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Private Foundations and International Philanthropy

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Private Foundations and International Philanthropy www.globalphilanthropy.ca Which Canadian charities spent money on foreign activities and how much did they spend? By Mark Blumberg (December 11, 2012) We recently reviewed the T3010 information for 2011 relating to foreign activities. The database was prepared by the Charities Directorate of CRA in September 2012 and covers about 81,000 charities (94% of Canadian registered charities) and their 2011 T3010 returns. We reviewed the Canadian charities that identified they did foreign activities through funding projects abroad (approximately 5200 charities identified spending funds abroad and only about 3550 spent over $10,000. We also list which identified they received CIDA funding and how much was spent on those arrangements. Finally, we list the amount of gift in kinds that charities issued receipts for which they may or may not have shipped abroad. I will explain below why it is important to know how much receipted gift in kinds charities get. The total amount claimed in $2.94 billion. Keep in mind that additional funds are spent by Canadian charities for example when making gifts to “qualified donees” that are prescribed universities or UN agencies. Canadian registered charities are currently required to disclose on the T3010 on line C4 and Box 2100 “Did the charity carry on, fund, or provide any resources through employees, volunteers, agents, joint ventures, contractors, or any other individuals, intermediaries, entities, or means (other than qualified donees) for any activity/program/project outside Canada? Yes or No” On this list we included all charities who advise CRA that they spend more than $10,000 (it is an arbitrary cut off but the list is long enough!) Those who had answered yes to question 2100 then complete “Schedule 2, Activities Outside Canada” In Schedule 2 - Activities Outside Canada it asks: Line 1 and line 200: What were total expenditures on activities/programs/projects carried on outside Canada during the fiscal period, excluding gifts to qualified donees? $^ 1 www.globalphilanthropy.ca Line 4 and Box 220: Are any projects undertaken outside Canada funded by the Canadian International Development Agency (CIDA)? Yes or No ^ Line 230: If yes, what was the total amount of funds expended under this arrangement? $^ In “Schedule 5 - Non-Cash Gifts” it asks certain charities which receipted non-cash gifts to provide additional information on those non-cash gifts. Line 1 of Schedule 5 asks charities to : Identify all types of non-cash gifts (gifts-in-kind) received for which a tax receipt was issued. Some of the receipted gift in-kind include Artwork/wine/jewellery, Medical equipment/supplies, Machinery/equipment (including computers and software), Publicly traded securities/mutual funds and Books (literature, comics). On Line 2 and line 580: Indicate the total eligible amount of tax-receipted non-cash gifts $^ I am concerned that some organizations that have large receipted gift in kind amounts are in some cases using those gift in kind donations as part of “abusive charity gifting tax schemes” or using the gift in kind to make their financial statements look better.1 Therefore, we have provided some information that the charities provide on the total amount of tax-receipted non- cash gift to be used as a caution when for example the amount of non-cash gifts is over 50% of the amount of total expenditures on activities outside of Canada. We have also removed a couple of charities that have been identified by the media as either “abusive charity gifting tax schemes” or have clearly inflated gift in kind donations. In the US some charity watchdogs completely remove the value of gifts in kind because it is so susceptible to inappropriate valuation. With a large organization that only spends a small amount of its total revenue abroad the gift in kind numbers may be far less important as they relate to many different programs. As well, some of the gifts in kind may be marketable securities donated to a charity. Please review my caveats at the end about the reliability and usage of T3010 information. Are any of If yes, what was Total expenditures your the total amount of Total eligible on activities projects funds expended amount of tax- Legal name of Canadian charity outside Canada funded by under this receipted non- (200) CIDA? arrangement? cash gifts (580) (220) (230) WORLD VISION CANADA-VISION 1. MONDIALE CANADA $314,545,745.00 Y $15,753,853.00 $1,531,879.00 2. THE CANADIAN RED CROSS SOCIETY $151,570,831.00 Y $89,137.00 $1,434,019.00 3. CARE CANADA $118,839,042.00 Y $24,679,081.00 $53,318.00 INTERNATIONAL DEVELOPMENT 4. RESEARCH CENTRE $106,406,738.00 Y $10,975,414.00 PLAN INTERNATIONAL CANADA 5. INC. $105,585,669.00 Y $6,360,161.00 $654,464.00 Agence Universitaire de la 6. Francophonie $48,753,963.00 Y $603,861.00 1 The US watchdog CharityWatch discusses the issue at http://charitywatch.org/articles/valueinwonderland.html Also the Chronicle of Philanthropy has written a number of articles on the issue. “Chronicle of Philanthropy article Controversy Over Drug Values at Aid Groups: A Look at a Key Player” 2 www.globalphilanthropy.ca Are any of If yes, what was Total expenditures your the total amount of Total eligible on activities projects funds expended amount of tax- Legal name of Canadian charity outside Canada funded by under this receipted non- (200) CIDA? arrangement? cash gifts (580) (220) (230) THE MASTERCARD 7. FOUNDATION $41,521,146.00 N UNITED ISRAEL APPEAL OF 8. CANADA INC $41,018,093.00 N $510,592.00 CENTRE D'ETUDE ET DE 9. COOPERATION INTERNATIONALE $39,369,265.00 Y $22,799,345.00 $963,571.00 10. OXFAM-QUEBEC $39,344,690.00 Y $24,434,869.00 $8,767.00 CHRISTIAN CHILDREN'S FUND 11. OF CANADA $39,269,949.00 N $64,055.00 THE SAMARITAN'S PURSE - 12. CANADA $38,878,730.00 Y $1,101,033.00 $35,448.00 "IGLESIA NI CRISTO" CHURCH 13. OF CHRIST, MANITOBA INC. $38,561,700.00 N 14. COMPASSION CANADA $37,509,368.00 Y $50,000.00 $58,553.00 HAMILTON HEALTH SCIENCES 15. CORPORATION $36,971,607.00 N Health Partners International of 16. Canada / Partenaires canadiens pour la santé internationale $36,397,379.00 Y $2,341,805.00 $47,303,340.00 SAVE THE CHILDREN- 17. CANADA/AIDE A L'ENFANCE- CANADA $33,406,382.00 Y $25,331,144.00 $94,620.00 DOCTORS WITHOUT BORDERS 18. CANADA / MEDECINS SANS FRONTIERESCA NADA $30,696,922.00 Y $5,600,000.00 $833,755.00 Watch Tower Bible and Tract 19. Society of Canada $30,367,605.00 N $645,495.00 MENNONITE CENTRAL 20. COMMITTEE CANADA $29,909,903.00 Y $5,942,035.00 $1,084.00 21. CUSO INTERNATIONAL $28,279,866.00 Y $14,209,484.00 Organisation Catholique 22. Canadienne pour le Développement et la Paix $28,091,478.00 Y $13,102,246.00 $75,651.00 MENNONITE ECONOMIC 23. DEVELOPMENT ASSOCIATES OF CANADA $24,822,834.00 Y $4,964,811.00 $45,278.00 24. RIGHT TO PLAY INTERNATIONAL $23,990,235.00 Y $6,727,451.00 $19,818.00 CHRISTIAN REFORMED WORLD 25. RELIEF COMMITTEE $23,696,257.00 Y $412,526.00 CANADIAN FOODGRAINS BANK ASSOCIATION INC/ASSOCIATION 26. DE LA BANQUE CANADIENNE DE GRAINS INC. $22,668,662.00 Y $22,750,438.00 $931,985.00 HOPE INTERNATIONAL 27. DEVELOPMENT AGENCY $20,562,826.00 Y $623,502.00 $37,047.00 28. OXFAM-CANADA $19,894,409.00 Y $10,724,744.00 $161,792.00 AGA KHAN FOUNDATION 29. CANADA / FONDATION AGA KHAN CANADA $18,795,943.00 Y $14,061,547.00 $5,030,291.00 30. THE UNIVERSITY OF CALGARY $18,017,185.00 Y $837,282.00 $487,693.00 3 www.globalphilanthropy.ca Are any of If yes, what was Total expenditures your the total amount of Total eligible on activities projects funds expended amount of tax- Legal name of Canadian charity outside Canada funded by under this receipted non- (200) CIDA? arrangement? cash gifts (580) (220) (230) 31. GATES OF MERCY $17,242,535.00 N CHRISTIAN BLIND MISSION 32. INTERNATIONAL $17,071,733.00 Y $460,469.00 $1,022,173.00 33. CHALICE (CANADA) $16,738,634.00 N $243,452.00 34. THE UNIVERSITY OF MANITOBA $14,026,000.00 Y $921,341.00 35. KUPAS HACHESED MEOROTH $11,866,434.00 N $628,228.00 THE CHRISTIAN AND 36. MISSIONARY ALLIANCE IN CANADA $11,666,450.00 N $565,319.00 WAINFLEET BRETHREN IN 37. CHRIST CHURCH $11,592,637.00 N Pearson Centre Inc. / Centre 38. Pearson Inc. $10,437,913.00 N 39. KIDS CAN FREE THE CHILDREN $10,217,507.00 N $1,375,135.00 THE DAVID HOFSTEDTER 40. FAMILY FOUNDATION $10,186,174.00 N WORLD UNIVERSITY SERVICE OF 41. CANADA/L'ENTRAIDE UNIVERSITAIRE MONDIALE DU CANADA $9,818,018.00 Y $3,308,516.00 THE UNITED CHURCH OF 42. CANADA $9,673,000.00 Y $1,180,000.00 $7,353.00 43. GOSPEL FOR ASIA $9,585,358.00 N $2,659.00 INTERNATIONAL INSTITUTE FOR SUSTAINABLE 44. DEVELOPMENT/INSTITUTINTER NATIONAL DU DEVELOPPEMENT DURABLE $8,875,078.00 N THE COMMONWEALTH OF 45. LEARNING $8,590,485.00 Y $2,600,000.00 CENTENNIAL COLLEGE OF 46. APPLIED ARTS AND TECHNOLOGY $8,543,000.00 N $76,296.00 47. WYCLIFFE BIBLE TRANSLATORS OF CANADA INC. $8,034,186.00 Y $131,684.00 $59,161.00 QUEEN'S UNIVERSITY AT 48.
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