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Oilers owner , Darryl Katz taking the Boyle Street Community Services to court over a 5 million dollar donation

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How I picture Katz :

Mr_Burns_evil.gif
 
Score8 said:
And Trudeau couldn’t kick in the last 1.5 million? How much money is the Canadian gov raking in taxes, why aren’t they helping out the homeless? Why is it up to a private citizen to fund a homeless shelter?
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becasue the homeless is asking for much more than we can give. Ukraine is only asking for billions, so we send it there
 
UrbanImpact said:
According to documents, Katz's real estate group is trying to take back or not give a 5million dollar donation that they originally promised and negotiated with Boyle Street Community Service.

From my understanding, Katz group bought the downtown property from Boyle Street Community Service , which houses the homeless in Edmonton. Part of the negotiation was this donation to help with the relocation of Boyle Street Community Service.

Katz is arguing he shouldnt have to provide the 5 million dollar donation anymore because the Non-profit organization didnt do enough fundraising on their own.

Katz networth btw is 4.4 Billion.

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French solution.
 
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These kind of circumstances are extremely common in the case of large scale donations. There is an expectation of accountability and fundraising expectations with legacy level gifts.

Katz hasn’t “ripped anyone off” nor has he welched on any deal.

I’m sure everyone has heard of gift matching in charitable campaigns before? It’s a similar concept. Donor X guarantees a $100,000 donation, but will only donate what a fundraising campaign raises, through individual donations, as a dollar for dollar match.

Multi million dollar donations always, ALWAYS, have conditions attached to them. If they don’t, non-profits can just uses the fund without discretion.

It’s even more would that anyone think that an organization like the Katz Group wouldn’t undergo a comprehensive risk analysis before engaging in these sort of actions.
 
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Coffey Thing said:
Suddenly Flames fans are quiet.
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Are you bored without Flames fans in Oiler threads or something?

But fine, I'll bite. I don't know who is in the wrong, but I wouldn't say it's lopsided against Katz by default.

As someone with NFP experience, this sticks out to me:
Boyle Street was fundraising for its endowment fund rather than focusing on raising money for its new site.

If someone understands the restricted funds, they'd understand that funds restricted for an endowment fund cannot be legally used for another project (ie: The capital project for purchase,/renovation/relocation to new site). This means that Boyle Street in theory missed the 8.5 million target by more than the $1.2 million target of the $8.5 million to move ahead with the relocation project (ie: Down payment or something). Endowments and designated funds are on different sections of a financial statement. If indeed Boyle Street put a significant chunk of the $7.3 million into a side pot for other reasons against the contract intention and expects Katz group to top up, I could see why the Katz group is annoyed. Maybe there's some wording in the agreement that was confusing, but I think it seems obvious the point of fundraising towards $8.5 million if mentioned in the contract was to get the project launched.

I'm loathe to defend Katz, but in actuality, I think his lawsuit might have more merit than what most posters realize. I don't know enough of this specific situation, I'm just saying that I think this is the direction the lawsuit is going and it's not as BS as some posters think it to be. Katz group probably required Boyle Street to focus all fundraising towards getting the $8.5 million to get the new site project launched before putting money off to the side for other programs.

Rubi said:
I doubt homeless shelters are rolling in the dough. Most people that work there are working for free and those that are getting paid certainly aren't getting rich.
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Where are you getting this understanding?

Many NFP get thousands of hours of volunteer work "donated" to them on an annual basis and many NFP are required to spend as much as they receive in income on an annual basis. But it's not like the full time employees are all working for free or paid slave wages. Most NFP are paying over half their annual revenues in wages.

Security Challenge

apps.cra-arc.gc.ca apps.cra-arc.gc.ca

Here is Boyle Street's Charity information on the CRA website from the T3010 filing which is required by Charities to maintain charitable status:. (I assume I have the right charity, I hope I am not making dumb errors)

Total revenue - Almost $32 Million

Compensation: Almost $21 million spent on compensation for 341 employees. 230 FT @~$17.23MM, 111 PT @~$3.7MM. 10 highest compensated people make between $80-199K.

$0 specifically was spent on fundraising.

In terms of NFP, Boyle Street is an absolute behemoth.

Again, I'm not even bothering to try and decide who is right and who is wrong. That's the lawyers' job and/or the two parties to hash out themselves. I'm just saying there's some serious misunderstandings from some posters and it's not like Katz doesn't have a point/reason to be upset.
 
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This is the same organization that has MacTavish in it, Lowe, Kane, and then signed Perry.

Its a greasy organization with no bottom. Suing a homeless charity is brand appropriate behaviour from the oilers.
 
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Fig said:
Are you bored without Flames fans in Oiler threads or something?

But fine, I'll bite. I don't know who is in the wrong, but I wouldn't say it's lopsided against Katz by default.

As someone with NFP experience, this sticks out to me:
Boyle Street was fundraising for its endowment fund rather than focusing on raising money for its new site.

If someone understands the restricted funds, they'd understand that funds restricted for an endowment fund cannot be legally used for another project (ie: The capital project for purchase,/renovation/relocation to new site). This means that Boyle Street in theory missed the 8.5 million target by more than the $1.2 million target of the $8.5 million to move ahead with the relocation project (ie: Down payment or something). Endowments and designated funds are on different sections of a financial statement. If indeed Boyle Street put a significant chunk of the $7.3 million into a side pot for other reasons against the contract intention and expects Katz group to top up, I could see why the Katz group is annoyed. Maybe there's some wording in the agreement that was confusing, but I think it seems obvious the point of fundraising towards $8.5 million if mentioned in the contract was to get the project launched.

I'm loathe to defend Katz, but in actuality, I think his lawsuit might have more merit than what most posters realize. I don't know enough of this specific situation, I'm just saying that I think this is the direction the lawsuit is going and it's not as BS as some posters think it to be. Katz group probably required Boyle Street to focus all fundraising towards getting the $8.5 million to get the new site project launched before putting money off to the side for other programs.



Where are you getting this understanding?

Many NFP get thousands of hours of volunteer work "donated" to them on an annual basis and many NFP are required to spend as much as they receive in income on an annual basis. But it's not like the full time employees are all working for free or paid slave wages. Most NFP are paying over half their annual revenues in wages.

Security Challenge

apps.cra-arc.gc.ca apps.cra-arc.gc.ca

Here is Boyle Street's Charity information on the CRA website from the T3010 filing which is required by Charities to maintain charitable status:. (I assume I have the right charity, I hope I am not making dumb errors)

Total revenue - Almost $32 Million

Compensation: Almost $21 million spent on compensation for 341 employees. 230 FT @~$17.23MM, 111 PT @~$3.7MM. 10 highest compensated people make between $80-199K.

$0 specifically was spent on fundraising.

In terms of NFP, Boyle Street is an absolute behemoth.

Again, I'm not even bothering to try and decide who is right and who is wrong. That's the lawyers' job and/or the two parties to hash out themselves. I'm just saying there's some serious misunderstandings from some posters and it's not like Katz doesn't have a point/reason to be upset.
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Actually my comment was about you guys voting in our Qanon Premier.

But thanks for writing all that stuff. Someone might read it.
 
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CheckingLineCenter said:
Y’all need to read more than just the headline.
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People here call a 4 paragraph, 60 second read post on here “an essay” and won’t read it.

You can’t expect most of them to read an entire article, that’s like asking them to read the entire Library of Alexandria
 
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Guy is a scumbag. I can't believe he is actually gonna drag his name through the mud over 5.5 M when he is worth a few Billion. Seems like a dumb move. Oh well f*** him.
 
Rubi said:
Its not stupid. Its a brilliant lawsuit if you ignore the optics. And most of the bad optics are not acknowledged by Oiler fans (I mean.. look at how many Oiler fans and mostly Oiler fans in this thread, are bending ove backward to defend Katz's reneging).. so in that case does Katz really care?
As others have mentioned its probable that the homeless shelter can't afford to engage in a lengthy expensive lawsuit with a billionaire. Because of that Katz will win in the end.
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There's plenty of Oilers fans who see and acknowledge the bad optics. 20 people on the internet ain't the fanbase.
 
eviohh26 said:
Guy is a scumbag. I can't believe he is actually gonna drag his name through the mud over 5.5 M when he is worth a few Billion. Seems like a dumb move. Oh well f*** him.
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Yeah. Five million. Who cares? maybe the person who worked hard and earned that 5 million. It;s "his" money and doesn't make someone a bad person for him holding someone accountable for actions that went against what was agreed upon. Especially when he has donated many millions previously. that would make him a good kind generous person who doesn't like people taking advantage of him.
 
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