Tougher charity rules debated
Sunday, July 30, 2006
- Organization: The Leader
B.C. Finance Minister Carole Taylor would consider toughening up regulations governing charitable organizations, but adds the federal authorities would be the more likely source of change.
"The Charities Directorate (of the Canada Revenue Agency) is the body that governs these things in Canada, and if there were to be changes, that would be the most obvious place to make them," Taylor said.
The minister was commenting following a story in The Leader on Friday detailing the expenses spent by some charities on large-scale fundraising events.
Some participants in next month's Weekend to End Breast Cancer, benefitting the B.C. Cancer Foundation, said they were surprised to learn how much of the money raised in previous events was spent on administration and marketing.
In 2005, a total of $5,434,485 was donated to the Vancouver event, and of that, $2,594,104 (48 per cent) went to expenses. In 2004, the walk raised $6,710,361 and the foundation spent 2,719,523, or 40 per cent of the total raised.
Other 2005 charity-run events recorded overhead costs ranging from 30-40 per cent.
Nick Locke, the B.C. Cancer Foundation's vice-president of development, said participants in the Weekend to End Breast Cancer know net proceeds go to the foundation, but they need to ask for more details.
"They are made aware there are costs associated with the event, and if they ask the question with respect to exactly how much the costs are, they're informed."
Under Alberta's Charitable Fundraising Act, anyone asking for donations on behalf of a charity must disclose the costs of fundraising before accepting a donation.
The B.C. Society Act, which regulates charities in B.C., has no such requirements.
"We believe financial disclosure under the Society Act ensures people can get that information and choose which organizations to support as a result," Taylor said. "But there may be ways the Charities Directorate can make changes that it's done more clearly up front."
Eoin Kenny, spokesperson for Alberta Ministry of Government Services, said his province's legislation was developed for the protection of donors.
"It's our belief that people have the right to know the final destination of their donations. If it's all being eaten up by administrative costs people should have that information before the make a decision (to donate)."
Surrey-Whalley MLA Bruce Ralston, NDP finance critic, said rules requiring more disclosure would be a positive change.
"I can't see any reasonable person having an objection to it. And certainly no reputable charity would be intimidated by such a requirement."
The regulation of charities is shared between provincial and federal governments. According to Jacqueline Couture, spokeswoman for the Canada Revenue Agency, federal jurisdiction over charities revolves primarily around taxation powers.
She added the act doesn't exclude provinces from being able to enact stricter regulations if they choose.
"Provinces could put more regulations in place if they want."

