Operating Grant Fair Notice Policy
This policy has been updated as of August 11, 2025
Calgary Arts Development is committed to working with organizations that demonstrate significant, severe or sudden risk to public investment or concerns about organizational viability. The Fair Notice Policy is intended to ensure that grantees have sufficient notice to address and mitigate risk before seeing changes to their funding amount as a result. The Policy is intended to encourage transparency and accountability between grantees, Calgary Arts Development, The City of Calgary as Calgary Arts Development’s shareholder, and the public.
This Policy is separate from the competitive assessment-based adjustments to funding amounts laid out in the ‘Funding Decisions’ section of the program guidelines, which consider funding amounts in line with program goals and criteria, and may result in grant reductions based on organizational quality and public impact.
Organizations that are removed or choose not to reapply or submit their reporting in any grant year will be considered a new applicant in subsequent years. Organizations must submit any relevant reporting for their last funding year on exiting the program. They will only be eligible to receive operational funding if the program is open to new applicants.
Should Calgary Arts Development’s funding from The City of Calgary be reduced, grant reductions may occur outside of this policy.
Operating Grant Flagging Process
Calgary Arts Development reserves the right to apply flags for critical, high-risk concerns based on the information provided in the application or report, or as we become aware of organizational circumstances or events that may present a risk at any point through the funding cycle. Program staff are advised by the Standing Peer Assessment Committee and will place a flag for any of the below conditions:
- Calgary Arts Development staff review organizations’ financial information on an annual basis and may apply a financial flag for:
- sudden, unexplained deficits
- ongoing deficits over consecutive fiscal years
- more current liabilities than current assets
- bad debt
- any other concern over the organization’s financial viability
- There is reliable evidence obtained by Calgary Arts Development staff that indicates an organization presents a risk to default on the obligations stated in its Investment Agreement such as:
- A significant and unexplained reduction to artistic or community impact compared to previous years
- Serious issues related to the conduct of its staff, board, artists or any affiliates
- A demonstrated lack of capacity to complete core programming, or achieve key organizational goals
- A demonstrated lack of capacity in resource management or organizational governance
- The need for future planning to address the current level of risk or to mitigate previous resiliency flags
- A significant lack of transparency and information in the application or reporting such that the assessors or staff are unable to determine whether the organization merits their investment
In Calgary Arts Development’s sole discretion, a third-party audit of the organization may be required to determine if the organization is an acceptable investment risk. The cost of the audit will be deducted from that organization’s subsequent grant (if any).
If significant and severe risk is identified through review of application or report materials and a flag is placed, Calgary Arts Development staff will work with the grantee to agree upon a mitigation plan and expectations for addressing the concerns. The plan will be reviewed in the subsequent year, and if not adequately addressed, will proceed with further investigation that may result in revocation, reduction or suspension of the funding amount. Program staff will seek recommendations on how to proceed from the standing peer assessment committee, Calgary Arts Development leadership, and/or Calgary Arts Development board as appropriate.
Calgary Arts Development may revoke, reduce or suspend operating funding with minimum one year notice in cases where significant and severe risk occurs, if that risk is not adequately addressed by the grantee.
Calgary Arts Development may also revoke, reduce or suspend operating funding with no notice if the grantee is found to have seriously broken the conditions and terms of the investment agreement, or the organization becomes unable to operate.
Appeals Policy
The Appeals Policy outlines the process for organizations to appeal changes to their Operating Grant funding levels.
Calgary Arts Development will hear a case for appeal and follow the appeals process only in the below circumstances:
Eligible Appeal Cases
- Organizations that received a flag through the Fair Notice Policy resulting in a reduction over 30 per cent to their total grant
- Organizations that were recommended to be removed from the Operating Grant Program through the Fair Notice Policy
Ineligible Appeal Cases
- Changes made to Operating Grant amounts resulting from a decrease in Calgary Arts Development’s total budget from The City of Calgary
- Changes made to Operating Grant amounts resulting from assessment according to published program goals, criteria and peer recommendations
Applicants will have 10 working days from the date they were notified of their reduction or removal through the Fair Notice Policy to inform Calgary Arts Development in writing of their intent to appeal.
The organization will be given the opportunity to respond to the recommendation and comments in writing, stating the basis of their appeal. Appeals cannot be made on the basis of new information, or information not included in the originally assessed materials.
Staff will review the written case for appeal and determine if the organization has made an eligible case.
If the case is eligible, staff will convene a secondary peer assessment panel comprising members of standing peer committee, and new members, who will review in full the relevant material, response from the organization and case for appeal, and make a final recommendation:
- Uphold the decision to reduce or remove the grant amount
- Recommend an alternate reduction to the grant amount
- Restore the grant amount in full
