Hope€¦ · HR and stakeholder engagement: How we support, manage and work with our board ... – our strategic plan and vision for 2015 – was developed through an inclusive, consultative

Hope changes everything

2008.2009 REPORT FOR STAKEHOLDERS

Table of contents

Executive summary 1

Resource development: How we raise funds 2

Financial reporting of revenue and expenditures 4

Operations: How we achieve our mission 5

Governance and policy: How we measure, enhance transparency and increase alignment with strategic directions

7

HR and stakeholder engagement: How we support, manage and work with our board, volunteers, staff and supporters

9

Information and technology: How we maximize our efforts to increase resources, productivity, revenue, engagement and competitiveness

11

Conclusion and outlook for 2010 12

On the cover: MS Ambassador, Mike Augustine, greets a participant at the RONA MS Bike Tour in London, Ontario.

2008.2009 STAKEHOLDERS REPORT 1

Executive summary

This report is a companion piece to the Multiple Sclerosis Society of Canada’s (the MS Society) 2009 National Impact Report. In writing this report, our objective is to provide a more in-depth discussion and analysis of key initiatives undertaken at the MS Society in 2009, the first year of our strategic plan, Momentum 2015 (PDF). The report emerged from our commitment to increase organizational transparency and accountability. We hope it will assist stakeholders in assessing the MS Society’s performance in the context of the 2009 environment. The MS Society values its relationship with stakeholders: whether you are a member, donor, staff, volunteer, partner agency or funder, we hope this report will assist you in understanding the complexities of our work in the non-profit sector and in Canadian communities.

Momentum 2015 (PDF) – our strategic plan and vision for 2015 – was developed through an inclusive, consultative process and approved in March 2008. The title reflects the momentum and revenue growth the MS Society experienced during the preceding decade, one which was characterized by tremendous economic prosperity. The plan and its 16 strategic directions (SD) reflect our desire to sustain that momentum. Implementation commenced in September 2008, just as the global economic downturn began. The ensuing recession was deeper than expected and has affected the MS Society on a variety of levels. In June 2009, in response to the significant changes in the economic environment, the National Board approved a series of adjustments to our original targets. Our adjusted revenue growth target remains ambitious but is now linked to growth in the Canadian economy (at least 1% above Canada’s annual GDP growth).

While the 2009 economic downturn meant the MS Society lost momentum in terms of revenue growth (we experienced a 10% decrease in overall revenue), the impacts of this were largely contained. The MS Society managed to sustain essential supports and services to those affected by MS and continued to fund critical research programs.

We are extremely appreciative of everyone’s efforts and particularly donors’ continued support in these challenging economic times. Despite the economic downturn, the MS Society produced strong fundraising results in 2009. Although the MS Society experienced reductions in investment income and gifts of securities and decreased participation and donations related to some events, many of our donors and participants continued to support us. And many of those who participated in events made extra efforts to reach out to their networks and communities. This support from donors and participants was critical in enabling us to continue to deliver essential services and support and work to find a cure for MS during a lean economic period.

The body of this report provides highlights of the MS Society’s 2009 performance in the areas of: resource development, financial performance, operations, governance and policy, human resources and stakeholder engagement, and information and technology.

http://mssociety.ca/en/community/mssc/annualreport.htm

http://mssociety.ca/en/community/mssc/annualreport.htm

http://www.mssociety.ca/en/pdf/Momentum2015_leaflet.pdf

http://www.mssociety.ca/en/pdf/Momentum2015_leaflet.pdf

2 HOPE CHANGES EVERYTHING

Approximately 95% of the MS Society’s income comes in the form of donations from tens of thousands of individuals in communities across Canada. In contrast to many Canadian charities, we receive very few government grants and we have few significant sources of earned income (investment income and membership fees generate approximately 1% of revenue). Given our reliance on donated funds, creating an effective resource development strategy is a critical component of our work. Key elements of this strategy include diversifying the way we raise funds; strengthening relationships with donors to deepen their understanding and commitment to our work; continuing to seek fundraising efficiencies; and being transparent and accountable to donors and the public.

The MS Society’s participatory events have been the foundation of our fundraising activities for over three decades along with appeals for support sent via direct mail. We host many signature events (e.g. MS Walk, MS Read-A-Thon, RONA MS Bike Tours) which engage many participants (108,000 in 2009) who collect many small gifts on our behalf. While our event revenues were down less than 1%, participation numbers were up by 3%. The large number of Canadians involved in these annual events has the added benefit of helping increase public awareness about MS issues (part of our 2015 Vision). At the same time the MS Society recognizes that raising and processing large numbers of small gifts is costly.

In an attempt to achieve efficiencies within this model, the MS Society has been automating our giving options and promoting online giving. Donor uptake suggests they recognize the benefits: online giving makes it easier for event participants to solicit and manage donations; and donors’ charitable receipts are delivered electronically within seconds. The MS Society has also benefitted: online donations grew to $10 million in 2009 (from $400,000 in 2004) while the cost of administering the huge volume of donations we receive continues to decline. Eliminating mailing costs related to issuing charitable receipts has greatly streamlined fundraising efficiencies.

The endMS campaign has helped us attract larger gifts: in 2009 the organization received 5 gifts valued at more than $250,000. Our endMS campaign ‘cabinet’ played a key role in this work. The cabinet’s members, all of whom are volunteers, dedicated significant time and energy to help us solicit these larger gifts.

In addition to critical funding from individuals who give through our campaigns and events, pharmaceutical companies also contribute funds to support client programs. The MS Society receives less than 2% of total revenue from pharmaceutical companies. Funding received from pharmaceutical companies is in alignment with Canada’s Rx&D Code of Conduct and strictly adheres to the MS Society’s policy that regulates the acceptance of funding from pharmaceutical companies. These funds enable the Society to better meet the needs of people with MS in direct support of our mission and are essential to ensure current funding dedicated to core operations is not compromised.

Resource development: How we raise funds


Additional strategies have been developed to diversify our revenue sources and engage supporters in different ways. Innovative events such as Women Against Multiple Sclerosis (WAMS), combined with new corporate relationships such as with A&W have been developed to complement our core events. Third-party fundraising events were introduced and promoted online, giving participants the inspiration and guidance to design and host their own fundraising events. These include endMS Drive (individuals are encouraged to raise money for MS by hosting their own fundraising activity like a dinner party) and MS Climb (a team-based endurance activity held in different locations), both of which require more intense forms of engagement than our core events. Uptake has been encouraging and suggests that participants appreciate the opportunity to take initiative and do something different. It also suggests our supporters are interested in sharing their commitment to the MS Society’s work with others. As part of our goal to build a donor-centric fundraising culture (SD11), we are striving to be more responsive to donors’ interests and requests. For example, donors can inform us of their communication preferences by phone, email or mail*. Where a donor wants to specify the designation of a major gift, the MS Society’s resource development department will work with the donor to determine how that could be accomplished. The MS Society is also shifting towards a model that allows a supporter – whether a donor or event participant – to identify the form of participation that best suits them as they move through different stages of life. As an example, we might invite participants who have left the Walk to make a donation in lieu of their event participation, or encourage participants who have left the Bike program to get involved in MS Drive or Climb. This ‘donor integration’ strategy is designed to keep supporters interested and engaged in events that are meaningful and accessible to them; this strategy is still in its early stages and will receive more focus in 2010.

*Note: Donors can call 1-800-361-2985 to let the MS Society know how frequently or when they wish to hear from us, in what format, and whether or not they want to receive mailing labels.

Resource development: How we raise funds


The MS Society’s long-term sustainability depends in part on our ability to be fiscally responsible*: to monitor and manage the funds we receive; achieve efficiencies and reduce expenditures; manage risk; and allocate resources in a way that maximizes impact. This section focuses primarily on how we monitor and manage revenues.

Financial oversight has been strengthened in several important ways. As noted previously, online fundraising processes have allowed us to streamline the way we solicit and process donations, contributing to a reduction of manual processes requiring stringent monitoring and allowing for a more efficient and accurate system for tracking and safeguarding the flow of funds. Years ago, the MS Society consolidated multiple bank accounts into one master account. With technological advances, this consolidation now enables us to more easily monitor the flow of funds received and transfer funds electronically between different MS Society offices across Canada. Not only does this give us a more accurate picture of the financial position of different offices and the MS Society as a whole at any point in time, it will also enable us to maintain a clearer historical record of the MS Society’s financial position. Consolidating funds also results in increased interest payments (on our consolidated balance) and reduced banking fees. Although current internal controls remain unchanged, one of the technological advancements made has been the introduction of Electronic Funds Transfers (EFTs), which reduces the use of cheques and streamlines payments to clients and vendors. For the majority of MS Society locations these payments now flow out of one central office; this, in tandem with EFTs, has expedited payments and significantly reduced our administrative costs. EFTs also mean that persons with MS receiving funding assistance (many of whom have significant mobility challenges), vendors and staff can make one less visit to the bank.

The above processes combined with volunteer oversight promote transparency and enhance the MS Society’s ability to safeguard our assets. Financial statements are reviewed monthly by the finance department and by volunteers who serve on chapter, division, or national boards at every level of the organization. In 2009, the national board’s audit committee assumed additional responsibility to help manage the risk that exists in the organization.

The MS Society receives the majority of its fundraising revenue during the spring to summer time frame but has expenditures occurring throughout the entire year.* The MS Society prudently invests our financial reserves and additional cash flow with an external investment manager with oversight provided through quarterly meetings of a national investment committee, which is a sub-committee of the national board. The prudent management of our reserves by our investment manager in 2009 led to a year with minor investment income which resulted in a negative variance from previous years but was a very positive result compared to significant reductions in the capital markets.

*In 2008, the Board agreed to change the MS Society’s fiscal year end from August 31st to December 31st to better align our budget process with the MS Society’s operating cycle and fundraising activities.

Financial reporting of revenue and expenditures


The MS Society’s programs support our mission to be a leader in finding a cure for MS and enabling people affected by MS to enhance their quality of life. In Momentum 2015 we made a commitment to demonstrating the impact of our work, and a part of that is being transparent about how we spend the money entrusted to us by donors. The majority of our revenue is devoted to the following program areas: MS research (25%), client services (31%), public education (12%), volunteer support and development (8%) and government relations (5%). Despite a 10% reduction in revenue in 2009, the MS Society was able to maintain our level of expenditures for client services. We continue to develop and deliver vital programs and services in response to clients’ needs and requests.

Increasing government responsiveness to MS issues was articulated as a goal in Momentum 2015. Government relations (the development of non-partisan relationships with government with a view to generating support for our mission and influencing policy related to our work) is an activity that relies on the coordinated participation of staff and volunteers from across Canada and in some cases collaboration with other organizations. In alignment with our goal, the MS Society invested more energy in strengthening government relations, and we can point to two successes from 2009. The federal Minister of Health announced $15 million to study the incidence, prevalence, and impact of neurological conditions in Canada. This decision is directly attributable to the work of Neurological Health Charities Canada, in which the MS Society plays a leadership role. In Quebec, Ontario, Alberta and Saskatchewan, thanks to the work of MS Society staff and volunteers, provincial governments have confirmed it will refund the cost of the drug Tysabri (an expensive disease-modifying therapy prescribed to some individuals diagnosed with MS) for people with MS who meet certain criteria. The MS Society has also approached several provincial governments for support in meeting our $60 million goal for endMS (e.g. $1.5 million from the Alberta government).

On the research side, the MS Society provides volunteer oversight of research grant-making and peer review process through the medical advisory committee, MS biomedical grant review committee, and the clinical and population health research grants review committee. These volunteer oversight committees are charged with holding research grantees accountable for conducting research in accordance with the conditions of their grant. Since many research projects are conducted over a period of years, overseeing the project from start to finish has historically been a challenge. Having committees in place to monitor progress and outcomes will help increase the potential that our grants deliver results.

Mitigating risks in a national, volunteer-led charitable organization demands a range of activities and expenses related to ensuring the protection of: client trust and privacy; donated funds; reputation and intellectual property; and event participants. Governance and operational policies play a significant role in this work and the MS Society has articulated a number of new policies outlining the MS Society’s defined

Operations: How we achieve our mission


approach in these areas (e.g.: confidentiality; ensuring the safety of event participants by having specific kinds of equipment, security and medical personnel on site at all MS events; and guidelines for accepting financial support from the pharmaceutical industry and medically-related products industry).

A task force representing staff and volunteers from across the organization has been created to obtain input from a wide variety of stakeholders to assess and identify the greatest risks facing the organization. The results will be reviewed by the audit committee to prioritize the greatest risks that we need to devote the most attention to. This will initiate regular updates to the national board of directors, beginning in June of 2010. Smaller sub-groups, with expertise in the particular areas of risk, will work on each area of greatest risk, and regular updates, new policies, direction, and guidelines will be periodically presented to the national board of directors for consideration and approval.

To address the risk the economic downturn posed to the MS Society’s fundraising efforts, a decision was made to revisit our policy of relying exclusively on unpaid advertising. We recognized that staying top of mind with potential donors might require us to invest in paid advertising. We developed a ‘paid and unpaid ads’ policy which specifies that any paid advertising option is evaluated for its potential return on investment.

On a more tactical level, risk management refers to our ability to anticipate and respond to economic uncertainty and other issues as they emerge. With Momentum 2015 as a guide, the MS Society successfully adapted its responses in the face of adverse economic circumstances while continuing to deliver essential programs, services and research.

Operations: How we achieve our mission


The MS Society’s vision for 2015 articulates our desire to be a transparent and accountable organization. Governance practices and policies support out ability to achieve this. In the last decade the MS Society began to recognize how essential good governance is to a national organization’s ability to achieve its mission. In response to a desire expressed at various levels of the organization to move the MS Society’s governance ‘from good to great’, in late 2007 the national board decided to undertake a comprehensive governance review process. The review focused on the national board level, examining its governance role in relation to the different levels of the MS Society (divisions and chapters). The review identified best practices in non-profit governance and explored how the practices might be implemented in the context of the MS Society’s culture and organizational complexities.

The governance review culminated in a set of recommendations (Final Report and Recommendations of the Governance Review Task Force are available under separate cover) in four broad categories: taking it online; alignment; organizational design; and board design. A number of these recommendations were implemented in 2009.

Taking it online refers to moving the MS Society’s governance resources (by-laws, policies, board development tools, etc.) online to a virtual governance resource centre with a view to enhancing their accessibility and accuracy. Moving these resources online eliminates the need to produce and disseminate costly governance binders which are often obsolete by the time they are printed. The structure of this virtual centre was designed in 2009 as part of the design of the MS Society’s intranet. Content is under development, building on internal resources collected from across the country. In 2010, we aim to give boards at all levels of the MS Society access to the resource centre and secure virtual spaces where they can share documents and interact.

Alignment – a sense of consistency and unity – is critical to a national organization like the MS Society with its complex structures and multiple governance levels. The governance review found that alignment is a challenge recognized by many within the MS Society. A desire to improve alignment is evident in SD6: Foster a streamlined and accountable organization. Alignment recommendations outlined strategies related to strategic planning, by-laws, and policies.

The MS Society’s 2007-2008 strategic planning process was inclusive: input was collected from across the organization. The result, Momentum 2015, is a key mechanism for promoting strategic alignment across the organization. Going forward, as boards at the division and chapter levels update or develop strategic plans they are encouraged to align them with Momentum 2015.

The MS Society’s national governance policies promote effective governance by providing a framework for accountability, decision-making authority, and leadership of the MS Society in alignment with the MS Society’s



by-laws. In 2009 the national Board expanded its policy development process by introducing opportunities for different levels of the organization to provide input into new policy development. This process will strengthen our policies and enhance boards’ understanding and commitment to implementation. Policies were reviewed in late 2009; policy gaps identified will be addressed in 2010-2011.

The complexity of the MS Society’s different organizational levels makes it challenging to navigate and understand. One of the key outcomes of the governance review in the area of organizational design was the development of six ‘responsibility maps’ which clarify and increase transparency related to key process organizational processes (e.g. hiring of key leaders, budget planning).

Similarly, board design was addressed with the national board reducing its size from 27 to 13 to enable its members to be more focused, engage in quality dialogue, and respond to issues in a timely matter. Seven division-level ‘delegates’ (i.e. one from each division) are appointed by the Board; six members at large are elected by the membership of the MS Society; and one place is held for the past chair. All directors have a responsibility and duty to serve the interests of the MS Society of Canada as a whole. In keeping with governance best practices, the national board expanded the responsibilities of the finance committee. It was renamed the ‘finance, audit, and risk management committee’ to reflect its expanded mandate.




We recognize that achieving our mission and vision depends on the continued commitment of our internal and external stakeholders. Therefore, managing and engaging our board, volunteers, staff and supporters in meaningful ways is another critical component of our work. One strategic direction reflects the importance we place on human resources and stakeholder engagement: become an employer of choice (SD15).

Soliciting feedback from employees on their experience at the MS Society helps us to improve as an employer. In 2009 the MS Society’s employee survey went coast to coast for all staff in national and divisional offices, as well as some large chapters, setting the baseline for our Momentum 2015 targets. Response rates were excellent with 94% of staff participating. While overall feedback was positive, staff indicated there is room for improvement with respect to collaboration, innovation, technology, culture, diversity and being an employer of choice (90% of employees surveyed indicated they would recommend the MS Society as a place to work). The executive team identified collective priorities and built corresponding action plans. They continue to seek additional input and ideas from staff on how to improve the employee experience in response to the survey findings.

As part of our human resources (HR) strategy in 2008 we introduced a new leadership role: vice president of HR and collaboration. This leadership position has strengthened the HR department’s ability to guide organizational development. The department introduced a number of organization-wide initiatives in 2009. One involved benchmarking positions across the organization according to updated job descriptions, and subsequently benchmarking the MS Society’s compensation rates against external data. The outcome of the benchmarking exercise confirmed that our compensation levels are at an appropriate level in comparison with the rest of the sector. We know that fair and competitive compensation rates contribute to staff retention: in 2009 our consolidated staff turnover rate was 14% (this is our baseline for Momentum 2015’s 15% target). While the MS Society made some strategic decisions to limit growth of our staff complement and delay hiring in some parts of the organization during the economic downturn, we did not need to implement staff lay-offs due to financial exigencies.

Managing staff performance is an area that has been evolving at the MS Society. Although performance reviews have been done annually, our increased HR capacity enabled us to expand our approach to performance management. A standard performance management system was developed in 2009 outlining a consistent methodology which will be used with staff across the organization. We will provide training on and implement the system in 2010.

One of the goals of performance management is to improve performance; we know that professional development is one component of this. The MS Society values education and training and understands the importance of developing employees. In 2009 we evaluated the training that was in place. Despite cuts made to some training programs during the economic downturn, the MS Society remains committed to providing training opportunities to our employees. We are in the process of identifying priority training areas for the future and all departments


continue to have professional development budgets and learning resources. In 2010 some management training programs will be rolled out and additional growth and development strategies will be identified.

The MS Society takes its accountability to volunteers and staff seriously. In accordance with a recommendation from our auditors, we developed a leadership volunteer & employee disclosure & protection policy (i.e. “whistle blower policy”). This policy will ensure anyone with a concern about the organization will have the opportunity to bring it forward in a confidential manner without risk of reprisal.



Information and technology: How we maximize our efforts to increase resources, productivity, revenue, engagement and competitiveness

Embracing technology and fostering collaboration and information exchange were articulated as strategic directions within Momentum 2015. As a national organization, we recognize the potential technology offers to enable us to access and disseminate resources, increase revenues and reduce expenses; strengthen our alignment; improve our connectivity, communications and engagement; and enhance our productivity. A five-year information and technology (IT) strategy has been developed to harness this potential by ensuring IT resources are made available to all departments and by transitioning some of our work online.

The IT strategy drives the continued evolution of our website and online fundraising platform and with a goal of improving and personalizing visitors’ experiences. As noted earlier, moving fundraising online has helped make fundraising activities more efficient and allows for a better donor customer experience. Website upgrades will enable the MS Society to engage constituents in a more active and inclusive way by encouraging more online discussion and giving us the capacity to respond to requests for customized information by delivering that information electronically in a timely fashion. This work will continue to evolve in 2010.

The deployment of IT resources internally has enabled the organization to achieve efficiencies related to capturing data, streamlining processes, engaging in online fundraising and advocacy, and communicating internally and externally. Our success in strategically reducing expenditures in 2009 can be attributed in part to the implementation of new technologies. In addition to being used to collect and track donations, electronic fund transfers are also being used to reimburse staff for expense reports and to make payments to clients and vendors. We invested in a VOIP (voice over internet protocol) phone system which will dramatically reduce our internal communications costs over the long term and facilitate communication for staff across the MS Society. Our Sharepoint server promotes a more collaborative work environment which will promote knowledge sharing and help reduce travel costs.

We recognize the importance and benefits of staying abreast of emerging technology in Canada. The MS Society has embraced social media as a vehicle for engaging new audiences and creating opportunities for stakeholders to converse with the organization. Our marketing and development teams nationwide are blogging; we also have a presence on Facebook, YouTube and are ‘Twittering’ about research and other key developments. These technologies enhance our ability to be transparent and responsive to issues and concerns raised by stakeholders and the public. Embracing online advocacy strategies has enabled us to mobilize large groups to communicate with elected officials on key issues. The MS Society’s efforts to advance income security issues for individuals with MS were reinforced by 2,400 personalized messages sent to 97% of federal MPs (members were alerted to the issue by an email which contained a link where they could enter their postal code and generate and send a personalized email to their MP).


Conclusion and outlook for 2010

While highly challenging, 2009 was a productive year at the MS Society. The economic downturn reinforced the value of our relationships with the many stakeholders who have generously supported us over the years, and the value of having a vision and strategic plan to unify our work. Momentum 2015 and our vision proved an effective compass for the strategic choices we made throughout the year.

The global and national economic outlook for 2010 is somewhat more positive. Ontario and Quebec, provinces which are the heartland of Canada’s industrial sector, have felt the downturn most acutely. This is a concern for the MS Society as these provinces have traditionally represented a large proportion of our revenue reflecting their large population base and economies. British Columbia and the other provinces were not affected to the same extent and may rebound more quickly. Major financial markets have shown signs of continued recovery in early 2010 and the MS Society anticipates this will contribute to a rebound in gifts of securities and donations in 2010.

In 2010 the MS Society will continue to pay close attention to resource development and build a more donor-cen-tric culture. We hope that in demonstrating transparency and continuing to put more streamlined and accountable practices in place we will give those who’ve given in the past the confidence to continue to do so in the future.

Documents

Hope€¦ · HR and stakeholder engagement: How we support, manage and work with our board ... – our strategic plan and vision for 2015 – was developed through an inclusive, consultative