Management review of financials


Overall revenues were $104.4 million [compared to $89.0 million in 2019] with an additional $6.5 million in restricted endowment contributions. These were very positive revenue results being higher than budgeted and NCC’s highest level of revenues within the last 8 fiscal years. These results benefitted from an unbudgeted opportunity for NCC to assist with the Jumbo Project in BC through generous donor and funder support.

There was no indication that COVID-19-related influences had any material impact on donor support in our final fiscal quarter of March to May 2020, but financial results did benefit from a reduction in certain discretionary expenditures, such as travel, in the final months.

Our Funders
5 Years Average (from 2015-16 to 2019-20)
As per Audited Financials


Total expenses were $102.5 million (2019 = $89.6 million), of which $77.3 million related directly to our program activities in land conservation, stewardship and science. NCC reports its overhead ratio based on a five-year average in recognition that this metric can vary year over year with periodic investments in such non-program areas as fundraising capacity and technology. Our five-year average overhead ratio is 22 per cent, which is unchanged from the prior year.

Following transfers to internally restricted net assets, NCC posted a surplus of $0.1 million [2019 = $0.9 million] reflecting continuing responsible financial management.

Total funds in stewardship and science endowments are $141.6 million, representing 18 per cent of NCC’s land portfolio balance sheet value and the commitment towards ensuring these properties can be stewarded over the long term.

NCC continues to maintain a healthy balance sheet and reserves, with no bank borrowings nor significant debt.

Donor Funds Invested
5 Years Average (from 2015-16 to 2019-20)
As per Audited Financials

Summarized financial statements

May 31, 2020

Independent auditor’s report

To the Members of
The Nature Conservancy of Canada

The summary financial statements of The Nature Conservancy of Canada [the “Conservancy”], which comprise the summary statement of financial position as at May 31, 2020, and the summary statement of operations and changes in operating surplus for the year then ended, and related notes, are derived from the complete audited financial statements of the Conservancy for the year ended May 31, 2020.

In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, on the basis described in note 1.

Summary financial statements
The summary financial statements do not contain all of the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor’s report thereon.

The audited financial statements and our report thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated October 1, 2020. The audited financial statements and the summary financial statements do not reflect the effects of events that occurred subsequent to the date our report on the audited financial statements.

Management’s responsibility for the summary financial statements
Management is responsible for the preparation of a summary of the complete audited financial statements in accordance with the basis described in note 1.

Auditor’s responsibility
Our responsibility is to express an opinion on the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard 810, Engagements to Report on Summary Financial Statements.

Chartered Professional Accountants
Licensed Public Accountants

Toronto, Canada
October 1, 2020

Summary statement of financial position

As at May 31

Cash and cash equivalents4,404,48121,358,731
Short-term investments51,129,15512,481,037
Accounts receivable and other7,945,6675,548,013
Trade lands45,000
Total current assets63,479,30339,432,781
Capital assets, net1,052,7941,156,086
Conservation lands and agreements [note 3]772,422,968744,964,916
Liabilities and net assets
Accounts payable and accrued liabilities1,363,1701,955,821
Current portion of long-term debt [note 6]135,424
Deferred contributions53,017,80130,967,604
Total current liabilities54,380,97133,058,849
Long-term debt [note 6]1,634,5001,634,500
Total liabilities56,015,47134,693,349
Contingencies [note 7]
Net assets
Internally restricted
Invested in conservation lands and agreements770,788,468743,199,142
Operating surplus1,849,7511,747,338
Science and Stewardship Endowments141,602,218138,303,945
Total net assets928,067,002894,629,453

See accompanying notes

On behalf of the Board:

Board Chair

Audit Committee Chair

Summary statement of operations and changes in operating surplus

Year ended May 31

Donations of conservation lands and agreements7,036,87611,006,687
Other donations and grants87,363,47969,698,313
Conservation lands and agreements acquired
Loan repayments for prior-year acquisitions131,274219,842
Contributions to properties acquired and property-related
expenses incurred by others
Excess (deficiency) of revenue over expenses for the year1,932,008(653,202)
Net transfer from (to) internally restricted net assets(2,019,345)335,431
Net transfer from internally endowed net assets189,7501,229,264
Net increase in operating surplus102,413911,493
Operating surplus, beginning of year1,747,338835,845
Operating surplus, end of year1,849,7511,747,338

See accompanying notes

Notes to summary financial statements

May 31, 2020

1. Summary financial statements
The summary financial statements are derived from the complete audited financial statements, prepared in accordance with Canadian accounting standards for not-for-profit organizations as at May 31, 2020, and for the year then ended.

The preparation of these summary financial statements requires management to determine the information that needs to be reflected in the summary financial statements so that they are consistent, in all material respects, with or represent a fair summary of the audited financial statements.

These summary financial statements have been prepared by management using the following criteria:
[a] Whether information in the summary financial statements is in agreement with the related information in the complete audited financial statements; and
[b] Whether, in all material respects, the summary financial statements contain the information necessary to avoid distorting or obscuring matters disclosed in the related complete audited financial statements, including the notes thereto.

Management determined that the statements of changes in net assets and cash flows do not provide additional useful information and, as such, has not included them as part of the summary financial statements.

The complete audited financial statements of The Nature Conservancy of Canada [the “Conservancy”] are available upon request by contacting the Conservancy.

2. Revenue recognition
The Conservancy follows the deferral method of accounting for contributions. Revenue related to the sale of carbon offset credits is recognized when the Conservancy has transferred to the buyer the significant risks and rewards of the ownership of the carbon credits, the amount is fixed and determinable and collectability is reasonably assured.

3. Conservation lands and agreements
Purchased conservation lands and agreements are recorded at cost when title is transferred. The purchases are recorded as an expense to the extent that the purchase is internally financed. Repayments of debt related to property acquisitions are expensed when made. An amount equal to the expense related to purchases and debt repayments is added to net assets invested in conservation lands and agreements. When a loan is obtained in a subsequent year related to an internally financed purchase, an amount equal to the debt is transferred from net assets invested in conservation lands and agreements to operating surplus.

Contributed conservation lands and agreements are recorded at fair market value when title is transferred. When purchased conservation lands and agreements are acquired substantially below fair market value, the difference between consideration paid and fair value is reported as contributed conservation lands and agreements. The contributions are recorded as revenue and expenses and also as an asset offset by net assets invested in conservation lands and agreements.

Properties transferred to others are recorded as a reduction of conservation lands and agreements and net assets invested in conservation lands and agreements.

Conservation lands and agreements, either purchased or donated, are assets held as part of the Conservancy’s collection. Conservation agreements are legal agreements entered into by the Conservancy under which a landowner voluntarily restricts or limits the type and amount of development that may take place on his or her land to conserve its natural features. Once registered on title, that agreement runs with the title and binds all future owners.

4. Allocation of expenses
Salaries and benefits expenses are allocated between property-related and support expenses based on the primary job responsibilities of the employee’s position. No support expenses are allocated to property-related expenses.

5. Donated materials and services
Donated materials and services are not recognized in the summary financial statements.

6. Debt
The Conservancy has provided a general security agreement over all of its assets, excluding conservation lands and agreements, with one financial institution. In addition, as at May 31, 2020, the Conservancy has one long-term debt facility of $1,634,500 that is secured by conservation lands and agreements with a carrying value of $1,673,275.

7. Contingencies
The nature of the Conservancy’s activities is such that there is often litigation pending or in progress. Where the potential liability is likely and able to be estimated, management records its best estimate of the potential liability. With respect to claims as at May 31, 2020, it is management’s position that the Conservancy has valid defences and appropriate insurance coverage to offset the cost of unfavourable settlements, if any, which may result from such claims. In other cases, the ultimate outcome of the claims cannot be determined at this time, and as such, no accruals have been made as at May 31, 2020.

8. COVID-19 pandemic
In March 2020, the World Health Organization declared the spread of the novel coronavirus [“COVID-19”] to be a global pandemic. This resulted in governments worldwide enacting emergency measures to combat the spread of the virus, including travel restrictions in and out of Canada, barring gatherings of people, and the implementation of other social distancing measures. These restrictions had no significant impact on the operations of the Conservancy as systems were sufficiently flexible and robust to facilitate remote work.
Management considered the impact of COVID-19 in its assessment of the Conservancy’s assets and liabilities and its ability to continue as a going concern. Management believes that the current stability of its revenues and sufficiency of its liquid resources enable the Conservancy to effectively manage through the COVID-19 pandemic.

Officers and directors


Elana Rosenfeld, Chair
Invermere, British Columbia

Mike Pedersen, Vice Chair
Toronto, Ontario

Bruce MacLellan, Past Chair
Toronto, Ontario

John Lounds, President &
Chief Executive Officer
Whitby, Ontario

Michael Paskewitz, Secretary
Toronto, Ontario


Paul Archer
Montreal, Quebec

Alexandra Blum
Oakville, Ontario

Chloe Dragon Smith
Yellowknife, Northwest Territories

John Grandy
Toronto, Ontario

Alan Latourelle
Ottawa, Ontario

Bruce MacLellan
Toronto, Ontario

Maureen McCaw
Edmonton, Alberta

Kevin McNamara
Chester Basin, Nova Scotia

Michael Paterson
Winnipeg, Manitoba

Mike Pedersen
Toronto, Ontario

Dave Phillips
Lumsden, Saskatchewan

Robert Rabinovitch
Toronto, Ontario

Elana Rosenfeld
Invermere, British Columbia

Dorothy Sanford
Toronto, Ontario

Janice Wattis
West Vancouver, British Columbia

Barry Worbets
Calgary, Alberta

Board committee membership

Audit & Risk

Dorothy Sanford, Chair
Howard Phillips
Karly Healey
Mike Pedersen
Paul Archer
Shamir Alibhai
Karen McGuinness


Alan Latourelle, Chair
Chloe Dragon Smith
Ken Mould
Nathalie Pratte
Sylvie DeBlois

Governance, Nominating & Human Resources

Mike Pedersen, Chair
Alan Latourelle
Bruce MacLellan
Dorothy Sanford
Elana Rosenfeld
Kevin McNamara


Robert Rabinovitch, Chair
Chris Young
Doug Hayhurst
Erin O’Brien
Ian Griffin
Julie Wood
Mike Downs


Maureen McCaw, Chair
Stephen Dixon
Bruce MacLellan
Elana Rosenfeld
Fraser Stark
Matt Thompson

Ad Hoc Campaign Advisory

Bruce MacLellan, Co-Chair
Mike Pedersen, Co-Chair
Alana Gavin
John Grandy
Janice Wattis
Nathalie Pratte
Shelley Ambrose
Alexandra Blum