The Bay Street lawyer who declined to be named said that there is nothing wrong with a numbered corporation registered to the Kielburger parents selling property to the ME to WE Foundation, but transactions with related parties can raise questions. Read more about cookies here. World Vision Canada, for example, which spent $362 million in charitable work outside Canada, owns roughly $18 million in land and buildings. Foundations and charities are often subject to scrutiny. WE’s statement noted that other Canadian non-profits and social purpose mission organizations own substantially more real estate than WE Charity and ME to WE combined citing, for example, The Salvation Army of Canada ($98,983,222 of real estate). ME to WE officially has an office at 145 Berkeley Street (also addressed at 319 Queen Street East), and WE says that some of the other properties are also used as office space. ME to WE Social Enterprises Inc. — the for-profit entity under the WE umbrella, founded in part to fund the operations of WE Charity — and ME to WE Foundation has itself accumulated roughly $12 million worth of commercial property in the same Toronto neighbourhood of Cabbagetown, according to property records and answers to the Post’s queries provided by WE. WE Charity has received specific, targeted donor gifts towards the purchase of real estate. As reflected in WE Charity’s audited annual reports, a majority of WE’s programs are domestic, serving 7000 schools in Canada, and many require real estate to operate. Charity Realty is a boutique real estate company with over 14 years of experience at delivering an unprecedented level of service in the Lake Norman and Concord areas. We ask you to keep your comments relevant and respectful. Find great Houston, TX real estate professionals on Zillow like Buddy Charity of Jane Byrd Properties International Property donations are an excellent method of helping those who need it most and allowing them to live a happier life. “If you’re a $3 billion charity, you might have some flexibility in what you can do with investing. And it was blamed at least in part for WE Charity’s announcement earlier Thursday that it is scaling back its operations, making dozens of layoffs in Canada and the United Kingdom, while also looking to sell some of its real estate holdings in Toronto. WE Charity is scaling back its operations, making dozens of layoffs in Canada and the United Kingdom and looking to sell some of its real estate holdings in Toronto. But WE Charity does not have a traditional endowment and its Board of Directors believes that equity investments carry significant fluctuation risk, particularly correlated with financial downturns. “Profits tell you very little about how a company is doing when you don’t know their revenue or expenses,” said the Bay Street charity lawyer. About Angela. The non-profit entity of WE — WE Charity — has grown exponentially over the last 10 years with its annual revenue more than doubling over that period of time. In 2011, a building nearby, 227 Carlton Street became available to purchase and the Kielburger parents bought that building and again, provided it rent-free to ME to WE. Questions around the operations of WE Charity and ME to WE began to swirl two weeks ago, as it emerged that the Liberal government handed out a no-bid contract worth up to $43.5 million to WE Charity to manage a $912 million student grant program. © 2021 National Post, a division of Postmedia Network Inc. All rights reserved. WE Charity has paid $26.1 million for Toronto real estate, according to Ontario land registry documents. Visit our Community Guidelines for more information and details on how to adjust your email settings. The foundation’s stated purpose is also to “hold real estate,” according to Global News. “We have no idea whether ME to WE makes $2 million or $20 million. “Once registered as a charity… Part of a lengthy statement provided to the National Post by WE Charity confirmed that all of its real estate is currently located “within a single block near Regent Park/Moss Park” in Toronto. Notably, the WE Charity Foundation explicitly states that they are “not a branch, section or division of any other charity.”. Please try again. WE’s Real Estate Strategy is fully endorsed by WE Charity’s Board of Directors and has been independently verified by financial and governance experts. a recession or other financial shock). Canadian charity WE has had a tough few weeks. WE did not respond to a query on how much in annual revenue ME to WE makes. There’s nothing wrong with a charity owning its own property, as long as they are using it for charitable activities. As of Aug. 31, 2019, WE Charity had $62.5 million in assets — $43 million of that was in the form of land and buildings, and approximately $9 million was in marketable securities which are investments that can be easily liquidated. Unauthorized distribution, transmission or republication strictly prohibited. By operating out of the buildings it owns, the organization also minimizes office space costs while establishing a form of reserve fund that not only gives long-term financial security to the organization, but also provides resources and services to stakeholders and community partners, every day. On January 25, 2019, a numbered corporation registered to Fred and Theresa Kielburger sold a property at 329 Queen Street East to ME to WE Foundation for $2.6 million. In one instance, a numbered company registered to Fred and Theresa Kielburger, the parents of Marc and Craig, sold a building directly to the ME to WE Foundation for $2.6 million. By leveraging real estate as a long-term asset, and with the generous support from donors, WE has created a new model that one expert calls a “best practice for other non-profits to follow”. Sign up to receive the daily top stories from the National Post, a division of Postmedia Network Inc. A welcome email is on its way. Over the last five years, the WE international development empire has cumulatively amassed over $50 million in real estate spread across more than 10 different commercial properties in Toronto’s east end, purchase prices from property records indicate. WE confirmed to the Post that the initial purchase of 329 Queen Street East was done by Fred and Theresa Kielburger at the request of the ME to WE Foundation, since the “organization did not have sufficient funds at the time”. Months later, Fred and Theresa Kielburger sold the property to the Foundation at the same price at which it was purchased ($2.6 million), and covered the closing costs on behalf of the Foundation. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. WE confirmed the Kielburgers’ salary, but did not provide additional information on what their controlling stake was. Special New Year's Offers for Print Subscriptions! After tax net income is essentially profit made by a company after all taxes have been paid, and earnings deducted from revenue. WE Charity Looking to Sell Toronto Real Estate. “Fred and Theresa Kielburger lost $130,000 on the transaction, as they kindly elected to cover all related costs, including land transfer taxes,” WE said. “I will say that it is not very normal for a charity to have most of your net worth tied up in real estate. The total value of all of these holdings in terms of purchase price — an amount confirmed by WE — is $11.9 million, but it is still unclear, despite direct questions to WE, if they represent all of the real estate holdings of ME to WE. An independent assessment commissioned by WE and conducted last May by former judge Stephen Goudge concluded that there was nothing improper about Fred and Theresa forming a business relationship with WE Charity by giving them use of their premises for free. In effect, it appears the WE Charity Foundation hasn’t actually done any charitable work, and instead only holds real estate. WE Charity … As that transformation takes place, WE will work to ensure those most in need continue to have a home in the community, and benefit from the positive impacts the Campus for Good generates. WE Charity’s revenue for the 2019 fiscal year was $65.9 million. Giving Center strives to ensure that our donor program will make the process to donate any real estate property to our charity as fast and as hassle free as possible. It was described by WE as inactive in August 2018 and only became a federally registered charity in April 2019. “No restricted program funds, no monies from youth fundraising, nor funds that would have otherwise been used for youth-service programs have ever been used to purchase property for WE Charity or any other WE related entity,” the statement added. Locations Served:Houston (TX) Cypress (TX) Designations. There was an error, please provide a valid email address. WE Charity was founded 25 years ago in Canada with the dual mission of inspiring children at home to make a difference through service, and helping children around the world to escape extreme poverty. We buy real estate nationwide in ANY condition and in ANY location! Some organizations build their reserves with cash, equity investments, or revenues from endowment investments. Sell Your House Today! Visit Buddy Charity's profile on Zillow to find ratings and reviews. WE Charity registers as lobbyist, lays off staff, looking to sell real estate | CTV News. If you don't see it please check your junk folder. “Ultimately, when you think about any charity raising money, you always have to ask: how are they using that money? View My Website. WE Charity registers as lobbyist, lays off staff, looking to sell real estate By Joan Bryden The Canadian Press Teresa Wright Thu., Aug. 13, 2020 timer 6 min. 'If a charity keeps fundraising to accumulate assets, whether ... real estate, or other investments, either they need to spend more on charitable activities or just stop fundraising'. OTTAWA — The WE Charity is making dozens of layoffs in Canada and the United Kingdom and looking to sell some of its real estate holdings in Toronto. Each year, ME to WE gave WE Charity 90 per cent of its after tax net income. 1635 Bonnie Brae Street, Houston, TX 77006 (281) 221-8176 Get Directions. This is not the first time the Kielburger parents have had a relationship with some part of the WE organization. ", review of WE Charity's real estate practices. They are gentrifying the neighbourhood. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. Its stated purpose was to hold tens of millions worth of WE Charity real estate. The statement said the money to buy property came from donors who made “targeted donations” . read It is unclear whether ME to WE still owns these buildings in some way. While the contract was cancelled when uncomfortable questions were raised about political conflicts of interest among senior Liberals, it has provoked interest not just in the government’s decision, but in the WE organization as well, given Trudeau’s claims that WE was the only organization capable of fulfilling what he intended for the contract to achieve. Click here to see some of the organizations we help. This while family members of the prime minister had received speaking fees for participating in WE events and a daughter of the finance minister works for WE. This advertisement has not loaded yet, but your article continues below. I’m not sure if that’s a good thing or a bad thing. Clarity Real Estate Solutions (CRES) has the perfect solution for you. Most of that value comes from the WE Global Learning Centre, the flagship headquarters of WE Charity, a sprawling 40,000 square foot restored heritage building at the intersection of Queen Street and Parliament Street that the organization’s latest financial statements state is worth more than $30 million. The Kielberger brothers have long had an indirect relationship to the real estate sector, through their parents, both of whom, in addition to being school teachers, were in the business of buying, renovating and selling homes, according to publicly available information on WE’s website. Designations & Certifications: 1. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Trudeau announced that the controversial contract was with WE Charity, though it was confirmed by the government and the charity that it was not. 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