as well as with the public in general. OTF has recently hired a digital communications strategist to put the emphasis on video-based materials, mobile-friendly products, and engagement activities on social media.

• Marketers are now moving away from traditional ads and are investing in new ways to engage with people. In the public benefit sector, a speaking opportunity at a high-profile conference or summit can have much more impact than a print ad in a major newspaper.

• Print, electronic, and online media sources are reviewed daily by Public Affairs staff. Any potential issues are identified, follow-up action is taken as required, and the Minister’s Office is advised as necessary.

• Each year more grant applications are declined than approved, and the ratio has been increasing over the years due to higher demand and fewer resources. From $1 awarded for $5 requested three years ago, the overall ratio is now 1:7. Any declines have the potential to attract negative media attention, although incidences of this occurring are infrequent. In addition, general media attention may focus on governance or staffing issues in public benefit organizations, some of which are active or past OTF grantees. Overall, this represents less than five per cent of media coverage tracked.

• The OTF website, www.otf.ca, is the primary initial source of information for the general public and organizations seeking grant information. It is also the access point for the online grants management system. OTF is now developing a series of online products for its various audiences: the Knowledge Centre, e-modules for internal and external use, webinars, etc.

• The Foundation is AODA-compliant through all its communications materials.

Overarching communication objectives

OTF has been operationalizing the new Investment Strategy for more than a year. It has been a unique period of learning. We are encouraged by the first signs of success but by no means content. OTF’s communications plan builds on our initial success and furthers our efforts to strengthen outcomes.

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Strategic communications is critical in order for this new strategy to be successful. As we have seen in the past year, OTF operates in a complex environment with multiple stakeholders who have different needs and expectations. We strive to be a learning organization that is constantly listening to the feedback we receive from the public, and the Foundation’s focus for the year to come is to have the best granting impact possible while delivering outstanding customer service to the public and to successful and unsuccessful applicants.

The overarching communication objectives are tied to the Strategy Map which outlines OTF’s overall corporate objectives and expected outcomes.

Audience Objectives Outcomes

General Public Storytelling for impact Communicate the OTF Strategy and the impact of our grants in communities.

Government Responsible stewardship Government partners understand how OTF effectively stewards public funds and drives results on behalf of government.

Public Benefit Sector Sector leadership Advance our outcomes- based practice through communications in order to build the capacity of the sector to demonstrate results.

Staff and Volunteers Internal efficiency Cultivate high performance by staff and volunteers through effective internal communications and information sharing.

The story of our impact is so much more than sharing anecdotal success stories about the individual grants we make. The entire Strategy is built on the notion that OTF is a transformative agent, able to tell stories of impact at a higher level through CIW indicators and aggregated metrics. In fact, the Foundation’s story has become the story of an organization that has transformed to enhance its impact and the impact of the entire public

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benefit sector. OTF senior staff have conducted several presentations on the topic of change management to position OTF as a change agent and a model of successful implementation of disruptive change. The strong relationship that OTF has cultivated over the years with the government presents exciting opportunities to build further our brand as a credible, solid, and high-potential grantmaker. This year saw the development of more intense collaboration with the government through various programs such as the Youth Opportunities Fund, the Ontario150 Community Capital Program, and the Local Poverty Reduction Fund. At the same time, the recently implemented Investment Strategy is still new. By the end of 2016-17 we will have completed our first full year of granting under the new Investment Strategy. So far only 21 Seed and Capital grants have actually submitted final reports and are closed – and that’s not enough to report and communicate on aggregate results. Therefore, the present Communications Plan recommends that the Foundation continue many of the approaches and tactics that were implemented in previous years.

Tactics and products The objectives detailed above will be achieved through the following tactics and products.

Tactic #1: The implementation of the new Investment Strategy has led to a cross-functional approach to communications.

After a year when the Public Affairs department worked hard to bring consistency and discipline to internal and external communications operations, it was exciting to see our products being disseminated and used all year in over 300 outreach sessions, whether in person or via webinars. As part of our ongoing objective to deliver consistent messages and information, the Public Affairs department has taken a more holistic approach to communications practices and has developed a series of new initiatives to support our stakeholder relations activities (website, events calendar, videos, social media, webinars, e-training, etc.). These multiple activities have led to a cross-functional approach to communications and have contributed to deeper collaboration among various departments. Concretely, the Public Affairs department ensures that all planning functions within all other departments include a communications lens. Communications staff provide planning support to the other teams so that our communications operations are fully integrated and coordinated. This integrated communications approach will be more important than ever as we recommit to enhanced applicant support across Ontario.

Timing: Ongoing. Main products: Website, videos, social media, webinars, e-training, etc.

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Tactic #2: Our online communications must reflect the level of engagement we promise to communities

Digital communications strategy and social media Our website is constantly praised for the simplicity and clarity of its content. It reflects the need to inform our stakeholders in an effective and straightforward manner. However, as we approach the third year of our Investment Strategy, we need to engage with our stakeholders at a deeper level. Instead of simply offering the same information to the same potential applicants, OTF is launching new interactive products. Our social media will be enhanced so that it not only promotes existing grants but helps the Foundation offer enhanced support to applicants and grantees across all channels.

For instance, monthly Twitter chats are an efficient way to engage with applicants on specific topics. New webinars and videos are other online products that the Public Affairs department will develop in 2017/18.

Knowledge Centre Our online content is constantly adjusted and improved based on feedback and also based on new content and features developed along the way. However, our website is a fairly static, corporate tool. The OTF Knowledge Centre will be launched in Q1 of 2017/18. It will complement the website by hosting all types of research and evidence useful for applicants and will also curate communities of practice. This will signify a shift for OTF in its ability to create virtual communities and expand its reach throughout Ontario. The new portal is expected to launch in Spring 2017 and will include fully interactive functionality to facilitate learning and growth.

In the meantime, the OTF website has been the central piece of our communications architecture to promote our granting programs. The website is designed to enable our program staff to host information sessions based solely on the information displayed online. This illustrates the simplicity and clarity of the website design and content.

Timing: Ongoing for the website; launch of the Knowledge Centre in Spring 2017. Main products: Website, Knowledge Centre

Tactic #3: Our relations with the community are more important than ever

Pre- and post-application outreach In October 2016, OTF announced that it would move toward having one deadline per year per investment stream for Seed, Grow, and Capital. This move will include the delivery of enhanced support to community organizations across Ontario, building

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their capacity to submit stronger and more competitive grant applications. This will include individual support to potential applicants. This next step in our outreach strategy will be an opportunity to renew our communications and promotional materials (presentations, videos, workshops, interactive online tools, etc.) to support group and individual applicant support.

Advertisement, publicity and promotional partnerships Further to the Auditor General’s recommendation in his 2011 report, we budgeted for a province-wide advertisement campaign in 2016 to promote OTF’s work in community-based media outlets. OTF tested the impact of a short-term ad campaign prior to an application deadline in Spring 2016. Although the ads helped with public online engagement, our analysis shows they did not necessarily lead to more applications nor impact on the quality of the applications received.

Considering the success of our outreach efforts and the fact we are experiencing the highest demand rate in our history, we do not currently plan to advertise again in this fashion, but will choose instead to dedicate more resources to enhanced support for applicants and targeted outreach to under-served groups. There are three categories of population that we will focus on due to their disproportionate low demand: Indigenous populations, the LGBTQ community, and Francophones.

OTF will continue to maximize visibility and knowledge-sharing opportunities when the Foundation develops external partnerships in the context of Social Investment Partnerships and beyond. Our objective is to continue to increase the number of high-profile authoring and speaking opportunities for the Chair, the CEO and leadership team members. As mentioned in the long-term trends section above, we believe that OTF’s presence at strategic conferences and events can have a more powerful impact than traditional ad purchasing, thanks to the opportunity it provides to engage with other partners and their audiences at a deeper level. Similarly, the publication of credible, well-researched articles does more for the reputation of OTF than traditional advertisements. The upcoming release of the Case Study by the Rotman School of Management and the regional CIW reports represents two excellent opportunities to brand OTF positively in a deeper, more creative, and meaningful way than advertising.

In particular, the Case Study provides OTF with an interesting opportunity to tell a different story of impact, from a change management perspective. Of course the main public message coming from OTF must focus on promoting our granting programs; however, the transformative process that OTF went through offers learnings that other similar public, not-for-profit, or private-sector organizations would certainly benefit from. OTF continues to make external presentations on the topic of change management.

Timing: Ongoing. Main products: In-person information sessions, workshops, cross-promotional initiatives,

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partnerships, public events, webinars, brochures, website, Knowledge Centre, grantee orientation webinars, media tool kit, and other products for grantees to be determined

Tactic #4: OTF must be strategic when positioning itself as the grantmaker of choice for the Ontario Government

Communications planning protocol with the ministry As mandated by the government, we will continue to be a strong supporter of the Ontario Government’s message by suggesting visibility opportunities related to grants and other OTF activities and assisting with the identification of potential issues. That has always been a key element of our relationship with the government. The Communications Planning Protocol has been slightly revised to allow more flexibility regarding the determination of the date of the public grant announcement at the end of each granting cycle. Fewer deadlines for next year will certainly help the government keep a more focused message for the grant announcements.

MPP Outreach We will also continue to reach out to MPPs to keep them informed of, and updated on, OTF activities. In addition to the recognition events regularly listed on our event calendars, we will continue to schedule information sessions or other formal communications specifically tailored to MPPs and their staff when appropriate. Brochures and online materials are also made available to MPPs and their staff to ensure they know how to access OTF information and direct potential applicants. We systematically reach out to newly-elected MPPs, and we have recently updated the MPP orientation package with new information regarding the changes at OTF.

For the past three years, OTF has organized a social gathering at Queen’s Park for MPPs to meet with the OTF Board and Senior Leadership Team. This has proven to be a very popular event that provides an opportunity for them to share their stories of impact and learn firsthand about OTF from the Board and senior staff. We are making this event an annual tradition as a way of nurturing the deep connections that OTF has with MPPs from all political parties.

Public partnerships Finally, our Investment Strategy has offered new opportunities for OTF to consolidate its position as the grantmaker of choice for the government as demonstrated by the taking on the implementation of the Youth Opportunities Fund, the Local Poverty Reduction Fund and the Ontario150 Community Capital program. OTF will have to be strategic with potential future partnerships to ensure not only that these new programs align with our outcomes-based strategy but that they help leverage and maximize both our expertise and reputation.

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Timing: Ongoing. Queen’s Park social event. Main products: Information sessions, news releases, brochures, MPP orientation package, recognition events

Tactic #5: A strong and engaged body of committed volunteers is key to the success of the new Investment Strategy

Volunteer engagement and learning The ongoing development and support of our volunteers is fundamental to achieving our mission, and OTF consistently makes volunteer engagement a priority. Established in 2014, the Volunteer Engagement Advisory Group (VEAG) is a dynamic and committed group that will continue to act as a test group for the new granting and monitoring tools being developed as part of ReDesign 2.0.

The Foundation’s efforts to centralize and formalize internal communications will certainly help support volunteer engagement by ensuring consistency and discipline. Once the Knowledge Centre is launched, e-learning and e-training opportunities will be offered to volunteers on a more consistent basis, although we will continue to host orientation sessions in person when appropriate and when the numbers of new volunteers justify them.

As a result of the work done with VEAG, the Public Affairs department is committed to implementing a “Learning Agenda” for volunteers that integrates in a systematic manner all learning activities generated by the Investment Strategy. This is also consistent with feedback received from our volunteers during the consultations in the summer of 2016 that OTF provide more opportunities to learn from grantees. The conference in November 2016 has been a major deliverable of the learning agenda. The next step is the implementation of systematic education sessions at GRT meetings, among other strategies (grantee visits, community reports, etc.).

Volunteer recruitment and training A key contributing factor for effective functioning and decision-making at the Foundation is having sufficient numbers of Grant Review Team appointments and renewals. The improvements under ReDesign 2.0 are built with the assumption that each catchment will have a minimum of 18 GRT members. That is far from the case now, and the overall GRT vacancy rate is now over 50%.

Our success relies on a high number of engaged volunteers on each GRT, but their recruitment depends on the progress made by the Minister’s Office on processing current applications. The lengthy process for appointing GRT members continues to be a challenge for the Foundation. Recent positive efforts by the Minister’s Office provide hope that the vacancy rate may decrease in the near future. If that is the case,

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the Public Affairs department will launch a more aggressive recruitment strategy that will include revised promotional materials, MPP outreach, targeted social media activities, and OTF attendance at fairs and conferences. If the timeliness of the appointment process does not improve, we will have to re-evaluate this recruitment strategy. We will continue to monitor this situation and to engage the Minister and the Ministry on this critical issue.

This recruitment strategy will not only address the number of appointments and renewals to Grant Review Teams, but must also address the lack of diversity on Grant Review Teams, including insufficient numbers of volunteers who are Francophone, Indigenous, or from other equity-seeking groups.

In addition to this aggressive recruitment strategy, the Volunteer Relations team is planning to strengthen its processes by systematizing the management of volunteer contact details, surveying volunteers more systematically on engagement and skills-related topics, and developing a plan to build a cohesive network of volunteer “alumni” – something that the Foundation has never done before.

Timing: Ongoing. Recruitment Strategy – Q1 of 2017/18. Main products: Brochures, website, social media, public events

High-Level 2017/18 Timeline

Q1-Q2 • Launch of Knowledge Centre • Volunteer Contact Management System • Volunteer Recruitment Strategy

Q3 • Queen’s Park social event

Q4 • Outreach Assessment

Ongoing activities

• Enhanced outreach and Services to the Community initiatives • Targeted outreach • Recognition events with MPPs • Cross-promotional activities with conferences and other funders,

including speaking opportunities • Implementation of VEAG recommendations • Social Media strategy

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Appendix A: OTF RISK ASSESSMENT SUMMARY RISK

DESCRIPTION RELATED

STRATEGIC PRIORITIES IMPACT & SCOPE LIKELIHOOD & IMPACT MITIGATION STRATEGIES OVERALL ASSESSMENT

& OTHER INFORMATION

1. STRATEGIC/POLICY/PERFORMANCE RISKS

1.A – OTF’s grantees fail to achieve expected outcomes.

OTF’s mission – building healthy and vibrant communities

BP goal: Bring value to our stakeholders

BP objectives: Invest in the highest impact grants to catalyze posi-tive change in communities; Invest in a balanced portfolio of grants for immediate and long-term results

In describing this risk, we are describing the impact of many grantees significantly failing to achieve the expected outcomes.

L: Low / I: High

The Foundation has moved to an outcomes-based model, in which applicants are required to align their initiatives with clear outcomes and grant results they aim to achieve. Being more explicit and intentional about the funded outcomes, should lower the risk of grantees not achieving the outcomes. OTF staff – particularly program staff specializing in Grantee relations – also assist grantees in achieving all or most of the expected outcomes. As well, the development of a Grant Contract, the orientation webinar for new grantees, OTF’s monitoring practices and reporting requirements, and its quality assurance processes further mitigate the risk.

Overall Assessment: Medium Risk. Risk is well managed through OTF’s rigorous granting, monitoring, and QA processes Risk/Mitigation Funded? Yes Risk Owners: V-Ps, Community Investments and Prov’l Progs & Partnerships Mitigation Target Dates: Ongoing.

1.B – Significant cut in OTF’s funding. programs for government partners for a low administrative fee.

All BP strategic priorities and activities

Business continuity

• Significant decrease in funding will severely impact all aspects of the Foundation’s operations and services. Every percentage in cuts has a related effect on all granting programs and on staffing levels, and general operations.

• Reduced funding will also have a profound impact on Ontario’s not-for-profit sector, including services, volunteers, and leveraging of community resources. As well, depending on the size of the funding cut, it will affect OTF’s ability to administer granting programs for government partners for a low administrative fee.

L: High / I: High

• Excellent co-operative relationship with Ministry and government, including open, two-way communications.

• Foundation has worked successfully with three political parties and received solid government support throughout its 33-year history.

• OTF ensures that its strategic directions support the policy directions of the Ministry and the government and consistently demonstrates its value for money.

• To lessen the impact of this risk if it occurred, the MOU includes detailed provisions for this eventuality.

Overall Assessment: High Risk Risk/Mitigation Funded? Yes, with substantial budget changes for this fiscal year and planned changes for subsequent years, if required. Risk Owners: CEO and Chair Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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1.C – Issues arising from OTF investments are not appropriately anticipated, identified, and managed, leading to negative impacts on OTF’s reputation.

BP goal: Implement effective organizational practices

OTF core value: Provide outstanding customer service

OTF manages a large volume of applications and grants and failure to effectively manage issues arising from these could result in: • Media and public misunderstandings

about the role and nature of OTF investments

• Negative media coverage for OTF, government, and community partners

• Government reluctance to support OTF policies, strategies, and programs, particularly in the case of higher risk initiatives or sectors

L: Low / I: High

• Early identification of potential issues through staff and volunteer intelligence gathering and use of a Risk Rating tool.

• Rigorous and comprehensive policies, strategies, and procedures in place to manage and identify issues, and to minimize the likelihood of unanticipated issues arising.

• Timely Ministry liaison on all potential issues which may impact government.

Overall Assessment: Medium Risk. While the impact if this risk occurred would be substantial, multiple mitigating strategies are in place. Risk/Mitigation Funded? Yes Risk Owner: V-P, Public Affairs Mitigation Target Dates: Ongoing

1.D – The costs of implementing provincial government programs exceed the allocation provided by the Ministry partners, placing undue strain on, and negatively impacting, OTF’s core programs.

BP objective: Deliver value for money in the use of public funds

• The demand for grant dollars far outstrip OTF’s annual granting budget from MTCS, and this issue has intensified due to the recent funding cut. OTF is open to other granting partnerships to help government meet its objectives.

• Currently OTF has agreements with MCYS to administer the province’s Youth Opportunities Fund, with TBS as an administrative agent for its Local Poverty Reduction Fund, and is finalizing an agreement with MTCS for the administration of the Ontario150 Community Capital Program.

• Such agreements involve the hiring of staff for the program, as well as service delivery commitments that, if not managed effectively, could result in a partnership program being

L: Medium / I: Medium

• The OTF Board has recently approved a “Grantmaker of Choice” Framework which sets out principles to guide the assessment of opportunities to partner with government ministries on the design and delivery of granting programs, and decisions on whether to partner or not.

• In the planning stages of such programs, OTF establishes the full operating costs required to meet service level expectations and ensures that a detailed agreement is in place, including provisions for funding for the full costs.

• OTF closely monitors the cost of delivering services under such agreements to ensure programs are managed within established budgets and do not result in cost overruns.

• In 2016/17 OTF hired KPMG to

Overall Assessment: Medium Risk Risk/Mitigation Funded? Yes Risk Owner: V-P, Prov. Progs & Partnerships Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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subsidized by OTF’s core funding from MTCS, thus impacting OTF’s core service delivery.

analyze its business processes and costs, in order to develop accurate and evidence-based figures for the costs of various OTF services. This is expected to simplify further negotiations with potential government partners.

1.E – New OTF strategy and reduction in core budget results in a high demand rate which exceeds OTF operational resources for timely and quality assessments.

OTF’s mission – building healthy and vibrant communities

BP goal: Bring value to our stakeholders

BP objectives: Invest in the highest impact grants to catalyze positive change in communities; Invest in a balanced portfolio of grants for immediate and long-term results

The first year of the new Investment Strategy saw record demand for OTF funds, and this has continued to increase – currently we receive $7.00 in requests for every $1.00 available (compared with an historical average of $3.60). This demand presents a serious risk in the current year, when the Foundation is dealing with the effects of a significant cut to its budget. A smaller granting budget means that more applicants will be declined, and processing of declined applications requires significant staff effort, at a time when OTF is decreasing staffing due to the funding cut. The change in the funding available also affects applicants, as they are less likely to receive funding, despite using their valuable and often scarce resources applying for a grant.

L: High / I: High

• As of July 2016, OTF is limiting organizations to one application per granting cycle, to help manage the balance between demand and resources available to adequately assess grant applications.

• The Ontario Fund has been suspended following the first deadline of 2016/17.

• Starting in 2017/18, OTF will also reduce the number of granting cycles to three, and continue the suspension of the Ontario Fund, to help with the balance between demand and available resources.

• Each granting cycle will only have one stream, ideally reducing the demand rate for each round.

• OTF is working to provide enhanced support for potential applicants which will help to improve the quality of applications and reduce the number of inappropriate applications that are ultimately declined.

Overall Assessment: High Risk Risk/Mitigation Funded? Partially. Budgetary cuts to operations will negatively impact OTF’s capacity to manage applications. As well, the continued shortage of volunteer appointments compounds the issue. Outreach, counselling, and public awareness activities in this area will continue to be a priority. Risk Owner: CEO Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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1.F – Unintended consequences of the Open Data initiative lead to damage to the Foundation’s reputation.

BP goal: Bring value to our stakeholders

OTF’s core values of transparency and accountability

BP objective: Support the public benefit sector to amplify its impact

By committing to share grant data in an easy-to-use open license format, OTF is aligned with the Government’s Open Data Directive and also positioned as a leader in catalyzing social innovation and system change. However, it is not without risks, chief among which are the privacy of contributors of the data, data quality over time, and the potential misuse and misinterpretation of the information by re-users.

L: Medium / I: Medium

• OTF has developed and implemented policies, processes, and procedures that serve to minimize our exposure to any potential risks.

• OTF also has a robust information management and communications structure in place to effectively manage any potential misuse of the information.

Overall Assessment: Medium Risk Risk/Mitigation Funded? Yes Risk Owner: Chief Information Officer Mitigation Target Dates: Ongoing

1.G – Implementation of the Ontario150 Community Capital Program is not successful due to program criteria and timelines.

BP objectives: Invest in the highest impact grants to catalyze positive change in communities; Deliver value for money in the use of public funds; Ensure accountable and accessible granting practices

The Foundation is concerned about its ability to fund sufficient numbers of initiatives and deliver on equitable distribution, as well as about the caliber of grant applications, due to the Ministry requirement for applicants having secured matching funds and the various pieces of eligibility criteria that are open to interpretation. It has been difficult for applicants to understand and accept which matching funds formula applies to them. This is compounded by the difficulty that charities and not-for-profit organizations have raising matching funds. An additional concern is the shovel-readiness of initiatives, with applicants wanting to start projects late in the year in order to have longer to raise their matching funds. This places projects in jeopardy of not reaching completion by March 2018.

L: High / I: High

• Although OTF advised strongly against a matching fund requirement, Foundation staff assisted organizations as best they could to meet this requirement, through advice provided through the Support Centre, outreach sessions, and the website.

• The OTF Lead Ontario150 maintains an up-to-date Q & A document for staff to reference as a means to providing consistent information.

• Foundation staff assisted organizations to understand the program, and they delivered as consistent messaging as possible.

• The OTF Lead for the program stayed in close touch with Ministry representatives to share responses to various enquiries, in an effort to achieve consistency.

• Staff and Volunteer training sessions were held to review Ontario150 program guidelines and processes

• Issues encountered during the

Overall Assessment: High Risk Risk/Mitigation Funded? Yes Risk Owner: V-P, Community Investments Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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Concurrent with OTF delivery of the program, advice and guidance were provided by Ministry staff through outreach sessions and responses to enquiries. Inconsistency of responses between OTF and MTCS could result in applications that deviate from program intent and subsequent complaints from declined organizations. These same factors also lead to a concern about the ability of OTF staff and volunteers to employ a consistent understanding of the program expectations and therefore to provide consistent assessment of applications.

application and assessment process were discussed with Ministry and Ontario150 staff to ensure a common understanding and agreement with solutions.

2. GOVERNANCE/ORGANIZATIONAL RISKS

2.A – GRT volunteers deviate from prescribed policies or processes, negatively impacting OTF’s ability to ensure consistent, fair, and equitable granting decisions.

BP goal: Implement effective organizational practices

BP objectives: Cultivate high performance by staff and volunteers; Ensure accountable and accessible granting practices

OTF’s decentralized granting decision structure means that GRT volunteers are essential to its success. As part of the new Investment Strategy, granting and corporate policies as well as granting processes have been revised. Risks include inconsistent application of policies and processes, compounded by regular turnover in volunteers. Volunteers could potentially make decisions that are not grounded in OTF’s official policies, or contravene various OTF policies or processes Besides the negative impact on OTF’s ability to ensure consistent, fair, and equitable granting decisions, occurrence of this risk could also endanger OTF’s reputation.

L: Low / I: High

There are extensive controls in place, and the two Vice-Presidents responsible for granting, together with the Granting Directors, provide oversight. OTF provides ongoing comprehensive orientation and training for volunteers, using various means of providing updates on new directions and training in key policies and processes. Senior management and Board members regularly attend GRT meetings where they can raise concerns about inconsistencies and non-compliance. The GRT Liaison Committee of the Board (GLC) reviews all recommendations made by local GRTs for consistency and compliance with OTF’s policies, before

Overall Assessment: Medium Risk. There are clear granting policies, as well as support systems and controls in place de-signed to minimize these risks Risk/Mitigation Funded? Yes Risk Owners: V-Ps, Community Investments and Prov’l Progs & Partnerships Mitigation Target Dates:

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recommended grants are presented to the Board for approval. When needed, the GLC may reverse a recommendation by a GRT to fund a given application. Similarly, the Provincial Programs Committee of the Board provides equivalent oversight of all grants recommended to the Board that fall under their purview. As well, there is a Volunteer Relations Office, with a staff of two, to support and enhance the training and engagement of OTF volunteers, and a monthly memo is sent to all volunteers to provide them with any new granting or other information that is relevant to their work.

Ongoing

2.B – A significant number of volunteers are not adequately trained and/or fail to fully comprehend and utilize the tools and resources pro-vided, negatively impacting OTF’s ability to ensure consistent, fair, and equitable granting decisions.

BP goal: Implement effective organizational practices

BP objectives: Cultivate high performance by staff and volunteers; Ensure accountable and accessible granting practices

The success of OTF’s Investment Strategy depends in large part on the ability of volunteers to competently implement the vision and strategic direction.

L: Low / I: High

• Corporate Orientation package was updated and onboarding sessions centralized and systematized.

• Online eLearning modules and ongoing webinars offered to all volunteers on important aspects of the Investment Strategy and processes.

• Major policy compliance requirements are embedded in the granting system

• FAQs and user guides developed • Various communications vehicles are

in place to update and train volunteers and collect their feedback.

• The Volunteer Engagement Advisory Group meets regularly to raise and discuss volunteer issues.

• The November 2016 Volunteer Conference was played a key role in supporting training and understanding of the volunteer role at OTF.

Overall Assessment: Medium Risk. A robust training plan, materials, and other supports have been developed to help insure successful implementation of OTF’s Investment Strategy by volunteers. Risk/Mitigation Funded? Yes Risk Owner: V-P, Public Affairs Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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3. LEGAL/COMPLIANCE RISKS

3.A – More stringent government legislation and regulations regarding transparency and accountability put significant pressure on OTF’s ability to maintain a low operating cost ratio.

BP goal: Bring value to our stakeholders

BP objective: Deliver value for money in the use of public funds

OTF’s core values of transparency and accountability

• In 2015/16 the government introduced new requirements for classified agencies to publicly post governance documents, and travel, meal, and hospitality expenses. These new requirements have cost and productivity implications (e.g. translation and staff costs).

• As well, OTF became subject to FIPPA in August 2016, and implementation and ongoing operating costs around this requirement put pressure on OTF’s operating budget.

L: High / I: Medium

• The Auditor General’s 2011 report observed that OTF administrative expenditures were modest compared to most other agencies; and that OTF has an institutional mindset that emphasizes keeping costs to a minimum.

• OTF has very strict budgeting practices and ensures that public money is used appropriately and in accordance with all legal requirements.

• OTF has complied with all accountability requirements, and the Board of Directors receives a report on compliance at each meeting.

• A full-time Privacy/FOI Analyst was hired in January 2016, to assist with implementation and compliance.

Overall Assessment: High Risk. There are cost implications which could have an impact on other areas of the Foundation’s business, particularly in light of this year’s 22% cut to OTF’s core funding. Risk/Mitigation Funded? Yes Risk Owners: V-P, Public Affairs Chief Operating Officer Mitigation Target Dates: Ongoing

3.B – Privacy breaches or inappropriate disclosure of confidential information by staff or volunteers negatively impact OTF’s reputation and jeopardize relationships with stakeholders.

All strategic priorities and activities of the Business Plan, and achievement of OTF’s mission of building healthy and vibrant communities

A privacy breach or confidentiality violation will tarnish OTF’s reputation and diminish the public’s and grantees’ trust in the way OTF manages valuable public assets. Could also lead to an investigation into OTF’s practices.

L: Medium / I: High

• Staff and volunteers sign Code of Conduct and Ethics document which includes requirements re privacy and confidentiality and, starting in 2017, they will be asked to do so annually.

• Created new position and recruited permanent Privacy/FOI Specialist to develop OTF’s privacy program.

• Implemented role-based access system controls.

• Offer ongoing training to staff and volunteers to build awareness of privacy issues and appropriate behaviour.

• Where third party (e.g. Ministry partners) access to information is required, OTF is developing a Terms

Overall Assessment: High Risk Risk/Mitigation Funded? Yes Risk Owner: V-P, Public Affairs Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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of Use agreement that outlines their responsibilities in ensuring information accessed through OTF’s systems remains confidential.

4. OPERATIONAL/SERVICE DELIVERY RISKS

4.A – OTF grants are not equitably distributed and/or accessible to all Ontarians.

BP goal: Bring value to our stakeholders

BP objective: Ensure accountable and accessible granting practices

OTF’s value related to acting with fairness

A lack of equity and accessibility in the distribution of OTF grants would impact on the achievement of OTF’s mission, in the areas of building healthy and vibrant communities (which must be inclusive and diverse) and building the capacity of the voluntary sector (which includes organizations serving the entire spectrum of society). OTF’s reputation could also be affected by perceptions of inequitable or inaccessible services. Principles of equity and accessibility were key components of several of the Auditor General’s recommendations.

L: Low / I: Medium

• OTF’s comprehensive website ensures knowledge of its granting programs is widespread, in both official languages. It is AODA compliant, ensuring accessibility to people with disabilities.

• Foundation’s communications plan includes public awareness strategies to ensure widespread knowledge of OTF.

• Staff track granting to population groups and types of organizations and adjust outreach strategies accordingly. Annually staff identify under-served populations and carry out targeted outreach.

• OTF has simplified its application processes in general, especially for smaller, less complex grants.

• OTF has developed a Grant Distribution Equity Index to measure the equity of its granting to various populations, age groups, geographic communities, and organization sizes and types. 2016/17 is a baseline year, and we will be evaluating the proposed approach and finalizing it based on this year’s results.

• OTF is aware that the Ontario150 granting program’s tight timelines and matching fund requirement could potentially disadvantage smaller organizations and is committed to

Overall Assessment: Low Risk. This risk is generally well mitigated; OTF places a high priority on equitable access to its funding and monitors this area and adjusts its activities and strategies on an ongoing basis as required. Risk/Mitigation Funded? Yes Risk Owners: V-Ps, Community Investments and Prov’l Progs & Partnerships Mitigation Target Dates: Ongoing

Business plan: 2017/18 – 2019/20

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efforts to minimize this negative impact.

4.B – The recent $25 million cut in OTF’s core funding jeopardizes achievement of the Foundation’s Business Plan goals. (See also Risk

1.D)

All strategic priorities and activities of the Business Plan, and overall implementation of the Operational Plan.

• In planning for its 2016/17 operating budget, OTF committed to ensuring that its operating budget did not exceed 12.9% of total expenditures. With the sudden cut of $25 million, the OTF operating cost ratio was increased to address fixed operating costs.

• The Business Plan is ambitious and adequate financial and human resources are required for full and effective implementation.

• Recently the government has turned to OTF as a provider of specific, targeted government programs (e.g. YOF, LPRF). It is important that the Foundation make clear that partnerships must not be implemented at the expense of OTF’s core operating budget, which is meant to serve the entire province.

L: High / I: High

• The 2016/17 Business Plan was based on the assumption of a core budget of $115 million, which was reduced to $90 million. OTF has reviewed options for managing with a reduced budget, including adjustments to the Investment Strategy and business plan goals, and reductions in core operations (including staff), and these are being implemented.

• OTF’s Budget Development Policy permits an increase to the operating cost ratio in the case of a significant decrease in Ministry funding; thus the Operating Budget has been revised upward.

• OTF works to ensure that agreements it enters into with government partners allow for sufficient amounts of operating dollars, so as not to encroach on OTF’s MTCS core funding.

Overall Assessment: High Risk. With the announcement of a $90 million allocation for 2016/17 instead of the planned $115 million, the likelihood of this risk occurring has been substantially increased for the upcoming year. Overall, OTF is doing as much as could be expected and is within its control to decrease its impact. Risk/Mitigation Funded? Yes Risk Owner: CEO Mitigation Target Dates: Ongoing

5. WORKFORCE RISKS

5.A – The Government continues to fail to appoint sufficient numbers of GRT volunteers,

BP goals: Bring value to our stakeholders; Implement effective organizational practices

BP objectives: Deliver value for money in the use of public funds; Ensure accountable

This risk has been a serious issue for a number of years. As of November 2016, 57% of the positions on GRTs are vacant (192), and 12 of the 16 GRTs had vacancy rates of 50% or higher. Implications include: • A smaller volunteer force to handle

the workload, so each volunteer has

L: High / I: High

• Close cooperation with Ministry and Public Appointments Secretariat (PAS) staff.

• Pro-active strategies to identify potential new candidates, in order to assist the Ministry in its recruitment work, particularly in areas where few applications are received by the PAS.

Overall Assessment: High Risk. This continues to be a serious issue. OTF is doing as much as can be expected and is within its control to decrease its impact.

Business plan: 2017/18 – 2019/20

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jeopardizing the ability of one or more GRTs to carry out their business.

and accessible granting practices

an increase in workload, which can lead to volunteer burnout and less-than-optimal decisions.

• “Decision concentration” – a very small number of volunteers making decisions on millions of dollars’ worth of grants.

• With fewer members, a GRT may not have the range of skills required or may not truly represent its community in terms of good geographic, gender, ethno-cultural, socio-economic, etc. representation.

• OTF Corporate Governance & Policy Committee and Board are informed and consulted regularly regarding the status of appointments.

• Business continuity processes are in place should volunteer numbers drop below requirements.

This risk cannot be totally mitigated by OTF, however, as the actual appointments are the purview of the government. One possible solution is for the Foundation to appoint all or some GRT members (except GRT Chairs), and we have begun discussing this possibility with the new Minister, as we did with her predecessor.

Risk/Mitigation Funded? Yes Risk Owner: V-P, Public Affairs Mitigation Target Dates: Ongoing

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5.B – The complement of Francophone GRT members within each catchment area is insufficient to adequately assess the volume of Francophone applications, impacting OTF’s ability to ensure equitable granting decisions.

BP goals: Bring value to our stakeholders; Implement effective organizational practices

BP objective: Ensure accountable and accessible granting practices

OTF complies with the spirit of the French Language Services Act. This requires provision of the same level of service to all applicants whether they submit their applications in French or in English. Thus OTF must have sufficient internal resources to properly assess French applications, including reviewers with good knowledge of the needs and characteristics of the Francophone community in Ontario. Currently, some GRTs have no or few French-speaking members. A lack of equity and accessibility in OTF funding to the Francophone community could impact on the achievement of our mission, and could also have a negative impact on our reputation.

L: High / I: Medium

Some of the same strategies as in Risk 5.A above. As well: • A recruitment plan has been developed,

including proactive strategies to identify potential new candidates, to assist the Ministry in recruitment of new volunteers. Business continuity processes are in place to help close the gap between the number and distribution of Francophone volunteers and the number of French applications being assessed. In 2017, we will put in place francophone panels of GRT members who will oversee clusters of catchments to ensure that applications are reviewed by a fair number of French-speaking volunteers.

• OTF has made recent efforts in outreach and volunteer training: a more visible presence in the Francophone community through the Vice-President, Public Affairs, and training at the November 2016 conference to ensure good understanding of Francophones’ needs and priorities among our volunteers.

Overall Assessment: High Risk. This continues to be a serious issue. OTF is doing as much as can be expected and is within its control to decrease its impact. Risk/Mitigation Funded? Yes Risk Owner: V-P, Pub. Affairs Mitigation Target Dates: Ongoing

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5.C – Conflicts of interest with applications under review are not adequately managed.

BP goal: Implement effective organizational practices

BP objective: Deliver value for money in the use of public funds; Ensure accountable and accessible granting practices

OTF’s values of integrity and accountability

• Staff or volunteers with a conflict of interest may favour certain applications and may recommend their approval or decline without appropriate due diligence and evaluation according to the Foundation’s criteria. Consequently, OTF may not fund the applications that will assist in achieving its mission and targets.

• OTF funding may not be equitable or inclusive.

• Inappropriate funding decisions may be made that adversely affect OTF’s reputation; or result in unnecessary complaints and require extensive issues management work.

L: Low / I: Medium

• Revised Conflict of Interest policies and procedures, as well as a Code of Conduct & Ethics, are in place.

• Staff and volunteers confirm their adherence to these and other policies when they join the Foundation, and at least annually thereafter, and submit a list of organizations with which they may have a conflict of interest.

• The granting process requires a documented conflict of interest declaration in the electronic granting system as the first step in application review. As well, declarations can also be made at any point in the review process.

Overall Assessment: Low Risk. While the risk cannot be 100% mitigated, we believe that it is well managed through current processes and a focus on continuing improvement. Risk/Mitigation Funded? Yes Risk Owners: CEO and Chair (Chief Ethics Officers) Mitigation Target Dates: Ongoing

5.D – Poor labour relations impact OTF’s ability to build and maintain the high perform-ance culture necessary for achieving its business objectives.

All aspects of OTF’s Investment Strategy

BP objective: Cultivate high performance by staff and volunteers

• Impact could range from minimal to critical, depending on the number of departments/functions involved.

• Scope depends on the severity of the labour relations issues.

L: Low / I: High

• A new performance management system is being put in place. OTF will move from an annual review to more agile quarterly check-ins, to enable the provision of timely recognition and feedback.

• OTF engaged Hay Group to conduct a compensation review. Generally, the consultants found that OTF’s current compensation was close to that of the median of the market. The new compensation structure that is being put into place is fully compliant with the requirements of the Executive Compensation Framework.

• OTF will start quarterly pulse surveys in 2017, replacing employee engagement surveys completed every 18 months. The Employee Engagement Advisory Group will be involved in identifying strategies to address staff concerns.

Overall Assessment: Medium Risk Risk/Mitigation Funded? Yes Risk Owner: Director, Talent & Engagement Mitigation Target Dates: Ongoing

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• Regular all-staff meetings and ongoing communication from Senior Management to all staff.

6. INFORMATION TECHNOLOGY & INFRASTRUCTURE RISKS

6.A – Physical damage to hardware, software, data – e.g. power outages, fire, damage to the server room.

All strategic priorities and activities of the Business Plan

Business continuity

Scope would vary depending on the severity of the incident from a power outage to a complete loss of data centre through physical or cyber harm. Impact could range from a few minutes of power interruption to complete loss of access to IT services and data for up to two days, pending disaster recovery.

L: Low / I: High

• IT Disaster Recovery Plan in place. • Data backup moved to a cloud vendor

who can restore OTF services into the cloud within 24 hours.

• Critical business systems outsourced. • 24/7 infrastructure monitoring to allow for

advance notice of potential issues. • Other application-specific strategies.

Overall Assessment: Medium Risk Risk/Mitigation Funded? Yes Risk Owner: Chief Operating Officer Mitigation Target Dates: Ongoing

6.B – Security threats to OTF data and infrastructure.

All strategic priorities and activities of the Business Plan

Business continuity

Unauthorized access to, or use of, the OTF network and infrastructure could lead to events with varying impacts, including data loss on the server, loss or theft of mobile devices containing OTF data, data destruction, etc. Scope depends on the target of the security threat – i.e. could be just one system or a small amount of data, or – worst case scenario – OTF’s entire network and/or other organizations’ networks as well.

L: Medium / I: High

• IT infrastructure and security outsourced to a best-in-class IT vendor.

• A next generation firewall system and intrusion prevention.

• Encryption of data on OTF laptops. • Secure VPN solution in all the regional

offices and to all remote user laptops. • Physical backup on- and off-site. • Issuing comprehensive security audit RFP

to ensure consistency and ongoing protection of the network.

Overall Assessment: High Risk Risk/Mitigation Funded? Yes Risk Owner: Chief Operating Officer Mitigation Target Dates: Ongoing

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7. ALL OTHER RISKS

7.A – Actual investment income earned in a given year is significantly less than what was forecast.

All strategic priorities and activities of the Business Plan

The Granting Budget is calculated based on a forecast of investment income and, if the actual income earned is significantly less than the forecast, the budget may need to be reduced during the year, meaning less funding will go to granting. For 2016/17 this risk has actually materialized, as OTF’s funding has been decreased by 22%, and $15 million of the $90 million for this year was not received until six months into the year so did not earn interest during that time. As a result of these two factors, the 2016/17 granting budget is significantly less than anticipated. However, since investment income is currently only a small (approximately 1-2%) component of the Granting Budget, the resulting impact on an individual catchment area’s granting would therefore be low.

L: High / I: Low

• Base the forecast for the upcoming year on government interest rate projections.

• Take a conservative approach to forecasting in terms of predicting cash flows.

• Consult with the Ontario Financing Authority on our forecasting model, including a recent review in light of new granting payment patterns resulting from the four new Investment Streams.

There is still considerable residual risk, as local and world economic events affecting interest rates are out of the Foundation’s control.

Overall Assessment: Medium Risk Risk/Mitigation Funded? Yes Risk Owner: Chief Operating Officer Mitigation Target Dates: Ongoing