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How We Manage Your Money

We cherish your donations, and strive to make each dollar count through careful, conservative and professional accounting practices.

Allocation of tuition assistance dollars

In 2010, 86 per cent of the money donated for tuition assistance (formerly called Education Access) went specifically toward assessment and tuition costs for students. We spent seven per cent on managing services to students, and seven per cent developing and accounting for grant applications.

If we raise more money than is needed for tuition assistance, it is carried forward to the next year to help a child. It does not get absorbed into general operations.

Restricted fund accounting

READ follows the restricted fund method of accounting for contributions. We have an externally restricted fund and a general fund:

• the general fund accounts for READ's program delivery and administrative activities; this fund reports unrestricted resources, internally restricted funds, and restricted operating grants
• the tuition assistance fund (formerly called the Education Access fund) reports only restricted resources designated to provide tuition support to this program. Contributions restricted for tuition support are recognized as revenue of this fund
• READ has deposited $100,000 with the Vancouver Foundation and $35,000 with the Victoria Foundation, and receives annual investment income from these funds. READ is entitled to the income from the deposits while in operation, but cannot withdraw the principal sum and as a result the deposited funds are excluded from READ’s balance sheet. The funds are invested according to the investment policies established by each Foundation. Should the Society cease operations, the funds will be allocated to other charitable organizations by the Foundations. READ has designated that the income generated from these funds be allocated to the tuition assistance fund
• During 2010, the Society received distributions of income of $5,173 from the Vancouver Foundation and $744 from the Victoria Foundation.

Low risk investment of restricted funds

Investment income earned on endowment fund and tuition assistance resources are recognized as revenue in the tuition assistance (Education Access) fund.  Investment income on general fund resources will be recognized as unrestricted revenue in that fund when earned.

Money that is in excess of immediate cash-flow needs is placed in no-risk Guaranteed Investment Certificates.