BONNYVILLE – “We recently discovered that with Christmas just around the corner, the Grinch is alive and well and working for the Canada Revenue Agency in Ottawa,” said area MLA David Hanson, during the afternoon session at the legislature on Dec. 7.
The Bonnyville-Cold Lake-St. Paul MLA was referring to a letter the Bonnyville Friendship Centre received on Nov. 16, stating the non-profit had until Dec. 16 to comply with CRA regulations or have its charitable registration revoked.
“The CRA, last week, sent a notice to one of my local food banks that due to a filing issue, they would be shutting that food bank down on Dec. 16, just nine days before Christmas,” continued Hanson.
Fortunately, after the assistance of both Hanson and Lakeland MP Shannon Stubs, the Friendship Centre was able to rectify the situation to maintain the organization’s charitable status – but it wasn’t easy, and it came at a significant cost.
“As soon as we received the letter, I did reach out to the CRA, including an accountant, asking for an extension, but we were denied,” said Janet Gobert, the Friendship Centre’s community initiatives coordinator.
“It simply wasn't – because we've heard this comment many times – simply getting on the phone and asking for an extension. That was far from being the actual circumstances, and that is when I contacted MLA David Hanson and he went to bat.”
Before the Legislative Assembly, Hanson said, “My local food bank’s group of dedicated workers applied for an extension so they could have a chance to be in compliance with the CRA and get through Christmas but were denied... this isn’t happening in Whoville – this is happening in Canada. Even Dr. Seuss couldn’t make this stuff up. I reached out to my local MP because this is a federal issue, and I’d like to thank MP Stubbs and her assistant Tina for helping me to get to the bottom of this.”
From MP Stubbs the situation was brought before the Minister of National Revenue Diane Lebouthillier, who then propelled the matter to the commissioner of the CRA.
At that point, it was made clear to the board of the Bonnyville Friendship Centre what needed to be done to keep the centre and food bank operating and meet the Dec. 16 deadline.
“Until we received the letter on Nov. 16, the board was not aware that we were in non-compliance. With that being said, once it was brought to their attention there was a termination that took place and from there, that's when I was given the direction of hiring four additional people to get this in order,” explained Gobert.
If the centre failed to meet the deadline and had its charitable registration pulled, the non-profit would have to transfer all its remaining assets, both monetary and physical, to an eligible donee or pay a revocation tax. They would be unable to issue official donation receipts and the organization’s revocation would be published in the Canada Gazette, among other “consequences.”
“Point by point and you could see how serious it was,” Gobert told Lakeland This Week. “I cannot say enough good in regard to how David Hanson and Shannon Stubbs went above and beyond. Without their help, I don't think we would be looking at the outcome that we presently have.”
In a statement to Lakeland This Week, Hannah Wardell, a media relations representative for the CRA said, “The Canada Revenue Agency has a responsibility to protect the integrity of the tax system and the charitable sector by ensuring that all registered charities follow the rules.”
The CRA stated that the confidentiality provisions of the Income Tax Act prevent the federal agency from commenting on specific cases, such as the Friendship Centre, including commenting on any internal discussions or other circumstances involving a specific charity’s situation.
“The CRA’s actions, with respect to registered charities, can only be made public when a charity’s registration is revoked, annulled, or suspended, or when a charity is penalized,” she said.
“As a result, given that The Bonnyville Canadian Native Friendship Centre is currently registered and has not been revoked, annulled or sanctioned by the CRA, we cannot provide any specific details about its situation.”
Wardell further noted, “As the majority of charities are compliant and only need guidance at times, the CRA uses a risk-based approach to promote and enforce compliance within the charitable sector.”
Bonnyville men’s shelter
The Bonnyville Friendship Centre’s men’s shelter has been restructured to a mat program due to lack of funding.
The mat program for unhoused men operates from 7 p.m. to 7 a.m. and has been running at full capacity.
Men accessing the program go through an intake process with a shelter attendant, receive a meal and are assigned a bed. In the morning they are given breakfast and then must vacate the shelter by 7 a.m.
“With the colder weather they are made aware that if at any time they feel that it's too cold, they can come to the center here and they can help volunteer with our community hot-lunch program, community clothing closet or simply show up for a hot cup of coffee,” said Gobert.
The Bonnyville mat program can shelter eight men per evening.
The men’s shelter has only turned away one client once because of capacity limits, according to Gobert.
