Incorporation of Sunnybrook Research Institute
By Stephanie Roberts
On June 28, 2010, the Board of Sunnybrook Health Sciences Centre authorized management to proceed with preliminary work toward the incorporation of Sunnybrook Research Institute (SRI).
“This is an important advance for SRI, one with distinct advantages to both the corporation and our research staff,” said Dr. Michael Julius, vice-president of research at Sunnybrook. Julius hosted a town hall meeting earlier that day where Michael Young, executive vice-president and chief administrative executive at Sunnybrook, presented on the initiative.
Young answered a list of anticipated questions about the incorporation, and took queries from the meeting’s attendees, who came from across the research institute.
“The hospital has considered incorporation of SRI in the past and only now, after identifying compelling reasons, are we pursuing this approach,” said Young.
Primary among those reasons is encouraging further investment in SRI by simplifying the process for “contributors” to take advantage of federal tax credits available through the Scientific Research and Experimental Development (SR&ED) program, he said.
The SR&ED program is a federal tax incentive program designed to stimulate Canadian businesses to conduct research and development (R&D) in Canada. It is the largest single source of federal support for industrial R&D. The program gives claimants cash refunds and tax credits for eligible R&D expenses.
Young noted that one can partake of the SR&ED program without SRI being incorporated, but to do so would require individuals to apply to the Canada Revenue Agency on a project-by-project basis. “Such a process is not considered economically or logistically feasible,” he said.
Incorporation will streamline the process. That’s because, owing to its single focus—research—SRI will be eligible to apply for preapproved status, something the hospital with its diversity of activity cannot do. Once SRI receives this status, all contributions to SRI will be eligible for SR&ED credits.
Another compelling reason to incorporate is that researchers will be able to receive grants now beyond their grasp. These are funds administered by federal agencies that require the recipient organization to be compliant with the Employment Equity Act, legislation to ensure equal employment opportunities for women, Aboriginal peoples, persons with disabilities and visible minorities.
“It is not feasible for Sunnybrook to be compliant with the act—indeed, we are not aware that any of our peer hospitals meet the employment equity requirement,” said Young. With incorporation, SRI will become the first among its academic health science centre peers to meet the legislative mandate. This means researchers here will be able to hold grants from the Public Health Agency of Canada, for example.
A third reason, said Young, is that SRI will no longer be viewed as a department of the hospital, which is currently how it is structured; this may create new “branding” opportunities for SRI. He also emphasized that the transition will be “seamless.” All staff at SRI will be transferred into the new incorporated structure. There will be no impact on existing payroll, benefits or pensions; and incorporation will not change how researchers apply for grants.
Legally, SRI will become a separate not-for-profit non-share capital charitable organization and a wholly owned subsidiary of Sunnybrook. Operationally, board governance will remain the same, with David Leslie at the helm, as he is now. Dr. Barry McLellan, president and CEO of Sunnybrook, will retain this position for SRI, and Julius will remain as vice-president, research.
Operational details are expected to be finalized by January 1, 2011.
Questions? Go to the Sunnybrook Research Institute section of the Intranet (Sunnynet), located under Education and Research. There, you can read frequently asked questions and submit your own.
