Teen Challenge Canada is a 3-star, financially transparent charity. Its results reporting score is B+ and its overhead spending is within Ci’s reasonable range. However, it has Fair demonstrated impact per dollar spent. 

Founded in 1973, Teen Challenge Canada (Teen Challenge) is a global faith-based addiction and substance abuse recovery charity. It operates nine centers across Canada in Alberta, Atlantic Canada, Saskatchewan, and Ontario. These centers have a total of 433 beds and run a yearlong in-residence drug and alcohol rehabilitation for adults over 18.

Teen Challenge reports that among its clients in F2023, 50% were addicted to alcohol; 22% to cocaine; 20% to amphetamines, including crystal meth; 13% to cannabis; and 11% to opioids. It also reports that substance use costs Canadians more than $49 billion per year.

It runs two main programs: the Core 12-Month program and the Post-Graduate Aftercare program. It does not provide a program spending breakdown.

The Core 12-Month is the initial year-long residential program. Clients stabilize, detoxify, and receive counseling. Teen Challenge states that 62% of its incoming clients have a diagnosed mental health condition. In the final months of the program, individuals create an exit strategy and a relapse prevention plan. In F2023, it reported 3,617 hours spent in addiction counseling and 132,600 hours spent in work therapy and in the classroom by the 245 admitted clients and 56 graduates of its program.

The Post-Graduate Aftercare program allows graduates to stay at a centre for an additional six months to one year. They work alongside staff and mentor other clients. In F2023, 65 graduates participated in the aftercare program.

In F2023, Teen Challenge Canada received $11.5m in donations and $2.9m in donated goods-in-kind. Administrative costs were 5% of revenues. Fundraising costs were 11% of donations. Total overhead spending was 16%. For every dollar donated, 84 cents are available to go to the cause. This is within Ci’s reasonable range for overhead spending. 

The charity’s interest-bearing liabilities of ($4.8m) exceed its liquid assets of $1.1m, resulting in a negative program cost coverage figure. These liabilities mainly represent mortgages and loans needed to finance renovations and building upgrades. When excluding debts and donor-endowed funds of $547k, Teen Challenge Canada’s gross funding reserves can cover just over six months of annual program costs.

This charity report is an update that has been sent to Teen Challenge Canada for review. Changes and edits may be forthcoming.  

Updated on July 31, 2024 by Stellar Zhang.