Does the SHAMBA foundation risk losing its charitable status?

UPDATE: Globalive’s PR people gave me a call

UPDATE: Liberal/SHAMBA association suggested by form found on Liberal Party website

Gerard Kennedy, the former Liberal leadership contender and current Liberal candidate for Parkdale High Park is holding a fundraiser tonight in order to pay off his leadership debts.

Here is the Facebook page for the event

The fundraiser is to take place with the help of the SHAMBA foundation, an organization that oversees the SHAMBA space. The concept is simple but quite original; the SHAMBA space is a rooftop patio lent out to charitable organizations to hold events. According to the foundation’s website:

The fun part – and the cornerstone of the SHAMBA foundation – is the creation of a brand new 2,500 square foot rooftop terrace designed for fantastic events that raise money for great causes. The SHAMBA Space, as we call it, is available for local charities to use at no cost to host events. In addition to donating this exquisite space, SHAMBA also negotiates sponsorships with food and beverage partners to ensure that the bulk of funds raised at an event actually go directly to the cause.

The generous concept is that of Globalive CEO Anthony Lacavera, a Gerard Kennedy leadership supporter according to data at Elections Canada.

Gerard Kennedy, like some other Liberal leadership candidates, needs to pay off his Liberal leadership debts by June 3rd or else he will run afoul of Elections Canada. Anthony Lacavera seems like a good friend with a great foundation that is helping Kennedy pay off his debts. So what’s the problem here?

The SHAMBA foundation is a registered charitable organization according to the Canadian Revenue Agency. Also, registered charities are prohibited from partisan political activity under the law.

A registered charity cannot be created for a political purpose and cannot be involved in partisan political activities. A political activity is considered partisan if it involves direct or indirect support of, or opposition to, a political party or candidate for public office.

One hopes that Gerard Kennedy will move his fundraiser to a different venue because the purpose of the SHAMBA foundation is to provide free event space for charities. According to the Facebook page, the foundation is the location for the event. If the space is not being provided for free, one hopes that Kennedy is paying fair market value for event space that never seems to be rented for a fee. Even so, should this charity be mixed up with partisan political activity?

UPDATE 5/30 4:30pm: Globalive’s PR people just gave me a call to admit that the Gerard Kennedy fundraiser was erroneously billed/described by the promoters of the event. The SHAMBA space is used for charitable events but for the intents of the Gerard Kennedy event the space should be thought of within the Globalive domain (a company) rather than that of the SHAMBA foundation (a charity); the Gerard Kennedy fundraiser took place on Globalive property rather than that of the SHAMBA foundation and though it is the same space the space takes different identities depending on the – or rather this – context. I was assured that Gerard Kennedy paid fair market value for use of the space from Globalive and that the space was not made as a donation from the company.

UPDATE 5/31 5:55pm: Here is the registration form for the event (still live on the LPC(O) website). The form clearly has the logo of the SHAMBA foundation (a registered charity). This doesn’t seem to simply be an erroneously written Facebook listing. The event is officially billed as a SHAMBA foundation/Gerard Kennedy event. I think that the earlier PR call may have been a sort of after-the-fact damage control revision of history. Charities cannot participate in partisan political activity. This form from the Liberal Party website suggests that the SHAMBA foundation and the Liberal Party have an association.

Read this doc on Scribd: Political Ideals Celebration

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