Part I - Program objectives, eligibility criteria and funding conditions

4. Projects

The Program will invest in projects that will increase the magazine’s circulation, advertising revenue and visibility; and that will strengthen the financial viability and facilitate business and professional development of Canadian small- and medium-sized circulation magazine publishers.

All projects must be well researched with activities that clearly demonstrate realistic objectives and measurable expected outcomes. The project must be detailed and specific in terms of timeframe, activities, products and costs, and be supported by a business plan, marketing plan or market research previously undertaken prior to the project. If none of these documents are available, the SBDMP component will consider market research or the development of a business or marketing plan as an eligible project.

4.1 ELIGIBLE PROJECTS AND EXPECTED OUTCOMES

4.1.1 ELIGIBLE PROJECT INITIATIVES

Projects should focus on improving the circulation, advertising revenue, operational efficiencies and professional development of the small- and medium-sized magazine publishing firms in the following key areas:

  • business practices: market research, reader and advertiser survey, business or marketing plan and professional development/training;
  • circulation: direct mail/renewal campaign/telemarketing, fulfillment system, newsstand promotion and promotional activities;
  • advertising: media kit, attendance at special events and trade shows and telemarketing;
  • editorial: redesign/new editorial, and special issues;
  • Web site enhancement: online payment, renewal, subscription, blogs, podcasts, Weblinks, redesign and new editorial content;
  • digitization: past issues, editorial content and online publishing; and/or
  • creation of a Web site: as a marketing tool.

4.1.2 EXPECTED OUTCOMES

The expected outcomes of the project must adhere to at least one (1) of the objectives of the CMF, as well as one or more of the SBDMP component. Ultimately, the project should directly or indirectly support the growth and sustainability of the publishing firm. This can be done by way of increased circulation, advertising and other revenue, the implementation of business or marketing strategies, professional development, or improved operational efficiencies.

4.1.3 ELIGIBLE EXPENSES

Eligible expenses must be directly associated with the project and can be of cash and/or in-kind value (refer to 4.1.5). Eligible expenses can include:

  • business or marketing plan costs, e.g. consultant fees;
  • market research costs, e.g. survey design, survey implementation, data entry and analysis, report preparation, reader/advertiser profile;
  • salaries/benefits and overhead costs directly related to the project;
  • professional/consultant fees, e.g. designer, copy writer, project and fulfillment managers, programmer/analyst;
  • staff training, e.g. workshops, courses, seminars;
  • printed material and film costs, e.g. media kit, promotional material, inserts, special issue;
  • specialized software purchase or custom programming, e.g. fulfillment system, desktop publishing;
  • update of Web site, costs related to the creation of a Web site, e.g. on-line subscription/renewal payment, on-line survey, blogs and podcasts;
  • mailing/distribution costs, e.g. direct mail piece, promotional material, special issue;
  • insertion costs, e.g. blow-in card, survey;
  • registration fees, e.g. conference, workshop, trade show;
  • travel costs (economy class only);
  • production costs of display materials, e.g. magazine racks, posters;
  • rental, e.g. equipment, booth, newsstand display;
  • accounting costs (directly related to the project);
  • costs associated with printing extra copies of the magazine to be used in a one-time promotion campaign;
  • audited financial statements of the project (only for funding of $50,000 and over); and
  • costs related to the digitization (past issues, editorial content, online publishing);

4.1.4 INELIGIBLE EXPENSES

Contributions are available for specific projects and cannot be used to cover general costs of the publishing firm.

Ineligible expenses include:

  • salaries/benefits of employees not directly related to the project;
  • ongoing operating costs, e.g. furniture, computer equipment;
  • occupancy costs and overhead cost not directly related to the project, e.g. mortgage or facility rental, telephone, fax, photocopying; etc.
  • ongoing production costs of the magazine;
  • printing regular copies of the magazine;
  • hospitality costs;
  • incentive prizes for use in contests, sweepstakes, draws or subscription drives;
  • research or activities undertaken prior to the receipt of an application.

4.1.5 IN-KIND CONTRIBUTIONS

Contributions to project costs may be in the form of in-kind (see Part III – Definitions) provided 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 to help determine the eligible amount of the project.

The Department of Canadian Heritage reserves the right to limit and establish the value of in-kind contributions.

4.2 SBDMP CONTRIBUTION LEVELS

Eligible publishing firms may apply for financial assistance for more than one project and for more than one eligible magazine, up to:

  • 75% of eligible costs to a maximum of $40,000 per project, per magazine, per government fiscal year (see Part III – Definitions).

The amounts approved by the Department are based on the merit and relevance of each project. The maximum government (federal, provincial, territorial, regional and municipal) contribution cannot exceed 75% of the eligible cost of the project.

4.3 PROJECT ASSESSMENT

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. Projects will be evaluated on a first come, first serve basis, as well as on merit. The time required to process an application will be determined by the number of projects received, their degree of complexity and budget allocations.

The evaluation and decision to fund a project will be based on the following:

Need and relevance of the project:

  • the magazine’s demonstrated need for the project, supported by a business or marketing plan, or market research;
  • the relevance of the project to the need identified. The proposal must include appropriate and well-defined activities, clear objectives, as well as realistic and specific expected results;
  • how the project adheres to the objectives of the CMF and its SBDMP component;
  • the activities are of a suitable scale and the budget proportionate to the project;
  • the impact of the project: the expected results must be identified for the magazine/publishing firm, the magazine industry as a whole, readers and advertisers;
  • the degree of involvement and support from the applicant and other partners; and
  • the need for financial assistance.

Applicant’s capacity and expertise:

  • the project proposal, supporting documents and related communications must demonstrate that the publisher has undertaken the necessary planning to implement, monitor and report on the project;
  • the applicant must show its ability to successfully undertake the project and that the necessary infrastructure, staff and financial resources have been secured.

Applicants should not assume that projects, which are eligible, will be approved. Any projects started before final approval are undertaken at the applicant's risk.

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