Ruminations

Blog dedicated primarily to randomly selected news items; comments reflecting personal perceptions

Sunday, June 23, 2013

Was It Inevitable?

A journalistic expose, or simply a close look behind the operation of a large charity? If and when a charity bases its impetus, focus and reputation on an eponymous source, perhaps that very fact itself should raise an instinctual awareness of possible skulduggery. If a charity's purpose is to raise funds for research into spinal-cord injuries, and to aid people coping with their disability as a result of having sustained such life-altering injuries, there are doubtless countless ways in which nomenclature can be used to good effect.

Naming a charity after someone who suffered a physical blow to his body, rendering it incapacitated, necessitating that other parts of the body be used skilfully to prove that a spirit could be undiminished by adversity might seem like a good idea, but on the other hand, perhaps not. Postmedia News journalist David Baines did some serious behind-the-scenes research on the Rick Hansen Foundation. The result of which was a revelatory and lengthy story about the operations of that charity.

"I am not aware of any other instances in which a Canadian charity has issued an official donation receipt for the 'donation' or licensing of the living person's name", commented Toronto lawyer and expert in charity law, Mark Blumberg, responding to a query. The query revolved around the issue of well-known personality, fund-raiser and charitable organization celebrity Rick Hanson having 'donated' rights to his name to the Rick Hansen Foundation -- a charity he founded and until fairly lately led -- for $1.8-million.

In recognition of his generosity to the foundation, a tax-deductible receipt from the Rick Hansen Foundation was issued to its former founder and head, Rick Hansen. The Foundation has charitable status, and it has an eleven-person board of directors, of which he remains a co-chair. Its function is twofold; mostly to raise funds for the Rick Hansen Institute, an organization researching spinal cord injuries. Its second function is to operate programs meant to improve quality of life for people living with spinal cord disabilities.

Noble enterprises, both. No one should be under any illusions that charities do not benefit individuals in other ways. Those are the individuals whom the charitable enterprises hire to operate them. Charities, as they grow and mature, and become high profile and hugely supported, are businesses. Those who are hired to work within them receive handsome salaries, raised through fundraising efforts, and utilized as part of any charity's operating expenses.

In Rick Hansen's case, he is reputed to have been paid over $350,000 annually as chief executive of his eponymous organization.

The charitable tax receipt he was given in exchange for his name-rights would save him $786,000 on his income tax. Not only do Canadians, singly and through corporations and government initiatives support the charity named after him which pays his salary, funds research and aid programs, but the Canadian taxpayer also generously funded that break on his tax return. Rick Hansen resigned as president and chief executive of the foundation bearing his name in 2011 to enable him to form the Rick Hansen Leadership Group.

That Rick Hansen Leadership Group, comprised of Mr. Hansen and three assistants is on contract to provide "leadership services" to the foundation. The foundation paid the leadership group $775,560 in 2012. Canada Revenue Agency is interested in reviewing the basis for the sale of Mr. Hansen's name to the foundation and the subsequent issuance of that charitable tax receipt. They are investigating through vetting a PricewaterhouseCoopers audit.

Away back in 1987 Rick Hansen came on the Canadian fund-raising scene, emulating in a manner, the internationally famous cross-country run by Terry Fox to raise Canadian consciousness and funding for bone-cancer research. Rick Hanson made his admirable mark on Canadian awareness of spinal cord injuries and research. Since that epic journey and the attendant public relations success for his Man in Motion gambit, anniversary relays have retraced that original route, raising funds and awareness.

Rick Hansen was greeted with applause as his Man in Motion tour left Ontario and entered Manitoba.
Glenn Olsen / Winnipeg Free Press Archives
Falcon Lake, MB - January 16, 1987 Rick Hansen was greeted with applause as his Man in Motion tour left Ontario and entered Manitoba. Glenn Olsen / Winnipeg Free Press Archives Falcon Lake, MB - January 16, 1987

The foundation has also spent millions on fundraising events which have never quite resulted in charitable receipts coming in to surpass and even match the cost of the fundraising events. Shows that included performances by some of Canada's biggest entertainment celebrities, to kick off anniversary Man in Motion World Tours have made a splash, but not recouped their cost. At the 2012 event, Mr.Hansen spoke:
"This night would not have been possible without a dream, and, of course, the courage to try, and a country that believes in me. Once again, I find that the end is just the beginning and I look forward to the journey we will all take in the next 25 years."
Mr. Hansen is obviously a born entrepreneur. He has parlayed his medical-physical misfortune into a personal fortune. In the process he has done an immeasurable service to people with spinal cord injuries, to the medical profession, to research, and to support for those living with disabilities, in highlighting to the public what their needs are, and how they can be helped to achieve them.

It is, simply speaking, a pity that his original personal determination, courage and insistence on making a difference eventually morphed into his own personal endowment through his efforts in making the Rick Hansen Foundation a venue that apart from doing many of the right things, also does some quite questionable things to add to his personal enrichment.

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