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Annual Report 2013

Table of Contents

Message to Supporters 3

Mandate and Strategy 4

2013 Financial Summary 5

2013 Programs and Events 6 Funds Raised Since Inception 7

Our Donors 8 2014 Outlook 9 Management 10

Governance 11

Steps Foundation Annual Report 2013 3

Message to Supporters

Dear Supporters,

2013 was a significant year for Steps Foundation. It marked the first full year of fundraising

activities; the continued development of the management team and board of directors; and the

expansion of our operations to include internally-generated education initiatives.

Steps Foundation raised $14,900 in donations from more than 100 unique corporate and individual

donors during the year. The expansion of our donor base was a key initiative of Steps Foundation

going into 2013. This development gives great comfort to the continued growth of the

organization and the concept of a grassroots-funded movement.

Steps Foundation also grew its relationships with a number of financial literacy programs through

volunteer recruitment and cash contributions. WoodGreen Community Services (“Woodgreen”)

received our greatest support as we continue to be the main contributor of its Financial Wellness

Clinic and strive to develop measurable outcomes for that program and ultimately many others.

Also during the year, Steps Foundation added Marc Cordier to its team as the Director of Special

Projects, and elevated Nicholas Dobbek to the role of Chairman of the Board. Both Marc and Nick

bring a wide breadth of knowledge to these roles.

Steps Foundation also began work on its Redefine Ability initiative. This initiative is intended to

provide clear and accessible education towards a base-level knowledge of financial literacy. Our

first project is the creation of a financial literacy guidebook: an easy-to-read printed primer

containing basic financial topics and guidance to additional resources. Steps Foundation aims to

distribute its guidebook to charities across Toronto, and to have it available for download through

its website.

I want to thank everyone who has assisted in the early development of Steps Foundation and who

will continue to help it expand into an ever more impactful organization.

Shane Soobotin President & CEO


Mandate and Strategy

What is our mandate?

Our mandate is to further develop financial literacy education in Toronto by supporting local

financial literacy programs, promoting awareness and volunteerism, and by creating internally-

generated education initiatives.

What is our strategy?

Our strategy is to utilize our relationships within the Toronto finance and business community,

and to leverage our knowledge and skills to support and improve existing programs and to create

new ones.

How do we execute our strategy?

We execute our strategy through:

• Fundraising and recruitment events;

• Awareness and marketing campaigns;

• New ideas and new project generation; and

• Data gathering and evaluation.


2013 Financial Summary

Donation Revenue

Steps Foundation collected $14,900 in donations during 2013 ($14,200 in 2012). The Toronto

Yonge Street 10k run was the most successful event raising a total of $7,530 in proceeds (more

than half of our total for the year).

Contribution Margin

During 2013, Steps Foundation achieved an adjusted contribution margin(1) of 90% (99% in 2012)

and an adjusted net profit(1)

of 82% in 2013 (88% in 2012, excluding start-up costs). Margins were

lower than the prior year due to higher fundraising costs as we extended to publically-held and

broadly-attended fundraising events.

WoodGreen’s Financial Wellness Clinic

During the year, Steps Foundation distributed $14,000 to WoodGreen in support of its Financial

Wellness Clinic. Steps Foundation is also working closely with WoodGreen to develop an

evaluation plan for patrons of the clinic in order to better monitor the effectiveness of the clinic’s

outcomes and to identify areas of improvement.

1. Adjusted contribution margin and adjusted net profit removes the stock challenge prize pool from proceeds and

expenses.

$7,530

$1,650

$2,575

$500

$868

$1,756

Toronto 10-k Run Stock Competition

Networking Event TD Volunteer Grant

Unsolicited Donations Debt Forgiveness

Funds Raised

$14.9k


2013 Programs and Events

Toronto Yonge Street 10k Run

Steps Foundation recruited runners to participate under the Steps Foundation banner in the

Toronto Yonge Street 10k run that took place in April 2013. Runners solicited pledges which were

earmarked for Steps Foundation. The team raised a total of $7,530 in proceeds, including $2,000 in

prize money for raising the highest amount of pledge dollars per participant.

Bay Street Stock Market Challenge

Steps Foundation hosted a stock market challenge targeted at members of the Toronto finance

community. The individual with the highest value investment portfolio at the end of the

challenge took home 50% of the participant-funded proceeds. The challenge spanned from June

25, 2013 to July 26, 2013 and raised a total of $1,650 in proceeds ($1,400 from participants, which

created a $700 prize pool, and $250 in direct donations).

Summer Networking Fundraiser

Steps Foundation held a networking fundraiser that took place at The Corner Place Restaurant in

August 2013. In addition to raising money through ticket sales, the team held a silent auction and

made available for bid items donated through various local businesses and individuals in the

community. Included in the items were round trip tickets donated by Porter Airlines as well as

tickets to numerous major league sporting events including the Toronto Blue Jays, Toronto

Football Club and the Buffalo Bills. The event raised $2,575 in proceeds.


Funds Raised Since Inception (as of June 2014)

Steps Foundation repeated its participation in the Toronto Yonge Street 10k Charity Challenge in

April 2014. Various members of the Steps Foundation management team and board of directors,

as well as friends and supporters, helped raise more than $8,000 in proceeds, including $1,000 in

prize money from winning first place in the charity costume competition. We estimate that Steps

Foundation will receive an additional $2,000 in prize money similar to last year for raising the

highest amount of pledge dollars per participant.

Since inception in 2012, Steps Foundation has raised approximately $39,100(1) in funds as of June

2014.

1. Includes estimated $2,000 in prize money from the Toronto Yonge Street 10k Charity Challenge (2014)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2012 2013 YTD 2014

Cumulative Funds Raised Since Inception

$14,200

$29,100

$39,100(1)

Profitability

5

Contribution Margin

$12.9k

- $2.0k in Administration Costs

and Amortization

=

Net Income

$10.9k

Sarah


Our Donors (as of June 2014)

Steps Foundation raised funds from more than 100 unique donors in 2013 (compared to 30 in

2012). As of June 2014, Steps Foundation had nearly 200 unique donors including Porter Airlines,

TD Bank, FTI Consulting, EdgeStone Capital Partners, Shoppers Drug Mart, Second Cup, and

Collins Barrow LLP.

Adam Capland Derek Yam Jennifer Lin Marc Cordier Rosalind D'Costa

Adrian Haight Desmond Hsu Jennifer Rossiter Marc Priestley Rosemary Wilson

Al Wiens Di Kai Wu Jessica Bardosh Marianne Cheung Roy Benjamin

Albert Ngu Dorothy Wilson Jessica Cordier Mario Frenette Ruth Teng

Aleksandar Otovic Duong Mark Jim Hornis Mark Dougherty Sabrina Koh

Anders Hemmingsen EdgeStone Capital Joanna Yeung Mark Lau Sally Morris

Andrew Chevrier Edmund Li Joanne Gordon Marlene Dougherty Samuel Chan

Andrew Currie Elise Osier Johannes Dobbek Megan Huppke Sandra Barnes

Andrew Dagneau Elissa Hoagland John Wilson Melissa Tan Sarah Lang

Andrew Lee Ellen Dong Johnathon Brent Michael Crolla Sarah Lau

Arash Amouzgar Ellen Sheehy Jonathan Chan Michael Galloro Second Cup

Artur Agivaev Erin Litwin Jonathan Fong Michael Held Shaguna Khazanchi

Bailey Jenna Felix-Etienne Lebel Jonathan Held Michael Kaye Shane Soobotin

Benjamin Guth Francois Sztuke Jonathan Leong Michael Scarano Shazia Ali

Bill Tung Frank Goodrick Jonathan Lo Michael Skaff Shiv Kumar

Binh Cheng FTI Consulting Jordan Morassutti Michelle Kushnir Shoppers Drug Mart

Binh Vuong Gabe Bourgeois Joseph DeCamillis Mike Dai Shufan Qiu

Brad Clark Gavin Brancato Julian Martensen Mike Wagman Simon Leung

Brian Garner Gavin Cheung Julie Lee Moisseykin Vlad Stefan Dobbek

Brian Held George Bardosh Junlin Bu Molly Reynolds Stephanie Kennedy

Brooke Ellison Gloria Soobotin Justin Machin Neema Vyas Stephanie Robinson

Bryan Held Gord Kingsmill Karen Chan Neil Shapiro Susan Bardos-Dobbek

Carol Kim Gordon Ho Kate Klein Nicholas Dobbek Suzanne Gardner

Carole Booth Guy Manuel Katherine Chan Pamela Huang Taylor Meredith

Charles Co Gyneth Held Kelvin Hon Pat Laureano TD Bank

Chi Cheung Heather Allen Kevin Dane Patricia Thompson Terie Chan

Chris Dowding Howard Rosen Kevin Huang Patrick Pritchard Terry Nghiem

Christopher Ramsden J.P. Mackay Kim Zangrilli Patty Hornis Theresa Fernandes

Cindy Ooi J.P. Wilson Kjersti Redfearn Patty Wilson Timothy Ma

Clara Huang Speer Jaclyn Orbe Kokila Lankatillake Paul Beveridge Toni Ashton

Colleen Parkes James Hornis Koon Chau Lee Peter Held Torsten Manahan

Collins Barrow LLP James Padwick Laura Demchuk Peter Simeon Troy Pocaluyko

Coral Wong Jamie Bregman Lena Moiseiykina Porter Airlines Tuong Van

Corner Place Restaurant Jason Yong Leong Jonathan Preston Huang Vlad Moisseykin

Darian Wong Jean Philippe Lacasse Lilly Le Radek Garbowski VOS Therapy David Held Jeffrey Yim Linda Caruana Rob Kaplan Walter Kushnir

David Klein Jenah Yee Liu Hong Robert Gold Wilfred Au David Lang Jenn Yang Logan Middleton Robert Morrison Xihao Hu

David Shulman Jenna Bailey Lorenzo Zangrilli Robyn Held Zachary Newton Defne Garner Jennifer Ferrante Lorrie King Robyn Huang


2014 Outlook

Steps Foundation set out a number of goals at the beginning of 2014 and is working hard to:

Continue to hold successful events established in 2013;

Increase funds raised and further expand our donor base;

Increase volunteer recruitment, specifically through increased engagement with local

universities;

Improve awareness and promotion reach;

Improve online presence and strengthen our brand;

Continue to develop measurable outcomes at WoodGreen; and

Continue to expand our relationships with other financial literacy programs.

In addition, Steps Foundation is looking forward to the launch of its financial literacy guidebook.

The guidebook represents the first project of our Redefine Ability initiative aimed at the providing

a base level of financial literacy education. The guidebook will be available in hard copy at

charities across Toronto and will act as a primer of basic topics in financial literacy, and as a guide

to additional resources for further education. Management feels there is a gap in reaching the

“first step” of financial literacy education material currently available. This guidebook, and to a

greater extent the Redefine Ability initiative, is aimed at providing that “first step”.

Looking beyond the financial literacy guidebook, Steps Foundation will strive to find new ways to

engage people in need of financial literacy education in the hopes of directing them to more

advanced sources of information and front line programs like the ones we support.


Management

Management Team

Shane Soobotin • President and Chief Executive Officer Mr. Soobotin is a Vice President at EdgeStone Capital Partners and has previously worked in investment banking at National Bank Financial Markets and in the Tax Services Department at PricewaterhouseCoopers LLP. Mr. Soobotin has a Bachelor of Commerce from the University of British Columbia.

Sarah Lau • Chief Financial Officer Ms. Lau is a Chartered Accountant who earned her designation at PricewaterhouseCoopers LLP in Toronto. She currently works as a Manager in the Chief Accountant’s Department at TD Bank Group. Ms. Lau has a Bachelor of Accounting and Financial Management and a Masters of Accounting from the University of Waterloo.

Alexander Lee • Chief Operating Officer Mr. Lee is a Chartered Accountant who earned his designation at KPMG LLP in Toronto. He is currently an International Arbitrations Consultant at FTI Consulting. Mr. Lee has a Bachelor of Accounting and Financial Management and a Masters of Accounting from the University of Waterloo.

Jonathan Held • Vice President, Strategy Mr. Held is a Chartered Accountant. He is currently a Senior Manager at ALOE Financial Inc. and the Chief Financial Officer of Organic Potash Corporation. Mr. Held holds a Masters of Accounting and a Bachelor of Mathematics from the University of Waterloo.

Marc Cordier • Director, Special Projects Mr. Cordier is an Independent Equities Trader specializing in North American and European Markets. He recently completed web development training focused on Ruby on Rails application framework at a San Francisco based institution. Mr. Cordier has a Bachelor of Arts from York University.


Governance

Board of Directors

Nicholas Dobbek • Chairman

Mr. Dobbek is a Lawyer at Wildeboer Dellelce LLP. He practices corporate/commercial and

securities law. Mr. Dobbek has an LL.B. from Osgood Hall Law School at York University and a

Bachelor of Science from Concordia University.

Gavin Cheung • Director

Mr. Cheung is the Co-Founder to Quinzhee Capital, a Toronto-based firm that was formed to

invest in and manage a single exceptional Canadian business. He has worked in investment

banking at National Bank Financial Markets as well as in corporate and real estate groups at law

firms in Toronto and New York. Mr. Cheung has a JD/MBA from the University of Toronto and a

Bachelor of Arts from Duke University.

Seung Chung • Director

Mr. Chung is the Co-Founder of Colborne Capital, a global investment and financing advisory

firm. He has worked in investment banking at National Bank Financial Markets and CIBC World

Markets. Mr. Chung has a JD/MBA and a Bachelor of Commerce from the University of Toronto.

Steps Foundation Inc.

Annual Financial Statements

For the year ended December 31, 2013 and period ended December 31, 2012

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Steps Foundation Financial Statements 2013 3

STEPS FOUNDATION INC.

STATEMENT OF FINANCIAL POSITION

In Canadian dollars

December 31, 2013 December 31, 2012

Assets

Current assets

Cash 5,389 4,858

Donations receivable ‐‐‐ 4,283

Prepaid expenses 567 567

5,956 9,708

Non‐current assets

Fixed assets 315 ‐‐‐

Total assets 6,271 9,708

Liabilities and net assets

Current liabilities

Accounts payable and accrued expenses ‐‐‐ 300

Net assets ‐ unrestricted 6,271 9,408

Total liabilities and net assets 6,271 9,708

Unaudited ‐ see accompanying notes to the financial statements.


STEPS FOUNDATION INC.

STATEMENT OF CASH FLOWS

In Canadian dollars

For the year ended December 31, 2013 and period end from April 16, 2012 (date of inception) to December 31, 2012.

2013 2012

Cash flows from operating activities

Excess of revenue (deficit) over distributions and expenses (3,137) 9,408

Net changes in non‐cash working capital: Amortization 23 ‐‐‐

Donations receivable 4,283 (4,283)

Prepaid expenses ‐‐‐ (567)

Accounts payable and accrued expenses (300) 300

869 4,858

Net changes from investing activities:

Purchase of fixed assets (338) ‐‐‐

Increase in cash 531 4,858

Cash, beginning 4,858 ‐‐‐

Cash, end 5,389 4,858

Unaudited ‐ see accompanying notes to the financial statements.


STEPS FOUNDATION INC. NOTES TO FINANCIAL STATEMENTS

1. Nature of the Organization

Steps Foundation Inc. ("the Foundation") was formed on April 16, 2012 and incorporated on May 4, 2012. It was created for the purpose of supporting financial literacy programs in the Greater Toronto Area through fundraising efforts, recruiting volunteers and increasing awareness of the need to support financial literacy education in Canadian communities.

The Foundation is a registered charity and designated as a public foundation under the Income Tax Act (Canada) (the “Act”) and, as such, is exempt from income taxes and is able to issue donation receipts for income tax purposes. In order to maintain its status as a registered charity under the Act, the Foundation must meet certain requirements within the Act. In the opinion of management, these requirements have been met.

2. Significant Accounting Policies

The financial statements have been prepared in accordance with generally accepted accounting principles applied within the framework of the significant Canadian accounting policies summarized below:

a) Revenue

The Foundation receives unrestricted donations from various individual donors and institutions. The Foundation recognizes these donations when received or receivable.

b) Financial Instruments

The Foundation measures cash at fair value. All other financial assets and liabilities are measured at amortized cost. Any changes in fair value are recognized in net income.

The Foundation is not exposed to significant market, interest, and currency risk arising from its financial instruments.

c) Fixed Assets and Amortization

Fixed assets purchased by the Foundation are recorded at cost. Signage purchased by the Foundation for use at fundraising events has a useful life of five years. Amortization is recognized on a straight‐line basis over the useful life of the asset.

d) Contributed Goods and Services

The operations of the Foundation are entirely dependent on the voluntary services of management. The value of these contributed services is not recognized in the financial statements.

Contributed goods and services are recognized when fair value can be reasonably estimated and when the goods and services are used in the normal course of operations and would otherwise have been purchased.

3. Debt Forgiveness

Outstanding amounts at December 31, 2013 due to several members of management totaling $1,756 (2012 ‐ $1,247) for cash expenditures paid on behalf of the Foundation were forgiven immediately prior to the end of the fiscal year. These amounts are included as part of donations revenue at December 31, 2013 and 2012.


4. Fixed Assets

The following table presents details of the Foundation’s fixed assets as at December 31, 2013.

Cost Accumulated Amortization Net Book Value

Signage $338 $23 $315

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