2015 Annual Report

ON THE PATH TO

CHANGE

2 2015 Annual Report

The Real Estate Foundation of BC is a philanthropic organization that helps advance sustainable land use in British Columbia. We provide grants to non-profit organizations working to improve BC communities through responsible and informed land use, conservation and real estate practices. The Foundation also conducts research and special projects to support collaboration and knowledge-sharing around land use.

Real Estate Foundation of BC 3

In 2015, the Real Estate Foundation of BC (REFBC) awarded nearly $3.8 million in grants, which have helped fund 46 projects, including research to help our communities adapt to climate change, a pilot program to match new farmers with affordable land, and investigative journalism to highlight possible solutions to our province’s housing affordability challenges.

There are a lot of reasons to be proud of our grants program – to date, we’ve awarded more than $73 million for research, education and policy reform – yet at the REFBC, our work is about so much more than just writing cheques.

As the only grant maker in British Columbia with a mission to support sustainable land use, we’ve built the expertise and the connections needed to champion innovative projects and ideas to shape a healthy, sustainable future for British Columbians. Beyond our grants program, REFBC also leads research and special projects to address knowledge gaps, to inform our grantmaking, and to connect leaders and future collaborators.

In my six years on REFBC’s Board of Governors, I’ve seen the Foundation go from asking “why?” to “why not?” That kind of thinking helped us launch our Land Awards program, to form collaboratives with other funders in our focus areas, and to invest energy in special project research.

For example, in the last year, the Foundation partnered with MODUS Planning, Engagement and Design to assess the sustainability of BC’s built environment – the buildings, transportation networks, housing and energy systems that communities are built of. Our research found that, while some progress is being made, it isn’t always being measured or supported and that more work is needed. Going into 2016, we’ll be setting strategic priorities and connecting leaders from diverse sectors together to spark change.

As I complete my second term as Chair, I want to say that it’s been a privilege to work with the Foundation’s team of progressive and insightful staff members, governors and partners. It’s clear that everyone who works at the Foundation cares deeply about the health and vitality of our province.

KELLY LERIGNY REFBC Board Chair, 2015-16

Chair’s Message

114grant

requests

46grants

awarded

over

$3.7million

4 2015 Annual Report

Each year, members of the Foundation’s staff and Board teams travel across our beautiful province to learn from the organizations we fund and to see how the connections between social, environmental and economic sustainability play out in communities across BC. In the aftermath of last summer’s wildfires and drought, we were reminded of how fragile the balance of nature is. Driving north on Highway 97, we saw

ghostly stands of forest ravaged by wildfires and pine beetle infestation.

Visiting First Nations communities in Fort Nelson, Kamloops and Alert Bay, we learned about the interconnectedness of our economy with social and cultural values. In Invermere, we saw how ranching can benefit ecological services. Along Kokanee Creek, near Nelson, we discovered how counting bugs can determine water health. In Sooke, we discussed housing affordability and community form with residents of a seniors co-housing project.

While many of the projects that we fund have significant impact in their home communities, most of the work we fund supports wider change for the whole province. In 2015, we made a $1-million grant, leveraged with the Gordon and Betty Moore Foundation, to seed a fund that will support communities to engage in watershed governance within BC’s new Water Sustainability Act.

FinancialThe Foundation’s income from real estate brokerage trust accounts fluctuates from year to year, depending on national interest rates and the pace and price of real estate transactions. In 2015, more than 100,000 homes were bought and sold in British Columbia – an increase of 22 per cent over 2014.

Revenue from REFBC’s investment portfolio declined from last year, mainly due to global fears over weakness in China and continued decline in oil and commodities, driving pressure on worldwide equity markets.Our Investment Committee welcomed two new members: Mike Leslie

CEO’s Message

BC Water Sustainability Act

Introduced in 2014, enacted in 2015.

Climate Leadership Plan

Phase 1 public consultation.

Metro Vancouver Transportation

and Transit Referendum

Public vote on July 2, 2015.

B.C. Agrifood and Seafood Strategic

Growth Plan

Updated and re-released in

Dec. 2015.

2015 in BC

2015 Road Trips

Real Estate Foundation of BC 5

AdministrationAs a result of changes to legislation, the Foundation’s Board of Governors added two additional members: Robert Goertz of Nelson, BC (appointed by the Minister of Finance) and Ramona Faust of Procter, BC (appointed by the Union of BC Municipalities.)

Gerry Martin and Scott Ullrich both completed their terms on REFBC’s Board and were replaced by Bruce Turner (appointed by the Real Estate Council of BC) and Mandy Hansen (appointed by the Real Estate Institute of BC), respectively.

On the staff side, Stephanie Butler joined as our new Communications Coordinator, replacing Megan Simm who relocated to New Zealand.

Thank youI want to thank the Foundation’s Board of Governors whose leadership and support has been invaluable, both internally and in the communities we visit.

My last thank you goes out to the Foundation’s staff team. Not a day goes by without me being amazed by their work ethic, leadership and determination in pursuing solutions to complex problems.

JACK WONGChief Executive Officer

and Scott Ullrich, past chair of the REFBC Board of Governors. The committee has laid the groundwork for introducing ESG (environmental, social, governance) factors in our investment portfolio to help match the Foundation’s investing strategy to our mission of advancing sustainable land use.

Strategic PlanWith input from our Board of Governors and our staff team, we released a new three-year strategic plan to coincide with the Foundation’s 30th anniversary. Our new plan balances granting priorities and funding requests with opportunities for leading proactive projects to support the changing needs of BC communities.

Our three-year plan provides the framework for the Foundation to leverage connections, define and communicate our unique position, support collaboration, share learnings and build relationships with other funders, non-profits and NGOs, local governments and First Nations communities.

REFBC Strategic Directions 2016-18

Convene and Connect

Maximize Grant Impact

Maximize Organizational Capacity

Value Aligned Investing

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Grant Activity

Allan Brooks Nature Centre Society ($91,300)For the Okanagan Collaborative Conservation Program to coordinate conservation, stewardship and land-use planning initiatives.

David Suzuki Foundation ($100,000)For the development and implementation of innovative funding mechanisms that will provide Lower Mainland municipalities with an incentive to protect and enhance their green spaces.

Deer Crossing – The Art Farm Society ($16,000)For outreach, policy work, legal and financing frameworks that support small farm co-housing developments outside of the ALR on the Sunshine Coast.

Fair Mining Collaborative Society ($20,000)For production of an extensive legal and technical document for the public review of the Health, Safety and Reclamation Code.

Fraser Basin Council ($90,000)For year three of “Smart Planning in Action” - a program that helps rural and First Nation communities understand and implement integrated sustainability planning.

Regional District of North Okanagan ($35,000)For developing an web-based monitoring and reporting framework of indicators for tracking progress in the Okanagan Basin.

Sierra Club of BC Foundation ($20,000)For the Youth Environmental Leadership Program, hosting youth-led conservation workshops and leadership training on Vancouver Island.

Simon Fraser University Adaptation to Climate Change Team ($300,000)To build on the Climate Change Adaptation and Water Governance Program with focus on the intersection between water, food, energy and biodiversity.

Tsleil-Waututh Nation ($35,000)To engage members of the Tsleil-Waututh Nation community on land use planning, with a focus on land tenure issues on reserve.

Sustainable Land UseGrant Statistics

Grants were awarded according to the Foundation’s legislated purposes of research, public and professional education and law reform.

The grants are grouped by program area and listed alphabetically, by grant recipient organization.

46grants approved in 2015.

$3,763,362

in total grant funding awarded.

Real Estate Foundation of BC 7

Yellowstone to Yukon Conservation Initiative ($44,000)To engage diverse stakeholders in the development of a Cumulative Effects Assessment of the Murray River Watershed.

FarmFolk CityFolk Society ($45,000)For creating a BC working group to implement and pilot foodland trusts and document lessons learned.

FarmFolk CityFolk Society ($40,000)To hire a coordinator for a pilot land-matching program that will pair young farmers with land owners, extension services and soil screening/analysis.

Italian Cultural Centre Society (Il Centro) ($15,000)For a zero-waste demonstration model that will take organic waste from community gardens and restaurants and turn it into compost for local use.

Kwantlen Polytechnic University Foundation ($54,740)To create an open database of local food system policies to share with planning staff, food policy tables and community organizations.

Meal Exchange ($74,000)For six university campuses to shift local BC food purchases to 20% of their food procurement.

Naut’sa mawt Tribal Council ($263,000)To support a new First Nations farm school incubator program that includes access to farmland, training and education and a market food hub.

Stewardship Pemberton Society ($20,000)To create a plan for “Community Agricultural Parks” on local government land, in partnership with the Village of Pemberton.

Tides Canada Initiatives Society ($5,000)For Give Green Canada to support research and development of a new section of the Green Legacies Guide on foodland trusts and related farmland initiatives in BC.

Local and Sustainable Food Systems

Alberni-Clayoquot Regional District ($7,950)To research and develop policies for sourcing, monitoring and managing water supply to support agriculture and local food production.

Capital Region Food and Agriculture Initiatives Roundtable ($55,000)For developing and piloting a farmland and foodland trust model with local government.

City of Kelowna ($20,000)For an update to the Kelowna Agricultural Plan which will include extensive land mapping and consultation with community members.

Cowichan Green Community Society ($20,000)For the Cowichan Incubator Farm Pilot project, to support training and education of new farmers in the region on an urban demonstration site.

2015 grants by program area

$41,650

$619,690

$751,300

$789,572

$1,561,150

Professional excellence

Food systems

Sustainable land use

Built environment

Freshwater

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REFBC’s grants program has five program areas:• Sustainable Land Use• Local and Sustainable

Food Systems• Built Environment

Sustainability• Freshwater

Sustainability• Professional

Excellence in Real Estate

General Grants can fund work in all five program areas. REFBC has two intakes a year for General Grants and applications are open to any non-profit organization in British Columbia doing projects related to land use.

Real Estate Industry Grants can also fund work in all five program areas, but most applications focus on the “professional excellence in real estate” program area. Applications for Real Estate Industry Grants are open only to organizations that are part of the real estate industry in British Columbia.

BC Cycling Coalition ($19,700)For a grassroots initiative that engages government, businesses and the public to support complete streets improves active transporation for all ages.

City of Courtenay ($20,000)For a revitalization plan for downtown Courtenay to identify potential regulatory, development incentives and capital project improvements.

Community Energy Association ($80,000)For the Community Energy Leadership Program, to build climate and energy knowledge among local elected officials and development sectors.

False Creek South Neighbourhood Association ($30,000)For research and community engagement on alternative governance models (ie. Community Land Trusts) to preserve and create affordable housing.

Heart and Stoke Foundation ($21,372)To develop workshops for Environmental Health Officers to build knowledge for working with local governments on land use and transportation planning.

Pembina Institute ($300,000)To support collaborative, multi-sector input and action on development and implementation of BC’s forthcoming Climate Leadership Plan 2.0.

Small Housing BC Society ($45,000)To develop a public engagement model for small housing development, and develop tenure arrangements that support new forms of small house ownership.

Southern Interior Beetle Action Coalition ($137,500)To support research, education and piloting of a Community Land Trust to address rural housing issues in southern interior BC.

Tyee Solutions Society ($56,000)For a journalism and public engagement project to investigate some of Canada’s housing challenges including homelessness and affordable housing.

Collaborative for Advanced Landscape Planning (CALP) UBC ($80,000)For the next stage of the Community Energy Explorer project, an online resource by the Collaborative for Advanced Landscape Planning to build understanding on community energy planning.

REFBC’s Grant Program

Built Environment Sustainability

Real Estate Foundation of BC 9

BC Wildlife Federation ($65,000)To improve the capacity of local governments to conserve wetlands; and support development of a BC-wide Wetland Inventory Standard.

Centre for Indigenous Environmental Resources, Inc. ($40,000)To review existing and emerging indigenous watershed initiatives and co-governance arrangements to help watershed planning and governance in BC.

Fort Nelson First Nation ($50,000)For development of objectives and management options for water use in the territory that maintains traditional use and treaty rights.

Fraser Basin Council ($45,000)For development of the Nechako Watershed Strategy to advance stewardship and ecosystem-based management, and identify priorities for action.

Green Bricks Education Society ($9,150)For Green Bricks to deliver interactive workshops on water and the built environment to 125 grade four classrooms in BC.

Lake Windermere Ambassadors Society ($42,000)For increasing knowledge about watersheds and enhancing planning and water governance in the Upper Columbia Basin.

Rivershed Society of British Columbia ($20,000)For the Watershed Solutions Project to guide community plans to improve land and water land use practices within the Fraser River Basin.

Freshwater SustainabilityTides Canada Initiatives Society ($140,000)For Canadian Freshwater Alliance to build public support for freshwater protection in BC and strengthen relationships between stewardship groups and First Nations.

Tides Canada Foundation ($1,000,000)To establish a BC Freshwater Legacy Fund which will undertake strategic initiatives to protect freshwater in British Columbia.

Wildsight ($150,000)For a Citizen Science Series to engage and help communities to collect data and monitor lake, river, wetland and aquifer health.

BC Northern Real Estate Board ($5,950)For speaker costs associated with delivering professional education to real estate board members in 2015.

Building Owners and Managers Association (BOMA) ($20,000)For a mass notification system for the commercial real estate industry in the event of a crisis or natural disaster.

Kootenay Real Estate Board ($6,250)For speaker costs associated with delivering professional education to real estate board members in 2015.

Real Estate Board of Greater Vancouver ($9,450)For development of ‘Introduction to interpreting Strata Depreciation Reports’ and the ‘Property Management Issues for REALTORS®’ courses.

Professional Excellence in Real Estate

10 2015 Annual Report

Indigenous Community Planning In 2011, REFBC awarded a grant to UBC’s School of Community and Regional Planning (SCARP). This was made to support an Adjunct Practice Professor position, giving student planners practical, hands-on experience, working in partnership with host First Nations communities.youtube.com/watch?v=osO_j7vS_VA

SFU Adaptation to Climate Change TeamSFU ACT brings leading experts from around the world together with industry, community, and government decision-makers to explore the risks posed by top-of-mind climate change issues and identify opportunities for sustainable adaptation. REFBC has supported SFU ACT’s work since 2012. youtube.com/watch?v=QrXqhcmocxI

Spotlight Videos

Special ProgramsFrom time to time, the Foundation undertakes its own initiatives, independently or in partnership with other organizations, to address knowledge gaps, to inform our grantmaking, and to connect leaders and future collaborators. For more information on REFBC’s special projects work to date, please visit refbc.com/projects/special.

The Built Environment in BCIn 2015, REFBC began working with MODUS, a community planning, design and engagement firm, to investigate the progress that’s been made in BC and the work that still needs to be done to advance built environment sustainability.

The built environment includes all of the buildings and spaces created or modified by people, including public spaces, housing, workspaces, roads and other infrastructure that supports communities.

We found that, while excellent progress is being made in some areas, it isn’t always being measured or supported and that more work is needed to create public policies and financial regulations that encourage sustainable practices.

The reseach produced two reports, which are now available:• The Built Environment in BC: Status, Trends and Future Prospects

Discussion Paper• Towards A Sustainable Built Environment For British Columbia:

Synthesis Of Findings

Sustainable Food Systems Working GroupWe helped establish the SFSWG in 2014 that has fostered a network of food producers, processors, practitioners, and researchers to strengthen the resiliency of local and sustainable food systems in BC.

In 2015, the SFSWG hosted a webinar on Local Food Futures. We also held the Finding Common Ground Forum that brought together thought leaders to identify strategic opportunities to strengthen the local food systems.

Real Estate Foundation of BC 11

EventsWebinar: Local Food Futures for British Columbia (April 14, 2015) The webinar featured food sector leaders to discuss the Regional Food Dialogues and Local Food Futures for British Columbia, which sparked some great discussion and questions.

Social Purpose Real Estate Conference (June 1 to 3, 2015)The Social Purpose Real Estate Collaborative, of which REFBC is a member, hosted the Building Opportunities Conference on sustainable community development, financing, efficient operations, quality workspace, and innovative shared services for the nonprofit sector.

Workshop: Sustainable Innovative Funding for Watershed Governance (July 24, 2015)There is growing interest in the concept of watershed governance. For success, sustainable funding is critical, and there are currently knowledge and implementation gaps in this area. To move forward, additional knowledge is needed to utilize existing mechanisms and explore innovative ones, such as social finance. This workshop was also sponsored by the Ministry of Environment.

Finding Common Ground Forum (Nov. 19, 2015)We helped convene dozens of British Columbia agri-food sector leaders for a one-day forum, hosted by the Sustainable Food Systems Working Group (SFSWG). The “Finding Common Ground” forum helped to build a shared understanding, explore common interests and identify opportunities to move forward together on initiatives that foster local and sustainable food systems.

Land Awards

After the 2014 Land Awards Gala, the Foundation decided to host the Land Awards program every two years in order to attract a wider range of nominations.

Oct. 21st

2016 Land Awards Gala

May 30th

2016 Land Award nominations close

Mar. 14th

2016 Land Award nominations open

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The Real Estate Foundation of BCStatement of Financial PositionAs at December 31, 2015

2015 2014

Assets

Current

Cash and cash equivalents 697,767 379,582

Accounts and accrued investment income receivable 12,560 15,642

Interest receivable from trust accounts 216,246 185,821

Prepaid expenses 44,535 20,734

971,108 601,779

Equipment and leasehold improvements 186,467 250,057

Investments 18,538,109 18,796,296

19,695,684 19,648,132

Liabilities

Current

Accounts payable and accruals 120,818 79,424

Grants payable 5,223,952 3,882,459

5,344,770 3,961,883

Deferred tenant inducements 52,024 60,101

5,396,794 4,021,984

Commitments

Net Assets

Unrestricted - 4,226,148

Grant Stabilization Fund - 11,400,000

Grant Stabilization Reserve 14,298,890 -

14,298,890 15,626,148

19,695,684 19,648,132

Financial StatementsAudited Financial

StatementsThis information is taken

from the Real Estate Foundation’s audited financial statements.

Please visit refbc.com/about/annual-reports to obtain a copy of the full,

audited statements.

Our RevenueWhen a buyer provides a deposit on a real estate transaction and that deposit is placed in the pooled trust account of a BC real estate broker, the financial institution forwards interest earned to the Foundation. We invest that money and return it to the community through our grant program.

Before REFBC was established, no interest was generated on trust accounts and the financial institutions were the sole beneficiaries of the deposit funds. Purchasers of real estate and the real estate licensees who assist them play important roles in supporting the work of non-profit organizations that receive Foundation grants and the communities across BC that benefit from their work.

Real Estate Foundation of BC 13

The Real Estate Foundation of BCStatement of OperationsFor the year ended December 31, 2015

2015 2014

Revenue

Real estate brokerage trust account income 3,081,084 2,497,899

Investment income 1,023,221 2,159,268

Bank income 4,616 3,049

4,108,921 4,660,216

Direct Expenses

Trust account service charges 233,168 233,555

3,875,753 4,426,661

Expenses

Amortization 73,791 78,725

Governors’ honorariums 28,250 25,750

Meetings, conferences and travel 170,660 107,569

Office 78,856 81,221

Professional fees 67,922 63,291

Publications and promotion 114,210 155,462

Rent 93,471 90,399

Salaries and benefits 723,182 669,142

Special projects 133,013 117,925

Telephone 11,130 12,353

1,492,485 1,401,837

Excess of revenue over expenses before grants 2,383,268 3,024,824

Grants

Approved (3,763,362) (4,068,200)

Cancelled 52,836 364,357

(3,710,526) (3,703,843)

Deficiency of revenue over expenses and grants

(1,327,258) (679,019)

As a grant maker, our mission is to support sustainable land use practices. As a foundation, we invest some of our trust account revenue with the goal of achieving positive, predictable returns that help to ensure the security of our grants program and cover operating costs. This year, we began re-examining our portfolio to ensure that our investments align with our values.

Our first step was to introduce ESG (environmental, social, governance) screening to eliminate investments in companies or commodities that have risks associated with these factors. We are now asking all fund managers to include an approved ESG screen into their investment philosophy.

In 2015, we also began exploring impact investing as a way to match our financial behavior to our grant interests. Our goal is to invest a portion of our portfolio into companies, organizations, social enterprises or funds that generate social and environmental benefits in line with our interest in sustainable land use, and also generate a financial return.

Becoming an Impact Investor

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Board of Governors

Kelly LerignyChair / Appointed by the BC Real Estate Association in 2010

Anna Warwick Sears Vice-chair / Appointed by the Minister of Finance in 2014

Mandy Hansen Appointed by the Real Estate Institute of BC in 2015

Jim Rempel Appointed by the Minister of Finance in 2013

Bruce Turner Appointed by the Real Estate Council of BC in 2015

Robert Goertz Appointed by the Minister of Finance in 2015

Ramona Faust Appointed by the Union of BC Municipalities in 2015

Staff Members

Jack Wong Chief Executive Officer

Christian Hansen Compliance & Revenue Analyst

David Hendrickson Grants Manager

Hedy Rubin Grants Manager

Leanne Sexsmith Grants Manager

Nick Davies Grants Coordinator

Stephanie Butler Communications Coordinator

Kimiko Johanson Administrative Coordinator

REFBC Team

MANDATETo undertake and carry out real estate public and professional education, real estate law reform, real estate research and other projects intended for the public or professional good in relation to real estate activities. (Real Estate Services Act)

MISSIONTo transform land use attitudes and practices through innovation, stewardship and learning.

VISIONThe Real Estate Foundation of BC supports land use and real estate practices that contribute to resilient, healthy communities and natural environments.

660-355 Burrard St. Vancouver, BC V6C 2G8604-688-6800 // info@refbc.com // www.refbc.com