Abstract
Since 2006 Charity Intelligence Canada (Ci) has been providing information about charities which accept donations from public. It provides high quality evidence-based research to help us guide our charity giving decisions.
Charity Intelligence’s analysis goes beyond plain subjectivity or narrow financial analysis to dig deeper to arrive at those charities which either perform the best or the worst. This helps the common Canadian and other donors make an informed selection of the most impactful charity while donating their funds.
Through rigorous and independent research, Charity Intelligence aims to assist Canada’s dynamic charitable sector in being more transparent, accountable, and focused on results.
Its Latest report on National Spiritual Assembly of the Baha’is of Canada, Charity Intelligence shows the NSA in poor light in the matter of collection and usage of its charitable funds. In fact, it has been graded a poor LOW in its demonstrated Impact per dollar of funds received. (F-Grade)
The report is detailed in this article.
Introduction
Charity is the act of giving money, goods, or services to others who are in need, without expecting anything in return. Charity is important for a society because it can help to improve the lives of many people, especially those who are poor, sick, or marginalized. Charity can also promote social justice, compassion, and solidarity among people from different backgrounds and cultures.
If a charity escapes its donations, it means that it does not use the money it receives from donors for the intended purposes of helping those in need. This can have negative consequences for both the charity and the society.
For the charity, escaping its donations can result in:
1-Losing trust and reputation among its donors, beneficiaries, and the public.
2-Facing legal and regulatory actions from the authorities
3-Suffering financial losses and difficulties
For the society, escaping its donations can result in:
1.Wasting resources and opportunities
2.Reducing social welfare and justice
3.Undermining democracy and accountability
Therefore, escaping its donations is not only unethical but also harmful for both the charity and the society. It is important for charities to be transparent and responsible about how they use their funds, and for donors to be informed and vigilant about how their money is spent. Charity is a noble act that should be done with honesty and integrity.
A Report about National Spiritual Assembly of the Baha’is of Canada:
This charity can cover over 16 years of programs. Before you give, read Charity Intelligence’s report.
Founded in 1948, National Spiritual Assembly (NSA) of Baha’is of Canada is the country’s governing body of the Baha’i Faith. There are over 35,000 people of the Baha’i Faith in Canada. National Spiritual Assembly strives to advance the spiritual, social, and material conditions of humanity. NSA is headquartered in Thornhill, Ontario and collaborates with other agencies to run programs to advance the teachings of the Baha’i Faith. The charity also does humanitarian work to help transform society for the better.
Natural Spiritual Assembly spends 82% on Canadian programs and 18% on international programs. National Spiritual Assembly’s international spending in F2021 includes $95k for ongoing maintenance of the Baha’i House of Worship in Wilmette, Illinois. NSA also runs a deputization program where Canadian Baha’i volunteers relocate (within Canada or another country) to teach the Baha’i Faith and help develop the Baha’i community within the area. The charity has a Continental Fund that supports activities associated with protecting and spreading the Baha’i Faith. These activities include protection measures, teaching and deepening programs, and consultation with Assemblies.
Financial Result and Impact of NSA of the Baha’is
Charity Intelligence has rated National Spiritual Assembly of the Baha’is as Low impact based on demonstrated impact per dollar. Charity Intelligence did not find any reported outcomes on the charity’s website. This may not be a complete representation of National Spiritual Assembly’s results and impact. (Fig. 1)
Finances of the Baha’i charity in Canada
National Spiritual Assembly of Baha’is of Canada received $24.6m in donations in F2021. Administrative costs are 6% of total revenue (excluding investment income) and fundraising costs are 0% of donations. Per dollar donated to the charity, 94 cents go to the cause. This is inside Ci’s reasonable range for overhead spending.
Baha’i Foundation Canada is a related party by virtue of having the same Board of Directors as NSA. The Foundation provides scholarships, bursaries and other financial assistance for post-secondary education and training and supports programs that promote the Baha’i Faith. Ci did not consolidate the two charities in its analysis because it did not have the Foundation’s audited financial statements at the time this profile was created.
The Association for Baha’is Studies is also a related party by virtue of having the same Board of Directors as NSA. The Association promotes study of Baha’is Faith through books, conferences, and education events. NSA earned $14k in rental income from the Association, reported in business activities. This charity report is an update that was sent for review to National Spiritual Assembly of Baha’is of Canada. Changes and edits may be forthcoming. (See table. 1) it is also updated on May 25, 2022 by Emma Saganowich. (1)
NSA of the Baha’is and shameful facts in the charity report
The above report highlights the following shameful facts about NSAs charitable funding.
- National Spiritual Assembly holds $83.2m in excess unutilized funding, which can cover 16.6 years of its current charitable expenses and costs. That is its spending on acts of charity is so low that if it receives no donations for the next 16.6 years it can carry on its present paltry charitable expenses.
- Another important fact highlighted is the fact that in 2021 for a mere $5m of spending on national and international charities it bore an administrative cost of $1.411m which is a whopping 28% (Just for identifying and transferring every 1$ of its charity funds it spends $0.28). As compared to this poor fund management by NSA Canada.
Another Charity “LifeWater Canada” which incidentally got a 5-star rating by Charity Intelligence spent only $ 0.003 for every dollar it spent on its charitable activities.
3. Continuing the Comparison with “LifeWater Canada” who managed to spend $3255m in 2022 with only one fulltime support staff, NSA Canada spend a mere $5m in 2021 by employing 24 fulltime staff! So much for its efficient management.
Conclusion:
1. At a time when humanity in the third world countries is suffering from severe economic crises, the rich NSA of Canada is hoarding its funds and not utilizing them pro-actively. This speaks volumes of the NSA Canada’s commitment to the principles of the Bahai Faith.
- NSA Canada has failed the UHJ and the Bahai faith which prides itself on efficient and effective management by utterly failing in the financial management of its human resources, Funds and expenses.
- It seems that NSA Canada has just converted the entire NSA to offer easy and idle employment to its cahoots friends and relatives to live in luxury by denying thousands of deprived and needy in the society.
The sincere Baha’is and general donors are hereby cautioned against donating their hard-earned earnings to NSA Canada as these donations will remain unutilized and rather be used to pay salaries of idle workers in NSA Canada.
There are several ways to check if a charity is legitimate before you donate to it. Check the charity’s detailed information about its mission, programs, finances, and impact. Aske them about their plans and the history of the charity.
In the case of NSA of the Baha’is in Canada, financial support of the Baha’i House of Worship in Wilmette proves that they have followed the Baha’i organization’s purpose for membership attraction, rather than just sympathy with society or poor people.
Reference:
Note:
- Bahai’s Distribution Service book sales are reported net of expenses (excluding amortization) in business activities, reducing total revenue and expenses by $52k in F2021, $122k in F2020, and $87k in F2019. There were no grants to the associated foundation in F2021, the grants were adjusted to report on a cash basis, reflecting changes in amounts payable.
Attachment:
You can see the Ci report about charity performance in following document: