Category: uncategorized

@markyeg July 12, 2016

the money was spent and –  – Read More

Here’s some humour for your day …. May 10, 2016 Canada’s Competition Bureau issued a news release warning donors about charity scams and highlighting the Canadian Red Cross as a trusted charity.
Is the Competition Bureau turning to scare tactics? Is this a genuine threat? Charity Intelligence is normally one of the first to hear about such shenanigans.  As of May 13, all quiet on the phone lines.
Or could it be an opportunity to warn Canadians to give to a charity that is trusted – give to the Red Cross?
Does this news release imply that “other charities”, perhaps the Salvation Army, the United Ways, and Fort McMurray’s frontline charities, are “fakes?”
It’s fascinating that the Competition Bureau issued this press release. It wasn’t the CRA Charities Directorate. Now let’s refresh on who the Competition Bureau is and its job: the Bureau is an independent government agency that ensures fair markets and stops the abuse of market power. Through the Competition Act, it seeks “to prevent firms that dominate a market from abusing market power, … like cutting off essential supplies to other firms.”
So when the Red Cross receives, say, 99% of disaster relief donations for Fort McMurray through brand power, massive blitz of advertising, (much of this also donated) is this a “dominant market position”? And does this cut off essential supplies to others ….. like essential donations to other charities in Fort McMurray?
It just feels like the Competition Bureau’s press release is crossing a line. 
Food for thought …  http://news.gc.ca/web/article-en.do?nid=1063299″ target=”_blank” rel=”alternate To read the Competition Bureau’s Alert
 

May 13, 2016
 
The Canadian Red Cross issued a press release on May 12, 2016 that Charity Intelligence has received questions about. All organizations revise numbers – public companies, government bodies and charities too. Numbers are restated and numbers change with additional information.
1. The 2% reported by Charity Intelligence was not an error. And it was definitely not a media error. Charity Intelligence takes full responsibility for reporting that 2% of the Red Cross’s donations went to local charities after the Alberta Floods. Charity Intelligence’s strength is doing numbers – and getting them right – based on the best information publically disclosed.
This number is calculated based on what the Red Cross reported on its annual CRA filings for F2014 and F2015. The breakdown of this $916,719 figure was:

Total raised for Alberta Flood Relief                         $ 43.3 million
Canadian Red Cross grants to local charities        2%
 
 2. On May 12, 2016 the Red Cross released its http://www.redcross.ca/crc/documents/Where-We-Work/Canada/Alberta/Alberta_floods_community_grants_may12_2016.pdf” rel=”alternate Community Grants report for the Alberta Floods. This covers all community grants made to local charities up to March 31, 2016.
Charity Intelligence appreciates this disclosure. With this disclosure Charity Intelligence is revising:  “ in the response to the Alberta Floods, the Red Cross reportedly gave $12,064,286 to 101 local charities. This represents 28% of donations.”

 
6. T3010 filings are used as a last resort by Charity Intelligence.  Ideally material information would be provided in the audited financial statements. Alternatively, charities report material information in annual reports, granting reports, or in attached schedules.
 
7. Why Charity Intelligence didn’t use the information in the Donor Report Updates
The Red Cross’s donor reports on disaster relief are an interesting read. These progress reports share news and snippets of information and are well worth a donor’s time. In Charity Intelligence’s experience, the Red Cross’s donor reports have not been a reliable source of financial information. There have been material revisions to numbers reported. We raised our concerns with Red Cross management as far back as 2013. 
In general, Charity Intelligence feels these donor reports would benefit from greater clarity in the reporting of financial numbers. The “spending to date” figure may include money spent, committed and budgeted. Charity Intelligence feels these three categories are important and distinct. They should be disclosed separately.
 
8. Charity Intelligence policy: Charity Intelligence shares its analysis with Canadian Red Cross senior management. Charity Intelligence has posted a research report on the Canadian Red Cross since 2011 with the most recent update in August 2015. Charity Intelligence had several meetings and phone conversations with Canadian Red Cross senior management to discuss the Canadian Red Cross’s disaster relief efforts since 2013. Charity Intelligence will continue to share with the Red Cross our analysis and seek its comments and corrections, as is Charity Intelligence policy.
The Canadian Red Cross is one of Canada’s largest charities. Charity Intelligence’s research on the Canadian Red Cross is one of the most viewed postings. The Canadian Red Cross has a 4-star rating with Charity Intelligence, our highest rating, based on objective measures for its consolidated operations: Canadian Red Cross donor reporting is graded A- (high), it gets full marks for financial transparency (posting its audited financial statements), it has a funding need with funding reserves of $195 million that cover less than a year of its annual program costs of $235 million, and its overhead costs of 36% fall well within the reasonable range.  https://www.charityintelligence.ca/charity-details/71-canadian-red-cross” rel=”alternate Charity Intelligence’s 2015 report on Canadian Red Cross.