Key Takeaways
- The Canadian Critical Incident Stress Foundation (CCISF), a charity supporting Canadian first responders and their families, has ceased operations due to allegations of massive fraud and misappropriation of donor funds.
- The charity is suing its former CEO, Renee Jarvis, and former treasurer, Kelsey Pitt, for allegedly taking funds for personal use and concealing the debt and missing funds from the charity’s board of directors.
- The lawsuit claims Jarvis and Pitt failed to send payroll deductions to the Canadian Revenue Agency (CRA), resulting in a $90,000 tax bill, and loaned themselves over $150,000 of the organization’s funds.
- The charity’s main focus was on running a summer camp for bereaved families, but it spent more on fundraising than on its programs, with an average of 61% of its budget going towards fundraising costs.
- The charity’s shutdown has left families who relied on its services devastated, with some attempting to carry on the mission with a new, unaffiliated group.
Introduction to the Charity’s Demise
The Canadian Critical Incident Stress Foundation (CCISF) was a charity formed in 2013 to support police, fire, and paramedic personnel dealing with PTSD, as well as the families of those who died in the line of service or took their own lives. However, the charity has recently ceased operations due to allegations of massive fraud and misappropriation of donor funds. The charity’s former CEO, Renee Jarvis, and former treasurer, Kelsey Pitt, are being sued for allegedly taking funds for personal use and concealing the debt and missing funds from the charity’s board of directors.
Allegations of Fraud and Misappropriation
The lawsuit, filed in Ontario Superior Court, claims that Jarvis and Pitt failed to send payroll deductions to the Canadian Revenue Agency (CRA), resulting in a $90,000 tax bill. They then allegedly loaned themselves over $150,000 of the organization’s funds to pay down the debt. The lawsuit seeks to recover these funds, plus unspecified amounts for costs and damages. The statement of claim alleges that Pitt and Jarvis "worked together to, without knowledge of, or permission from CCISF, take funds from the Organization for their personal use and enjoyment." The pair allegedly concealed the debt and missing funds from the charity’s board of directors, submitting "false financial statements" at annual general meetings.
Consequences of the Allegations
The allegations have led to the shutdown of the charity’s activities, including its main focus, Camp FACES, a summer getaway for bereaved families. The camp was a vital service for families who had lost loved ones in the line of service or to PTSD. The charity’s chair, Harold Coffin, a retired OPP officer, made the difficult decision to start shutting down the charity’s activities last fall, citing the difficulty in continuing to run and raise funds for the programs. The charity is now undertaking a forensic audit to determine if other monies have gone astray.
Questionable Fundraising Practices
The charity’s financial summaries filed with the CRA show that it consistently spent more on fundraising than on its programs. In 2020, the charity raised $947,000 but paid $491,000 to its external fundraisers and $285,000 on management and administration, compared to $153,000 on programming. This is in excess of the CRA’s guidelines, which state that fundraising costs for registered charities should not exceed 35% of their budget. Kate Bahen, managing director of Charity Intelligence, a national watchdog, notes that the sector’s growing reliance on third-party, for-profit fundraising companies is a big problem, hurting both Canadians and charities that play by the rules.
Impact on Families
The charity’s shutdown has left families who relied on its services devastated. Sarah Routhier-Clark, the widow of an OPP officer who took his own life in 2018, says the camp provided a safe and supportive community for her and her children. The camp offered more than just fun activities, but also workshops and support for grief and rebuilding confidence. Routhier-Clark and some other attendees are hoping to carry on the mission with a new, unaffiliated group, Frontline Families, which has applied for charitable status and hopes to start offering its own retreat next summer.
Conclusion and Next Steps
The allegations of fraud and misappropriation of donor funds have led to the demise of the CCISF, leaving families who relied on its services without support. The charity’s shutdown serves as a reminder of the importance of transparency and accountability in the charitable sector. Donors must be vigilant in researching charities and ensuring that their donations are being used effectively. The CCISF’s story highlights the need for stronger oversight and regulation of charities to prevent similar cases of fraud and misappropriation in the future.
