2008-2009

...a proud partner in the McGill University Health Centre

T h e D o n o r B u l l e T i n Building our Future by Honouring our Past

A MESSAGEFrom the Chairman of the Board

GLENN R. ROURKE

Building our future,honouring our pastNot many hospitals the size and scope of the Royal Victoria find themselves in as privileged a position as we now find

ourselves. In October of 2008, the Minister of Health and Social Services, Yves Bolduc – in company with Finance

Minister, Monique Jérôme-Forget, and the Honourable Doctor Arthur Porter – announced in a press conference held

at the Vic the words that our community has anxiously anticipated for over a decade: the construction of the new hospital site will move forward; the train has left the station; the Royal Victoria Hospital will be rebuilt in the Glen Yards.

Since that time, the media has been abuzz with remarks, opinions, criticisms and concerns about the new construction.

And I will share with you candidly that at times the negativity of the media coverage has weighed heavily on the

morale of the selfless individuals who continue to dedicate themselves tirelessly to serve this community at the

Royal Victoria Hospital. At times it has been difficult, at times discouraging. But we are blessed to have a core of

supporters whose determination always exceeded their apprehension. And it is through their efforts that we now

find ourselves on the precipice of one of the most exciting eras in the history of our hospital.

The Royal Victoria Hospital will build a brilliant future in state-of-the-art premises, while honouring our past through

the preservation of our name, and by fulfilling our promise to this community for the finest medical facility this

province has ever known.

Facing the economic crisis with donor-focused performanceAnd all of this in spite of the challenging economic times we have all faced since the fall of 2008. In a time when

many charities have met with overwhelming hardship – many of them even forced to close their doors as a result –

the Royal Victoria Hospital Foundation has never been stronger. In fact, we are very proud to announce that in the

fiscal year 2008/2009, ending March 31st, 2009, the Royal Victoria Hospital Foundation realized a net increase of

more than $1.74 million over the previous fiscal year through our fundraising programs (see page 9 under Revenue;

“Donations & grants” and “Estates”).

How did we do it? By focusing our efforts on our most important asset: our donors. And it was easy, really,

because 100% of our volunteer Board members and Foundation team members are donors to the Royal Victoria

Hospital Foundation. So we simply asked ourselves: as donors, what are our expectations for accountability from

the charitable organization we support? 2

And we determined that donor-focused accountability would necessitate concentrating on: enhancing our clarity and transparency; listening to and implementing industry “best practices”; and ensuring optimal workplace effectiveness by investing in our precious human resources.

Clarity and transparencyThe more clarity we can afford in everything that we do, the more effective we will be and the more efficiently we

will use donor dollars. And the more transparent we are, the more confidence we will gain from our donors, who

are not simply an element of our Foundation, but our cornerstone. Foundation team members are encouraged to

challenge the status quo in every aspect of their daily work to increase clarity and bring greater transparency to

our organization. In examining and revising the way in which we process donations from the moment they are

received all the way to the relationship we create and nurture with our donors, we were able to identify and address

opportunities for development, and adopt strategies for improvement.

As a result, a greater proportion of the work we do – from mundane tasks to major projects – adds direct value to

the Foundation, making your charitable donation go further than ever.

Industry “best practices ”Fundraising is one of the fastest growing industries in North America, and the RVH Foundation is committed to

keeping abreast of the “best practices” of the fundraising industry. Team members attend regular conferences where

they are encouraged to network with their peers and learn about what other organizations are doing well, and how

we can learn from their example. Industry best practices are shared with the volunteer Board members through

regular offsite workshops, so that the people who make the decisions governing the Foundation are knowledgeable

about industry standards, trends in philanthropy, and how to make good even better.

Paying attention to industry best practices is what inspired us to return to a more personal approach to donor

recognition through our thank you calls. Every day, each of our Foundation team members, and many of our Board

members, take the time to call as many donors as possible just to thank them for their thoughtfulness and support.

There are many very worth charities out there, and thank you calls are our way of expressing our gratitude that you

have included us in your charitable giving.

Revamping our Board Roles and Responsibilities is another example of our response to industry best practices – and

to our commitment to enhanced clarity and transparency. Unanimously adopted by the dedicated individuals who

constitute our volunteer Board, the revamped Board Roles and Responsibilities reflect the exemplary leadership of

our Board members in their philanthropic support of the mission of our Foundation.

As a natural outcome of our commitment to enhanced clarity and transparency and to industry best practices,

the RVH Board formally adopted the Donor Bill of Rights in September 2008. Developed by leading international

fundraising and philanthropy organizations, and endorsed by charitable organizations worldwide, the ten principles

outlined in the Donor Bill of Rights define ethical practices on how we raise money, manage funds, and assure

transparent governance of the contributions entrusted to us by our donors.

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Investing in our human resourcesThe best way to increase value in an organization is from the inside out. In an environment where the need

consistently exceeds available talent, concentrating on the professional development of our own team has permitted

the RVH Foundation to attract and retain some of the most capable fundraising professionals in the field. Every

member of our Foundation team is a professional fundraiser, and all of them are given rigorous training to enhance

their professional experience and enrich the Foundation with their increased knowledge.

As members in good standing of the Association of Fundraising Professionals (AFP), our team members recognize

and adhere to AFP’s Code of Ethical Principles and Standards of Professional Practice. And as active members of

the Association for Healthcare Philanthropy (AHP), our team has access to an important network of fellow hospital

foundation professionals with whom they can share vital knowledge and resources.

Led by two seasoned Certified Fund Raising Executives (of which there are only 21 in the entire province!), the

RVH Foundation encourages and supports team members to pursue their professional certification through increased

education.

We are building on a good foundation to ensure a great Foundation. Which directly parallels what our hospital is

doing: not just building a state-of-the-art facility, but relying on what we’ve built in the past – on our rich history

of medical excellence in patient care, research and education – to shape our future. The Glen Yards will offer the

Royal Victoria Hospital a long-awaited home in an environment that will facilitate brilliant patient care, and will

prove instrumental to our capacity to attract and retain the best and the brightest that healthcare has to offer. But

the facility itself would be only a collection of beautiful walls were it not for everyone who has and does constitute

the heart and soul of the Royal Victoria Hospital. And of these, none more important than you, our donors – without

whom no past would ever have been so proud, and no future so hopeful.

September 2009 marks the completion of my term as Chairman of the Royal Victoria Hospital Foundation. I have

been very pleased and honoured to witness and be part of the evolution of this Foundation. And I have been

privileged to work alongside of some very exceptional leaders in our community who serve and have served as the

volunteer members of our Board. Luckily, I will continue to work with these people as a member and Past-Chairman

of the Board, and know the Foundation will continue to flourish under new leadership.

These past few years have proven to be very decisive for the evolution of our Foundation, as the dream of our new

site became more and more of a reality. And if I could leave on one parting note, it would be that we never forget

the single-minded courage of those community leaders who defied the popular cynicism of the past decade and

forged faithfully onward to secure the future of the Royal Victoria Hospital on the Glen site.

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In September 2008, our Board officially adopted the Donor Bill of Rights.

The 10 principles outlined in the Donor Bill of Rights

define ethical practices on how we raise money, manage funds,

and assure transparent governance of the contributions entrusted to us by our donors.

I.To be informed of the organization’s mission, of

the way the organization intends touse donated resources, and of its capacity to use donations effectively for their intended purposes.

II.To be informed of the identity of those serving

on the organization’s governing board,and to expect the board to exercise prudent judgement

in its stewardship responsibilities.

III.To have access to the organization’s

most recent financial statements.

IV.To be assured their gifts will be used forthe purposes for which they were given.

V.To receive appropriate

acknowledgement and recognition.

VI.To be assured that information about

their donations is handled with respect and withconfidentiality to the extent provided by law.

VII.To expect that all relationships with

individuals representing organizations of interestto the donor will be professional in nature.

VIII.To be informed whether those seeking

donations are volunteers, employees of theorganization or hired solicitors.

IX.To have the opportunity for their

names to be deleted from mailing lists thatan organization may intend to share.

X.To feel free to ask questions when making

a donation and to receive prompt, truthful andforthright answers.

A Donor Bill of RightsPHILANTHROPY is based on voluntary action for the common good. It is a tradi-tion of giving and sharing that is primary to the quality of life. To assure that phi-lanthropy merits the respect and trust of the general public, and that donors andprospective donors can have full confidence in the not-for-profit organizations andcauses they are asked to support, we declare that all donors have these rights:

D E V E L O P E D B YAmerican Association of Fund Raising Counsel (AAFRC)

Association for Healthcare Philanthropy (AHP)Council for Advancement and Support of Education (CASE)

Association of Fundraising Professionals (AFP)

E N D O R S E D B Y(in formation)

Independent SectorNational Catholic Development Conference (NCDC)

National Committee on Planned Giving (NCPG)Council for Resource Development (CRD)

United Way of America

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Donors who give over $250 a year are included in the Honour Roll. In 2008 we welcomed 133 new

Honour Roll members.

FactFrom left to right: Peter Dunn, Valerie Laidley-Price, Kerry Lanthier and Jacques Genest, M.D

From left to right: Wilson McLean, Sophie Perron, and Richard C. Pattee

To help us illustrate our excitement about the building of the new Hospital – which will begin in earnest in the new year – our dedicated Board members of 2008/2009 are pictured in the following pages,

ready to roll up their sleeves and get the job done!

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Who we areThe Royal Victoria Hospital Foundation exists to support the

McGill University Health Centre’s (MUHC) Royal Victoria Hospital – its mission,its projects,its aspirations and its most ambitious objectives.

Governance

As a charitable organization supporting one of Montreal’s largest and most reputable healthcare institutions, our first priority is the responsible handling of charitable donations and the dedicated stewardship of our donors. Whether you are a first-time donor, a longstanding supporter, a major donor, or making a modest gift, we are committed to your experience as a valued part of

this Foundation, and to ensuring that your gift is handled responsibly.

Accountability

Ethics is not an optional practice in the world of charitable giving, it is the only acceptable code of conduct. In our leadership role as professional fundraisers supporting a vital Montreal institution, we acknowledge and assume responsibility for our actions, products, decisions and policies. We strive for transparency and clarity in all that we communicate and all that we do.

Performance

Performance in fundraising is not solely about how much money is raised. It’s about how the money was raised, what strategies were employed to raise the money, and how the money is used to the fullest advantage of the cause. In responsible, ethical fundraising, the ends do not

justify the means – the means are the most important part.

From left to right: Glenn R. Rourke, Barry Scott, Paul R. Marchand, and Gregory Menzies 7

FINANCIALReport

Royal Victoria Hospital Foundation STATEMENT OF CHANGES IN FUND BALANCES

For the year ended March 31 2009 2008

Fund balances, beginning of year 89,070,698 91,748,742

Excess (deficiency) of revenue over expenses 2,498,653 2,316,163 Unrealized gain (loss) on available-for-sale financial assets during the year (10,323,855) (4,994,207) Fund balances - end of year 81,245,496 89,070,698

Royal Victoria Hospital Foundation STATEMENT OF FINANCIAL pOSITION March 31 2009 2008 ASSETS Current Cash 4,529,812 1,851,959 Accrued income on invested funds - 8,201 Other receivables 8,849 -Prepaid expenses 5,829 5,829 4,544,490 1,865,989 Investments 79,269,603 91,701,876 Land and building 41,000,000 41,000,000 124,814,093 134,567,865 LIABILITIES AND CApITAL Current Accounts payable and accrued liabilities 213,827 404,008Due to the MuhC 2,354,769 4,093,159 2,839,342 4,497,167

Mortgage on land and building 41,000,000 41,000,000 43,568,596 45,497,167

Capital Fund balances 73,697,161 80,873,689Funds held by trustees Lord Mount Stephen and Lord Strathcona Donations 6,176,136 6,699,675 Sir herbert S. holt Foundation 1,372,200 1,497,334 81,245,497 89,070,698 124,814,093 134,567,865

From left to right: Gwen A. Nacos and Sam Reda

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FINANCIALReport

Royal Victoria Hospital Foundation STATEMENT OF OpERATIONS For the year ended March 31 2009 2008 REVENUE Donations and grants 7,088,576 5,257,584Estates 1,182,045 1,272,331Investment income 4,081,088 6,197,231Net proceeds from activities 1,359,869 1,589,939Miscellaneous revenue 138,794 191,761Total revenue 13,850,372 14,508,846

EXpENSES Administrative and fundraising costs 2,100,403 1,975,412Investment management fees 311,600 356,814Total expenses 2,412,002 2,332,226 Excess (deficiency) of revenue over expenses 11,438,368 12,176,620 Distributions for the benefit of the MUHC (8,939,715) (9,860,457) Excess of revenue over expenses for the year 2,498,653 2,316,163

From left to right: Mary Vanaselja, Algis Janusauskas and France Denis-Royer

In 2008 alone, we welcomed 1019 additional contributors, whose gifts are hard at work to provide the patient care that we have come to know and expect from the Royal Victoria Hospital.

Fact

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Projects 2008In 2008 alone, the Foundation raised money to fund…

• AnERpharmaceuticalcabinettosafeguardnarcoticsforenhancedpatientcare

• Amentalhealthconferenceforprofessionaleducationforournurses

• Anewdatabasesoftwareforourgynaecologicaloncologyclinic

• Vitalsignsmonitorsthatallowcontinuousobservationofpatientsandtheabilitytotrackseveralvitalsignsatonce

• Achronicdiseaseself-managementprogramthatimprovesthequalityoflifeofourchronicallyillpatients

• RenovationstotheCardiacSurgicalWardonS8

• AgrantfortheCancerNutritionRehabilitationProgram

• Newequipmentfortheheartfailureclinic

• Mobileinsulinpumpspermittingincreasedpatientindependence

• Alabouranddeliverysystemforourneonatalunit

• Moderntestingequipmentforourpathologydepartmentforgreateraccuracy,andfasterresults

• Triplechannelinfusionpumpsfortransplantpatients

• Transportstretcherstofacilitatetheworkofourstaff

• Anelectricgynecologicalexaminationtableespeciallyconfiguredforpregnantwomen

• Anultrasoundmachineforourotorhinolaryngologydepartment

• ANationalMechanicalHeartSymposium

From left to right: John Kalaydjian and Mattie Chinks10

Executive Committee

ChairmanGlenn R. Rourke

Vice-ChairmanRichard C. Pattee

Vice-President of FinanceMattie ChinksPresident,Avmor Ltd.

SecretarySophie PerronPartner,Irving Mitchell Kalichman L.L.P.

Members

Chair, Nominating & Governance CommitteeRobert Cowling

Chair, Fundraising CommitteePeter DuffieldCIO,Estracure

Chair, Audit CommitteePeter DunnDirector,Holden Asset Management

Chair, Investment CommitteeRussell HiscockPresident and Chief Executive Officer CN Investment Division

Chair, Grants CommitteeAlgis JanusauskasManager – Pension Investment,Imperial Tobacco Canada Ltd.

Chair, Human ResourcesKerry Lanthier

France Denis-RoyerChief Clinical Perfusionist,RVH

Jacques Genest, M.D.Director, Division of Cardiology,MUHC

John Kalaydjian Portfolio Manager, The Shapiro Group RBC

Valerie Laidley-Price

Wilson McLean

Gregory MenziesPresident, MINGUS Inc.

Paul R. MarchandCounsel,Borden Ladner Gervais LLP

Gwen A. NacosPresident,Natural Furs International Inc.

Sam RedaVice Chairman, Fiera Capital

Barry Scott

Melissa SonbergVice-President,Aeroplan LP

Mary VanaseljaPresident,RVH Auxiliary

The Donor Bulletin is presented to you by the Board of Directors of the Royal Victoria Hospital Foundation 2008-2009

Board Members

Board members regretfully not present for pictures : Peter Duffield, Melissa Sonberg, Russell Hiscock, and Robert Cowling. Photographs taken by MuhC - Pierre Dubois 11

To inspire and engage the community to actively participate in the support of the McGill University Health Centre’s

Royal Victoria Hospital.

The Foundation uses a variety of fundraising strategies. We capitalize on the strengths of our team members to

ensure that our financial goals are met, and that our community members and generous supporters are properly

recognized for the significant role they play in the future of our hospital, and the face of Montreal healthcare.

Our Foundation is a melting pot of diverse professionals. The team brings an eclectic blend of proficiency, including

two Certified Fund Raising Executives and over 50 years combined experience in professional fundraising. We

continually trade innovative ideas on better ways to raise money, in a stronger, more timely fashion. Our mission

is not only a statement but a passionate, daily commitment. We raise over $8 million a year to meet the stated

priorities of the MUHC, and endeavour to keep administrative costs well within acceptable fundraising parameters.

687 Pine Avenue West, Room A1.07, Montreal (Quebec) H3A 1A1 Tel.: (514) 843-1543

www.royalvic.com

Our Mission

Thank Youfor being the most important part of everything we do.