Teen Challenge Canada
STAR RATINGCi's Star Rating is calculated based on the following independent metrics: |
✔+
FINANCIAL TRANSPARENCY
Audited financial statements for current and previous years available on the charity’s website.
B-
RESULTS REPORTING
Grade based on the charity's public reporting of the work it does and the results it achieves.
Low
DEMONSTRATED IMPACT
The demonstrated impact per dollar Ci calculates from available program information.
NEED FOR FUNDING
Charity's cash and investments (funding reserves) relative to how much it spends on programs in most recent year.
88%
CENTS TO THE CAUSE
For a dollar donated, after overhead costs of fundraising and admin/management (excluding surplus) 88 cents are available for programs.
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OVERVIEW
About Teen Challenge Canada:
Teen Challenge Canada is a 2-star charity with Low demonstrated impact and a below-average results reporting grade. The charity is financially transparent and its overhead costs are within Ci's reasonable range for overhead spending.
Founded in 1958 in New York City, Teen Challenge is a global, faith-based substance abuse and rehabilitation program. Teen Challenge Canada is a national branch based in London, Ontario that aims to help Canadians overcome addiction and lead full lives. Teen Challenge runs six men’s centres and three women’s centres to support addiction recovery. Its centres serve clients across Alberta, New Brunswick, Newfoundland, Ontario, and Saskatchewan.
Teen Challenge states that average drug use begins at 15.7 years old and that 47,000 Canadian deaths are linked to substance abuse annually. The overall cost of substance abuse in Canada is approximately $1,258 for every Canadian, per year.
Teen Challenge's addiction recovery program involves a three-phase, 12-month residential program at a community living centre. During the program, clients receive training in leadership skills, character, and healthy living. In F2021, the 12-month program had 222 admissions and an average of 74 clients in the program per week. Upon graduation, students have the option to enter Phase 4, a six-month residential program that gives students more time to set goals and transition back into society. Members of the Phase 4 program also act as mentors to incoming students. Combined, the 12-month and Phase 4 programs have 233 beds available.
The 12-month recovery program also helps clients overcome addiction through various activities, classes, and counselling services. It offers programming in areas such as Christian education, health and recreation, creative and performing arts, and life skills and vocational training.
In F2021, Teen Challenge program participants spent 43,639 hours in the classroom, 72,732 hours in therapy, and 6,327 hours in addiction counselling.
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Results and Impact
In 2021, Teen Challenge Canada reported a total of 29 graduations.
Charity Intelligence has given Teen Challenge a Low impact rating based on demonstrated impact per dollar spent.
Impact Rating: Low
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Finances
Teen Challenge Canada received $9.9m in donations in F2021. It also received $3.8m in donated goods in kind, representing 26% of revenues. Donated goods in kind included capital assets, vehicles, food, and materials for resale. Administrative costs are 3% of revenues and fundraising costs are 9% of donations. This results in overhead spending of 12%. For every dollar donated to the charity, 88 cents go to the cause. This falls within Ci's reasonable range for overhead spending.
Teen Challenge interest-bearing liabilities of ($4.6m) exceed its liquid assets of $3.3m, resulting in a negative program cost coverage figure. These liabilities mainly represent mortgages and loans needed to finance renovations and building upgrades. When excluding debts and donor-endowed funds of $598k, Teen Challenge Canada’s gross funding reserves can cover just over 3 months of annual program costs.
This charity report is an update that has been sent to Teen Challenge for review. Changes and edits may be forthcoming.
Updated on August 10, 2022 by Emma Saganowich.
Financial Review
Fiscal year ending December
|
2021 | 2020 | 2019 |
---|---|---|---|
Administrative costs as % of revenues | 3.4% | 3.0% | 2.6% |
Fundraising costs as % of donations | 8.7% | 7.4% | 11.7% |
Total overhead spending | 12.0% | 10.4% | 14.3% |
Program cost coverage (%) | (18.0%) | (27.1%) | (18.2%) |
Summary Financial StatementsAll figures in $000s |
2021 | 2020 | 2019 |
---|---|---|---|
Donations | 9,915 | 11,219 | 12,282 |
Goods in kind | 3,831 | 2,857 | 3,334 |
Fees for service | 213 | 147 | 317 |
Other income | 583 | 1,447 | 15 |
Total revenues | 14,542 | 15,670 | 15,948 |
Program costs | 10,372 | 9,836 | 10,306 |
Administrative costs | 487 | 475 | 420 |
Fundraising costs | 862 | 828 | 1,439 |
Other costs | 0 | 0 | 1 |
Total spending | 11,722 | 11,139 | 12,166 |
Cash flow from operations | 2,820 | 4,531 | 3,783 |
Capital spending | 2,090 | 4,639 | 3,594 |
Funding reserves | (1,263) | (2,154) | (1,872) |
Note: To report on a cash basis, Ci adjusted donations by changes in deferred capital contributions. This affected total revenue by $177k in F2021, $2.6m in F2020, and $2.6m in F2019. Ci removed the value of donated goods in-kind from donations to report them separately.
Salary Information
$350k + |
0 |
$300k - $350k |
0 |
$250k - $300k |
0 |
$200k - $250k |
0 |
$160k - $200k |
1 |
$120k - $160k |
0 |
$80k - $120k |
4 |
$40k - $80k |
5 |
< $40k |
0 |
Information from most recent CRA Charities Directorate filings for F2020
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Comments & Contact
Comments added by the Charity:
Charity Contact
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