Regulator vows to stop rogue agencies
Canada’s charity regulator has launched an aggressive crackdown on the abuse of donor dollars after years of inaction.
“We will use whatever tools we have to stop abusive charities from harming the public and the system,” said Terry De March, the new director general of the federal Charities Directorate.
The regulator is suspending and shutting down renegade charities; making public a list of serious problems in the 82,000-agency sector; and coming out with clear-cut rules that will for the first time force charities to stop calling fundraising expenses “good works.”
“We are working hard to make sure charities live up to their promises,” said De March.
He said the “good guys” — the many excellent charities in Canada — will benefit from this tough action because donor money won’t be siphoned away from them.
One of his first actions was tackling the huge problem of charitable tax shelters where donors are encouraged to give money in return for inflated tax receipts.
The regulator in the past nine months has completed audits that led to revocation of 32 abusive charities.