Financial Statements

CRKN continues to deliver value to members, meeting our strategic goals while remaining committed to a sustainable future for our members.

Financial Results

2024–2025 Revenues by Source

($5,055,682 Total)

Average Interest Rate From Bank of Canada

The most significant increase to revenue came from much higher than anticipated interest revenue, which greatly exceeded our budget. Other increases were seen in conference registration fees, funding from the Digital Research Alliance of Canada for the Persistent Identifiers program, and unrealized gain. Heritage Content Access and Preservation fees (HCAP) and Membership fees have increased to account for inflation, while digitization revenue is based on projects that vary from year to year. The hosting fee is consistent with prior year.

With the spike in interest rates, as can be seen in the following chart, combined with cost savings, CRKN was able to offset a planned deficit and instead deliver a surplus at the end of the 2024–2025 fiscal year.

Expenses

CRKN’s salary costs are the largest component of the annual budget, as CRKN employs a diverse team of librarians, developers, technicians, and other professionals to deliver on our strategic objectives and support the needs of the member community. CRKN is governed by a twelve-person Board, five standing committees, and several sub-committees and task groups. The bulk of budgeted governance costs for in-person meetings are in travel and accommodation related expenses. The finance team compares actual results to the budget each month, maintaining and adjusting year-end forecasts every quarter. This process ensures accurate financial reporting for review with the Finance and Audit Committee (FAC) and Board of Directors.

2024–2025 Actual Expenses

($5,073,430 Total)

Surpluses and Reserves

CRKN has realized a series of surpluses over the past few years. Following the direction of the Net Asset Policy, CRKN restricts 40% of the approved operating budget to provide for outstanding operational obligations in the event of the wrap-up of the organization. After accounting for capital assets, this leaves significant unrestricted net assets to address budget shortfalls and contingencies in future years. CRKN’s financial reserves and management practices provide the Finance and Audit Committee and the Board with the flexibility and confidence to support deficit budgets to reinvest in the organization’s capacity in alignment with its approved strategic plan.

Financial Outlook

As we assess the financial landscape for the upcoming year, we find ourselves navigating unusual and uncertain times. The imposition of tariffs by the US government has sparked a trade conflict that poses a threat to the Canadian economy, slowing growth while simultaneously driving inflation higher. In response, the Bank of Canada has approached the situation cautiously, providing limited guidance on its potential measures.

These potential rate adjustments could further weaken the Canadian dollar. Such currency fluctuations will inevitably impact the cost of licenses that CRKN provides to its members, influencing decisions about which licenses and initiatives to pursue in this challenging economic climate. We must remain vigilant and adaptable, as the evolving economic conditions will shape our financial strategies and priorities.

In March 2025, the Finance and Audit Committee and the Board recognized the need to continue to invest in the organization to advance the objectives of the 2025-2029 Strategic Plan and beyond, recommending a deficit budget for fiscal year 2025–2026. Management continues to pursue additional sources of revenue to support CRKN’s long-term sustainability.