Tuesday, May 12, 2009

Canada Revokes Charity License for Children's Charity

The Toronto Star reports that the Canada Revenue Agency has revoked the charity license of the Children's Emergency Foundation for multiple violations of Canada's charity regulations.  The Agency issued a press release announcing the revocation, and CEF has issued its own press release in response.  According to the article, the alleged violations include participating in two tax shelter schemes through which donors claimed deductions for contributing pharmaceuticals valued at C$18.9 million and barley grass and rice valued at C$12.3 million, even though CEF netted less than C$25,000 as a result of these donations, failed to substantiate the value of the contributions, and never took physical possession of the supposedly donated goods.  The Agency also accused CEF of failing to devote a preponderance of its resources to charitable activities, noting that of C$11.1 million in cash contributions only C$3.2 million went to charitable activities, with the remaining C$7.9 million used to pay fundraising and administrative fees.



In the News, International | Permalink

TrackBack URL for this entry:


Listed below are links to weblogs that reference Canada Revokes Charity License for Children's Charity:


Post a comment