124 Merton Street, Suite 207
Toronto, ON M4S 2Z2
CEO: Mark Rubinstein
Board Chair: David Garner

Charitable Reg. #:11904 2299 RR0001

STAR RATING

Ci's Star Rating is calculated based on the following independent metrics:

[Charity Rating: 3/5]

✔+

FINANCIAL TRANSPARENCY

Audited financial statements for current and previous years available on the charity’s website.

A

RESULTS REPORTING

Grade based on the charity's public reporting of the work it does and the results it achieves.

n/r

DEMONSTRATED IMPACT

The demonstrated impact per dollar Ci calculates from available program information.

NEED FOR FUNDING

Charity's cash and investments (funding reserves) relative to how much it spends on programs in most recent year.

58%

CENTS TO THE CAUSE

For a dollar donated, after overhead costs of fundraising and admin/management (excluding surplus) 58 cents are available for programs.



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OVERVIEW

About Hope Air:

Hope Air is a three-star charity with a high results reporting grade and overhead spending outside of Ci's reasonable range. The charity has funding reserves that can cover less than three years of program costs and is financially transparent.

Founded in 1986, Hope Air is a charity that supports Canadians who need to travel for medical care. Hope Air is the only charity in Canada that provides free flights and lodging nationwide for people who cannot afford to travel to access medical care. The charity reports that 3.2 million Canadians live below the poverty line and 10 million Canadians live outside large city centres. It reports that during the pandemic, 40% of Canadians missed important medical appointments or procedures. 

To qualify for Hope Air’s services a patient must have a confirmed medical appointment that requires travel and is covered under the patient’s provincial health plan. Patients must also provide Hope Air with their household income for 12 months as proof of financial need. In F2021, the charity helped 1,688 patients (Charity Intelligence calculates this as total costs per client in 2021 at $2,242). Hope Air provided 4,500 free flights, 1,637 hotel nights, and 625 bridge and ferry passes. Hope Air reports that 24% of patients had an appointment for cancer, 11% for cardiovascular disorder, 9% for musculoskeletal disorders, 7% for eye disorders, 5% for nervous system disorders, and 43% for other conditions.

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Results and Impact

In F2021, Hope Air reports that 27% of its patients would have canceled their vital medical appointments without the charity’s help. 

While Ci highlights these key results, they may not be a complete representation of Hope Air’s results and impact.

This charity is not yet rated on impact (n/r).

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Finances

In F2021, Hope Air received $2.1m in cash donations. The charity received $652k in donated goods (14% of total revenue) and earned $89k in investment income (2% of total revenue) during the year. Hope Air received $1.7m in government funding in F2021 (37% of total revenue).

Administrative costs are 7% of total revenue excluding investment income. Fundraising costs are 34% of Canadian donations. This results in total overhead spending of 42%. For every dollar donated to the charity 58 cents go to the cause. This is outside Ci’s reasonable range for overhead spending. 

Charity Intelligence's fundraising cost ratio excludes government funding as per CRA Charities Directorate guidance to the charity sector. Charity Intelligence's fundraising cost ratio also excludes the value of donated goods. Hope Aid received $652k in donated goods in 2021. If these donated goods are included, Hope Air's fundraising costs are calculated at 26%. Administrative costs are unaffected and remain at 7%. Including donated goods in kind, Charity Intelligence calculates Hope Air's overhead costs are 33%. 

Hope Air has $6.3m in net funding reserves which can cover program costs for just over three years. 

This charity report is an update that has been sent to Hope Air for review. Changes and edits may be forthcoming.

Updated on August 24th, 2022 by Arjun Kapur. Updated September 22, 2022 by Kate Bahen to include deferred donations. 

Financial Review


Financial Ratios

Fiscal year ending December
202120202019
Administrative costs as % of revenues 7.4%5.2%6.8%
Fundraising costs as % of donations 34.4%29.9%18.7%
Total overhead spending 41.8%35.1%25.5%
Program cost coverage (%) 308.9%277.9%72.7%

Summary Financial Statements

All figures in $s
202120202019
Donations 2,139,8221,865,5212,363,906
International donations 78,704244,820140,736
Goods in kind 651,997475,6841,139,904
Government funding 1,712,3851,324,9731,866,466
Investment income 89,198115,181127,829
Other income 02,119,00337,642
Total revenues 4,672,1066,145,1825,676,483
Program costs 2,049,8291,951,3423,551,570
Donated goods exp 651,997475,6841,139,900
Administrative costs 340,207313,295376,568
Fundraising costs 735,164557,422442,223
Total spending 3,785,2633,297,7435,510,265
Cash flow from operations 894,9092,847,439166,218
Capital spending 15,99612,1520
Funding reserves 6,332,6025,422,1272,582,873

Note: Ci included government funding in revenues as per the charity’s CRA T3010 filing and subtracted the figures from donations. Ci sourced program, administrative, and fundraising costs from the charity’s T3010 filings. Ci adjusted for deferred revenues, affecting total revenue by $437k in F2021, $2.1m in F2020, and $38k in F2019. Deferred revenue is included in other revenue because Hope Air does not separate government deferred revenues from private deferred revenues on its financial statements. Hope Air management provided a breakdown of deferred revenues for 2021: deferred revenues increased $437k of which $253k was deferred donations and $183k was deferred government funding. 

Salary Information

Full-time staff: 14

Avg. compensation: $87,031

Top 10 staff salary range:

$350k +
0
$300k - $350k
0
$250k - $300k
1
$200k - $250k
0
$160k - $200k
0
$120k - $160k
0
$80k - $120k
3
$40k - $80k
6
< $40k
0

Information from most recent CRA Charities Directorate filings for F2021

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Comments & Contact

Comments added by the Charity:

Comment received from Hope Air October 3, 2022

Hope Air appreciates the opportunity to comment on the Charity Intelligence(“CI”) report to provide important context to readers on their analysis.

For Hope Air to serve as many Canadians patients in need as possible, to maximize our impact, we rely on gift in kind donations (eg. donated airline vouchers) that were excluded by CI in their analysis of the ratio for fundraising costs of our charity. While we understand that this exclusion forms part of their overall methodology, we do not agree with the rationale. We believe that Donors value charities who demonstrate the ability to scale their impact through donations in kind used for mission.

Gift in kind donations for Hope Air are 100% program and mission related, which is why we reasonably calculate them in total donations. Donations of free air flights to our charity by both commercial and private airline operators are our first option to fulfill travel arrangements for Hope Air patients. This represents $651,997 in revenue that is detailed and recognized in our audited financial statements. If donations in kind were included in the CI formula, the cents to cause ratio determined by CI would be significantly higher.

Hope Air’s rating by CI for the 2021 was also negatively impacted by their funding reserve analysis. Hope Air’s reserves are slightly over CI’s suggested criteria that such reserves do not exceed three years of operating costs. The increase in Hope Air funding reserves relating to donations is anomalous, caused by the impact of the Covid-19 pandemic on our operations in both 2020 and 2021. Challenges in the Canadian health care system resulted in numerous cancellations and postponements to medical procedures across all provinces. In turn, the volume of travel arrangements facilitated by Hope Air decreased significantly. Therefore, not all donations to the charity in 2021 could be utilized in the year to fund our programs. However, these donations will be fully utilized in the future, as the health care system stabilizes.

In our 2021 Impact Report, Hope Air sets out our Program, Fundraising, and Administration expenses as a percentage of our total expenses for the year. This methodology is consistent with the reporting by many other Canadian leading charities. For every dollar spent by Hope Air, in 2021, 71 cents went to Programs/Mission, 19 cents to fundraising and 9 cents to administration. Full details on Hope Air’s impact is available online at https://hopeair.ca/impact/

We thank Charity Intelligence for adding our comments in this report.

Charity Contact

Website: www.hopeair.ca
This email address is being protected from spambots. You need JavaScript enabled to view it. Tel: 416-222-6335

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Charitable Registration Number: 80340 7956 RR0001