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  Management Discussion and Analysis
This analysis is intended to provide the reader of the financial statements of Toronto Rehabilitation Institute Foundation (“Foundation”) with additional insight and perspective on the financial position and operations of the Foundation. The Foundation is dedicated to supporting the rehabilitation needs and enhancing the quality of life of individuals with disabilities by raising, granting and providing stewardship of funds to support the mission of the Toronto Rehabilitation Institute (Toronto Rehab). The Foundation as it exists today arose from the amalgamation of the former Rehabilitation Institute of Toronto Foundation with the Lyndhurst Hospital Foundation in 1999. The amalgamation of the foundations followed the formation of Toronto Rehab in the previous year. The Foundation’s Everything Humanly Possible: Campaign for Toronto Rehab is raising $60 million in support of Toronto Rehab’s redevelopment of the University and Lyndhurst Centres and its major focus in research. The first phase of this campaign raised $32 million, and as of March 31, 2008, $14 million remains to be raised from the second and final phase of the campaign. Grants are made to Toronto Rehab in support of the hospital’s patient care, research and education programs. For the most recent year, $1.9 million was awarded in grants to Toronto Rehab including support for the holders of two research chairs ($.3 million), support for research operations ($1 million), facility redevelopment ($.1 million) and other purposes ($.5 million). The $53 million in funds held by the Foundation are managed by McLean Budden, a well regarded firm of professional portfolio managers. The net investment return for the most recent year was approximately 3.8% (2007 – 5%). The funds associated with the capital campaign have been invested in a short-term money market fund throughout the year in anticipation of completing a formal local share plan with the Ministry of Health and Long-Term Care in July 2008 which will determine the timing and final amount required to support the University Centre redevelopment project. The $9 million (2007 - $9.4 million) in endowed funds of the Foundation reflect legacy endowments, the establishment of over $5 million in endowed research chairs over the past five years and receipt of a $1 million endowment in 2007. The legacy and research chair endowments were achieved through a combination of donations and board designations of unrestricted and restricted funds in the past. These funds are invested in a balanced portfolio that due to yearend valuations of the equity portion of the portfolio, only yielded .21% during the past year. As a result, there was a $.4 million drawdown of endowment funds over the past year to provide the 5% expendable portion of these funds consistent with Board policy. The Board is closely monitoring mid/long term investment return performance with a view to revising the expendable policy in the future, if necessary, to protect the initial capital balances of these endowed funds. In fiscal 2007/08, donations totaled approximately $3.2 million. Of this amount, $1.7 million ($1.6 million on a pledge basis) was received for the Everything Humanly Possible: Campaign for Toronto Rehab fund and $1.5 million for the Gift of Hope annual fund (including $.6 million in net proceeds from special events). Operating expenses were effectively managed throughout the year, amounting to approximately 24.2 % of donations and investment income for the year. In summary, the Foundation is financially sound and enjoying strong growth through prudent investment management and fundraising success. Looking to the coming year, the Foundation has targeted to raise an additional $4 million in cash and pledges for the Campaign for Toronto Rehab and $2 million for the Annual Fund. Management has developed a clear strategy for raising the remaining $14 million of the Foundation campaign goal of $60 million and achieving the Phase II goal of $28 million in the coming year.
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