HCI says it has always been committed to maintaining direction and control of its overseas charitable projects and to ensuring that all such projects conducted through third-party intermediaries constitute HCI's own charitable activities. These diaspora groups collect funds on behalf of HCI, which then works with an implementation partner for projects that were vetted and approved by HCI. HCI says the practice at issue is in fact “diaspora fundraising,” widely used across the world by many Canadian charities at the time of the audit.Ĭanadian charities often work with individuals and groups connected to the communities where the projects are taking place, HCI says. The initiatives included three education and health projects in India, education and skills development of orphans in Bangladesh, orphan support in Somalia and an education project in Kenya. It accused the charity of improperly issuing donation receipts totalling more than $307,000 on behalf of organizations administering the six projects - a practice known as third-party receipting. In 2014, the revenue agency informed HCI it was initiating an audit for two fiscal years, from April 1, 2011, to Matriggering a lengthy process the charity considered aggressive and disruptive to its operations.Īs a result of the audit by the Analysis and Review Division of the revenue agency's charities directorate, concerns were expressed to HCI in 2018 about six initiatives. It has collected funds from some 50,000 Canadian donors and established partnerships with more than 1,000 organizations. HCI, a registered charity since 1983, has provided humanitarian aid and development support to tens of millions of individuals and families around the world in its mission to save lives and move people from crises to sustainability. Ottawa-based Human Concern International says the Canada Revenue Agency's penalty is unwarranted and just the latest example of the agency's unfair targeting of Muslim charities for scrutiny. OTTAWA - A long-established Muslim international relief charity says it will ask a federal court to overturn the national revenue agency's decision to suspend its ability to issue tax receipts following an audit.
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