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Ci Open Letter

An Open Letter to Canadian Donors: Our Mischaracterization of True North Youth Foundation Inc.
 
On October 31st, 2018 I erred in a CityNews interview calling TNYF Inc. a “puck hog” – a charity that holds onto large sums of cash.  In fact, in F2017 and F2016 TNYF Inc. drew down its funding reserves and spent $3.7 million in capital expenditures, mostly on leasehold improvements at its own Camp Manitou.
I acknowledge that TNYF Inc. has, in fact, spent money and was not holding on to cash. I regret my error and mischaracterization. Calling TNYF Inc. a “puck hog”  was rude and simply bad manners images/Defamation/TNYF-apology.pdf . Read More

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What about Gates of Mercy

With Beth Oloth’s revocation, comments were made about what took the Charities Directorate so long. Expert charity lawyer Mark Blumberg commented “if abuses like these are allowed to continue it will undermine the public’s confidence in the whole charitable sector” and the government should be embarrassed the charity was allowed to operate for so long.
Our current laws muzzle the Charities Directorate from informing us. The Charities Directorate must follow due process and do exhaustive audits and investigations. In the Beth Oloth case, the investigation was dragged on by lawyers and spanned more than two years. It is alarming that in these two years under investigation, Beth Oloth tax receipted $49.9 million in donations and received an additional $53.9 million from private foundations.
Currently, the Charities Directorate cannot suspend “trading” or notify donors until it makes its final decision. In contrast, British laws allow its Charities Commission to prominently notify the public when a charity is under investigation.
Yet the Charities Directorate is not silent in the Beth Oloth case. Its https://www.globalphilanthropy.ca/images/uploads/NITR_Beth_Oloth_Charitable_Organization_Redacted.pdf investigation notes report a curious relationship between Beth Oloth and https://www.charityintelligence.ca/charity-details/516-gates-of-mercy Gates of Mercy, another Toronto-based charity.

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Transparency matters in Canada’s charity sector

Transparency matters
Transparency builds trust, and trust is the foundation of giving. Charity Intelligence measures transparency objectively by whether a charity posts its audited financial statements on its website. Yes, transparency should be more than posting a pdf. Yet, this simple step alone can show donors not only how money is spent, but also so much about a charity’s culture towards openness and respect for its donors. The Toronto Star went further, stating that financial transparency is a charity’s ethical obligation:
“Charities reaping billions of dollars each year from well-meaning Canadians aren’t legally bound to make public their full audited financial statements. But, surely, they have an ethical obligation to do so. Transparency should be paramount when capitalizing on other people’s generosity.”
text-align: right; https://www.thestar.com/opinion/editorials/2011/11/16/charitable_sector_needs_transparency.html Toronto Star Editorial, November 11, 2011
 With Beth Oloth out, World Wildlife Fund joins Charity Intelligence’s Major 100 Index.
To recap, Charity Intelligence’s Major 100 index is a list of Canada’s largest 100 charities measured by donations and support from fundraising and special events. The Major 100 Index represents the elite 0.1% of Canada’s 86,000+ registered charities. Together, Canada’s Major 100 charities received $6.2 billion in donations in their most recent reported year. This is approximately 38% of total Canadian giving (assuming total Canadian annual giving is $16 billion).
Financial transparency of Charity Intelligence’s Major 100 Index currently stands at 91%: 89 charities met “best practices” and are financially transparent with many years’ financial statements posted on the charity’s website, and two charities post only the most recent year’s financial statements.
In contrast, six charities require donors to request the financial statements. Three charities have outright refused Charity Intelligence’s requests to receive financial statements.
“Charities should include a minimum of three years of annual reports and audited financial statements online”
text-align: right; Saltiro and Legresley, https://smith.queensu.ca/_templates/documents/governance/reports/best_practices_charity_reporting_2013.pdf Best Practices in Charity Annual Reporting, Queen’s University, 2013
 

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