Stewardship

OUR COMMITMENT TO YOU

United Way Greater Toronto (UWGT) fights local poverty, improves social conditions and drives systems change by supporting people in the neighbourhoods they live in, across Peel, Toronto and York Region. We work to ensure that gifts to United Way help meet urgent needs and bring about long-term systemic change. We believe that every person in every community should have the opportunities, access and connections they need to build a good life — regardless of their income, the neighbourhood they live in, or social identity. In Fiscal Year 2023–2024 (FY 23–24), overall distributions and community programs represented $134.9 million, per UWGT Financial Statements, Statement of Operations. The breakdown is as follows:

MANAGEMENT DISCUSSION AND ANALYSIS

IMPLEMENTING A MULTI-YEAR FISCAL SUSTAINABILITY PLAN

With the changing philanthropic landscape, UWGT continued the implementation of its Board-approved Strategic Roadmap, “Now, New, Next,” with the following business priorities:

1. Become a centre of excellence in inclusive philanthropy.
2. Develop leading cross-sector solutions.
3. Apply engagement as a tool for change.
4. Adopt enterprise insight for decisions.
5. Turn outward to work with community.

Amid the challenges posed by economic instability, such as recessionary concerns, UWGT steadfastly adhered to its business objectives, marking FY 23–24 as the fourth year of its five-year Board-approved Strategic Roadmap. Remarkably, the pressures from economic uncertainties have catalyzed UWGT to accelerate its transformation.

During FY 23–24, UWGT upheld its financial commitments across the Community Investment, Community Services, and Program Support streams, collaborating with its network of agencies and community partners to address prevailing, pressing and emerging community challenges. Through its distinctive funding approach, UWGT provided flexible funding for both program initiatives and core operational support. This ensured sectoral stability while meeting the needs of communities and residents as well as mobilizing innovative solutions. UWGT witnessed the resilience of its donor and volunteer base amid the uncertainties of the present landscape. Additionally, as a trusted collaborator with government at various levels, UWGT secured further funding from government programs, capitalizing on its expertise in grant management and its understanding of local community requirements.

Fiscal responsibility is the cornerstone of the Board-approved Strategic Roadmap. Despite the economic and financial uncertainties prevailing in the current landscape, UWGT’s financial position is stable:

• FY 23–24 marked the fourth consecutive year of achieving a balanced budget or better — this financial improvement stems from past restructuring efforts, cost-saving initiatives, and prudent investment practices.
• Reserves remain at robust levels — sufficient to support UWGT’s financial commitments to its network of agencies for both the Community Program Grants (three-year funding) and the Anchor Program (five-year funding), while ensuring the ongoing sustainability of its operations.
• Considering the prevailing economic uncertainty, liquidity remains a primary concern. UWGT’s Reserves are primarily comprised of cash or cash equivalents, effectively mitigating liquidity and price risks associated with market fluctuations.

Looking forward to FY 24–25, UWGT will prioritize organizational stability while ramping up efforts to execute its Board-approved Strategic Roadmap with an emphasis on growing revenue. The growth evident across the GTA presents economic opportunities, yet it’s crucial to recognize that more than 850,000 people in the GTA are still living in poverty and face inequities. To meet these challenges, UWGT will intensify its efforts by spearheading cross-sector solutions, to protect, strengthen and revitalize neighbourhoods that foster greater inclusivity, through its Neighbourhood Solutions Strategy. This includes a new area of business — Community Real Estate, which will concentrate on preserving existing spaces and establishing new social infrastructure and community-owned space in neighbourhoods undergoing revitalization. To achieve this bold vision, UWGT will launch a transformative multi-year fundraising and brand campaign this fall, bolstering revenue growth and enhancing brand presence.

FINANCE, AUDIT AND RISK COMMITTEE REPORT

GOVERNANCE AND FINANCIAL TRANSPARENCY

UWGT has a robust Finance, Audit and Risk Committee consisting of six members. The Committee meets annually, independent from management, to engage with KPMG, UWGT’s auditors. The Committee oversees the audit and financial controls, budget and financial management, investment management, risk management and digital transformation workplan, on behalf of the Board of Trustees.

The UWGT Audited Financial Statements consolidate the financial results of UWGT’s operations, capital expenditures and The Tomorrow Fund™. They are prepared in accordance with Canadian Accounting Standards for Not-For-Profit Organizations (ASNPO) and are also in alignment with United Way Centraide Canada’s Transparency, Accountability and Financial Reporting (TAFR) standards.

As UWGT continued to operate in a digital office, with a hybrid workforce, KPMG issued an Unqualified Audit Report. And like previous years, KPMG concurred with management that UWGT met the requirements of being a going concern for this coming fiscal year, FY 24–25.

Key items in KPMG’s audit review and findings included:

• Fraud risk for management override of controls and fraud risk in revenue recognition: no issues or concerns identified.
• Control deficiencies: no significant deficiencies in internal control over financial reporting identified.
• Special purpose audits for five agreements funded by the government, for which UWGT is the program administrator and/or service provider: no issues or concerns identified
  1. Reaching Home, York Region
  • Five-year agreement with The Regional Municipality of York: ending in FY 23–24
  2. Peel Newcomer Strategy Group
  • Five-year agreement with Canada-IRCC: ending in FY 24–25
  • Annual agreement with Region of Peel
  3. Community Services Recovery Fund with Government of Canada (Employment and Social Development Canada): ending in FY 24–25
  4. Hydro Settlement Fund
  5. Youth Challenge Fund

FINANCIAL HIGHLIGHTS

UWGT’s commitment to its network of 300 agencies and community partners remained steadfast, bolstered by a strategy to diversify its fundraising channels. With partnerships spanning more than 800 workplaces and engaging more than 2,000 volunteers, as well as the support of corporate and individual donors, UWGT achieved a commendable and sustainable level of financial health and stability in FY 23–24.

Supplemental funding from certain government initiatives and pro-bono contributions — ranging from legal assistance to donated media advertising space — further augmented this remarkable display of generosity. This is particularly noteworthy given the uncertainties of the economic landscape.

* $$$ from Campaign revenue activities at $121.7 million included 19.5 million dollars of donor-directed designations to other United Ways and charities — a decrease of ($2.7 million) when compared to the previous year, i.e., FY 22–23.

** Overall distributions and community programs at $134.9 million — FY 22–23 did not include any government emergency funding for community. When comparing to last year’s $115.2 million in overall distributions and community programs, please refer to the FY 23–24 Audited Financial Statements — Statement of Operations for a detailed breakdown of the year-over-year decrease.

FY 23–24 RESULTS AND RECENT TRENDS

Overall Revenue

Overall revenue was at $153.3 million [items 1, 2 and 3], when excluding UWGT’s activities for its investment portfolio, i.e., $8.5 million [item 4].

The $153.3 million for FY 23–24 — when excluding investment activities [Item 4] — compares to the previous year’s total of $134.8 million. This is an increase of $18.5 million, driven by:

• [Item 1]: Donor-directed designations to other United Ways and charities — year-over-year decrease of ($2.7 million) and decrease in campaign-revenue of ($1 million).
• [Item 2]: Government emergency revenue — year-over-year increase of $15.5 million.
• [Item 3]: Government grants and disbursements — year-over-year increase of $5.8 million.

The Fundraising Cost-Revenue Ratio (CRR) continued to be low at 17.3%, with continued focus on operational efficiency and achieving UWGT’s objective of being less than 20%.

Overall Distributions & Community Programs

Total distributions amounted to $134.9 million, representing an increase from the previous year’s $115.2 million, driven by one-time investments from the federal emergency program for the Community Services Recovery Fund (CSRF). UWGT’s allocation of funds through the Community Services Sector Strategy to anchor agencies and Community Program Grants, totaling $68.6 million, exemplifies United Way’s distinctive approach to fostering stability and flexibility within the network of agencies assisting individuals experiencing or at risk of poverty.

Furthermore, UWGT has deepened its commitment to enhancing investments in Indigenous, Black and other marginalized groups facing structural disadvantages. UWGT will also continue fostering neighborhood-based solutions through partnerships with corporate, government and community sectors at the local level.

Operating Surplus / (Deficit)

When including UWGT’s activities for its investment portfolio, the operating surplus amounted to $5.5 million — making this the fourth consecutive year of achieving at least a balanced budget. This year’s operating surplus enabled UWGT to maintain its working capital and reserves at robust levels. For further details, please refer to the Statement of Operations.

Achieving this financial position has allowed UWGT to commit and confirm community investments of at least $66.9 million to its network of agencies and community partners for the FY 24–25 (1 April 2024 to 31 March 2025). It also enables UWGT’s focus on transformational activities rooted in neighbourhood solutions, to deepen our impact. This is an important strategy and commitment to deliver critical services with continued investments in local neighbourhood solutions in partnership with corporate, government and community sectors.

Going Forward

Prudent financial management remains a top priority or UWGT, with reserves being upheld at robust levels. These reserves are sufficient to support UWGT’s financial commitments to its network of agencies for both the Community Program Grants (three-year funding) and the Anchor Program (five-year funding), while ensuring the ongoing sustainability of its operations.

UWGT has been deemed a going concern for the year ahead, with the levels of working capital and reserves serving as indicators of the organization’s financial health and sustainability — especially amid the uncertainties of the macroeconomic environment, inflationary and recessionary pressures, and market volatility.

Refer to our complete Audited Financial Statements, FY 23–24, for more details.

2023–24 BOARD AND COMMITTEES

We thank our Board of Trustees and Committee members for their wisdom, commitment and passion to steer our organization in the achievement of our mission.

OFFICERS OF THE CORPORATION

BOARD OF TRUSTEES

COMMUNITY IMPACT COMMITTEE

Governance and Human Resources Committee

Finance, Audit and Risk Committee

Strategic Development Subcommittee

*Indicates that the Committee member also serves on the United Way Greater Toronto Board of Trustees.