The last several weeks in Canada's charitable news has focused on WE Charity and its relationship with the Liberal Party of Canada and more specifically the connections with Prime Minister Trudeau and his family, Finance Minister Morneau and his family and the $900Million Student Service Grant that was sole-sourced to WE.
This issue of the Karma & Cents newsletter dives into the issues that surround this scandal and what transparency and due diligence looks like from both a private philanthropists perspective and a government funder.
The unfortunate fall-out from WE is that it paints the charitable sector negatively overall. There are approximately 90,000 charities and if you include non-profits (organizations that do not issue tax receipts) there are in excess of 170,000 in Canada. Because of the size and scale of the WE Charity scandal the ripple effect will be felt by the whole charitable sector. The key thing to note here, is that there are multiple players in this sector - donors, government, corporations and non-profits/charities all make up the charitable sector. We have to work hard at not laying the blame at the feet of the organizations who have been mandated to solve complex social problems. If anything, this scandal highlights how broken the charitable sector policies and systems are and creates an impetuous to change things from all sides - donors, charities and government.