2014 Annual Report. Chair s Message. Connect with us.

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1 2014 Annual Report The Real Estate Foundation 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. Chair s Message In 2014 the Real Estate Foundation awarded $4.06 million in grants, bringing our total to over $69 million. Last year we increased our grants budget and have continued our work developing our proactive granting, which allows Foundation staff and governors to be more flexible and involved in initiatives that align with our focus areas. One of the initiatives in 2014 was working in collaboration with Kwantlen Polytchnic Univeristy to host a series of Regional Food Dialogues around the province. Held in the North, South, Interior, Kootenay, Island and Okanagan regions, the dialogues gathered food leaders to discuss their vision for a sustainable food system. It also provided opportunity to understand what capacity and information is currently available, and set priorities for the future. Our team was out on the road again in BC, visiting communities and projects the Foundation has been priveleged to support. Our June retreat took us to the East Kootenays, where we held an outreach event to connect with local governments, non-profits and community members. The Land Awards Gala continues to be a great opportunity to celebrate and convene BC land use leaders from different sectors. This year, we were thrilled to have Peter Mansbridge join us as keynote speaker, and welcome guests to our sold-out event. As I complete my term as chair, I want to say that it is a privilege to work with the Foundation s staff, and thank them sincerely for their continued efforts. In Scott Ullrich, Chair particular, I want to acknowledge the immense contribution of Celina Owen. She has been a pillar at the Foundation for 16 years, and her presence is sorely missed. On behalf of the board and staff, I wish her all the very best for her future endevours. Although my time on the board is coming to a close, I hope you will connect with the team when they visit your region, and I encourage you to follow the Foundation - on Facebook, Twitter and LinkedIn - to stay in touch with the work we are supporting. We all play a part in advancing sustainable land use, and the Foundation looks forward to sharing valuable resources and information to enable positive change in BC communities. Scott Ullrich Foundation staff and board visiting the Chilliwack watershed in April Connect with us.

2 CEO s Report Financial Real estate brokerage trust income increased from last year s level, as homes sold on the MLS(R) increased over 5% from last year with consumers investing $48 billion in residential real estate across BC. Calendar year returns for 2014 investment income were positive, with GDP growth in the US very strong in the second half of Lower returns in the final quarter were a result of the downturn in the energy sector. Our external advisors, Diane Fulton and Dr. Stanley Hamilton, provided important counsel to the Investment Committee during the year. Their advice has been valuable to the committee and the Board of Governors as the Foundation began exploring responsible investing practices and impact investment options. Grants During 2014, the Board of Governors approved 50 grants totaling over $4 million in our focus areas of Built Environment, Freshwater Sustainability and Sustainable Food Systems, as well as through our Real Estate Industry Grants program. The Foundation supported province-wide and regional intiatives Governors L-R: Scott Ullrich, Anna Warwick in land use, land Sears, Kelly Lerigny, Gerry Martin and Jim Rempel at the Columbia Valley Wetlands on use planning, our June Staff and Board Retreat. housing research and natural environment stewardship. As well, grants were awarded for continued support to real estate industry research and for program delivery to real estate practitioners in remote regions of the province. In 2014, the largest award in the Foundation s history ($1 million) was given to the Centre for Sustainable Food Systems at UBC Farm. The Centre will create a legacy by creating solutions to the most pressing challenges to food sustainability. Strategic Plan Jack Wong Chief Executive Officer Progress on the plan s three strategic directions continued in 2014 which included: New communications tools and online resources; Framework for project assessment and impact analysis; Development of social impact investing and socially responsible investing strategies. Land Awards In October, we hosted the 5th Land Awards Gala at the Fairmont Waterfront Hotel in Vancouver. The 2014 Land Award winners were: Non-profit Sector - The Station, Cowichan Green Community Private Sector - Organic Land Care Education, Gaia College Public Sector - Agriculture Land Use Inventory Program, BC Ministry of Agriculture Land Champion - Gary Runka The Land Awards event allows the Foundation to convene and connect with key stakeholders, media and the general public to recognize and share outstanding sustainable land use practices in BC. Governance and Administration Anna Warwick Sears was appointed by the Minister of Finance in May 2014 to the Foundation Board of Governors. Her appointment fills the remaining vacancy on the 5 member appointed board. In December, after 16 years serving in various capacities, including most recently as Manager, Communications and Administration, Celina Owen retired from the Foundation. Accordingly, re-organization of staff roles resulted in Megan Simm taking over communications, and Kimiko Johanson as the Administrative Coordinator. Acknowledgments Our travels during 2014 provided us endless opportunities to learn about the land and people of this magnificent province. I want to express thanks to those community leaders who welcomed our staff and board members and shared their stories as we worked our way across BC. We heard about watershed governance in the Cowichan, Peace and Kispiox river valleys. We learned about community and regional food priorities in the Cariboo, Kootenays, Okanagan, Fraser-Fort George, Lower Mainland and Vancouver Island. We listened to regional growth and affordable housing strategies in the North Okanagan and in the Capital Regional District. In Hazelton we were told how settler descendants live in harmony and share similar values with First Nations people in the headwaters of the Stikine, Nass and Skeena rivers. To the Foundation s board of governors, I want to thank them for their leadership and support to the ongoing quest for innovative, collaborative and impactful solutions that makes BC communities more healthy and resilient. Finally, I once again want to thank the team that makes my work look so easy every day. I am fortunate to work with a group of individuals who never take their eyes off the ball and remain focused on what needs to be done. Jack Wong Watch all the finalist videos on YouTube: RealEstateFdnBC Gary Runka 2014 Land Champion 2

3 2014 Grants The Real Estate Foundation s Board of Governors approved 50 grants during 2014, totalling $4,068,200. Grants were awarded according to the Foundation s legislated purposes of research, public and professional education and law reform. The grants are listed alphabetically, by grant recipient organization. Allan Brooks Nature Society for year one implementation of a regional biodiversity strategy for the north and central Okanagan ($20,000). BC Northern Real Estate Board for speaker costs associated with delivering professional education for real estate board members in ($3,935). BC Real Estate Association to research trends, challenges and opportunities in REALTOR practice, to prepare for joint BCREA-real estate board strategic planning. ($150,000). BC Wildlife Federation to support delivery of six workshops in four regions of BC aimed at wetlands conservation and restoration initiatives ($20,000). Be The Change Earth Alliance Society for a hands-on program to educate Surrey, Delta and Burnaby secondary students about human induced soil degradation and loss of arable land. ($20,000). British Columbia Conservation Foundation - Surrey Office to work with south coast local governments to address policy, knowledge and capacity gaps; integrate species at risk into land use planning. ($70,060). The Foundation s $1 million investment to the Centre for Sustainable Food Systems at UBC Farm is the largest grant to date. (Photo: Hedy Rubin) Capital Region Food and Agriculture Initiatives Roundtable To create a farmland trust framework for BC; establish a local government supported land trust in the Capital Region as a case study. ($29,000). Centre For Sustainable Food Systems at UBC Farm To support UBC Farm s capacity to deliver research and education to advance sustainable agricultural land use policies and practices. ($1,000,000). City of Nanaimo For resources and training to help REALTORS promote home energy efficiency improvements and energy labeling to their clients. ($20,000). Community Energy Association To design and collaboratively implement Community Energy and Emissions Plans with local governments, First Nations and others across BC. ($100,000). Community Social Planning Council of Greater Victoria to develop a How-to Guide on seniors co-housing development and other options for affordable community living for seniors. ($45,000). Comox Valley Land Trust For education and research to support ongoing implementation of a regional conservation strategy for the Comox Valley. ($105,300). Focus Areas Under the overall goal of advancing sustainable land use, the Real Estate Foundation s general grant program focuses on three priority areas: Built Environment, Freshwater Sustainability and Sustainable Food Systems. Given our broad mandate to support non-profit real estate and land use related research, education and law reform in BC, we focus our granting in specific ways to help us make effective investments in the work of non-profits. For the Foundation, the most effective grants support progressive projects that lead to on-the-ground change. For more on the kinds of projects we will consider under each focus area, read the pages at Real Estate Industry Grants Per the Real Estate Foundation s enabling legislation, our purposes as an organization are to 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, section 93 (1)(a)). Given this mandate, we earmark a percentage of the yearly grants budget to help fund projects put forward by the BC Real Estate Association, the Real Estate Council of BC, the Real Estate Institute of BC and the regional real estate boards. When our Board of Governors awards Real Estate Industry Grants, it does so recognizing that it is in the public s interest to deal with informed, competent real estate practitioners. 3

4 Comox Valley Project Watershed Society for the next phase of the K -moks Estuary Interactive Map, which will add information and videos to illustrate change over time and current issues ($26,000). Cowichan Social Planning Society to develop a business case to demonstrate the viability, benefits and limitations of an Affordability Trust Fund in the Cowichan Valley. ($8,986). REFBC staff and board met with Comox Valley Project Watershed Society in September 2012, learning about the estuary s issues. Delta Farmers Institute for a series of education events in Delta that build understanding of local agriculture and climate change issues ($32,538). CEO Jack Wong and Governors Anna Warwick Sears and Jim Rempel visited the Peace River Region in August. The groundwater mapping project will improve understanding of regional groundwater resources to inform residents. (Photo: Hedy Rubin) education to real estate board members in 2014.($6,050). Lake Windermere Ambassadors Society to improve local involvement in watershed protection by developing a Columbia Headwaters Watershed Governance Group. ($15,000) Elk River Alliance, for a coordinated plan to educate the community, reduce the impact of flooding, and prepare for future floods in BC s Elk River watershed. ($40,000). Nature Conservancy of Canada to create a plan that highlights high priority lands for conservation and improved crown and private land stewardship.($17,500). Engineering Leadership Council Canada for ten case studies on capital infrastructure projects that set precedents for new engineering practice by integrating sustainability goals ($20,000). North Shore Neighbourhood House to engage and train municipal staff and other stakeholders in order to build community capacity to implement the North Shore Food Charter. ($80,000). Evergreen to facilitate resident-led community initiatives in a Vancouver neighbourhood to reduce the ecological footprint of a neighbourhood by 25% ($20,000). Peace River Regional District for groundwater mapping and monitoring to build knowledge of the region s aquifers and water quality; compile information in a public database. ($200,000). FarmFolk CityFolk Society to develop a program strategy and offer events throughout BC to support new farmers in BC and link them to farmland. ($20,000). Pembina Institute to inform and engage communities in northeastern BC on issues related to water, carbon and land use impacts of shale gas development. ($180,000). FMC Fair Mining Collaborative Society for education on world class land use and mining policies to help communities address proposed resource development projects in their area ($50,000). Pembina Institute for Green Building Leaders initiatives: forum on net-zero building; home energy labelling in Metro Vancouver; GBL education and outreach. ($297,839). Fraser Basin Council to build a BC-wide network of remote and rural First Nations communities to improve housing conditions through green building practices. ($50,000). POLIS Foundation for three years of research, implementation and engagement on water law reform in BC associated with the new Water Sustainability Act.($392,000). Fraser Valley Watersheds Coalition to expand on-the-ground case studies identifying and valuing ecosystem services on agricultural lands in the Fraser Valley. ($17,250). Real Estate Council of BC for year two development of a Strata Dispute Online Self-help Tool to assist strata owners, renters, council members and property managers. ($147,894). Fresh Outlook Foundation to assist with planning and coordination of the 2015 CommUnity Innovation Lab, to be held in Kamloops. ($20,000). Regional District of Central Kootenay to support a Cultural Values and Use Study which will inventory sites of cultural use and integrate into the existing plans and guidelines. ($15,000). Georgia Strait Alliance to develop a comprehensive action plan balancing uses of Vancouver s shoreline for sustainable waterfront-related policies and practices. ($15,000) Regional District of Okanagan-Similkameen to coordinate and deliver environmental conservation and sustainable land use planning for the South Okanagan - Similkameen region. ($75,000). Islands Trust to facilitate ongoing collaborative communication and decision making in the management of Salt Spring Islands seven watersheds. ($20,000) Kootenay Real Estate Board for speaker costs associated with delivering professional Selkirk College for mapping and applied research that helps Columbia Basin-Boundary organizations move toward a coordinated, regional food systems strategy. ($50,000). Participants at the Fresh Outlook Foundation s CommUnity Innovation Lab worked together to find solutions to build healthy, vibrant cities. 4 Sierra Club of BC Foundation for the Youth Environment Leadership Program: sustainability education and stewardship projects in the Victoria and Vancouver regions. ($15,500).

5 Governor Kelly Lerigny met with representatives from the Real Estate Board and Conservation Program in the South Okanagan. The BC Water Funders Group meets regularly to discuss freshwater issues in BC Special Projects Skeena Watershed Conservation Coalition to support a visioning and strategic framework workshop in regards to the Skeena Watershed Ecosystem Valuation project. ($16,800). The BC Freshwater Funders Collaborative is an informal body supporting strategic collaboration among organizations and foundations that fund freshwater and watershed protection efforts in British Columbia. The aim is to find areas of common interest to help guide the strategic use of collective resources to advance freshwater protection in British Columbia. The group provides a forum for exchange of information between funders and water leaders by strengthening relationships, knowledge and networks. South Okanagan Real Estate Board for seminars for REALTORS, builders, developers and homeowners on best practices for developing land near streams and other sensitive habitats. ($14,300). Tides Canada Initiatives Society to support Clean Energy Canada research on the costs of congestion in Metro Vancouver under different land use and transportation planning scenarios. ($40,000). Food Systems Public Opinion Poll: In July, REFBC and the Vancouver Foundation commissioned a public opinion study on food systems in BC. The purpose was to inform discussion and decisions on the future of the ALR, a provincial land-use zone that protects farmland and land with potential to be farmed. As both foundations have a provincewide mandate and support projects that promote strong, resilient communities and natural environments, the study also informed our ongoing work in sustainable food systems. Tides Canada Initiatives Society for BC Food Systems Network research, education, and law and policy reform recommendations to establish more sustainable food systems in BC. ($50,000). University of Northern British Columbia to create a web-based, geospatial tool to foster information exchange and guide land and water decision-making in the Nechako River Basin. ($60,588). Vancouver Island Real Estate Board to develop an online format for VIREB buyer profile research, distributed to REALTORS, business groups, local governments and the public ($10,000). Some of the results include: Waterlution for the Aboriginal Youth Water Leaders project, focused on developing leadership capacity and local knowledge through a series of workshops ($29,450). West Coast Environmental Law to identify and develop processes for regional collaboration in ecosystem protection and climate change resilience in the lower mainland ($40,000). 95% of respondents say the Agricultural Land Reserve (ALR) should be preserved for green space and growing food. 80% are concerned about dependence on other countries for our food security. When asked what priority uses for land in British Columbia were, respondents identified natural freshwater systems (83%), closely followed by farming and growing food (81%). Alternative Sources of Capital for Social Housing West Kootenay Community EcoSociety for research, education and policy work to support development of a comprehensive stewardship strategy and management plan for Kootenay Lake ($87,600). BC Housing and REFBC collaborated to develop and share research on alternative sources of capital for Social Housing. Underfunding is one of the critical issues affecting the financial viability and health of social housing in Canada. This research project provided insight into six alternative sources of capital for social and affordable housing in the Canadian context, and offered practical information about the feasibility of implementing these approaches. Whistler Centre for Sustainability to help two small communities develop Integrated Official Community Plans, including longterm visions based on sustainability principles ($40,000). Wildsight to support a task force, consultation and creation of a work plan to create a Columbia Basin Watershed Board by 2019 ($20,000). Windermere District Farmers Institute for a multi-region pilot to develop a program whereby BC agricultural producers are paid for protecting ecosystems services on their land ($244,910). The report by Clean Energy Canada (REFBC funded a grant through Tides Canada) showed the effects of congestion in Metro Vancouver under different land use scenarios. Report is available at cdhowe.org 5 The findings of this research project have been broadly shared through government and non-profit groups and presented at a wide range of conferences to reach broader audiences.

6 Financial Report The Real Estate Foundation of BC Statement of Financial Position As at December 31, 2014 Audited Financials This information is taken from the Real Estate Foundation s audited financial statements. Please visit the Publications page of to obtain a copy of the full, audited statements. Our Revenue The Real Estate Foundation receives its revenue from purchasers of real estate in the province of BC. When 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 give it back to the community through our grant program. Prior to the creation of the Real Estate Foundation, 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 the non-profit organizations that receive Foundation grants, and the communities across BC that benefit from their work Assets Current Cash and cash equivalents 379, ,285 Accounts and accrued investment income receivable 15,642 17,588 Interest receivable from trust accounts 185, ,352 Prepaid expenses 20,734 12, , ,665 Investments 18,796,296 18,078,448 Equipment and leasehold improvements 250, ,433 19,648,132 19,232,546 Liabilities Current Accounts payable and accruals 79,424 72,144 Grants payable 3,882,459 2,788,881 3,961,883 2,861,025 Deferred tenant inducements 60,101 66,354 4,021,984 2,927,379 Net Assets Grant stabilization fund 11,400,000 11,400,000 Unrestricted 4,226,148 4,905,167 The Real Estate Foundation of BC Statement of Operations For the year ended December 31, ,626,148 16,305,167 19,648,132 19,232, Revenue Real estate brokerage trust account income 2,497,899 2,070,204 Investment income 2,159,268 1,795,508 Bank income 3,049 3,232 4,660,216 3,868,944 Direct expenses Trust account service charges 233, ,903 4,426,661 3,627,041 Expenses Amortization 78,725 58,070 Governors honorariums 25,750 18,250 Meetings, conferences and travel 107,569 94,821 Office 90,181 89,059 Professional fees 36,854 42,567 Publications and promotion 130,647 66,033 Rent 90,399 70,200 Salaries and benefits 669, ,425 Special projects 160,217 91,949 Telephone 12,353 9,523 1,401,837 1,154,897 Excess of revenue over expenses before grants 3,024,824 2,472,144 Grants Approved 4,068,200 2,760,925 Cancelled (364,357) (100,669) 3,703,843 2,660,226 Deficiency of revenue over expenses and grants (679,019) (188,082) 6

7 Join our mailing list: MANDATE To undertake and carry out real estate public and professional education, real estate law reform, real estate research and other projects intended for theh public or professional good in relation to real estate activities. (Real Estate Services Act) MISSION To transform land use attitudes and practices through innovation, stewardship and learning. VISION The Real Estate Foundation of BC supports land use and real estate practices that contribute to resilient, healthy communities and natural environments. Board of Governors as of Dec. 31, 2014 Staff Scott Ullrich, Chair Appointed by the Real Estate Institute of British Columbia Gerry Martin, Vice-Chair Appointed by the Real Estate Council of British Columbia Kelly Lerigny Appointed by the British Columbia Real Estate Association Jim Rempel Appointed by the British Columbia Minister of Finance Anna Warwick Sears Appointed by the British Columbia Minister of Finance Contact tel Toll free Jack Wong Chief Executive Officer David Hendrickson Grants Manager Hedy Rubin Grants Manager Leanne Sexsmith Grants Manager Nick Davies Grants Coordinator Kimiko Johanson Administrative Coordinator Megan Simm Communications Coordinator Christian Hansen Compliance & Revenue Analyst Contact Burrard Street Vancouver, BC V6C 2G8 tel Connect with us. 7