Misuse of money at Saskatoon shelter an example of why non-profits need more oversight: lawyer
Canadian charities need more regulatory oversight, according to a lawyer who focuses on non-profits.
Mark Blumberg is a partner of a law firm in Toronto. He works almost exclusively advising registered charities and runs a website listing charity’s financials — in an effort to increase transparency.
“Unfortunately, we don't have a lot of regulatory oversight in Canada,” Blumberg said.
Canada has about 85,000 registered charities with revenue worth $312 billion, according to Canada Revenue Agency (CRA) data from 2020-2021.
“The sector is far bigger than agriculture, or banking," Blumberg said.
"It’s quite important and should get more attention from the public."
Of the 85,000 charities, 142 were audited last year, according to CRA data obtained by Blumberg. It’s a drop from 751 audits 10 years ago.
“The lack of CRA oversight is a huge concern … if CRA is going to only going to audit, on average, a charity once every 400 year — that's definitely not adequate,” Blumberg told CTV News.
On Monday, court documents were unsealed, revealing the director of one Lighthouse Supported Living, Don Windels, has used shelter money for personal reasons.
The court-ordered financial investigation found Windels received, and repaid, loans from the Lighthouse totalling $287,000.
According to the investigation, the board approved the loans, but the board included Windels’ family members.
An additional $30,000 loan to another board member is still outstanding, the investigation found.
Greg Thomson is the research director at Charity Intelligence Canada — an organization that analyzes charities' financials.
Thomson said the Lighthouse could lose donors as a result of the financial investigation.
“When donors lose trust in the charities, that’s problematic. So this is an example where a lot of trust has been eroded,” Thomson said.
“They’re going to have to work very hard to regain that trust.”
The Lighthouse has an annual budget of $6 million. The province contributes $1 million to the Lighthouse this year.
The Ministry of Social Services said despite the financial findings, it will “continue to work directly with the organization.”
The province said it’s been “monitoring this situation very closely” since board members raised concerns about spending last year.
As a result of the financial investigation, a judge ordered Windels step down from his position.
In January, Windels was placed on leave with two board members taking over his duties.
However, he remains the organization's executive director pending the outcome of a court appeal.
CTVNews.ca Top Stories
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Prince William and wife Kate thank public for birthday messages for son Louis
Prince William and his wife Kate thanked the public for their messages which had been sent to mark the sixth birthday of their youngest son Louis on Tuesday.
She was the closest she'd ever been to meeting her biological father. Then life dealt her a blow
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Fire engulfs old Edmonton municipal airport hangar
A historical hangar at the former Edmonton municipal airport beside the NAIT main campus was on fire Monday night.
RCMP uncovers plot to sell drones and equipment to Libya
The RCMP says it has uncovered a ploy to sell Chinese drones and military equipment to Libya illegally.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.