Note: Ci reported government funding from the charity's T3010 CRA filing and backed out the amounts from donations. Ci used T3010 data to report grants to qualified donees and backed out the amounts from program costs. Ci used T3010 data for the charity’s reported administrative and fundraising expenses. Ci removed the unreconciled differences in total costs from program costs, affecting them by ($88k) in F2021, ($89k) in F2020, and ($127k) in F2019.   The charity’s audited financial statements only recognized a portion of investment income in revenues. Ci recognized all investment income (net of management fees) and included the portion of investment income that was reported as other revenues. This affected total revenues by $24.1m in F2021, $1.3m in F2020, and $1.1m in F2019. This also reduced other income by ($7.2m) in F2021, ($913k) in F2020, and ($833k) in F2019. Ci recognized endowment contributions as donations, affecting total revenues by $1.4m in F2021, $2.6m in F2020, and $3.0m in F2019.  Ci adjusted for deferred donations (amounts received for restricted purposes less amounts recognized as revenue during the year) affecting total revenues by $9.1m in F2021, $22.1m in F2020, and $6.2m in F2019. Ci adjusted for deferred contributions transferred to endowments, affecting revenues by $9.0m in F2021, $3.4m in F2020, and $3.2m in F2019. Ci did not include loan repayments for prior year acquisitions, affecting total expenses by ($1.6m) in F2021, ($131k) in F2020, and ($220k) in F2019. To report on a cash basis, Ci removed amortization from administrative expenses. 

Nature Conservancy of Canada added these comments to the 2021 profile update:

About the Nature Conservancy of Canada:

The Nature Conservancy of Canada (NCC) is a national land conservation organization working to protect our most important natural areas and the species they sustain. Working with our partners since 1962, we have helped to protect more than 14 million hectares (35 million acres), coast to coast to coast. With nature, we are building a thriving world.

Current Initiatives:

Conserve:

In a world facing the twin crises of biodiversity loss and climate change, NCC is focused on nature-based solutions. We protect the natural areas that clean our water and air, absorb and store carbon, and support healthy and prosperous communities.  

Federal Government Partnership:

The Natural Heritage Conservation Program (NHCP), launched in April 2019, brings Canadians together to conserve nature. It continues the momentum of the previous federal partnership administered by NCC: the Natural Areas Conservation Program (NACP). Under the NACP, NCC and its partners conserved more than 550,000 hectares (more than 1.1 million acres) coast to coast, providing habitat for 219 species at risk. The NACP achieved more than $1B in conservation outcomes.

The NHCP aims to add an additional 200,000 hectares (nearly half a million acres) to the protected area network by 2023. The Government of Canada has committed $100M to the program, while NCC and its delivery partners, including local land trusts, are raising contributions to match the federal investment 2:1.

Additionally, NCC acts as a facilitator of largescale conservation partnerships – helping to negotiate the release of private rights and encumbrances to allow conservation to take place.

NCC also works with Indigenous communities to support the creation of Indigenous Conserved and Protected Areas.

Landmark Campaign:

At the end of FY20, NCC concluded The Landmark Campaign; the single largest private investment in conservation in Canadian history. The campaign raised more than $750M, contributing an additional 115,000 km² to Canada’s protected area network. Canadians from every corner of the country joined the movement for nature, many making first time gifts. 

Engagement:

In addition to its mandate of protecting nature, NCC provides Canadians with access to nature so that they may enjoy its health and wellness benefits. Ninety four per cent of Canadians live within 100 kms of an NCC-protected site. 7410

Our Nature Destinations program offers a curated suite of protected areas for public enjoyment,7 both online and on the ground.

The Conservation Volunteers program encourages Canadians to join NCC staff in the field to work on stewardship projects. This program was modified in FY20 due to the restrictions of COVID-19. Instead NCC focused on a dynamic series of virtual NatureTalks webinars, to continue to connect more Canadians to nature and conservation.

Internships:

NCC is committed to inspiring the conservation leaders of the future. Despite COVID-19, 24 young professionals joined NCC in 2019-20 to gain job-ready skills through internships.

Finances:

Year-to-year changes in revenue and expenses are normal for NCC and reflect the multi-year nature of many of our large conservation projects. NCC continues to maintain a solid, healthy balance sheet with insignificant long-term debt.

NCC calculates some of its performance metrics on a five-year rolling average in order to give an accurate picture of its financial standing. These rolling averages allow NCC to account for the fluctuations that a year-on-year measure can cause, such as when there is a large project in one fiscal year, or when projects span more than one year, as well as benefits of some non-program expenses that may exceed one year.

As noted in NCC’s Annual Report for FY20, based on a five-year average, NCC received grants and donations from government (40 per cent), the private sector (51 per cent) and other sources (nine per cent). The private sector funding provided the match required for government grants.

On the expense side, 78 per cent of NCC’s expenditures went directly to program costs (on a five-year rolling average), 11 per cent was spent on administration, nine per cent on fundraising and two per cent on communications. NCC reported total revenues for FY20 of $104M, with an additional $6.5M in restricted endowed fund contributions. As a national organization with offices across Canada, and despite strategic investments in fundraising and technology, NCC’s overhead costs are low, especially when compared to many organizations of a similar size and structure. NCC does not allocate overhead expenses to program costs.

To support NCC’s mission, it is essential that there are adequate resources available to protect its conserved land portfolio for the future. NCC has established and continues to contribute to a stewardship endowment fund (reserve) to ensure that funding will always be available for necessary conservation actions to protect the natural values on its lands. This accounts for $141.6M of funding reserves, with the remainder being restricted funds for conservation purposes.

Often reviewers of NCC’s financial statements over-estimate its reserves. These are funds accumulated to meet the organization’s commitment to sustainable funding for management and restoration of properties. Fundraising for new property acquisitions is less challenging than fundraising to maintain and restore existing properties. Long term conservation is the mission of the organization.

NCC is thankful to all its donors and funders for their generous support. Both the Board of Directors and management have ensured that the organization is in a healthy financial position to ensure a sustainable future to fulfil its mission.