First Book Canada is a top-rated 5-star charity with high demonstrated impact. It is financially transparent, has overhead spending within Ci's reasonable range, except for an issue of not reporting any fundraising costs. First Book Canada has excellent reporting of its results for donors. 

Founded in 2009, First Book Canada works to create equal access to quality education for children. First Book Canada reports that since 2009, it has distributed more than seven million books and educational resources to programs and schools serving children from low-income families in Canada. First Book believes that education is a child’s best path out of poverty, but access to quality education is not equal. The charity states that almost 25% of Canadian households do not own a single book, and 30% of Canadian Grade 3 students lack basic literacy skills. Additionally, schools in disadvantaged communities can only afford one new library book for every three children, and one-third of Canadian public school students live in low-income households.

A Charity Intelligence 2023 Top 100 Rated Charity

First Book Canada distributes books through four channels: book banks, pop-up book distributions, the First Book Canada Marketplace, and reading celebrations. The National Book Bank is a centralized system that offers large quantities of publisher-donated books for only the cost of shipping. Pop-up book distributions are in-community events that allow local educators and program leaders to choose from thousands of books for children. The Marketplace is a member-only online store offering children’s books and educational materials at 50-90% off retail prices. Reading celebrations are events across Canada where students attend inspiring presentations by authors or illustrators.

In F2021, First Book Canada distributed 1.6 million books and reached 500,000 children and youth across Canada. The charity also held nine pop-up events and 40 reading celebrations. The First Book Canada network is made up of educators, program leaders, health service providers, and professionals who serve children in need. First Book Canada recently reported that there are 14,843 network members across Canada.

In F2021, First Book Canada had total cash donations of $707k. The charity also received $5.8m in donated books, representing 82% of total revenue. Administrative costs are 5% of revenue (less investment income). But, we are concerned the charity reports no fundraising costs. This results in total overhead spending of 5%. For every dollar donated, 95 cents go to the cause, which is just outside Ci’s reasonable range for overhead spending. This is because overhead costs at this level are rare and may be misreported.

First Book Canada has $484k in funding reserves, which could cover 38% or under five months of annual program costs. This indicates a need for funding.

Charity Intelligence sent an update of this report to First Book Canada for review. Changes and edits may be forthcoming.

Updated on August 23, 2022, by Sydney Olexa.