Charitable status revoked for The Millennium Charitable Foundation

According to a news release published on the Canada Revenue Agency (CRA) website, the CRA has revoked the charitable registration of The Millennium Charitable Foundation, a Toronto-area charity, effective January 10, 2009.

In accordance with subsection 168(1) of the Income Tax Act, the notice of intent to revoke stated, in part, that:

"Our audit has concluded that from January 1, 2003 to December 31, 2006 The Millennium Charitable Foundation issued in excess of $169 million in receipts for cash and property received through tax shelter arrangements. The Charity, in turn, directed $114 million of the cash and property to two other registered charities also participating in these arrangements. The audit revealed that the vast majority of the cash sent to the other participant charities was subsequently paid to the promoters. Of the remainder, the Charity itself paid $33 million in fundraising fees to the tax shelter promoters and retained, but did not disburse, $21 million in net assets. In fact, it appears that beyond these transfers (i.e., those that the Charity is directed to make by the tax shelter promoters), the Charity has only made a single $2,200 gift to another qualified donee."

For more information on this or other CRA news release, please see the agency web site.