Business Plan 2016/ /19

Business Plan 2016/17 2018/19 Approved by OTF Board of Directors November 25, 2015 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

ONTARIO TRILLIUM FOUNDATION BUSINESS PLAN 2016/17 to 2018/19 T A B L E O F C O N T E N T S 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Executive Summary. Mandate...... Strategic Directions of the Foundation..... Overview of OTF s Current and Forthcoming Programs/Activities... Resources Needed to Meet Goals and Objectives. Risk Identification, Assessment, and Mitigation Strategies. Environmental Scan Human Resources Performance Measures and Targets... Financial Budget and Staffing.. Information Management... Initiatives Involving Third Parties Implementation Plan Communications Plan. Organizational Charts. i 1 2 5 8 9 11 17 19 27 29 31 33 34 42 Appendix A: A Review of the Foundation s Achievements for 2014/15 Appendix B: OTF Risk Assessment Summary

EXECUTIVE SUMMARY 1. Mandate The Ontario Trillium Foundation, Canada s largest grantmaking foundation, is an agency of the Ministry of Tourism, Culture and Sport. As such, the Foundation is required, under its Memorandum of Understanding, to have programs that are consistent with the government s policy directions. 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 not-for-profit organizations. The Foundation fulfills its mandate by funding organizations working in six Action Areas, in alignment with its Investment Strategy. Through its four investment streams, it supports grants in local communities in Ontario, as well as grants that have province-wide impact. 2. The Foundation s Strategic Directions We ve Transformed 2016/17 will be the first full year under the Foundation s new Investment Strategy, the outcome of the ReDesign2015 process introduced in 2014/15. The goal of ReDesign2015 was to develop a new three-year strategy to enable OTF to more clearly demonstrate a return on our investments in communities across Ontario, in a way that is customer-focused, accountable, and transparent. The new strategy transforms both what OTF will invest in going forward (based on six new Action Areas and the Priority Outcomes associated with them) and how OTF will decide what to invest in (new application, assessment, decision-making, and reporting processes). The strategy is grounded in a clear definition of what the Foundation knows helps build healthy and vibrant communities, based on 12 key indicators from the Canadian Index of Wellbeing that align with our mandate and the priorities of government. It will enable OTF to make better evidence-based investment decisions, to more effectively monitor long-term progress against these indicators, and ultimately to better demonstrate and understand the contribution our investments are making to the quality of life for Ontarians. This will help maximize the use of our funding to promote Ontario as a leader in community wellbeing. The 12 CIW indicators are the backbone for six Action Areas in our new strategy that will better define the long-term impact the Foundation is striving to achieve. Those Action Areas are: i

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 Each Action Area is supported by two Priority Outcomes that align with government priorities and will enable OTF to focus on making investments that clearly deliver on our mission. OTF grantees will be able to measure more clearly the positive and meaningful change their initiatives have at the community level, allowing the Foundation to report more effectively on the overall impact of its investments across the province. Under the new strategy, the Foundation has introduced a balanced portfolio, to address community needs through the right mix of investments over the short-, medium-, and longterm. Our investment framework has been streamlined to align processes with the purpose, size, and duration in effect, the overall risk of the investment being made. The four new 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 The Foundation s grantmaking processes have also been transformed as part of the new strategy: tailored to the size and duration of the grant, to lighten the burden for applicants, while increasing the fairness and transparency of our decision-making practices. The changes will help ensure that the most worthy grants are being funded, as Grant Review Teams will be able to compare applications that are in the same stream, making for better decisions. Monitoring and reporting processes have also been revised, to align with the size and duration of the grant, to allow the Foundation to be more intentional in its relationships with its grantees, and to dedicate more time and resources to supporting them throughout the grant, especially for larger, longer-term investments. The new strategy also includes a new Services to the Community program that will provide capacity building and related services to current and prospective OTF grantees, as well as to the broader public benefit sector. With Board approval to allocate a maximum of 1.5% of OTF total expenditures annually to this program, OTF joins many leading foundations that provide assistance beyond the grant to enhance the success of their grantmaking strategies. Leveraging OTF s contributions through social investment partnerships will continue under the new strategy, with greater focus on partnerships that will enhance the success of our new granting streams. As well, OTF s partnership efforts with other government ministries and agencies will continue over the upcoming three years. Planned activities include the expansion across the province of the Youth Opportunities Fund, as well as a new partnership with the Treasury Board Secretariat on the administration of the Local Poverty Reduction Fund. ii

As in previous years, the successful implementation of the new strategy is supported by a Strategy Map and Balanced Scorecard organized around four goals and supporting objectives. These tools guide an organization-wide Operational Plan that will clearly link all internal and external strategies and activities to our Mission and Mandate, and enable more effective monitoring of our progress. 3. Overview of OTF s Current and Forthcoming Programs/Activities In the current year to date, OTF is meeting 2015/16 Business Plan objectives and performance targets. Information on the achievements of the previous year is contained in an Appendix A: A Review of the Foundation s Achievements for 2014/15. 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, was expanded beyond the GTA to address the needs of youth across Ontario 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 was selected to be the administrator of the Local Poverty Reduction Fund, a program of the Treasury Board that supports the Province s Poverty Reduction Strategy. 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 2016/17, 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. There will be sufficient numbers of Grant Review Team appointments and renewals to allow for effective functioning and decision-making. iii

3.3 Goals OTF has identified four goals, each with supporting objectives that will direct its activities over the next three years: 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. Build on regular grantee monitoring to create a higher engagement approach in order to ensure grantee success. 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 Financial literacy and sustainability for the sector o Capacity to deliver collective impact initiatives in Ontario o CIW Regional Reports to enable local planning based on needs o Convening for knowledge sharing Continue to facilitate growth in the social innovation and social finance fields, including potential partnerships in payment-for-outcomes initiatives such as social impact bonds. 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. Target outreach strategies to ensure there are high-quality applications reflecting community needs in all funding streams. Review current geographical boundaries to break down barriers, in order to enable highimpact grants in all parts of the province. iv

Objective 2: Deliver value for money in the use of public funds Continue to enhance OTF s quality assurance and risk management policies and practices, including internal audit activities. Continue to be the grantmaker of choice for the Government of Ontario. Evaluate the costing of the Foundation s programs, in order to determine an appropriate Administrative Cost Recovery Rate for undertaking government programs. Publicly communicate the value of our impact. GOAL 3: IMPLEMENT EFFECTIVE ORGANIZATIONAL PRACTICES Objective 1: Cultivate high performance by staff and volunteers Develop and implement a talent management strategy to support a high-performance culture. Leverage the new HRIS system to enable leading practices in HR, including recruitment, performance management, absenteeism management, and others. Implement the Volunteer Engagement Plan using the Volunteer Engagement Advisory Group, Council of Chairs, and OTF Conference, to support volunteers in delivering effective and timely grant recommendations. Manage to established performance standards for management and staff. Deliver excellent customer service to the public, grantees, and other stakeholders. Objective 2: Ensure accountable and accessible granting practices Support consistent implementation of the new Investment Strategy across the province. Learn from the early stages of implementation and adapt policies and procedures to improve granting practice. Complete annual internal audit projects, to ensure granting practices are in keeping with our policies, and implement any resulting recommendations. Track granting to specific geographic areas and population groups to ensure equitable access to funding consistent with Foundation policies, and target outreach efforts to those areas and/or populations that are underrepresented. GOAL 4: ENHANCE LEARNING AND GROWTH Objective 1: Foster learning and knowledge sharing to enhance impact in our Action Areas Implement the new Knowledge Management strategy, including an e-learning platform and tools, communities of practice and an on-line portal. Broaden and deepen internal expertise in the Action Areas across the regions. Enhance communications strategies by adopting an integrated digital communications approach. v

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. Continue to advance an open data plan consistent with the Province s Open Data strategy. Share our findings from the case study by the Rotman School of Management on change management, and implement an action plan based on our learnings. 4. Resources Needed to Meet Goals and Objectives Key financial resources include revenues from the Ministry of Tourism, Culture and Sport of $115.0 million in each of 2016/17, 2017/18, and 2018/19, and estimated investment income of $1.6 million (2016/17), $1.7 million (2017/18), and $2.3 million (2018/19). In addition, funds are expected each year from the Ministry of Children and Youth Services (Youth Opportunities Fund) and Treasury Board Secretariat (Local Poverty Reduction Fund). Expenditures are estimated as follows: Granting in core programs of $101.2 million (2016/17), $101.3 million (2017/18), and $101.8 million (2018/19); approximately $9.7 million in each year for the Youth Opportunities Fund; and Local Poverty Reduction Fund granting of $7.6 million (2016/17), $13.1 million (2017/18), and $13.2 million (2018/19). Total operating costs for all programs are estimated to be $20.1 million (2016/17), $20.5 million (2017/18), and $21.0 million (2018/19). In the current year (2015/16), revenues are forecast to include $115.0 million from the Ministry of Tourism, Culture and Sport and $1.7 million in investment income; expenditures are estimated at $101.7 million for granting in core programs, $6.4 million for Youth Opportunities Fund grants, $2.5 million for Local Poverty Reduction Fund grants, and $19 million in operating costs. Staffing resources are discussed in Sections 7 and 9. 5. Risk Identification, Assessment, and Mitigation Strategies Key risks, their likelihood and impact, and mitigation strategies are described in Section 5 and Appendix B, grouped into seven broad categories: Strategic, policy, and performance risks Governance and organizational risks Legal and compliance risks Operational and service delivery risks Workforce risks Information technology and infrastructure risks Any other risks 6. Environmental Scan OTF has many external stakeholders, including the Ministry of Tourism, Culture and Sport, the Ministry of Children and Youth Services, other Ontario Government ministries, MPPs from all vi

parties, grantee organizations, 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 the collection of information from various sources grantee reporting, needs assessments, and evaluations, as well as from other external sources including Statistics Canada data 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 foundation of the current Business Plan are summarized in the Environmental Scan section of the document under the following headings: Legislative, regulatory, and policy environment Fiscal environments and economic outlook Trends in OTF s Six Action Areas The Foundation also monitors the various factors that influence and inform OTF s communications environment; this information is contained in the Communications Plan (Section 13). 7. Human Resources This section focuses on staff 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. The development and implementation of a new Investment Strategy has had a number of human resources implications, and the Foundation is grateful to continue to have an excellent labour relations environment and a skilled and dedicated staff and leadership team. The following are HR priorities over the next three years: 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 continue to support activities to enhance employee engagement. To fully implement an improved performance management approach To allocate the human resources required to meet our legal obligations. To remain competitive in the total reward and recognition of OTF staff in order to continue our excellent labour relations and be competitive with similar organizations. Planned activities over the next year include: 1. Ongoing review to assign staffing as needed in support of the Foundation s updated Investment Strategy. 2. Continue to support Employee Engagement Advisory Group activities. vii

3. Continue to allocate resources required to meet our legal requirements. 4. Monitor compensation trends to ensure employees are rewarded appropriately. 8. Performance Measures and Targets As part of its transformation and new Investment Strategy, the Foundation has developed a new methodology to measure and track grant outcomes, and a revised Balanced Scorecard to measure the overall performance of the Foundation. Outcomes-Based funding Measuring the Community Impact of our Grants As part of the design of the new Investment Strategy, OTF aligned the strategy, granting methodology, and data architecture with the Canadian Index of Wellbeing (CIW) framework. Each element of OTF s Investment Strategy Grant Results, Priority Outcomes, and Action Areas builds on the next to measure the short-, medium-, and long-term outcomes of our granting, and this is illustrated in Section 8. 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. The Investment Strategy graphic in Section 8 portrays the details of the Grant Results, Priority Outcomes, and CIW indicators. Collective Impact Grants The complex nature, size, and duration of the Collective Impact Stream requires a tailored approach to the measurement of outcomes. Because this approach necessitates shared measurement across both funders and collaborating partners, OTF will participate in the evaluation design and implementation for each of the grants. Grow Grants For grants in the Grow stream which are up to three years and $750,000, we have selected standardized pre- and post- evaluation tools (following an analysis of 300 existing surveys) for 13 Grant Results. These tools will enable 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. Grant Results Which Require Pre- and Post- Surveys Of the 25 Grant Results relevant to the Grow Investment Stream, 13 will be evaluated using preand post- surveys. These include: - Ontarians participate in an active lifestyle - Diverse groups work together to improve community life - People who are isolated have connections in the community - Children and youth who are facing barriers develop strong emotional and social skills - People who are economically vulnerable are able to meet their basic needs viii

- People become or stay employed 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 Capital grants we are able to roll up our results. For example, with Active People OTF will measure: - the amount of new and renovated space made available for structured and unstructured activities - the number of kilometers of trails constructed - the number of program enhancements, etc. Metrics were selected through a rigorous process that included logic models and econometric analysis, yet are designed to be simple and doable by OTF grant recipients. For our Seed stream, the smallest stream, grantees will be asked to report on their end-of-grant result, which we anticipate will lead to longer-term outcomes. Measuring OTF s Performance Balanced Scorecard Presented in this section are the measures and targets that make up OTF s new Balanced Scorecard that will be rolled out in the fiscal year 2016/17. In addition to its new Balanced Scorecard, OTF will use 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, Board and Annual Reports, and updates. As well, each year OTF performs an in-depth analysis of its granting (by program and catchment area) and audits a selection of grants. In addition, the Foundation monitors the performance of individual grants and grantees through progress and final reports. In 2015/16 and subsequent years, OTF will also audit a selection of granting decisions to ensure its new Investment Strategy is leading to the best applications being funded. Business Intelligence Enabler for Performance Measurement and Outcomes-Based Funding In order to support our strategy implementation, enable performance measurement, and support transparency and accountability, in 2014/15 OTF began work on a clear Business Intelligence (BI) strategy and tactical plan. ReDesign2015 gave us the opportunity to build a leading-edge data model that was embedded in our granting processes and systems. As a result, OTF will be able to measure performance based on best practices including: A Balanced Scorecard that is directly tied to our Strategy Map Evaluation tools that will measure pre- and post- grant impact for Grow grants ix

An integrated Business Intelligence plan that will enable us to support decision-making at both an operational and strategic level, integrating HR, Finance, Granting, the Support Centre, and other data Through this BI strategy OTF is committed to: Better informed evidence-based decision-making for our business operations Enhanced strategic and operational reporting to measure impact through the integration of data and information from a variety of sources Clear metrics and valid data to inform the Board and Senior Leadership Team of progress Transparency and accountability 9. Financial Budget and Staffing This section contains detailed information on financial performance for this year and the two previous, and budget forecasts for the upcoming three years. As well, the section contains a summary of staff numbers. 10. Information Management For the fiscal year 2016/17, the Information Management Department will 1. Continue to develop solutions that address people, process, and technology to enhance OTF s ability to make evidence-based decisions. 2. Continue to improve OTF s IT infrastructure, reliability, and security. 3. Enhance systems that were implemented in the previous year including our new granting system, Customer Relations Management system, and other business applications (Finance, HRIS, and others). 4. Implement our Business Intelligence strategy to support integrated reporting and a new Balanced Scorecard. 5. Implement our Knowledge Management strategy to support advancing the ability of the public benefit sector and OTF to have impact in our Action Areas. 6. Support increased technical literacy for our staff and volunteers, as OTF s new granting system is completely paperless. 7. Continue to be a sector lead on the Open Data/Open Government initiative. In summary 2016/17 will be a year in which we stabilize and complete our investments in infrastructure in order to successfully deliver on our BI strategy including measurement and Open Data as well as KM initiatives to advance the sector in our Action Areas and create communities of practice. 11. Initiatives Involving Third Parties 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. x

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. Social Investment Partnerships In 2013/14, OTF began to take 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 outlines how we engage third parties in a more cohesive manner and describes 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. In the upcoming year, the Foundation s partnership efforts will continue to focus on opportunities to leverage the resources of other funders to support OTF s new Action Areas, particularly through the new Collective Impact stream. This will entail engaging interested funders to support initiatives which bring about transformational change within communities over the longer term. The third full year of the operationalization of the SIP framework will provide OTF with an opportunity to take advantage of the general learnings from its initial experiences with partnerships. A comprehensive review of this initiative will be developed to help inform the Foundation s strategy to engage partnerships going forward. 12. Implementation Plan The Implementation Plan for the strategies described in this Business Plan is under development and will be completed by 2015/16 year-end, in conjunction with departmental planning and budgeting activities throughout the Foundation. 13. Communications Plan 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. These are outlined in this section. Strategic communications is critical to the success of the Foundation s new Investment Strategy. OTF operates in a complex environment with multiple stakeholders with different needs and expectations, and it is important to communicate appropriately to each group of stakeholders to ensure their support. OTF communication activities will continue to focus on supporting the delivery of the following overarching objectives: Storytelling for impact Responsible stewardship NFP Sector leadership Internal efficiency These objectives will be achieved through the following tactics: xi

The centralization of our communications practices supports change management within the organization Our online communications must reflect the simplicity, clarity, and practicality of our new Investment Strategy Our relations with the community are more important than ever OTF must consolidate its position as the grantmaker of choice for the Ontario Government A strong and engaged body of committed volunteers is key to the success of the new Investment Strategy The Foundation has developed a number of related activities and products which are described in this section of the Business Plan, together with timelines for the key items. 14. Organizational Charts Charts illustrating the governance structure and staff departmental structure are included in this section of the Business Plan. Appendices: Appendix A A review of the Foundation s achievements for 2014/15 Appendix B OTF Risk Assessment Summary xii

ONTARIO TRILLIUM FOUNDATION BUSINESS PLAN 2016/17 to 2018/19 1. Mandate The Ontario Trillium Foundation, Canada s largest grantmaking foundation, is an agency of the Ministry of Tourism, Culture and Sport. 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. 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 not-for-profit organizations. According to the OTF Supplementary Letters Patent, the funds are provided to: Help finance programs undertaken by these organizations, through time-limited, resultsoriented 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. Through its four investment streams, it supports grants in local communities in Ontario, as well as grants that have province-wide impact. 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 up to 326 volunteers on community Grant Review Teams recommend grants within Board-approved policy in their catchment areas. Page 1

2. Strategic Directions of the Foundation We ve Transformed 2016/17 will be the first full year under the Foundation s new Investment Strategy, the outcome of the ReDesign2015 process introduced in 2014/15. The goal of ReDesign2015 was to develop a new three-year strategy to enable OTF to more clearly demonstrate a return on our investments in communities across Ontario, in a way that is customer-focused, accountable, and transparent. The new strategy transforms both what OTF will invest in going forward (based on six new Action Areas and the Priority Outcomes associated with them) and how OTF will decide what to invest in (new application, assessment, decision-making, and reporting processes). In terms of what OTF will invest in, the new strategy is grounded in a clear definition of what the Foundation knows helps build healthy and vibrant communities, based on 12 key indicators from the Canadian Index of Wellbeing that align with our mandate and the priorities of government. The new strategy will enable OTF to make better evidence-based investment decisions, to more effectively monitor long-term progress against these indicators, and ultimately to better demonstrate and understand the contribution our investments are making to the quality of life for Ontarians. This will help maximize the use of our funding to promote Ontario as a leader in community wellbeing. The 12 CIW indicators are the backbone for six Action Areas in our new strategy that will better define the long-term impact the Foundation is striving to achieve. 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 Each Action Area is supported by two Priority Outcomes that align with government priorities and will enable OTF to focus on achieving results from our investments that clearly deliver on our mission. This approach will enable OTF grantees to measure more clearly the positive and meaningful change their initiatives have at the community level, and allow the Foundation to report more effectively on the overall impact of its investments across the province. The Foundation s grantmaking process has also been transformed as part of the new strategy, in response to feedback from a wide variety of stakeholders, including OTF staff and volunteers, applicants, grantees, and the Auditor General of Ontario. The new processes have been designed to streamline administration and lighten the burden for applicants, while increasing the fairness and transparency of our decision-making practices. Revisions to how we assess and award grants will help ensure that the most worthy grants are being funded, and that the Foundation can report more meaningfully on both the impact of its funding and why some initiatives received funding and others did not. Under the new strategy, the Board of Directors approved the move to implement a balanced portfolio, which recognizes that community needs are best addressed through the right mix of investments over the short-, medium-, and long-term. Our investment framework has been Page 2

streamlined to align processes with the purpose, size, and duration in effect, the overall risk of the investment being made. Our four new 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 To support these new granting streams, we ve tailored the application, decision-making, monitoring, and reporting processes to the size and duration of the grant. As a result, our volunteer Grant Review Teams will be able to compare applications that are in the same stream, making for better decisions. This shift will support OTF being more intentional in its relationships with its grantees, and enable more time and resources to be dedicated to supporting them throughout the life-cycle of the grant, especially for larger, longer-term investments. Strengthening our relationships in this way will be mutually beneficial. We will support our grantees in the best ways possible to help them work toward achieving and measuring their results, and will learn from them about their experiences, while enhancing their ability to find solutions to the complex problems faced by their communities. The new strategy also includes a new Services to the Community (STC) program that will provide capacity building and related services to current and prospective OTF grantees, as well as to the broader public benefit sector. With Board approval to allocate a maximum of 1.5% of OTF total expenditures annually to STC, OTF joins many leading foundations who provide assistance beyond the grant to enhance the success of their grantmaking strategies. Three top areas to focus on for most foundations are governance or leadership development, financial capacity, and evaluation capacity. OTF s own research dating back to 2009 highlighted the need for capacity building in the areas of talent development, new ways of working together (collaboration and networks) and the capacity of intermediary organizations. Our new approach will address key findings from recent Applicant and Grantee Perception Reports conducted for OTF by the Centre for Effective Philanthropy that showed that OTF lags behind leading foundations in the provision of assistance beyond the grant; that our support is less than that of all similar funders; and that we rated below 86% of similar funders in terms of the helpfulness of the non-monetary assistance we provided. Leveraging OTF s contributions through social investment partnerships will continue under the new strategy, with greater focus on partnerships that will enhance the success of our new granting streams. OTF will continue to work with other foundations and with private sector sources of investment in the Foundation s Action Areas, to foster and increase greater collective impact. Social investment partnerships provide a great opportunity to integrate approaches to funding for outcomes as well as shared measurement practices, both of which may reduce the administrative burden on funders and grantees while increasing the ability of both to evaluate outcomes and demonstrate impact. OTF s partnership efforts with other government ministries and agencies will also continue under the new strategy. This Business Plan s activities include the expansion across the Page 3

province of the Youth Opportunities Fund, a program delivered on behalf of the Ministry of Children and Youth Services, as well as a new partnership with the Treasury Board Secretariat on the administration of the Local Poverty Reduction Fund. Meanwhile, we will continue to partner with Ontario Telemedicine Network to leverage their expertise and infrastructure to deliver online training to staff and volunteers across the province, and to support our knowledge mobilization and virtual meeting capacity. In setting this strategy, we recognize that having impact and creating change takes time. Our plan includes a stronger emphasis on real-time monitoring and evaluation to ensure that we are being responsive and reflective in delivering on the new strategy, and to allow us to continuously assess the relevance and effectiveness of the priorities we are focusing on to support the health and vibrancy of the diverse array of communities that make up Ontario. As in previous years, the successful implementation of the new strategy is supported by a Strategy Map and Balanced Scorecard organized around four goals and supporting objectives. These tools guide an organization-wide Operational Plan that will clearly link all internal and external strategies and activities to our Mission and Mandate, and enable more effective monitoring of our progress. Goals In 2016/17 the Foundation will focus on the four Goals identified in our new Strategy Map (see Section 8), supported by key objectives that will guide the successful implementation of our strategy, as well as a set of core organizational values adopted by the Board in 2014. Page 4

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, was expanded beyond the GTA to address the needs of youth across Ontario 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 was selected to be the administrator of the Local Poverty Reduction Fund, a program of the Treasury Board that supports the Province s Poverty Reduction Strategy. 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 2016/17, 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. There will be sufficient numbers of Grant Review Team appointments and renewals to allow for effective functioning and decision-making. 3.3 Goals OTF has identified four goals, each with supporting objectives that will direct its activities over the next three years: 1. Bring value to our stakeholders 2. Maximize our financial resources 3. Implement effective organizational practices 4. Enhance learning and growth Page 5

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. Build on regular grantee monitoring to create a higher engagement approach in order to ensure grantee success. 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 Financial literacy and sustainability for the sector o Capacity to deliver collective impact initiatives in Ontario o CIW Regional Reports to enable local planning based on needs o Convening for knowledge sharing Continue to facilitate growth in the social innovation and social finance fields, including potential partnerships in payment-for-outcomes initiatives such as social impact bonds. 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. Target outreach strategies to ensure there are high-quality applications reflecting community needs in all funding streams. Review current geographical boundaries to break down barriers, in order to enable highimpact grants in all parts of the province. Objective 2: Deliver value for money in the use of public funds Continue to enhance OTF s quality assurance and risk management policies and practices, including internal audit activities. Continue to be the grantmaker of choice for the Government of Ontario. Evaluate the costing of the Foundation s programs, in order to determine an appropriate Administrative Cost Recovery Rate for undertaking government programs. Publicly communicate the value of our impact. Page 6

GOAL 3: IMPLEMENT EFFECTIVE ORGANIZATIONAL PRACTICES Objective 1: Cultivate high performance by staff and volunteers Develop and implement a talent management strategy to support a high-performance culture. Leverage the new HRIS system to enable leading practices in HR, including recruitment, performance management, absenteeism management, and others. Implement the Volunteer Engagement Plan using the Volunteer Engagement Advisory Group, Council of Chairs, and OTF Conference, to support volunteers in delivering effective and timely grant recommendations. Manage to established performance standards for management and staff. Deliver excellent customer service to the public, grantees, and other stakeholders. Objective 2: Ensure accountable and accessible granting practices Support consistent implementation of the new Investment Strategy across the province. Learn from the early stages of implementation and adapt policies and procedures to improve granting practice. Complete annual internal audit projects, to ensure granting practices are in keeping with our policies, and implement any resulting recommendations. Track granting to specific geographic areas and population groups to ensure equitable access to funding consistent with Foundation policies, and target outreach efforts to those areas and/or populations that are underrepresented. GOAL 4: ENHANCE LEARNING AND GROWTH Objective 1: Foster learning and knowledge sharing to enhance impact in our Action Areas Implement the new Knowledge Management strategy, including an e-learning platform and tools, communities of practice and an on-line portal. Broaden and deepen internal expertise in the Action Areas across the regions. Enhance communications strategies by adopting an integrated digital communications approach. 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. Continue to advance an open data plan consistent with the Province s Open Data strategy. Share our findings from the case study by the Rotman School of Management on change management, and implement an action plan based on our learnings. Page 7

4. Resources Needed to Meet Goals and Objectives Projected Revenues and Expenditures (for Human Resources requirements, see Sections 7 and 9) Revenues: 2015/16 2016/17 2017/18 2018/19 (est.) MTCS: Operating grant 115.0 115.0 115.0 115.0 MCYS: Youth Opportunities Fund 8.7 12.9 13.0 13.0 TBS: Local Poverty Reduction Fund 3.1 8.5 14.0 14.0 Investment income 1 1.7 1.6 1.7 2.3 Unspent funds from previous years 2 2.1 2.3 2.7 3.2 Total Revenues 130.7 140.4 146.4 147.5 Expenditures: Grants 110.5 118.5 124.1 124.7 Services to the Community 1.2 1.8 1.8 1.8 Operating costs, all programs 3 19.0 20.1 20.5 21.0 Total Expenditures 130.7 140.4 146.4 147.5 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. $0.5 per year, based on Capital spending of approx. $0.3 to $0.4 million per year. Page 8

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 key risks that are currently being monitored are listed below. An assessment of these risks is contained in Appendix B. OTF RISK REGISTER November 2015 Strategic/Policy/Performance Risks 1.A OTF s grantees fail to achieve expected outcomes. 1.B Significant cut in OTF s funding. 1.C Low public awareness and appreciation for the potential benefits of the new Investment Strategy could negatively impact OTF s traditional high level of public support. 1.D Issues arising from OTF investments are not appropriately anticipated, identified, and managed. 1.E 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. 1.F Reputational risks arising from the actions of social investment partners are not adequately anticipated and managed. 1.G New OTF strategy fails to result in sufficient applications with the potential for high impact, due to lack of understanding of the new program or other reasons. 1.H Unintended consequences of the Open Data initiative lead to damage to the Foundation s reputation. 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. 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. Legal/Compliance Risks 3.A Implementation of the AODA Integrated Accessibility Standards Regulation (IASR) requirements is not timely or effective. 3.B More stringent government legislation and regulations regarding transparency and accountability put significant pressure on OTF s ability to maintain a low operating cost ratio. 3.C Risks of privacy breaches (data loss and/or misuse) that could negatively impact OTF s reputation and jeopardize relationships with stakeholders are not adequately anticipated, identified, and managed. Page 9

Operational/Service Delivery Risks 4.A OTF grants are not equitably distributed and/or accessible to all Ontarians. 4.B Insufficient allocation of resources from the government jeopardizes the Foundation s ability to meet its business objectives. 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. 5.B The complement of Francophone GRT members within each catchment area is insufficient to adequately assess the volume of Francophone applications. 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. Information Technology & Infrastructure Risks 6.A Physical risks to hardware, software, data e.g. power outages, fire, damage to the server room. 6.B Security threats to OTF data and infrastructure. All Other Risks 7.A Actual investment income earned in a given year is significantly less than what was forecast. Page 10

6. Environmental Scan OTF has many external stakeholders, including the Ministry of Tourism, Culture and Sport, the Ministry of Children and Youth Services, Treasury Board, other Ontario Government ministries, MPPs from all parties, grantee organizations, 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 data 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 foundation of the current Business Plan are summarized below. 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 non-profit sector 24 months notice before ONCA takes effect. In addition, organizations will have three years following that date to make 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 not-for-profit sector. Social finance mechanisms such as Social Impact Bonds may increase accountability and impact evaluation among relevant notfor-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 phase-in of the Ontario Retirement Pension Plan will begin to impact not-for-profit organizations and their employees in January 2017. The retirement income of Ontario not-for-profit sector workers has been an important priority for the sector for some time, Page 11

with efforts to find effective solutions now being led by the Ontario Nonprofit Network through their Task Force on Pensions in the Nonprofit Sector. OTF will monitor future developments in this area in terms of any implications it might have for the organizations we fund. Fiscal environments and economic outlook The total economic impact of Ontario's not-for-profit 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 who volunteer more than 800 million hours annually. The not-for-profit 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 not-for-profit 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 increase 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. However, interest rates are expected to rise by late 2016. 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, the key trends and challenges in each Action Area, and how the current strategy responds to them through its Priority Outcomes. Page 12

A. Active People 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 such as Type 2 diabetes, stroke, cardiovascular disease, and some cancers. The current estimated annual cost of diabetes in Ontario is $7.7 billion, and cases of diabetes in Ontario are estimated to rise by 48% from 2015 to 2025. Obesity and lack of physical activity are two of the most common causes, responsible for nearly 95% of Type 2 diabetes cases. Research shows that active lifestyles lead to healthy growth and improved school performance and social development in children, and a reduced risk of chronic disease and improved mental health in the general population. Active people are also known to be more productive, more connected in their communities, and more likely to avoid illness and injury throughout their lives. Ontario s estimated recreation infrastructure deficit is greater than $5 billion, which creates ongoing demand for OTF capital investments. There is a significant gap between how people perceive their behaviour and the benefits they are actually realizing from their physical activity. Although 55% of Canadians self-report they are physically active, only 15% of Canadian adults and 5% of children engage in enough physical activity to derive health benefits. More needs to be done to foster lifelong physical activity in Ontario and to make it easy, enjoyable, and relevant for everyone. OTF s Investment Strategy therefore includes as Priority Outcomes 1) Higher quality programming and infrastructure to support physical activity; and 2) More people become active. B. Connected People 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, and identities. OTF s strategy recognizes 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, leadership and decision-making are more responsive to the community, and groups that are otherwise disconnected find opportunities to collaborate for shared benefit. The key is to tap into this diversity in a meaningful and respectful way. OTF aims to support initiatives that recognize and include Ontarians many perspectives and experiences, and make it possible for them to fully participate in building and improving their communities. Page 13

OTF s Connected People Action Area also 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 10.2% of its terrestrial habitats (against a goal of 17%) and just over 4% in Southern Ontario. However, recent strategies such as Ontario s Biodiversity Strategy (2011), the Ontario Invasive Species Strategic Plan (2012), and Ontario s Climate Change Discussion Paper (2015) 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 well-being. 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 This Action Area is built on the recognition that culture, heritage, and the arts have intrinsic value to the health and vibrancy of communities. Research has also shown that communitybased arts and heritage initiatives engender inter-cultural understanding, a sense of belonging, and greater civic engagement. Current 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. Page 14

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. 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 behaviours. Youth who are engaged and those with strong emotional and social skills experience improved outcomes in education, health, income, and employment. They are more physically active, exhibit fewer risky behaviours, are more likely to finish high school, and are more connected to family, friends, and community. Apart from these welldocumented positive outcomes, social emotional learning initiatives have also been shown to produce a significant economic return of $11.00 per dollar invested. Schools today are therefore looking beyond academics to integrate social emotional learning in the classroom, and employers are changing hiring processes, focusing more on the social and emotional competencies of candidates. There is also growing recognition in the field that youth who volunteer and take on leadership roles further develop and sharpen their social and emotional skills. Currently in Ontario, while 58% of Ontario s youth volunteer, many still face challenges to meaningful participation in their 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 priorities established by the Government of Ontario. Our investments will do so by focusing 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 that of Canada as a whole. Over 1.5 million people are living in poverty. One in 13 Ontarians is unemployed, and of them, 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 growth of precarious work arrangements that are contract, short term, shiftbased or even full time at minimum wage are leaving children, youth and families in poverty. Page 15

While Ontario s Poverty Reduction Strategy is making steady progress toward the goal of reducing child poverty by 25% by 2025, child and family poverty persists as a major challenge in Ontario. About 1 in 5 children overall in Ontario are living in poverty, including 44% of children of single mothers. This often results in a lack of access to healthy food, affordable shelter, and other basic necessities associated with wellbeing. For example, in 2014, 375,000 Ontarians over a third of them children were turning to food banks each month, up from 314,000 in 2008. The design of many of Ontario s social safety net programs dates back as far as the 1960s, and the programs are not responsive to currently realities, particularly the changes now being experienced in the workforce. 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, also leads to increased economic wellbeing. To address these realities, OTF will focus on two Priority Outcomes: 1) Increased economic stability; and 2) Increased economic opportunity. Page 16

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 The development and implementation of a new Investment Strategy has had a number of human resources implications, and the Foundation is grateful to continue to have an excellent labour relations environment and a skilled and dedicated staff and leadership team. Employees at OTF are not unionized and are not eligible to participate in the Ontario Government Pension Plan. As a result, our workforce is nimble and adaptable with reasonable compensation costs. OTF s Compensation Strategy The Ontario Trillium 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. HR Priorities The following are HR priorities over the next three years: 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 continue to support activities to enhance employee engagement. To fully implement an improved performance management approach To allocate the human resources required to meet our legal obligations. To remain competitive in the total reward and recognition of OTF staff in order to continue our excellent labour relations and be competitive with similar organizations. Planned activities over the next year include: 1. Ongoing review to assign staffing as needed in support of the Foundation s updated Investment Strategy. This will ensure that OTF s complement of human resources and its organizational structure are well positioned to meet the new strategic directions. OTF s new granting streams and updated priority outcomes will be supported by well-trained staff. 2. Continue to support Employee Engagement Advisory Group activities. The members of the group continue to be consulted as we shape the next Employee Engagement Survey results anticipated for late 2015/16. The results from the previous survey have led to several improvements including the new performance management approach. Training will be Page 17

provided to management and staff to support rolling out the new performance management tools. 3. Continue to allocate 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 Bill 168 on Workplace Violence and Harassment The Accessibility for Ontarians with Disabilities Act (AODA) 4. Monitor compensation trends to ensure employees are rewarded appropriately. As practice, the Foundation does an extensive market survey every three years. An RFP will be developed in 2016/17 for a vendor for the next market survey. From there, 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. Page 18

8. Performance Measures and Targets: Outcomes-Based Granting under the New Investment Strategy As part of its transformation and new Investment Strategy, the Foundation has developed a new methodology to measure and track grant outcomes, and a revised Balanced Scorecard to measure the overall performance of the Foundation. Outcomes-Based funding Measuring the Community Impact of our Grants As part of the design of the new Investment Strategy, OTF aligned the strategy, granting methodology, and data architecture with the Canadian Index of Wellbeing (CIW) framework. 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. OTF developed a valid and reliable methodology to embed outcome measurement and the community impact of investments through standardized outcome metrics for each investment stream and Action Area; these are available on our website. 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 time, 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. Page 19

Page 20

Collective Impact Grants The complex nature, size, and duration of the Collective Impact Stream requires a tailored approach to the measurement of outcomes. Because this approach necessitates shared measurement across both funders and collaborating partners, OTF will participate in the evaluation design and implementation for each of the grants. Grow Grants For grants in the Grow stream which are up to three years and $750,000, we have selected standardized pre- and post- evaluation tools (following an analysis of 300 existing surveys) for 13 Grant Results. These tools will enable 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. As our model is based on the CIW framework we will be able to carry out powerful research to explore causality, as OTF is only one contributor to changes in communities. Grant Results Which Require Pre- and Post- Surveys Of the 25 Grant Results relevant to the Grow Investment Stream, 13 will be evaluated using preand post- surveys: Page 21

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 will measure the amount of new and renovated space made available for structured and unstructured activities, the number of kilometers of trails constructed, the number of program enhancements, etc. All metrics were selected through a rigorous process that included logic models and econometric analysis, and yet are designed to be simple and doable by OTF grant recipients. For our Seed stream, our smallest stream, grantees will be asked to report on their end-of-grant result, which we anticipate will lead to longer-term outcomes. Measuring OTF s Performance Balanced Scorecard Presented in this section are the measures and targets that make up OTF s new Balanced Scorecard that will be rolled out in the fiscal year 2016/17. The scorecard was designed using Kaplan s framework for performance measurement for not-for-profit organizations. The measures focus on the Foundation s goals and objectives and key outputs, and demonstrate the agency s effectiveness, efficiency, and level of customer satisfaction. In addition to its new Balanced Scorecard, OTF will use 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, Board and Annual Reports, and updates. As well, each year OTF performs an in-depth analysis of its granting (by program and catchment area) and audits a selection of grants. In addition, the Foundation monitors the performance of individual grants and grantees through progress and final reports. In 2015/16 and subsequent years, OTF will also audit a selection of granting decisions to ensure its new Investment Strategy is leading to the best applications being funded. Page 22

Business Intelligence Enabler for Performance Measurement and Outcomes-Based Funding In order to support our strategy implementation, enable performance measurement, and support transparency and accountability, in 2014/15 OTF began work on a clear Business Intelligence (BI) strategy and tactical plan. ReDesign2015 gave us the opportunity to build a leading-edge data model that was embedded in our granting processes and systems. In 2016/2017 we will turn our focus to integrating additional components as described above that form part of the overall BI strategy (e.g. outcomes measurement, pre- and post- evaluation tools, dashboards, and the integration of operational and granting data sets) in order to enable OTF to measure performance based on best practices including: 1. A Balanced Scorecard that is directly tied to our Strategy Map 2. Evaluation tools that will measure pre- and post- grant impact for Grow grants 3. An integrated Business Intelligence plan that will enable us to support decision-making at both an operational and strategic level, integrating HR, Finance, Granting, the Support Centre, and other data Through this BI strategy OTF is committed to: Better informed evidence-based decision-making for our business operations Enhanced strategic and operational reporting to measure impact through the integration of data and information from a variety of sources Clear metrics and valid data to inform the Board and Senior Leadership Team of progress Transparency and accountability Page 23

OTF Strategy Map Page 24