Topics: News, What's New from the Charities Directorate of CRA, Canadian Charity Law, Global Giving, Ethics and Canadian Charities
There was an article recently in the Toronto Star regarding a Canada Revenue Agency (CRA) audit of the Islamic Society of North America, a registered Canadian Charity.
Here is the article in the Toronto Star:
Also the article references a letter from CRA to the charity, which appears to have been given to the Star:
Based on the letter, the matter does not appear to be finalized. The charity had an option to respond to the letter up until 30 days after May 28, 2013, and there is no clear indication whether the charity responded and what CRA’s response will be.
The article raises serious concerns about the governance of a large charity that spends funds outside of Canada. Allegations of poor governance and “founders syndrome” can be bad for the charity and bad for the founder.
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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.