SportsFunder Background
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- Roy Williamson
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2 SportsFunder Background Launched February 2, 2006, in celebration of the Vancouver 2010 Winter Olympics First ever cause-related lottery game for BCLC
3 SportsFunder Objectives Build a strong lottery brand that will last beyond 2010 that British Columbians will be compelled to support Generate over $20 million net income for amateur sports in BC over the next six years
4 Where the Money Goes Proceeds from the sale of SportsFunder lottery games benefit four key areas: KidSport Team BC Youth Sport Travel Assistance Coach and Leadership Development Since February, SportsFunder has raised over $1.5 million for amateur sports in BC!
5 SportsFunder Products
6 Past Products
7 $2 ticket November 6, 2006 Features 5 BC amateur athletes chosen as winners of the photo submission contest Top prize: $20,100 Consumers can submit photos for next ticket Available at lottery retail locations Homegrown Heroes
8 Homegrown Heroes
9 Share the Dream Beneficiaries BC Amateur Hockey x2 BC Speed Skating BC Blind Sports BC Amateur Athletics BC Archery Boxing BC BC Special Olympics x3 BC Soccer Association Disabled Skiers Association of BC
10 SportsFunder 50/50 $1 game Province wide 50/50 game Draws every halfhour Guaranteed winner every draw Available wherever lottery products are sold
11 50/50 Retailer Award Beneficiaries - Comox Valley Baseball - Golden Minor Soccer Association - Hazelton Minor Hockey - Surrey Minor Hockey - Seaquam Secondary Seahawks Football - Enver Creek Secondary Junior Boys Rugby - Sho Bu Kai Karate Club - Richmond Lacrosse Association - Westsyde Secondary Blue Wave Football - Nanaimo Pirates Baseball Club - Port Hardy Youth Soccer Association - Port Coquitlam Youth Bowling - Squamish Minor Hockey Association - Burns Lake Soccer Club - Richmond United Under 12 Girls Soccer - Fleetwood Park Secondary Rugby - Kamloops Lacrosse Association - Victoria Athletic Association - Prince George Youth Soccer Association - Nanaimo Special Olympics - Burnaby Mountain Women s Rugby Team - Port Coquitlam Minor Baseball This award helps us get behind our favourite sport and give back to the community
12 Pull Tabs Price: $1 Top Prizes: $250 Available at select bars and pubs across the province
13 Interactive Games e-versions of Instant Win games Price: $1, $1.50, $2 Top prizes from $2010 to $20,100 Available on the Internet only through PlayNow on
14 Benefiting from SportsFunder? Sport, team, athlete and coach exposure Help promote SportsFunder lottery games Play SportsFunder lottery games
15 Ontario s Quest for Gold Petro-Canada Sport Leadership sportif 2006 Saturday, Nov. 4th, 2006
16 Quest for Gold What is the Quest for Gold Program? The Quest for Gold Program provides support to Ontario s amateur athletes through direct financial support, access to high performance coaching and enhanced competitive opportunities and services for Ontario athletes. The Quest for Gold Program is directly related to the goals of ACTIVE2010 which is to improve the performance and number of Ontario athletes performing at the national and international level, thereby contributing to the improved performance of Canada at international competitions. 2
17 Where the funding comes from? Funding The Quest for Gold Program is funded from net revenues generated by the Quest for Gold lottery, created by the Ontario Lottery and Gaming Corporation (OLG) 3
18 Responsibilities of OLG Ticket design Market research Marketing Sales 4
19 Current Product 5
20 Current Products 6
21 Marketing the Lottery Ontario Lottery and Gaming Corporation spends $2 Million on marketing ticket campaigns during each fiscal year. Ticket cost is $20 Tickets now profile Local athletes Available at 8,505 retailers across Ontario. 7
22 Marketing the Lottery 8
23 Cash Flow The net revenue generated by the Quest for Gold Lottery is used by the Ministry of Health Promotion (MHP) to off-set the cost of running the QFG program. 9
24 Where the Money Goes Net revenues from the Quest for Gold lottery game are distributed through three funding streams established within the Quest for Gold Program: 1) Direct Athlete Assistance (70% of total funding available) 2) Enhanced Coaching (20% of total funding available) 3) Enhanced Training and Competitive Opportunities (10% of total funding available) 10
25 Accomplishments $2.9 Million in net revenue 20% of funding = $558,772 10% of funding $279,368 70% of funding $1,955,702 for 892 athletes Direct financial assistance to Athletes Enhanced Coaching Enhanced Training and Competitive 11
26 Where the Money Goes 1) Direct Financial Assistance to Athletes (Ontario Athlete Assistance Program) Direct financial assistance is provided to eligible Ontario athletes to offset living, training and competition costs. Assistance is provided through two carding designations: Canada Card For Ontario athletes who are carded by Sport Canada. The Canada Card provides up to an additional 33% in direct financial assistance over and above what an athlete is receiving from Sport Canada dependant on funding available. Ontario Card For Ontario junior age athletes aspiring to compete at the highest levels of national and international competition. These athletes are nominated for carding status by their Provincial Sport/ Multi-Sport Organizations. 12
27 Quest for Gold Objectives Program Description The Quest for Gold Ontario Athlete Assistance Program (OAAP) provides support to Ontario s amateur high performance athletes. Specific objectives of the Quest for Gold Program are: To help athletes continue their pursuit of athletic excellence at the highest levels of national and international competition; To encourage athletes to stay in Ontario to live and train; To compensate athletes for earnings lost while training; To enable athletes to successfully pursue excellence in sport while fulfilling their educational goals; To increase athletes access to high performance coaching; and To enhance training and competitive opportunities available to athletes. 13
28 Where the Money Goes Sport eligibility Sixty-four Provincial Sport/ Multi-Sport Organizations (PSO/MSO), recognized by the Ministry of Health Promotion s Sport Recognition Policy, are eligible to receive cards for distribution under the direct financial assistance funding stream. PSO / MSO s must also meet minimum high performance program requirements and be participants in the regular program of one of the following three multi-sport Games: The 2006 Olympic/Paralympic Winter Games, 2008 Olympic/Paralympic Summer Games, 2010 Olympic/Paralympic Winter Games; 2007 Canada Winter Games and the 2009 Canada Summer Games; or Ontario Games (youth). 14
29 Where the Money Goes 2) Enhanced Coaching Funding The Enhanced Coaching funding stream provides Ontario athletes with increased access to better-qualified coaches. It provides more high performance coaching hours for provincial Canada Games level athletes and funds coach development initiatives. 15
30 Where the Money Goes Enhanced Coaching Funding Objective is to provide Ontario athletes with increased access to better qualified coaches Total funding in = $558,772 Delivered by Canadian Sport Centre Ontario (CSCO) in Funding provided for following initiatives: Coaching Salary Support To augment existing matching grants to PSO/MSOs 83 coaches funded Coaching Bursaries For coaches pursuing Level 3, 4, 5 Certification 26 coaches funded 16
31 Where the Money Goes Enhanced Coaching Funding Mentor Coach Program To teach coaches how to mentor other coaches 87 coaches funded Master Coach Program To offset costs of sending a Master Coach to training camps and clinics to mentor developing high performance coaches 20 coaches funded Apprentice Coaching Program To provide opportunities for coaches to attend a major national or international event as a guest coach 76 coaches funded Other Enhanced Coaching Programs To provide additional funding to PSO/MSOs that want to expand existing in-house coaching programs $50,635 in funding provided to PSO/MSOs 17
32 Where the Money Goes Enhanced Coaching initiatives to be delivered in by Coaches Association of Ontario (CAO) and Canadian Sport Centre Ontario (CSCO) Separate agreements to be signed with each to deliver specific initiatives Total of seven different initiatives to be funded Partnership Agreements: 18
33 Where the Money Goes 3) Enhanced Training and Competitive Opportunities Funding This funding stream provides money for enhanced training, services and competitive opportunities for junior age athletes. Funding is also used to enhance the Ontario Games Program and strengthen Team Ontario s performance at the Canada Games by providing additional training opportunities and enhanced sport science services for athletes competing on provincial teams. 19
34 Where the Money Goes Enhanced Training and Competitive Opportunities Funding Ontario Summer and Winter Games Program 20
35 Issues 1) National Collegiate Athletic Association According to NCAA bylaws only Sport Canada and National Sport Organizations can flow money to athletes without effecting and athletes Amateur Status. NCAA Bylaw # Bylaw prevent direct financial Athlete Assistance from individual Provinces or States. Birth to grave policy QFG makes all athletes aware of NCAA and has athlete sign waiver during application process 21
36 Issues 2) Funding dependant on lottery (working on a low end projection - $6 Million budget) Budget has potential to be $10 Million 20% of funding = $1.2 Million 10% of funding $600,000 70% of funding = $4.2 million Direct financial assistance to Athletes Enhanced Coaching Enhanced Training and Competitive 22
37 Looking Ahead The Future of Quest for Gold Increasing support to our high performance athletes from Ontario is a key component of the Ontario government s ACTIVE2010 Strategy to improve our athlete development system. Reach goal of having 38% of National Team Athletes from Ontario (reflection of population) The Province of Ontario will continue with it s commitment to our High Performance Athletes by improving and adding components to the Quest for Gold program. 23
38 Thank you. Marc Seguin Sport and Recreation Consultant Ministry of Health Promotion Sport and Recreation Branch 393 University Avenue, 18th Floor Toronto, Ontario M7A 2S1 (T) Director, Sport and Recreation Branch Janie Romoff Anita Comella Manager, Sport Unit
39 Strategic Growth Opportunities - Non Government Revenue
40 Imagine Canada Research Earned Income: 65% Corporate Income : 15% Governments: 35% More reliance on project funding Future of core funding?
41 Earned Income Corporate Sponsorship Corporate Support Foundations Individual Gifts Fee for Service Events Business Ventures
42 Conference Board of Canada What sells Sport: National Team/events a priority Business: Community sport to connect with customers & goodwill opportunities Barriers Sport: Staffing/# of events/tv coverage Business: Poor alignment with priorities. Insufficient return, sport politics, no clear business plan Buy in from Public Assume public knows more than they do Yes but Acute health care and education
43 Corporate Sponsorship Based on ROI for company $$ from marketing budgets Aligned with TV rights & entertainment Sr. Marketing staff make decision You can only sell what you own
44 Corporate Support Cause related Community benefits Positioning/branding may be issue related in a community Decision made by highest levels requires CEO or VP involvement
45 Public Company Foundations Grassroots activation Budget for local commitments/priorities Buys goodwill with customers Now seeing marketing/philanthropic blend to proposals
46 Private Foundations Generally founded by an individual or family wanting to support specific causes Funds are allocated at the direction of a board Gifts must go to an official donee first, them to a project Eg. Private Foundation NSTF to sport organization
47 Sport Philanthropy & RCAAAs Status with CRA Qualified Donee for foundations Separate donation from granting Grant to defined projects. Gift acceptance no direct benefit
48 Readiness for Sport Philanthropy Few dedicated fundraisers on staff Fundraising boards minimal (mostly disabled groups)- primarily sport technical. Some united causes: Own the Podium KidSport Need to position Playground to Podium as a cause
49 Great Growth Potential Sport Philanthropy Untapped market individual giving Aging population planned gifts Changes to capital gains make gifts of stock more attractive New endowment initiatives with partners Government Community Foundations
50 Sport and Community Foundations Awareness : Both sport and foundations Acceptance: Field of Interest Actions: Growing Active Kids in Canada West Vancouver Foundation cap campaign Vancouver Foundation scholarship for Volleyball from estate gift
51 Moira Gookstetter, CFRE Director, Fund Development Sport BC
52 Community Foundations Linked to community development for specific regions Pooled fund approach to investment Threshold set for Named Funds Sport not well understood as a cause Many opportunities for the sport sector to work with Community Foundations
53 How the Sport Sector has worked with BC Community Foundations Considers and provides grants to local sport organizations Estate planning for sport causes Establishing local endowments with a sport cause Establish non-permanent funds for capital projects
54 What is an endowment? Permanent fund Capital invested not spent Income used annually to support operations or programs
55 Reserve fund Rainy day fund Can spend capital
56 Why create an endowment? Financial stability Complements other funding sources Government Annual fund raising Capital campaigns Safe from encroachment: Long-range planning possibilities Attraction for major, planned and memorial gifts Donors can create a legacy Opportunities for donor recognition
57 The power of endowment $25,000 $20,000 $15,000 Fund Value Inflation Cumulative Income $10,000 $5,000 $0 17 years Fund distributions equal original capital after 17 years
58 Starting an endowment at a community foundation Sign a fund agreement/deed of gift Need to involve NSTF as payee Pay initiating capital to trustee Creates a legal relationship called a trust Fund terms cannot be changed
59 Some questions to ask the trustee How is capital invested? Types of investments Asset allocation Historical returns How much does it cost? Investment management fees Administration fees How is income paid? Distribution rate How often
60 Growing your endowment Three ways: Proper investment program Adding to it fund raising Partnering with NSTF administrator (Sport BC) and a trustee (community foundation)
61 Fundraising Donations current or deferred: cash, public securities, bequests, RRSPs and RRIFs, life insurance Events and other non-receipted money Marketing: build a case for support Communication: tell donors and prospects about your endowment
62 Importance of donation receipts Reduces the cost of giving Charitable tax credit of 43.7% (BC where total annual gifts > $200) $10,000 cash gift = $4,370 tax credit (gist costs only $5,630) Estate gifts e.g. bequests To give or not to give To give or to give more
63 Questions?
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