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
BREAKING New York appeals court overturns Harvey Weinstein's 2020 rape conviction from landmark #MeToo trial
New York’s highest court on Thursday overturned Harvey Weinstein’s 2020 rape conviction, finding the judge at the landmark #MeToo trial prejudiced the ex-movie mogul with improper rulings, including a decision to let women testify about allegations that weren’t part of the case.
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.