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Uncharted Waters: Donor rights in Canada

 
Update: June 12, 2018 Justice Morgan denied a donor’s appeal for investigation into how a charity spent money in Faas v. CAMH.
Learn more: Charity Intelligence’s review:  https://www.charityintelligence.ca/research-and-news/ci-views/33-donor-giving/265-donor-legal-rights-to-be-seen-not-heard Donor Legal Rights, To be seen, not heard.
In Canada, Carters Law believes a gift agreement is legally enforceable on the charity when the gift involves restrictions. Canadian donors can restrict their gifts by time or purpose. Donations can go towards a specific purpose, like a building campaign, a disaster appeal to a specific country, or a program.
Ontario’s laws on abusing restricted gifts are very severe. Charity directors are responsible for fulfilling the donor restrictions. If the court finds restricted money was misspent, the directors of the charity being found in breach of trust, can be fined, and even face a maximum of a year in jail.
Unlike in the US where recent court decisions have upheld donor intent, Canada lacks court decisions. With donors reluctant to take charities to court, or unable to pay what can be exorbitant legal fees challenging goliath universities and hospitals, Canadian case law in the charity sector moves at a “glacial pace”. Canadian public opinion strongly support donor rights. This leaves a gap between public expectations and case law.
We may have the opportunity to see if Canadian donor rights are protected, or are all bark and no bite. There is a current challenge to donor rights preparing for trial. The Faas Foundation is currently challenging CAMH Foundation about a restricted donation covered in the media. 
Faas is not the only donor upset with CAMH Foundation’s transparency on how it specifically spends restricted donations. David Bird donated $400,000 to CAMH Foundation in 2012. Bird says his gut instinct was to stop payment partway through his commitment, if it had not been made in memory of his 22-year-old son, Graeme. “It’s the reporting that hasn’t been forthcoming. I couldn’t have told you what the money has been spent for.”
Experienced philanthropic advisor, Doug White has seen “misappropriation” of funds from donor restricted gifts many times. His books on giving list many examples.

text-align: right; Doug White
Traditionally donors have not had remedies. This is changing in the US. The Garth Brooks case in 2012 saw a jury reimburse the original donation and also award damages. 

To learn more about donor legal rights:
https://www.charityintelligence.ca/research-and-news/ci-views/33-donor-giving/266-abusing-donor-intent-the-robertson-s-epic-lawsuit-against-princeton-university-by-doug-white Abusing Donor Intent: The Epic Lawsuit between the Robertson Family and Princeton University – a review of Doug White’s book
https://www.charityintelligence.ca/research-and-news/ci-views/33-donor-giving/589-lessons-learnt-the-hard-way-doug-white-s-recommendations-for-donors-in-making-restricted-gift Lessons learnt the hard way: Doug White’s recommendations for donors in making restricted gifts
https://www.charityintelligence.ca/research-and-news/ci-views/33-donor-giving/265-donor-legal-rights-to-be-seen-not-heard Ontario court decision 2018 To be seen, but not heard
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Nepal 2015 – Save the Children evaluation

Donor Reports: https://www.issuelab.org/resource/save-the-children-s-earthquake-response-in-nepal-a-special-one-year-progress-report.html Save the Children’s Earthquake Response in Nepal: A Special One-Year Progress Report
Raised: No information found
Spending: No information found
Expertise: Development – focus on children, child protection

Additional sources:
Save the Children

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Nepal 2015 – Samaritan’s Purse evaluation

Donor report:  https://static1.squarespace.com/static/52c33d01e4b0aec64ed560e3/t/5816d29f20099e8211e4224b/1477890752109/Government+Report+-+Final+-+small.pdf Nepal Earthquake 2015: Relief and Early Recovery Report
Raised: No information found
Spending: No information found
Expertise: Christian development that provides multi-service humanitarian aid

Key Activities: Samaritan’s Purse Nepal disaster relief was turbo-charged by connecting with the US Marines deployed to Nepal. Nothing gets tonnes of supplies into remote locations faster than a massive military airlift. Samaritan’s Purse was on the ground in Dolakha, the region most affected by the after-shock, or second earthquake.
Samaritan’s Purse details its food distribution: it provided 14,830 households with each family receiving 15kg of rice, 2 kg of lentils, 0.5l of oil, and 0.25kg of salt. Through a partnership with the World Food Program, a UN-agency funded by governments, Samaritan’s Purse distributed Plumpy’Doz to 7,856 children under two. This specialty food stops malnutrition, which was an initial fear in Nepal that did not occur on a large scale.
Samaritan’s Purse’s director reports its shift in aid to all in Phase 1 to targeting Nepal’s most vulnerable people affected. He also notes

* If you are a Samaritan’s Purse donor and agree, please contact the charity and let them know you want more financial disclosure about its disaster work. 

More Charity Intelligence reports on Nepal Earthquake 2015 disaster response
index.php?option=com_content&view=article&id=238&Itemid=161 Summary assessment of Nepal disaster response by 10 charities Canadians supported
 Charity Intelligence’s mission is to help Canadian donors be informed and give intelligently. We do this through objective and independent research on Canadian charities.
Charity Intelligence’s total costs to report and evaluate Nepal’s earthquake disaster response since April 2015 are $11,900. This is entirely funded by Canadian donors. If you found this evaluation useful, pleaseRead More

Nepal 2015 – World Renew evaluation

Donor report: https://worldrenew.net/our-stories/nepal-two-years-after-earthquake Nepal: Two Years After the Earthquake
Raised: Over US$3.4 million
Spent: No financial information found
.
Key Activities: World Renew’s focus is rebuilding homes. This meets the highest need of people in Nepal. The 2015 Gorkha earthquake destroyed an estimated 800,000 homes, leaving 2.7 million people homeless. By April 2017, World Renew had built 81 earthquake-resistant brick homes, with construction underway on 120 homes. World Renew adapted to Nepal’s construction labour shortage by paying market wages.
One unique characteristic about Nepal’s disaster recovery: Nepal has an abundance of construction workers. Yet these workers leave for jobs in India and the Gulf States that pay higher wages. These workers send money home – 30% of Nepal’s GDP comes from foreign remittances. Charities progress reports frequently mention construction training programs. These training programs are less effective in addressing Nepal’s reconstruction as, once trained, skilled labour leaves. In the disaster-affected areas, 17% of families report a migrant member – a man, most likely – working abroad to earn money for the family. This severe workforce shortage is one factor in Nepal’s sluggish pace of recovery.[ii]
Recognizing this reality, World Renew paid foreign market wages so construction workers would stay in Nepal to help communities rebuild.This program adaption may explain why World Renew will build 201 homes relative to Habitat for Humanity’s 150 homes, with the same level of funding.
Comparing Results: Homes built in Nepal
Donors should compare World Renew’s results in Nepal with Habitat for Humanity and Samaritan’s Purse. Without financial information found for Samaritan’s Purse, World Renew, or Habitat for Humanity, donors have only pictures of homes built to compare results. From the pictures, Samaritan’s Purse and World Renew look better.


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More Charity Intelligence reports on Nepal Earthquake 2015 disaster response:

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Charity Intelligence researches Canadian charities for donors to be informed and give intelligently. Charity Intelligence’s website posts free reports on more than 700 Canadian charities, as well as in-depth primers on philanthropic sectors like Canada’s environment, cancer, and homelessness. Today over 325,000 Canadians use Charity Intelligence’s website as a go-to source for information on Canadian charities reading over 1.3 million charity reports. Through rigorous and independent research, Charity Intelligence aims to assist Canada’s dynamic charitable sector in being more transparent, accountable and focused on results.
Be Informed. Give Intelligently. Have Impact.
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Nepal 2015 – Habitat for Humanity evaluation

Donor reports:  https://www.hfhd.de/fileadmin/redaktion/PDF_Dateien/Habitat_for_Humanity_Nepal_sagt_Danke.pdf Nepal Earthquake 2 Years On

Key Activities: Habitat for Humanity has built 87 homes with another 63 homes under construction as at January 12, 2017. It is rebuilding in 5 villages in Kavrepalanchok and 11 villages in Nuwakot. It does not provide cash, rather building materials and

and join us on Facebook and Twitter @CharityIntel 
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