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 ($99k) in F2022, $1.5m in F2021, and $42k in F2020.    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 by the charity as other revenues. This affected total revenues by $953k in F2022, $26.2m in F2021, and $1.9m in F2020. This also reduced other income by ($536k) in F2022, ($7.1m) in F2021, and ($913k) in F2020. Ci recognized endowment contributions as donations, affecting total revenues by $2.4m in F2022, $1.4m in F2021, and $2.6m in F2020. Ci adjusted for deferred donations (amounts received for restricted purposes less amounts recognized as revenue during the year) affecting total revenues by $21.1m in F2022, $9.1m in F2021, and $22.1m in F2020. Ci adjusted for deferred contributions transferred to endowments, affecting revenues by $7.3m in F2022, $9.0m in F2021, and $3.4m in F2020. Ci did not include loan repayments for prior year acquisitions, affecting total expenses by $nil in F2022, ($1.6m) in F2021, and ($131k) in F2020. To report on a cash basis, Ci removed amortization from administrative expenses.

Nature Conservancy of Canada added these comments on August 18, 2023:

About the Nature Conservancy of Canada:

The Nature Conservancy of Canada (NCC) is the country’s unifying force for nature. NCC seeks solutions to the twin crises of rapid biodiversity loss and climate change through large-scale, permanent land conservation. As a trusted partner NCC works with people, communities, businesses, and government to protect and care for our country’s most important natural areas. Since 1962, NCC has brought Canadians together to conserve and restore more than 15 million hectares. To learn more, visit natureconservancy.ca.

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.  

A few highlights of our FY22 accomplishments:

• We secured 99,944 hectares on 67 projects from coast to coast to coast. 
• We protected and cared for habitat for 244 of Canada’s 687 species at risk. 
• More than 7,000 metric tonnes of carbon dioxide, equivalent to the lifetime emissions of close to 102,650,000 typical passenger vehicles, were sequestered throughout the 15 million hectares you have helped us protect since 1962. 

Since 1962, our collective actions have resulted in about two million hectares of direct conservation, and another 13 million where our actions have made it possible for others to do amazing work. That’s equivalent to almost twice the size of New Brunswick.

In addition, thanks to the support of our donors and partners, the following accomplishments were made possible: 

• On Earth Day, we launched the Boreal Wildlands project near Hearst, Ontario.
  — It is the largest private land conservation project in Canadian history, at nearly 1,500 square kilometres.
• NCC and Parks Canada came together to reintroduce bison to The Key Fist Nation in Saskatchewan. Twenty of the animals came from NCC’s Old Man on His Back Prairie and Heritage Conservation Area.
• We launched our Nature + Climate Projects Accelerator program, which will leverage finance tools toward furthering NCC’s core conservation mission.

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.

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.

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. 

NCC also offers a curated suite of protected areas for public enjoyment, both online and on the ground.

The Conservation Volunteers program encourages Canadians to join NCC staff in the field to work on stewardship projects. In total, we welcomed more than 24,000 participants at over 300 events in FY22.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.

A big year for conservation

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 FY22, based on a five-year average, NCC received grants and donations from government (44 per cent), the private sector (46 per cent) and other sources (10 per cent). The private sector funding provided the match required for government grants.

On the expense side, 79 per cent of NCC’s expenditures went directly to program costs (on a five-year rolling average), 10 per cent was spent on administration, 9 per cent on fundraising and 2 per cent on communications. NCC reported total revenues for FY22 of $170.1 million (2021 = $132.2 million) with an additional $9.6 million (2021 = $6.5 million) in restricted endowment 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 $184.8M 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 (book value of $888.5M). 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.