Letter from the Canadian Kennel Club

Dear CKC Member,

At the March Board Meeting in Winnipeg, with reports from the Audit Committee and the CEO, it became apparent that the Canadian Kennel Club is in the midst of a financial crisis. Dropping registration numbers, a slight decline in entries and falling membership, all products of a worldwide recession in many industries, have combined in the last quarter of 2009 to leave the CKC in a deficit position that is unable to be managed with our existing cash flow.

Traditionally the first quarter of any calendar year is one of low revenue streams – the show season is only beginning, breeders register fewer litters at this time and expenses are static. Normally, we are able to weather this period within existing resources and saved earnings. This year is an exception. The deficit was so large ($451,475 for CKC and $150,024 for APEX) that our reserves have not been able to support our financial position. During the 2009 year, understanding that revenues were soft, projects and programs were cut, expenses reduced and new contracts signed to further reduce our obligations. These measures assisted in averting a 2009 financial crisis.

At the December Board meeting, the Audit Committee has financial information to the end of September. At that time our Chair of Audit advised that there was certainty in a deficit position at year end. With advice from the CEO, she advised that the last quarter is generally one of our strongest and that this deficit should be within the capability of the organization to handle. We  now know that this year was not predictable, that revenues continued to drop and that our deficit has created an issue of crisis proportions.

Appeals are now being made to you, our membership, and to CKC Clubs to assist the CKC with donations, as they are able. This one time cash infusion will be applied to the deficit and will shore up the organization over the next two months. During that period, the Board of Directors is working with members and staff to analyze expenditures, cut services as necessary and reduce obligations to effect positive change.

This is a difficult time for the CKC. We ask you, as a member, to work with the Board to move forward. We need your help and we need your support. There will come a time to  analyze the history of this issue and to deal with the lessons we have and are continuing to learn. That will happen once the crisis is averted. Until that time we must work together as The Dog Fancy in Canada. We very much look forward to your support.

Lee Steeves
Interim Chair of the Board

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