Part I Program objectives, eligibility criteria and funding conditions

1. Canada Magazine Fund (CMF)

Launched in 2000, the Canada Magazine Fund (CMF) is a key element of the Government of Canada's comprehensive policy to support the Canadian magazine industry. The CMF was established to safeguard diverse Canadian voices in a rapidly evolving marketplace. It provides support to Canadian magazine publishers for the creation of Canadian content for Canadian readers, to initiatives that improve the viability and business development of smaller publishers, and to broader initiatives that support industry development.

1.1 Purpose

The CMF will provide contributions to eligible Canadian magazines and not-for-profit organizations through formula-based and project-based components.

The CMF is comprised of four (4) components:

  • formula-based Support for Editorial Content (SEC);
  • formula-based Support for Arts and Literary Magazines (SALM);
  • project-based Support for Business Development for Small Magazine Publishers (SBDSMP); and
  • project-based Support for Industry Development (SID).

To receive an Applicant's Guide, contact the CMF toll free at 1 888 357-3116, by fax at (819) 953-7782 or by e-mail at fcm-cmf@pch.gc.ca.

The electronic version of the SID guide and application form is available at www.pch.gc.ca/cmf.

1.2 Objectives

The objectives of the CMF are to:

  • foster the creation of Canadian editorial content in Canadian magazines;
  • increase Canadians' access to Canadian magazines;
  • enhance the quality and diversity of Canadian magazines; and
  • strengthen the infrastructure of the Canadian magazine industry.

2. Support for Industry Development (SID)

The Support for Industry Development (SID) component is designed to encourage collective growth and efficiency in the Canadian periodical publishing industry by investing in industry-wide or association-based projects that will contribute to the long-term viability of the Canadian magazine and periodical industry.

2.1 Objectives

The objectives of the SID component are to fund association-based projects that will:

  • encourage collective efficiencies in the creation, publishing and distribution of Canadian magazines and periodicals;
  • provide services, training and professional development opportunities to the industry;
  • increase the effective use of evolving e-business technology and practices by Canadian magazine and periodical publishers;
  • increase the information base available to the Canadian magazine and periodical industry and policy-makers; and
  • raise the profile of Canadian magazines and periodicals among advertisers, readers, creators, and as a career opportunity for young Canadians.

3. Eligibility criteria for associations

Applicants must be eligible associations or organizations, at the time of application as defined below.

For the purpose of this document, "association" encompasses both associations and organizations.

To be eligible for the SID component, an association must:

  • be incorporated as a non-profit organization under the laws of Canada or a province;
  • have its head office located in Canada;
  • have been in operation for at least one full financial year (see Part III – Definitions) prior to application;
  • have a mandate within the magazine and periodical publishing industry of:
    • representing and informing members of the Canadian magazine and periodical industry;
    • delivering educational or consultative programs to its members and/or other members of the industry;
    • promoting Canadian magazines and periodicals or the services of Canadian magazine and periodical creators; or
    • encouraging and/or recognizing excellence in the content and creation of Canadian magazines and periodicals.

4. Projects

4.1 Eligible Projects

Eligible projects will be result-driven and aimed at improving the competitive performance of the Canadian magazine and periodical industry. Projects will address one of the key areas of business development, professional development and training, and marketing and promotion.

Eligible projects could include:

  • initiatives for training and professional development for members of the industry, and as a career opportunity for young periodical professionals;
  • initiatives aimed at strengthening domestic distribution networks;
  • initiatives aimed at analysing industry trends;
  • initiatives designed to market, promote and reward the services of Canadian creators of magazines and periodicals as well as the industry as a whole;
  • initiatives related to the promotion of Canadian magazines and periodicals in the domestic and foreign markets; and
  • initiatives aimed at strengthening the infrastructure of industry associations.

4.1.1 Eligible Expenses

Eligible costs must be directly associated with the project and can be of cash and/or in kind value (refer to 4.1.3.). Eligible expenses can include:

  • salaries/benefits (see Part III – Definitions) of employees directly related to the project;
  • professional/consultant fees (see Part III – Definitions) (e.g. project managers, programmers/analysts);
  • data entry and analysis;
  • creation and update of Web sites (see Part III – Definitions);
  • cost of producing documents and products (e.g. media kits, promotional material, pamphlets, posters, invitations);
  • mailing/distribution costs;
  • specialized software purchase (see Part III – Definitions) or custom programming;
  • promotional and advertising costs;
  • training (see Part III – Definitions) (e.g. workshops, courses);
  • registration fees (e.g. conferences, workshops, trade shows);
  • travel costs (see Part III – Definitions) (economy class only);
  • overhead costs related to the project (e.g. long distance telephone charges, fax, photocopying, couriers and other expenses);
  • costs for audit of project (for contributions of $50,000 and over);
  • rental costs (e.g. equipment, event facilities); and
  • market research costs (e.g. survey design and implementation, data entry and analysis).

Note: Eligible costs may be made by disbursement or by exchange of services.

4.1.2 Ineligible Expenses

The Program will not fund activities that have already been undertaken or completed before an application is received.

Ineligible costs include:

  • salaries/benefits of employees not directly related to the project;
  • occupancy and ongoing operating costs of the association (e.g. furniture, computer equipment, mortgage);
  • overhead costs not directly related to the project (e.g. telephone, fax, photocopying, couriers);
  • hospitality costs;
  • incentive prizes for use in sweepstakes or draws; and
  • all other expenses rendered ineligible by the Program.

4.1.3 In Kind Contributions (see Part III – Definitions)

Contributions to project costs may be in the form of in kind so long as an actual expense of that value would have been incurred and paid for by the applicant to successfully complete the project. In kind costs are not funded by the Program although they are calculated in the total cost of the project.

Note: The Department of Canadian Heritage reserves the right to obtain independent appraisals to determine the value of in kind contributions.

4.2 Project Requirements

The first step toward the presentation of a funding application is the submission of a project synopsis.

4.2.1 Project Synopsis

A synopsis of a project is a three-page (3) summary to be submitted for review before completing an official application.

The proposed synopsis should meet Program objectives, eligibility criteria and general funding conditions of the CMF and must include:

  • a brief description of the project, indicating the project timeframe;
  • the proposed project objectives and activities;
  • the target audience;
  • the projected costs of the project, as well as the amount requested from the CMF; and
  • the expected results and impact of the project on the Canadian magazine and periodical publishing industry.

4.2.2 Project Proposal

If a project synopsis reviewed by the Program has been deemed eligible, applicants will be asked to proceed with a complete application (refer to Part II, section 9).

4.2.3 Project Assessment

Projects will be evaluated on merit and assessed on the following:

  • degree to which the project meets the objectives of the CMF;
  • demonstrated industry need for the project;
  • degree to which the project demonstrates incrementality and sustainability;
  • scope of the project with respect to language, region, participation, strategic alliances/partnerships, etc.;
  • impact of the project on the Canadian magazine and periodical publishing industry, including clarity of expected results and performance measures;
  • degree to which the project demonstrates collective efficiencies and partnerships with other industry associations;
  • degree of involvement and assistance or financial commitment from other sources, including members of the association and other stakeholders;
  • suitability of the budget to the scale of the project;
  • demonstrated capacity of the association to undertake the project; and
  • if the project is submitted by an organization that represents professionals involved in a wide range of professional activities, the degree to which the project benefits primarily magazines and periodicals will be considered.

In addition, each application goes through levels of verification and approval to ensure compliance with Program requirements and government policies, as well as to ensure consistency and transparency of process and best use of public funds.

4.3 CMF Contribution Levels

CMF funding for an approved project will take the form of a contribution administered through a contribution agreement (see Part III – Definitions) between the Department of Canadian Heritage and the association, and can represent up to 75% of the total eligible costs of the project.

The maximum government contribution (federal, provincial, territorial, regional and municipal) will not exceed 75% of the total cost of the project.

5. Accountability

Associations must meet accountability requirements through the completion of the approved project. These requirements ensure effective monitoring and management of projects to produce maximum results based on pre-stated goals, as well as best use of public funds.

5.1 Contribution Agreement (see Part III – Definitions)

The contribution agreement describes the activities, budget and expected outcomes of the approved project, as well as identifies the requirements and the general terms and conditions.

Recipients should read the contribution agreement carefully to ensure they are aware of the requirements to fulfill the terms and conditions of the agreement.

5.2 Methods of Payments

There are two (2) possible methods of payments under the terms and conditions of a contribution agreement: advance payments and reimbursement of expenses.

The CMF reserves the right to determine the method of payment for any approved project.

5.2.1 Advance Payments

Advance payments are made prior to the undertaking of activities planned for a specific period of time as described in the contribution agreement.

5.2.2 Reimbursement of Expenses

Reimbursements are made for eligible costs incurred, as outlined in the contribution agreement, upon receipt and acceptance of appropriate reports (see 5.3).

5.3 Reporting Requirements

When outlined in the contribution agreement, recipients must submit activity and financial reports to receive a payment.

Upon completion of a project, recipients are required to account for contributions received. They must submit a final financial report detailing how the funds were used, as well as a final activity report on results achieved.

Audited financial statements (see Part III – Definitions) for the project are required from associations receiving $50,000 or more from the Program. In this case, the cost of the project audit is considered an eligible expense.

6. Department of Canadian Heritage provisions

6.1 Acknowledgement

Recipients must recognize the financial support provided by the Government of Canada through the CMF by printing the "Canada" wordmark and including the following acknowledgement in all products related to the project.

"We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund of the Department of Canadian Heritage toward our project costs."

Canada

The "Canada" wordmark logo is available in electronic format at www.pch.gc.ca/cmf .

The Department reserves the right to review and approve the use of the "Canada" wordmark by the recipient to the public. Associations should consult the CMF before making any use of the wordmark.

6.2 Minister's Discretion and Decisions

As in other funding programs, the eligibility criteria and guidelines of the CMF will not restrict the discretionary power of the Minister of Canadian Heritage or the Minister's representatives to refuse a request for financial assistance.

Decisions of the Minister regarding the eligibility of applicants and contribution amounts will be final.

6.3 Audits of Projects

The Department of Canadian Heritage conducts audits of projects funded by the CMF each year. During the course of an audit, recipients must make available any records, documents or other information that may be required to perform the audit. The Department will assume the auditor's costs.

A recipient found to have submitted false information must refund the whole or part of any contribution received and may be declared ineligible for assistance for a period of two (2) years thereafter.

Associations must maintain accounting records to meet audit requirements of the federal government. Original receipts must be available in the event of an audit. Cancelled cheques, invoices and bank statements must be retained for five (5) years.

The recipient's accounting records and supporting documents must distinguish project costs from ongoing operating costs of the association. The recipient must also keep detailed records on amounts and values of in kind goods and services.

6.4 Evaluation of the CMF

The Department conducts periodic evaluations of the CMF. During the course of an evaluation, recipients must make available any records, documents or other information that may be required to perform the evaluation. The criteria to be used to assess the effectiveness of the contribution in relation to its objectives shall be determined by the Minister or representatives of the Minister.

6.5 Access to Information Act

Under the Access to Information Act, members of the public may request and obtain access to information held in federal government records. Should a request be received for information about an application, the Access to Information and Privacy Secretariat will consult the applicant regarding the disclosure of any information submitted to the Department.

6.6 Public Information

When funding is approved, the amount of funding, the purpose for which the funds were granted, and the name of the recipient are considered public information. This information is disclosed without consulting recipients.

The CMF will make public a list of all recipients and their contribution amounts on an annual basis.

6.7 Official Languages

Should funding be approved, the applicant must ensure that its communications with and services to the public are provided in both official languages of Canada in accordance with the spirit and intent of the Official Languages Act (www.tbs-sct.gc.ca).



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