The Globe and Mail on November 24, 2015 had an article "Ottawa suing UBC, former faculty of dentistry member for misuse of funds". The article alleges that the Federal government is claiming the return of millions of dollars as funds were allegedly misused. Apparently "The lawsuit concerns transactions that went on for more than a decade, from 2002 to 2013, and were funded by $10.6-million from Health Canada. Those funds were supposed to provide dental services to First Nations people living in Haida Gwaii."
Here is a link to the article: Ottawa suing UBC, former faculty of dentistry member for misuse of funds.
As we have noted elsewhere Canadian charities receive substantial amounts of funds from Federal, Provincial and Municipal government sources. It is important that the charity understand the restrictions and put systems in place to ensure that the funds are spent appropriately. Failure to do so can result in significant financial and reputational harm.
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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.