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Toronto, ON

Diabetes Canada

1400 - 55 University Avenue
Toronto, ON M5G 2R5
President and CEO: Dr. Jan Hux
Board Chair: Jim Newton

Website: www.diabetes.ca
Charitable Reg. #: 11883 0744 RR0001
Sector: Health
Operating Charity

Donor Accountability

Grade: B

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

Financial Transparency

Audited financial statements for current and previous years available on the charity's website [ Audited financial statement for most recent year ]

Need for Funding

Funding Reserves Program Costs

Spending Breakdown

Cents to The Cause

95¢
75¢
avg
65¢
50¢
2015 2016 2017
For a dollar donated, cents funding the cause after fundraising and admin costs, excluding surplus.

Full-time staff #272

Avg. Compensation $73,817

Top 10 Staff Salary Range

$350k + 0
$300k - $350k 0
$250k - $300k 0
$200k - $250k 3
$160k - $200k 5
$120k - $160k 2
$80k - $120k 0
$40k - $80k 0
< $40k 0
Information from most recent CRA Charities Directorate filings for F2016

About Diabetes Canada:

Founded in 1953, Diabetes Canada helps those affected by diabetes live healthy lives, prevent the onset and consequences of diabetes and discover a cure. In February 2017, Canadian Diabetes Association rebranded to the new name of Diabetes Canada. With its new name and logo, Diabetes Canada hopes to raise greater public awareness of diabetes and its implication and become the national voice for Canadians living with diabetes. The charity reports that between 200,000 and 350,000 Canadians have type 1 diabetes. An estimated 3.0 million people in Canada are diagnosed with type 2 diabetes while it reports another 7.2 million people are "at-risk" for diabetes. Diabetes Canada states the number of Canadians living with diabetes has doubled in the last 12 years.

Through its Improving Management and Prevention program (53% of program spending in F2017), Diabetes Canada advocates for policy changes that promote healthier lifestyles amongst Canadians. Together with partners in the Stop Marketing to Kids (Stop M2K) Coalition, the charity has advocated for restrictions on marketing unhealthy food to children. It reports to have advised the government on changes to the Canada Food Guide and the nutrition facts table on packaged foods. Diabetes Canada also operates a website which offers diabetes resources and information. In F2017, 2.6 million people visited its website.

Diabetes Canada funds research projects (18% of program spending) that search for new treatments and ultimately a cure for diabetes. In F2017, the charity implemented a new research funding model that is aimed to encourage students to commit to careers in diabetes research. In F2017, it funded 6 new Postdoctoral Fellowships which provide support for researchers who have completed a PhD. Diabetes Canada launched 2 new types of awards in F2017: Diabetes Investigator Awards and New Investigator Awards. In F2017, it offered 4 of each type of award. In addition to the 14 newly-funded project, the charity continued to support 43 ongoing grants.

Its Drive for Excellence in Diabetes Care program (17% of program spending) condenses the best research on how to manage diabetes into a set of recommendations people can act on. It recognizes that there is an overwhelming volume of research evidence for front-line health-care providers to stay on top of. By creating the Diabetes Canada Clinical Practice Guidelines for the Prevention and Management of Diabetes in Canada, the best and most recent information is in the hands of front-line healthcare providers. Webinars and local educational events across the country are used to build providers’ knowledge and confidence in applying the Guidelines. In F2017, the charity reports that 16,771 healthcare providers attended 163 Diabetes Canada health education events.

Diabetes Canada’s D-Camps (12% of program spending) address the challenges of isolation and stigma by providing a place for young people with Type 1 diabetes to connect. The summer camps offer outdoor activities and help participants learn how to live with the disease. 1,891 children and youth with type 1 diabetes attended D-Camp programs in F2017.

September 7, 2018 Diabetes Canada announced Dr. Jan Hux as President and CEO. John Reidy, former CFO and CAO, is Chief Operating Offices. 

Financial Review:

Diabetes Canada is one of Canada’s largest charities, a Major 100, with donations and special events revenue of $30.6m in F2017. Administrative costs are 5% of revenues and fundraising costs are 36% of donations. Per dollar donated to the charity, $0.59 goes towards its programs and grants, which falls outside of Ci’s reasonable range for overhead spending. The charity’s funding reserves of $9.2m include $1.5m in donor-endowed funds. Excluding endowed funds, Diabetes Canada can cover 3 months of annual program and granting costs, indicating a need for donations.

Diabetes Canada's Clothesline operation, which picks up used clothing and donated household goods, is held in a separate trust. Clothesline has an exclusive agreement with Value Village stores. It reports to sell the donated clothing and items to help fund research and the charity’s D-Camps [1]. Diabetes Canada receives the net profit from these Clothesline operations. In F2017 it received $8.7m, compared to $10.5m in F2016 and $10.5m in F2015.

In 2017, Canadian Diabetes accounting policies changed significantly. Its auditor, Grant Thornton, noted “The presentation of Diabetes Canada statement of revenue and expenses changed in the current year to provide more informative information on the sources of revenue and expenses.”  Apparently, disclosing how much was given to Diabetes Canada in donations, bequests, corporate giving and from charitable foundations was too much information that donors found confusing. Diabetes Canada's new management team writes "Simpler disclosure enhances communications with stakeholders." Charity Intelligence found less information presented on the 2017 audited financial statements. Most notably, government grants are not listed separately. This information will be disclosed in Diabetes Canada's 2017 T3010 CRA filing that was not available at the time of this profile update to get a better breakdown of its revenues and expenses. This report shows donations that likely include government funding, understating 2017's fundraising costs.

Also in 2017, administrative costs declined by a material $5.7 million. 

Diabetes Canada uses external fundraisers as part of its fundraising activities. In F2016, the charity reported paying external fundraisers $94k that raised $30k. For every dollar Diabetes Canada raised from external fundraisers, it paid $3.08 to the third party.

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

Updated on August 21, 2018 by Derek Houlberg.

Financial Ratios

Fiscal year ending December
201720162015
Administrative costs as % of revenues 5.3%16.7%18.3%
Fundraising costs as % of donations 35.9%38.1%32.4%
Program cost coverage (%) 30.8%39.1%55.2%

Summary Financial Statements

All figures in $000s
201720162015
Donations 27,05524,92529,192
Government funding 02,8503,804
Fees for service 2,5503,6713,363
Business activities (net) 8,70811,74911,679
Special events 3,5513,6323,640
Investment income 240380145
Other income 168364444
Total revenues 42,27247,57152,267
Program costs 24,44224,96524,533
Grants 5,3084,9415,769
Administrative costs 2,2267,8889,515
Fundraising costs 10,99110,88910,645
Cash flow from operations (695)(1,112)1,805
Funding reserves 9,16511,69116,718
Note: Income from other Charitable Activities in the audited financial statements has been included in special events fundraising. No government funding was reported on the charity's F2017 audited financial statements for either F2017 or F2016, although government funding was reported on its F2016 audited financial statements. Amortization has been removed from program, administrative and fundraising costs on a pro-rated basis. [1] https://www.diabetes.ca/newsroom/search-news/clothesline-lends-a-hand-to-help-goodwill-toronto

Comments added by the Charity:

The following comments were added to a previous profile:

Founded in 1953, the Canadian Diabetes Association (CDA) is a registered charity that works toward a world free from diabetes. They lead the fight against diabetes by helping those affected by diabetes to live healthy lives, preventing the onset and consequences of diabetes, and discovering a cure. Dr. Charles Best, co-discoverer of insulin, helped create the Diabetes Association of Ontario in the 1940s—which became the CDA in 1953. Diabetes is a chronic, often debilitating and sometimes fatal disease, in which the body either cannot produce insulin or cannot properly use the insulin it produces. Insulin is a hormone that controls the amount of glucose (sugar) in the blood. Diabetes leads to high blood sugar levels, which can damage organs, blood vessels and nerves. The body needs insulin to use sugar as an energy source.

Diabetes has reached epidemic proportions in Canada. Currently, 11 million Canadians are living with diabetes or prediabetes, including those who are undiagnosed. By 2025, 13.6 million Canadians will have diabetes or prediabetes.

In the ongoing fight against diabetes, here’s how the CDA helps:

  • The CDA’s programs, education and services support people living with diabetes in their daily fight to live as well as possible with diabetes;
  • The CDA’s world-leading Clinical Practice Guidelines for the Prevention and Management of Diabetes in Canada represent the best evidence-based direction for health-care professionals;
  • The CDA’s funding ensures Canadian researchers remain at the forefront of diabetes breakthroughs. Since 1975, the CDA has invested more than $130 million in leading-edge diabetes research; and,
  • Advocacy efforts have led governments to develop policies that respect the rights of people living with diabetes and access treatments they need to live healthy lives.
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