Canada Periodical Fund (CPF) - Business Innovation Applicant's Guide, 2014-2015

Section A - Canada Periodical Fund

A.1 Overview

The Canada Periodical Fund (CPF) provides financial support to Canadian print magazines, non-daily newspapers and digital periodicals to enable them to overcome market disadvantages.

Note: Underlined words are defined in Section H of the Applicant's Guide or linked to a form.

A.2 Objective

Ensure Canadians have access to diverse Canadian print magazines, non-daily newspapers and digital periodicals.

A.3 Program components

The CPF delivers its financial support through three components:

Aid to Publishers provides funding to eligible Canadian print magazines and non-daily newspapers.

Business Innovation offers support for projects to eligible small and mid-sized print magazine and digital periodical publishing firms.

Collective Initiatives funds projects for organizations designed to increase the overall sustainability of the Canadian magazine and non-daily newspaper industries.

This guide covers only the Business Innovation component. More information about the Aid to Publishers and Collective Initiatives components is available at www.pch.gc.ca/cpf.

A.4 How to contact us

Canada Periodical Fund
Business Innovation
Department of Canadian Heritage
25 Eddy Street, 25-8-U
Gatineau, Quebec
K1A 0M5
Telephone: 1 800-641-9221 (toll free in Canada)
Facsimile: 819-994-3154
Email: fcp-cpf@pch.gc.ca
Web site: www.pch.gc.ca/cpf

Note:

Publishing firms may apply to both the Aid to Publishers and the Business Innovation components, and should applicants be successful, may receive financial support during the same fiscal year.

Canada History Funding

The Government of Canada announced a series of new measures to promote Canadian history. This includes the Canada Periodical Fund that will support and provide access to history periodicals and history-related projects through its Business Innovation (BI) component.

Priority will be given to projects that encourage magazine readers to explore historical moments that helped define Canada. Eligible projects may include but are not limited to the development of special issues and new history-related features, as well as digital initiatives such as mobile content or apps around 2017 milestones and social media contests for youth.

How to apply: Eligibility criteria, as outlined in the Business Innovation Applicant's Guide, 2013-2014, have not changed. The program will give priority to history-related projects. When submitting an application:

  • Please write “History” in capital letters next to the title of your project in Box 1 of appendix B.
  • All elements/activities related to history must be clearly identified in the Project description in Box 3 of appendix B.

To find out more about this modification, please contact us. For additional information on what the Government of Canada is doing to make history more accessible to Canadians, please visit this Web site.


Section B - Business Innovation Component

B.1 Overview

The Business Innovation (BI) component offers support for projects to eligible small and mid-sized print magazine and digital periodical publishing firms. This component encourages innovation to adapt to changing market conditions and contributes to the diversity of content sought by Canadian readers.

The BI component will invest in projects that will increase the periodical's circulation, advertising revenue or visibility, that will strengthen the financial viability, or support business and professional development of eligible Canadian small and mid-sized periodical publishing firms.

B.2 Objectives

The overall objectives of the BI component are to:

  • support innovation and the use of new technologies;
  • strengthen the financial viability of Canadian small and mid-sized print magazines and digital periodicals;
  • increase access to the market by Canadian small and mid-sized circulation print magazines and digital periodicals;
  • encourage the development of the next generation of Canadian periodical publishing professionals;
  • enhance the diversity of titles and Canadian editorial content available to readers and advertisers.

B.3 What's New?

Minimum Average Price Criteria

The minimum average price criteria were announced in the 2012-2013 Applicants Guide. For the 2014-2015 funding cycle, eligible Business Innovation recipients must meet both minimum average price criteria as described in section D.1.2 of the Guide.

Section C - General Project Requirements (for print magazines and digital periodicals)

Projects are considered if they explore new technologies or business models, or if they are new initiatives not previously undertaken by the applicant.

The BI component will invest in projects that are well researched with activities that clearly demonstrate realistic objectives and measurable expected outcomes. The projects 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.

If none of these documents are available, the BI component will consider market research or the development of a business or marketing plan as a first project.

Applications submitted for 2014-2015 to the Business Innovation for Digital Periodicals sub-component will be considered even if these documents are not available. Digital periodicals are part of an emerging field. As such, Canadian Heritage accepts that they may not have a business plan, marketing plan or market research available.

C.1 Expected outcomes

The expected outcomes of the project must adhere to the objective of the CPF and at least one of the objectives of the BI component.

C.2 In-kind contributions

Contributions to project costs may be in the form of in-kind. In-kind costs are not funded by the program although they are calculated in the total eligible costs of the project.

To be eligible, the in-kind contribution must be essential to the project's success, and otherwise would be purchased and paid for by the applicant. The applicant must also indicate the fair market value: for example, if the applicant has an arrangement whereby it normally has access to a preferred rate for goods or services, fair market value is that preferred rate, not a standard rate.

Note: 

  • Canadian Heritage reserves the right to limit the amount claimed as in-kind contribution and/or obtain independent appraisals to determine the value of in-kind contributions.
  • A salary that is paid to an individual who is working directly on the project must be considered as a cash contribution.

C.3 Funding levels

CPF funding can represent up to 75% of the total eligible costs of the project up to a maximum of $25,000 per periodical per fiscal year.

The maximum amount is established as follows:

  • $10,000 for a business plan;
  • $15,000 for a marketing plan or market research;
  • $25,000 for all other types of activities.

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

Note: Recipients may not receive funding from this component for the same type of project for more than two consecutive years. For business plans, marketing plans or market research, funding will be available for updates no sooner than every four years.

C.4 Project assessment

Each application will undergo review and assessment to ensure compliance with program requirements and government policies, and to ensure consistency and transparency of the process and best use of public funds. All project proposals will be evaluated on merit. Meeting the eligibility criteria does not guarantee project funding.

Note:

  • Any projects started prior to approval by Canadian Heritage are undertaken at the applicant's risk.
  • Projects with a maximum duration of 12 months are favoured.

Assessment of all projects will be based on the following common criteria:

  • a) demonstrated need for the project;
  • b) level of expertise of key people who will be doing/managing the project (if applicable, indicate how and why consultants were selected, and include résumés);
  • c) activities are of a suitable scale and the budget is proportionate to the project;
  • d) applicant’s capacity, for example, 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 also show its ability to successfully undertake the project, and that the necessary infrastructure, staff, and financial resources have been secured;
  • e) degree to which the proposal includes appropriate and well defined activities and clear objectives linked to the identified needs, as well as realistic, specific, and measurable expected results;
  • f) how the project adheres to the objectives of the CPF and its BI component;

When the project proposed is not a business plan, marketing plan or for market research, assessment will be based on the following additional criteria:

  • a) degree of innovation, for example, involves use of new technology, research into new business models, new activity for applicant;
  • b) the project is supported by a business or marketing plan, or market research;
  • c) the impact of the project on the financial viability and long-term sustainability of the applicant;
  • d) the degree of involvement and support from the applicant and other partners;

C.5 Sub-components

Funding is available to:

C.6 Application deadline

There is no deadline to submit an application to the Business Innovation for Print Magazines and Digital Periodicals components of the Canada Periodical Fund. It is recommended that applications be submitted at least four months prior to the project start date.

Section D - Business Innovation For Print Magazines

This sub-component provides funding to magazines available in print, that may also exist in digital format, for example, website or mobile application. For periodicals available only in digital format, please refer to section E of the guide: Business Innovation for Digital Periodicals.

D.1 Eligibility

D.1.1 Eligible publishing firms

A publishing firm and its affiliated companies must:

  • a) be in operation throughout the application process and until project completion;
  • b) be majority owned and controlled by Canadians;
  • c) be private-sector entities, including corporations, not-for-profit organizations, partrnerships and sole proprietorship;
  • d) have their principal place of business in Canada;
  • e) have a total average circulation per issue for all print magazines published that does not exceed 45,000 copies. To determine the total average circulation per issue for all print magazines published during the twelve (12) month reporting period indicated in Part G4 of the Appendix A1 [PDF version, 418 KB], apply the following formula:
Total average circulation per issue
Print Magazine titleTotal circulationDivided ByFrequency of publicationEqualsAverage circulation per issue
Magazine applied for 20,000 ÷ 4 = 5,000
Magazine 2 145,000 ÷ 6 = 24,166
Magazine 3 160,000 ÷ 6 = 26,666
Etc.
Total average circulation per issue for all print magazines published 55,832

D.1.2 Eligible print magazines

A print magazine must:

  • a) be published by an eligible publishing firm;
  • b) be majority owned and controlled by Canadians;
  • c) have completed at least one uninterrupted full twelve-month publishing cycle prior to the application;
  • d) have at least 50% paid or request circulation (Aboriginal, ethnocultural, official-language minority and gay, lesbian, bisexual, or transgendered (GLBT) magazines are exempt from this circulation criterion). Refer to Appendix A1, Part F [PDF version, 418 KB]. for calculation;
  • e) have an average circulation of no less than 250 and of no more than 45,000 copies per issue. Refer to Appendix A1, Part G2 [PDF version, 418 KB] for calculation;
  • f) be published at the time of application, throughout the application process, and until completion of an approved project;
  • g) be edited, designed, assembled, and published in Canada;
  • h) be printed and appear in consecutively numbered or dated issues published under a common title, at a frequency of between 2 and 56 issues every year, including special issues;
  • i) contain an average of at least 80% Canadian editorial content in the issues published during the reporting period. Ethnocultural periodicals must contain an average of at least 50%Canadian editorial content in the issues published during the reporting period. Refer to Appendix A1, Part E19 [PDF version, 418 KB] for calculation;
  • j) contain an average of at most 70% advertising in the issues published during the reporting period. Advertising content will be calculated as a percentage of total pages published. Refer to Appendix A1, Part E20 [PDF version, 418 KB] for calculation; and
  • k) for paid circulation magazines,
    1. Subscriptions must be sold at either one of the following prices:
      • at a minimum average subscription price of $12 per year; or
      • at a minimum average subscription price of $1 per copy.
        And
    2. Single copies and newsstand copies must be sold:
      • at a minimum average single-copy price of $1 per copy.

The prices must appear on the cover or in the masthead of the magazine. The minimum prices do not apply to Aboriginal, official-language minority, ethnocultural, and GLBT magazines.  

D.1.3 Ineligible periodicals

Ineligible periodicals include:

  • a) digital-only periodicals;
  • b) newspapers (daily or non-daily);
  • c) free magazines;
  • d) newsletters;
  • e) magazines produced by or for an organization that primarily reports on the activities or promotes the interests of the organization, where the main business is not periodical publishing;
  • f) magazines produced under contract by a non-Canadian organization on behalf of a Canadian client, or produced under contract by a Canadian organization for a non-Canadian client;
  • g) magazines produced by or for an organization providing goods or services where the main goal of the magazine is to enhance or promote the sales of such goods and services;
  • h) professional association magazines;
  • i) magazines produced by or for a government, a Crown corporation or a government agency;
  • j) magazines whose editorial content is primarily reproduced or repeated from current or previous issues of the same magazine or of other publications;
  • k) loose-leaf magazines;
  • l) magazines with editorial content that is made up of more than 50% of the following, singly or in combination: listings, catalogues, magalogues, directories, guides, financial reports, schedules, calendars, timetables, comic books, cartoons, puzzles, games and horoscopes; and
  • m) magazines that contain offensive content in the opinion of Canadian Heritage.

D.1.4 Eligible projects

Eligible projects may include:

  • a) projects aimed at improving interactivity and functionality of the magazine’s website, for example, online payment, subscription management, etc;
  • b) digitization: conversion of analog information into digital information;
  • c) development of a business plan, marketing plan or market research, for example, reader or advertiser surveys;
  • d) professional development/training, especially on new technologies;
  • e) circulation: innovative projects that will help increase paid or request circulation;
  • f) advertising: innovative projects that will help increase advertising revenues;
  • g) editorial: redesign, new editorial or creation of special issues;
  • h) other innovative projects that meet the CPF/BI objectives.

D.1.5 Eligible expenses

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

  • a) salaries/benefits directly related to the project;

    Note: A salary that is paid to an individual who is working directly on the project must be considered as a cash expense. The amount should be pro-rated to the time the employee actually spends on the project. Any such claims of salaries and time must be verifiable by an auditor. It is strongly recommended that recipients expecting to claim salaries implement a system to track these costs, such as keeping detailed timesheets.

    Donated time is considered an in-kind expense (see section C.2 for more information).

  • b) professional/consultant fees directly related to the project;
  • c) professional development/training;
  • d) printed material and film costs, for example, media kits, promotional material, inserts, special issues;
  • e) specialized software purchases or custom programming related to the project, for example, fulfillment system, desktop publishing;
  • f) costs related to the creation and enhancement of the magazine’s website, for example, online subscription/renewal payment, online survey, blogs and podcasts.
  • g) mailing/distribution costs, for example, direct mail piece or promotional material, special issue;
  • h) insertion costs, for example, blow-in card, survey;
  • i) registration fees, for example, conference, workshop, trade show;
  • j) travel costs (economy class only), and/or use of privately owned vehicle, accommodation, and per diem as per the Treasury Board Secretariat approved allowances;
  • k) production costs of display materials, for example, magazine racks, posters;
  • l) rental, for example, equipment, booth, newsstand display;
  • m) accounting costs directly related to the project;
  • n) costs associated with printing extra copies of the magazine to be used in a one-time promotional campaign;
  • o) costs related to digitization (of past issues, editorial content from current issues);
  • p) overhead costs related to the project, for example, long distance telephone charges, fax, photocopying, couriers, and other expenses, up to 10% of total eligible expenses.

D.1.6 Ineligible expenses

Funding is available for specific projects and cannot be used to cover general costs or capital expenditures of the publishing firm.

Ineligible expenses include:

  • a) research or activities undertaken prior to the receipt of an application;

    Note: The program may cover expenses incurred prior to the reception of the funding application if it can be demonstrated that such expenses were indispensable to ensure the success of the project, for example, deposit to retain venue, to secure contract for consultant, speaker or trainer, purchase of airline tickets, etc. Such exceptions are made at the sole discretion of the program.

  • b) salaries/benefits of employees not directly related to the project;
  • c) ongoing operating costs, or capital expenditures of the publishing firm, for example, furniture, computer equipment, mobile devices;
  • d) occupancy costs and overhead costs not directly related to the project, for example, mortgage or facility rental, telephone, fax, photocopying;
  • e) ongoing production costs of the magazine;
  • f) printing costs of regular copies of the magazine;
  • g) hospitality costs;
  • h) incentive prizes for use in contests, sweepstakes, draws or subscription drives.

D.2 Application process

D.2.1 Deadline

It is recommended to submit your application at least four months prior to the project start date. Failure to do so may lead to your project not being considered for funding. Any projects started prior to approval by Canadian Heritage are undertaken at the applicant's risk.

D.2.2 Application to more than one CPF component

Publishing firms may apply to the Aid to Publishers and the Business Innovation components, and if successful, receive financial support during the same fiscal year.

D.2.3 Application instructions

Read the Applicant's Guide carefully, including the definitions to ensure that you meet the publishing firm and magazine eligibility criteria.

Verify that the application form, project proposal, and relevant documents are fully completed, and ensure that the application form bears the applicant’s original signature. Keep a copy of the package for your records.

Missing information and supporting documents may lead to your project not being considered for funding.

Should you have any questions, do not hesitate to contact a BI representative for assistance.

D.2.4 Documents required for your application

Application form

This signed form is part of a complete file and is required by the program to officially open a request for funding file.

Project information

Other forms to be completed and tools available on the CPF website:

Other required documents

1. Business plan, marketing plan or market research

The BI component will invest in projects that are well researched with activities that clearly demonstrate realistic objectives and measurable expected outcomes. The projects 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.

If none of these documents are available, the BI component will consider market research or the development of a business or marketing plan as a first project.

2. Marked up copy of the magazine

How to mark up content in an issue:
Using the last regular issue of the financial year, applicants must identify with a BLACK MARKER, the type of content on each page using the following codes:

Calculate the number of pages for each type of content by rounding off to the nearest whole number. Enter the result for each type of content in Part E of the BI – Application Form – Appendix A1.

3. Financial statements of the publishing firm

The applicant must submit financial information of the magazine and the complete financial statements for the two most recent years of the publishing firm at the highest level available, covering the reporting period indicated in Part D1 of the BI Application Form. The financial statements required must be at one of the following levels:

  • a) Audited;
  • b) review engagement report;
  • c) notice to reader; or
  • d) internally prepared financial report.

4. Circulation information

The applicant must provide documents, such as a circulation report or printing invoices. These documents must support the circulation information indicated in part E1 and cover the reporting period declared in Part D2 of the BI Application Form – Appendix A1 [PDF version, 418 KB]. Compilation or summary reports in lieu of circulation reports are not accepted.

The Canada Periodical Fund accepts reports from the following audit circulation boards:

  • Canadian Circulations Audit Board (CCAB), a division of BPA Worldwide
  • Alliance for Audited Media (AAM)
  • Canadian Community Newspapers Association (CCNA) / Canadian Media Circulation Audit (CMCA)

Note:

  • The CPF reserves the right to request additional information and/or clarification at any time.

Section E - Business Innovation for Digital Periodicals

E.1 Eligibility

E.1.1 Eligible publishing firms

A publishing firm and its affiliated companies must:

  • a) be in operation throughout the application process and until project completion;
  • b) be majority owned and controlled by Canadians;
  • c)be private-sector entities, including corporations, not-for-profit organizations, partnerships and sole proprietorships;
  • d) have its principal place of business in Canada;
  • e) if applicant publishes print magazines and digital only periodicals: have a total average circulation per issue for all print magazines published that does not exceed 45,000 copies (as declared in Part G of the Application form - Appendix A2 [PDF version, 585 KB]) and maximum total revenue for the digital only periodical applied for that does not exceed $500,000 (as declared in Part H9 of the Application Form - Appendix A2 [PDF version, 585 KB]);

To determine the total average circulation per issue for all print magazines published during the twelve (12) month reporting period indicated in Part G of the Appendix A2 [PDF version, 410 KB], apply the following formula:

Total average circulation per issue
Print Magazine titleTotal circulationDivided ByFrequency of publicationEqualsAverage circulation per issue
Magazine # 1 25,000 ÷ 5 = 5,000
Magazine # 2 21,000 ÷ 3 = 7,000
Magazine # 3 24,000 ÷ 2 = 12,000
Magazine # 4 108,000 ÷ 6 = 18,000
Total average circulation per issue for all print magazines published 42,000

or

If the applicant does not publish print magazines: have maximum total revenue for the digital only periodical applied for that does not exceed $500,000, as declared in Part H9 of the Application Form - Appendix A2 [PDF version, 585 KB].

E.1.2 Eligible digital periodicals

For the CPF, a digital periodical is defined as follows:

Primarily text, photographic and illustrated editorial content delivered through a website, download or email that is published on a regularly scheduled basis under a common title and governed by an editorial function.

To be eligible under this sub-component, a digital periodical must comply with the definition above and must meet all the following criteria:

  • a) be published by an eligible publishing firm;
  • b) be majority owned and controlled by Canadians;
  • c) NOT be available in print;
  • d) have completed at least one uninterrupted full 12-month publishing cycle prior to the application;
  • e) be published at the time of application, throughout the application process, and until completion of an approved project;
  • f) contain an average of at least 80% Canadian editorial content in the issues published during the reporting period. Ethnocultural periodicals must contain an average of at least 50% Canadian editorial content in the issues published during the reporting period. Refer to Appendix A2, Part E19 [PDF version, 585 KB] for calculation;
  • g) contain an average of at most 70% advertising content. Refer to Appendix A2, Part E20 [PDF version, 585 KB] for calculation;
  • h) maintain a regular publishing or update schedule of not less than twice a year;
  • i) contain editorial content that is primarily original (over 50%);
  • j) present a clearly displayed masthead or equivalent;
  • k) maintain an editorial function where the editor is named;
  • l) present editorial content from more than one person;
  • m) have a publishing revenue stream for the periodical, for example, subscription revenues, advertising sales, donations;
  • n) have a valid URL address specific to the periodical;
  • o) maintain one of the following types of circulation over six months:

E.1.3 Ineligible periodicals

The following are considered ineligible under this sub-component:

  • a) digital periodicals which are also published in a print version;
  • b) digital periodicals published by daily newspaper publishers, book publishers and/or broadcasters;
  • c) digital periodicals produced by or for an organization that primarily reports on the activities or promotes the interests of the organization where the main business is not periodical publishing;
  • d) digital periodicals produced by or for an organization providing goods or services where the main goal of the periodical is to enhance or promote the sales of such goods and services;
  • e) professional association digital periodicals;
  • f) digital periodicals produced by or for a government, a Crown corporation or a government agency;
  • g) digital periodicals with editorial content that is made up of more than 50% of the following, singly or in combination: listings, blogs, catalogues, magalogues directories, guides, financial reports, schedules, calendars, timetables, comic books, cartoons, puzzles, games or horoscopes;
  • h) digital periodicals whose editorial content is primarily reproduced or repeated from other sources;
  • i) content produced or published under contract by a non-Canadian organization on behalf of a Canadian client, or produced or published under contract by a Canadian entity for a non-Canadian client;
  • j) digital periodicals that contain offensive content in the opinion of Canadian Heritage.

E.1.4 Eligible projects

Eligible projects may include:

  • a) development of a business plan, marketing plan or market research, for example, reader or advertiser surveys;
  • b) professional development/training, especially related to new technologies;
  • c) innovative projects that will help increase readership and revenues related to advertising, subscriptions, events, and other sources. This can include but is not limited to cross promotions with other media; search engine optimization; television, radio, and video promotions; social networking; media kits; and event attendance;
  • d) update or acquisition of software to improve interactivity and functionality, manage subscriptions or editorial content;
  • e) internships/summer students;
  • f) video and audio production;
  • g) RSS feeds and podcasts, and mobile applications;
  • h) redesign of the digital periodical;
  • i) other innovative initiatives that meet the CPF/BI objectives.

E.1.5 Eligible expenses

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

  • a) salaries/benefits directly related to the project;

    Note: A salary that is paid to an individual who is working directly on the project must be considered as a cash expense. The amount should be pro-rated to the time the employee actually spends on the project. Any such claims of salaries and time must be verifiable by an auditor. It is strongly recommended that recipients expecting to claim salaries implement a system to track these costs, such as keeping detailed timesheets.

    Donated time is considered an in-kind expense (refer to section C.2 In-kind contributions).

  • b) professional/consultant fees directly related to the project;
  • c) professional development/training;
  • d) promotional costs, for example, design, production, testing, printing;
  • e) specialized software purchase or custom programming related to the project;
  • f) costs related to the enhancement of a website;
  • g) creation/management of social networking or other relevant interactive tools;
  • h) registration fees, for example, conference, workshop or trade show;
  • i) travel costs (economy class only), and/or use of privately owned vehicle, accommodation, meals and incidentals as per the Treasury Board Secretariat approved allowances;
  • j) accounting costs directly related to the project;
  • k) overhead costs for the project, for example, long distance telephone charges, fax, photocopying, couriers and other expenses - up to 10% of total eligible expenses.

E.1.6 Ineligible expenses

Funding is available for specific projects and cannot be used to cover general costs or capital expenditures of the publishing firm.

Ineligible expenses include:

  • a) research or activities undertaken prior to the receipt of an application;

    Note:  The program may cover expenses incurred prior to the reception of the funding application, if it can be demonstrated that such expenses were indispensable to ensure the success of the project, for example, deposit to retain venue or to secure contract for consultant, speaker, trainer; purchase of airline tickets, etc. Such exceptions are made at the sole discretion of the program.

  • b) salaries/benefits of employees not directly related to the project;
  • c) ongoing operating costs, or capital expenditures of the publishing firm, for example, furniture, computer equipment;
  • d) occupancy costs and overhead costs not directly related to the project, for example, mortgage or facility rental, telephone, fax, photocopying;
  • e) ongoing production costs of the digital periodical;
  • f) hospitality costs;
  • g) incentive prizes for use in contests, sweepstakes, draws or subscription drives.

E.2 Application process

E.2.1 Deadline

It is recommended to submit your application at least four months prior to the project start date. Failure to do so may lead to your project not being considered for funding. Any projects started prior to approval by Canadian Heritage are undertaken at the applicant's risk.

E.2.2 Application instructions

Read the Applicant's Guide carefully, including the definitions to ensure that you meet the publishing firm and periodical eligibility criteria.

Verify that the application form, project proposal, and relevant documents are fully completed, and that the application form bears the applicant’s original signature. Keep a copy of the package for your records.

Should you have any questions, do not hesitate to contact a BI representative.

E.2.3 Documents required for your application

Application form

This signed form is part of a complete file and is required by the program to officially open a request for funding file.

Project information

Other forms to be completed and tools available on the CPF website:

Other required documents
Editorial content

Applicants must fill out Part E19 of the application form, Appendix A2, indicating the percentage of Canadian content in their periodical. 

By signing Part J1 of the Application Form - Appendix A2 [PDF version, 585 KB], applicants attest to the accuracy of information provided in their application.

The applicant must keep archived past issues of the eligible periodical that appeared during its reporting period (indicated in Part D1) for five years in case they are requested later by the CPF. The program may also ask for a list of contributors, indicating their nationality, for the issues published during the reporting period. Failure to retain these records may lead to repayment of the amount awarded and render the applicant ineligible for future CPF support for two years or more.  Refer to section G.3, Audits of Projects.

Financial statements of the publishing firm

The applicant must submit financial information for the periodical and the most recent financial statements for the two most recent years of the publishing firm at the highest level available, covering the reporting period indicated in Part D1. The financial statements required must be at one of the following levels:

  • a) audited;
  • b) review engagement report;
  • c) notice to reader; or
  • d) internally prepared financial report.
Readership information

The applicant must submit one of the following to support circulation levels declared in Part G [PDF, 585 KB] of the application form:

Circulation Levels Support Documents
Business modelCirculation measuredSupporting document

Paid subscription service

Average number of paid subscribers over six months.

Declaration in Part G2 of Appendix A2 [PDF version, 585 KB].

Applicants must retain a copy of their subscribers list for five years should the program conduct an audit.

Email-based service

An average number of registered email recipients over six months.

Declaration in Part G4 of Appendix A2 [PDF version, 585 KB].

Applicants must retain a copy of the email recipients list for five years should the program conduct an audit.

Open-access service

An average number of unique monthly visitors over six months.

A valid report from a Web auditing tool such as Google Analytics (free), Web Trends, CCAB/BPA-Nielson or other deemed acceptable by the program.

It is necessary to ensure that the total readership does not count internal Internet Protocol addresses or bot/spider traffic. Canadian Heritage reserves the right to refuse a report that is deemed unacceptable.

Notes:
The CPF reserves the right to request additional information or clarifications at any time.

The CPF will also need full access to the digital periodical to verify eligibility.

Section F - Approved Application

F.1 Types of funding

The CPF provides funding to publishing firms as either a grant or a contribution. The main difference between a grant and a contribution is that a contribution has more conditions and requires more reporting on how the funds were spent. If contribution funds are not spent as agreed upon between the publisher and the CPF, the publisher may be required to reimburse some or all funding.

The choice of a grant or a contribution is made by the CPF and is based on a risk assessment that may include factors, such as the amount of money involved, the complexity of the project, and the applicant's capacity.

If your application is successful, you will receive full details about the conditions of your funding, and may be asked to sign an agreement requiring you to fulfill those conditions.

F.2 Changes to a publishing firm or a periodical

Should the status of a publishing firm or periodical change, applicants and recipients must immediately inform the CPF if one or more of the following changes occurs:

  • name of publishing firm;
  • title of periodical;
  • periodical ceases publishing or changes to digital format;
  • insolvency - Assignment in Bankruptcy;
  • sale of periodical or publishing firm: should shares or assets of the periodical or the publishing firm be sold, merged or by any other means transferred, leading to a change of control of the specific firm or of the specific periodical, the following applies;
    • the Department must be advised before the transaction is finalized, to determine whether the periodical and new owner remain eligible;
    • if applicable, it is the entire responsibility of the parties to agree on the value of the assets to be sold, which includes any financial type of support received from the Department;
    • the current owner must send a copy of the sale contract to the Department. The contract must specify the intention of both parties vis-à-vis the financial support;
    • if applicable, the publishing firms must sign an Assignment and Assumption Agreement, and the new owner must submit proof that it is Canadian owned and controlled. Otherwise, it will cease to be eligible to the CPF;

All or part of the financial support will have to be reimbursed, if the recipient ceases to be eligible during any part of 2014-2015.

Section G - Department of Canadian Heritage Provisions

G.1  Acknowledgement of funding

All CPF recipients must recognize the financial support provided by the Government of Canada by including an acknowledgement text and the Canada wordmark in the masthead of the supported periodical and in any activity related to the project. The acknowledgement text and the wordmark must appear in all issues following approval of funding until the periodical is no longer supported by the CPF. The acknowledgement text and the wordmark must not appear in periodicals that are not supported by the CPF.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

Government of Canada Symbol.

The Department reserves the right to review and approve the use of the Canada wordmark available at: www.canadianheritage.gc.ca/logos, prior to a product or a service being offered by the recipient to the public.

G.2 Minister’s discretion and decision

The eligibility criteria and guidelines of the CPF do not restrict the discretionary power of the Minister of Canadian Heritage. Decisions of the Minister regarding the eligibility and the funding of applicants are final.

G.3  Evaluation of the program

The Department will conduct periodic evaluations of the CPF. During an evaluation, recipients must make available any records, documents, or other information that may be required to perform the evaluation.

G.4 Audits of projects

Canadian Heritage conducts audits on a sample of successful applications each year; the Department will assume the audit cost. In such cases, recipients must make available any records, documents, or other information that may be required to perform the audit. Recipients must retain for at least five years supporting documents related to the information provided in all application forms.

A recipient found to have submitted false or unsupported information may be required to repay the full amount of the financial support received, and may be declared ineligible from the CPF for the next two fiscal years or more.

G.5  Disclosure of information to the Government of Canada

By applying to the CPF, you authorize Canadian Heritage to disclose any information received in your application within the Government of Canada or to outside entities for the following purposes: to reach a decision on an application; to administer and monitor the implementation of the project; and/or to evaluate the results of the project and this program after project completion.

The disclosure of any information received in this application may also be used to reach a decision on any other application of the applicant for funding under any other Canadian Heritage program.

G.6  Information that could be made public

When funding is approved, the amount awarded for each of your periodicals, the purpose for which the funds are granted, and the name of the recipient, are considered public information. This information may be disclosed without consulting the recipient and may be listed on the CPF website or disclosed in public documents produced by Canadian Heritage. 

G.7  Access to Information requests

If an access to information request is received regarding your funding application or any other document in the Department's possession containing information on your publishing firm, the information provided to the Department will be treated in accordance with the Access to Information Act and the Privacy Act.

G.8  Protection of personal information

Your personal information is protected under the Privacy Act. Only information needed for operating the CPF and measuring its results will be requested. The collection and use of personal information for this program is authorized by the Department of Canadian Heritage Act and is required for your participation.

G.9  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.

Section H - Definitions

Underlined words in this guide are defined in this section.

Aboriginal periodical

A periodical that is primarily targeted to and concerned with and serving First Nations, Inuit or Métis peoples and communities.

Advertising

Includes: paid advertising, contra or in-kind advertisements and advertorials.

Does not include: charitable; public service; house advertisements; the masthead; or other non-revenue pages.

Affiliated companies

For the CPF, companies will be considered affiliated if:

  • one or more employees, officers or directors of a company, during their mandate, control the management and/or policies of another company;
  • the periodicals are owned and controlled by the same company; or
  • the company owns and controls at least 51% of the voting shares or assets of the other companies.
Articles of Incorporation

The Articles of Incorporation are a legal document filed with a provincial or territorial government, or the federal government, which sets out a corporation's purpose and regulations.

Business Number

A Business Number (BN) is a unique 9-digit number assigned by the Canada Revenue Agency. A sole proprietor, partnership, corporation, trust or other organization must enter their BN on the application form in part B, "Publishing Firm Information" Line B3. For additional details, see www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/menu-eng.html.

Business plan

A business plan is essentially a document that describes your company, its business environment, and where it is heading. A business plan is a tool that helps you overcome the risks involved while continuously maintaining a clear overview of the road to follow. Business plans can vary in length depending on the level of detail included.

Generally, a business plan will:

  • describe your concept/perception of your company's business;
  • identify your company's goals (long term) and objectives (short term);
  • identify financial and human resources, and describe the manner in which such resources will be employed to achieve the company's goals and objectives;
  • help prospective investors or lenders understand how the company will be successful; and
  • provide benchmarks against which you can measure future performance.

A business plan usually includes:

  • an executive summary: A one- or two-page summary that describes key elements of the business plan, and briefly identifies the path of your company and where it is expected to be during the period covered by the business plan;
  • a mission statement: A statement that concisely articulates the core reason for your company's existence;
  • a business description: An overview of the industry that your company is part of, and within which it will compete, including a description of products or services that your company will offer;
  • goals and objectives: your vision of the ultimate goals you aim to accomplish and the objectives you wish to achieve as you go, including your company's positioning in the marketplace. The objectives must be realistic, attainable, and measurable;
  • an implementation plan: description of the management team, human and financial resources, and means of using those resources through the conduct of business operations;
  • a marketing plan: identifies target markets, advertising and promotion plans, pricing strategies, and distribution methods;
  • a financial plan/forecast: cash flow forecast, pro-forma income statement (profit and loss), and a pro-forma balance sheet:
    • a cash flow statement identifies sources of cash receipts and payments (expenses/investments);
    • a pro-forma income statement shows revenues, expenses, and net profit (loss) forecasted for a defined period, which is usually a year; and
    • a pro-forma balance sheet lists the company's assets, such as what it will own, its liabilities, what it will owe, and the shareholder's/owner's equity at a given point in time.
Canadian editorial content

Editorial content (text and images) created or translated by a Canadian citizen or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act.  Translated editorial content by a citizen or a permanent resident of Canada within the meaning of this Act will be considered Canadian content if the editorial content is translated into one of the two official languages. Note: translation does not modify the nature of the editorial content.

Canadian ownership and control

An eligible publisher or periodical must be majority owned and controlled by a Canadian. For the program, "Canadian" means:

  • a) a Canadian citizen;
  • b) a permanent resident within the meaning of the Immigration and Refugee Protection Act;
  • c) a Canadian corporation (see below);
  • d) a partnership, trust or joint venture in which a person or any combination of persons referred to in a), b) or c), beneficially owns and controls, directly or indirectly, interests representing in value at least 51% of the total value of the assets of the partnership, trust or joint venture, as the case may be, and of which the president or other presiding officer, and more than half of the directors or other similar officers are persons referred to in a) or b) above; or
  • e) a not-for-profit organization in which at least 51% of its members and directors are persons referred to in a) or b) above.

If, at any time, one or more persons that are not described in any of paragraphs a) to e) of this definition of Canadian have any direct or indirect influence through a trust, an agreement, an arrangement or otherwise, that, if exercised, would lead to a control in fact of the publishing firm, the firm is deemed not to be Canadian-owned.

A "Canadian corporation" is one that meets the following criteria:

  • a) a corporation that is incorporated under the laws of Canada, a province or a territory;
  • b) a corporation whose principal place of business is in Canada;
  • c) a corporation whose president or other presiding officer, and more than half of the directors or other similar officers are Canadian citizens or permanent residents within the meaning of the Immigration and Refugee Protection Act;
  • d) a corporation, in the case of a corporation with share capital, of which Canadians beneficially own and control, other than by way of shares held only as security, directly or indirectly, in the aggregate at least 51% of all the issued and outstanding voting shares representing more than half of the votes; and
  • e) a corporation, in the case of a corporation without share capital, of which Canadians beneficially own and control, directly or indirectly, interests representing in value at least 51% of the total value of the assets.

As an exception to the requirement for both Canadian ownership and Canadian control, publishing firms that are owned by Canadians and have operated in Canada as a publisher of periodicals for at least thirty years will not be found ineligible only for the reason that they are not Canadian-controlled.

Circulation report

A circulation report issued by an accepted audit circulation board that reports on the volume of circulation by source, circulation type by breakout, locations of distribution, and selling price for a magazine during a specific period.

Complementary circulation

The number of copies distributed free of charge.

Consumer periodical

A periodical aimed at the public, of two types:

General interest: dealing with broad topics likely to be of interest to anyone, such as news, general history, and entertainment.

Special interest: dealing with niche topics, such as hobbies, cooking, sports or countless others. This is the most common type of periodical.

Controlled circulation

The number of copies distributed free of charge on a regular basis to consumers selected by the publisher.

Cost of goods sold

This is the value of the opening stock plus all purchases less the value of the closing stock.

Digital periodical

A digital periodical is primarily text, photography, and illustrated editorial content delivered through a website, download or email that is published on a regularly scheduled basis under a common title and governed by an editorial function (editor).

Editorial content

The space in a periodical, excluding advertising and non-revenue pages, which consists of text, photographs, graphics, and illustrations.

Editorial function/edited in Canada

The commissioning of editorial material and artwork; directing writers, illustrators and photographers regarding the final form of the material; and laying out, copy editing and proofreading, and otherwise preparing the contents for publication; must be done in Canada.

Ethnocultural periodical

A periodical that primarily serves, or is primarily concerned with, a commonly recognized specific cultural or racially distinct community or specific linguistic group using other than Canada's official languages. An ethnocultural periodical may be published in any language.

Farm periodical

A periodical aimed at the farming industry, including animal farming.

Financial year (of the publishing firm)

Refers to the publishing firm's financial year consisting of an accounting period of 12 consecutive months.

Financial statements (of the publishing firm)

Financial statements generally comprise:

  • a report from an independent public accountant;
  • a balance sheet;
  • statements of income/profit and loss;
  • a cash-flow statement; and
  • notes to the statements.
  • The financial statements required must be at one of the following levels:
  • audited;
  • review engagement report;
  • notice to reader; or
  • internally prepared financial report.
  • The following are definitions of the different engagement levels acceptable to the BI for financial statement:

a) Audited financial statements

A certified accountant has performed auditing/verification activities in accordance with generally accepted auditing standards. An auditor's report, without any qualifications or reservations, will generally include three paragraphs:

an introductory paragraph identifying what statements have been audited, stating that the financial statements are the responsibility of the entity's management and that it is the auditor's responsibility to express an opinion on the financial statements based on the results of the audit;

a scope paragraph indicating that the audit was conducted in accordance with generally accepted auditing standards that require planning and execution of auditing activities to provide reasonable assurance that the statements are free from material misstatements and the nature of audit activities performed;

an opinion paragraph stating whether the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the entity in accordance with generally accepted accounting principles.

b) Review engagement report

The review engagement report differs from the audit report in that the scope of a review is less than that of an audit, thus the level of assurance provided to the reader of the financial statements is lower. A review engagement report will generally include three paragraphs:

an introductory paragraph identifying what statements have been reviewed, stating that the review was conducted in accordance with generally accepted standards for review engagements, consisting primarily of enquiry, analytical procedures and discussion on information provided to the certified accountant by the entity;

a statement that a review does not constitute an audit and that the certified accountant is not expressing an audit opinion on the financial statements;

a conclusion indicating whether anything has come to the certified accountant's attention that causes the accountant to believe that the information being reported on is not, in all material respects, in accordance with generally accepted accounting principles.

c) Notice to reader

The notice to reader report indicates that a certified accountant has assisted the publishing firm in compiling data for the preparation of the financial statements but has not audited, reviewed or otherwise attempted to verify the accuracy or completeness of the information.

d) Internally prepared financial report

The financial report should be prepared by the person authorized to keep the financial records of the publishing firm. The following information should be provided for the two most recent financial years:

  • Revenues: advertising (net of agency commissions and cash discounts);
  • single copy or newsstand sales (for print periodicals);
  • subscription revenues (irrespective of source and pricing);
  • back issues and reprints (for print periodicals);
  • list sales or rentals;
  • website/e-commerce (net of agency commissions);
  • ancillary products;
  • all other revenues from the periodical, including transfers from central services or an affiliated organization;
  • government grants and contributions, including the Canada Council for the Arts, and other federal, provincial and municipal sources;
  • private-sector donations;
  • membership dues.
  • Expenses:
  • editorial, design and assembly;
  • mechanical;
  • circulation;
  • advertising;
  • distribution;
  • general expenses and administration;
  • website/e-commerce;
  • ancillary products;
  • other expenses (specify).
  • Balance sheet:
  • Statement of what an organization owns (assets) and its debts or pecuniary obligations (liabilities) at a given date:
  • assets, for example, cash on hand, accounts receivable and capital assets;
  • liabilities, for example, accounts payable, bank indebtedness;
  • cumulative profit/deficit.
Fiscal year

Refers to the federal government fiscal year, which starts on April 1 of a given year and ends on March 31 of the following year.

Foreign editorial content

Editorial content (text and images) created or translated by a person who is not a Canadian citizen or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act. If the creator or translator is unknown, or if the citizenship cannot be determined, the editorial content is deemed foreign.

GLBT periodical

A periodical that primarily serves or is primarily concerned with the gay, lesbian, bisexual, or transgendered communities.

International Standard Serial Number (ISSN)

An internationally agreed upon standard number that uniquely identified a publication. It is assigned by the ISSN Network.

In-kind contribution

The contribution by an individual, business or organization of materials, goods, services or time to the project, which would otherwise be a necessarily incurred expense.

Listings

A series of words, numbers, paragraphs, photos, or other items, which may include descriptions, opinions or analysis. Examples: stock listings, sports scores and standings, television listings, product descriptions and restaurant descriptions. Adding star rating or other indicators to descriptive text does not constitute opinion or analysis.

Magazine

A print magazine that is commonly recognized as a magazine, is paginated and bound, appears in consecutively numbered or dated issues, is published under a common title at regular intervals and may possess an International Standard Serial Number.

Market research

For the Business Innovation component, a market research will consist of collecting, analyzing, and presenting information to assist a company in problem-solving and decision-making. The data should be recent and collected from reliable sources for example, market and sales analysis, consumer and advertising research, knowledgeable/expert opinions, industry research, previous experience, and used to support a specific course of action aimed at improving advertising, circulation or editorial content in the periodical applied for, and as stated in the project proposal. In other words, a market research:

  • specifies the information required to address marketing objectives (areas/issues that the publisher wishes to address);
  • designs the method for collecting information (also identifies the data source, the person responsible for collecting it and the collection period);
  • manages and implements the data collection process;
  • analyzes the results; and
  • communicates the findings and their implications.
Marketing plan

A marketing plan defines the parts of the marketing strategy of a business, addressing the details of market analysis, sales, advertising and public relations campaigns. A marketing plan usually includes the following points:

  • strategic issues (information on the current business environment, internal and external issues which are affecting or could affect the business, the marketing plan or opportunities - or lack thereof - in the coming year);
  • market research;
  • marketing objectives (measurable results to be achieved);
  • marketing strategies (information on the chosen course of action to meet the marketing objectives); and
  • marketing budget (financial information showing the past three years of marketing and sales expenditures plus the forecast for the coming year, including analysis of results and returns on investment in marketing).
Masthead

The section of a periodical which lists information on the staff, the publisher, the editorial board, and provides contact information.

Mobile devices

A mobile device, such as a smartphone, tablet, personal digital assistant (PDA), e-bookreader, etc. is a handheld device that is made for portability, and is therefore both compact and lightweight.

Newsletter (for print periodicals)

A print magazine scoring six or more points on the following scale is a newsletter and is not eligible under the Business Innovation Component.

  1. No cover page - the articles start immediately - 2 points
  2. Unbound - 2 points
  3. Fewer than 20 pages - 2 points
  4. No table of contents - 1 point
  5. Does not list authors - 1 point
  6. No full masthead - 1 point
  7. No regular editorial columns or letters to the editor - 1 point
  8. Part of a continued series (volumes) - 1 point
  9. Total - 11 points
Newspaper

A print magazine scoring six or more points on the following scale is a newspaper and is not eligible to the Business Innovation component.

  1. Broadsheet format, tabloid format or outsized (larger than 8-1/2 x 11 inches) - 2 points
  2. Unbound - 3 points
  3. Printed on any type of newsprint - 1 point
  4. Identified as a newspaper (daily or non-daily) - 1 point
  5. Cover subdivided (articles, boxed photos) - 1 point
  6. Advertising on front cover - 1 point
  7. Divided into detachable regular sections, such as news, analysis, entertainment, sports - 1 point
  8. Total 10 points
Non-revenue pages

All pages other than advertising pages, contra or in-kind or editorial. They can include self-promotional pages, pages donated to local charities or businesses, delivery of in-kind services, etc. Blank pages are considered to be non-revenue pages.

Offensive content

Periodicals or projects that, in the opinion of the Department of Canadian Heritage, contain or promote any of the following:

  • material that is hate propaganda, obscene or child pornography, or any other illegal material, as defined in the Criminal Code;
  • pornography or other material having significant sexual content unless it can be demonstrated that there is an overriding educational or other similar purpose;
  • material that contains excessive or gratuitous violence;
  • material that is denigrating to an identifiable group; or
  • any other similarly offensive material.
Official-language minority periodical

A periodical that is published in English or French in a region of Canada where the language and content of the periodical primarily serves and is concerned with an official-language minority community for example, a French-language community outside of Quebec or an English-language community in Quebec.

Paid circulation

Copies of a magazine sold through subscriptions, single-copies/newsstand sales and sponsored copies.

Professional association periodical (print magazines or digital periodicals)

A periodical which meets allthe following conditions:

  • is directly owned by an association;
  • membership in the association is necessary to maintain a professional status which is recognized by a federal or provincial statute; and
  • membership in the association includes paying professional dues which are deductible under subparagraph 8(1)(i) (i) of the Income Tax Act.
Registered email recipient

Person to whom an email message is sent directly and has previously agreed to be contacted to receive the content.

Regularly scheduled basis

Is published in accordance to an established publishing calendar.

Religious periodical

A periodical that is primarily religious in purpose and content.

Request circulation (eligible copies)

Copies of magazines that are individually addressed to recipients who have directly requested them from a publishing firm using written, telephone, email or fax request.  Applicants under direct request circulation must always provide 12-month circulation reports from an audit circulation board accepted by the CPF.

Scholarly journal

A periodical, aimed at specialists, which presents results of research in a specific field for disseminating knowledge.

Search engine optimization (SEO)

SEO - the practice of increasing volume to a website through search results. Digital publishers can increase the relevance of their content to specific key search words and remove search engine indexing barriers by appropriately editing content and HTML code.

Social networking applications

Social networking, for example, Facebook, Twitter and MySpace applications, can be used by digital publishers to distribute content, and to promote an online periodical by creating open dialogues with readers.

Special issue

A special issue:

  • is published within the regular publishing cycle;
  • focuses on a specific theme or topic;
  • has a title and an International Standard Serial Number common to the host periodical; and
  • has its purchase cost included in the subscription price of the regular publishing cycle.
Sponsored circulation

Copies purchased by a sponsor for distribution to targeted consumers to increase its business relationship with the consumers.

Subscriber

An individual who has knowingly paid or undertaken to pay for a subscription to a periodical to be delivered over a specified period.

Trade periodical

A periodical that is targeted to workers in a particular field of employment, usually using request circulation. Also known as a business, business-to-business or professional periodical.

Unique monthly visitor

Visitor of a website for which the number of visits of the same site, for 30 days, is counted only once. Sites often calculate unique visitors based on the Internet Protocol address information.

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