The CRA has revoked the registered charity status of Friday’s Child International
The main concern appears to be whether the activities were actually educational and therefore charitable and personal benefits of a director who was the chairperson. CRA notes:
“Our audit revealed that ·the Chairman of the Board of Directors spent a considerable amount.of time in Canada during which personal and living expenses were paid on her behalf by the Organization. These expenses include the rent of her personal residence at the Royal York Hotel, restaurant. meals, groceries and other sundry items. The value of these benefits was not included on a statement of income form T4A. We requested records of business appointments being conducted at the Royal York Hotel room to which your response in- your letter of June 19, 2009 was that it would be difficult to maintain formal logs in the absence of paid staff. You also stated that the Organization determined that 40% of the time spent at the Royal York Hotel room may be considered as personal. ·Since no basis for this calculation and/or no documentation have been provided to substahtjate the business versus personal use our position has not changed.”
Here is the full CRA letter Friday’s Child International
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.