An evangelical group based in Winnipeg has lost its charitable status. An audit revealed that its director misused donated funds to help himself and his family.
CBC News reported a story filed with the Canada Revenue Agency (CRA). It found that Harold Reeve spent more than $76,000 in 2009. These funds went toward personal expenses. He was the director of the evangelical group, Gospel Outreach. This spending was more than half of the $124,000 the charity spent in total in 2009.
The CRA document attached to the CBC story highlighted Reeve’s illegitimate use of the charity’s money. This misuse included two trips to Punta Cana in the Dominican Republic and a ski trip to Montana. It also involved the payment of property taxes on his family cottage. There was uncharitable distribution of grocery store gift cards. Additionally, there was illicit use of four vehicles and one boat under the charity’s name.
Reeve was unavailable for comment, but wrote in a letter to the CRA that,
What I have done and do is for the charitable advantage of others. I used the organization to pay for the expenses. I considered them to be part of the organization’s service.
Gospel Outreach board member Paul Jenkins told CBC that poor bookkeeping is to blame for many of the discrepancies. The boat, for example, was apparently used at a Bible camp in Manitoba. Reeve’s trips to the Dominican Republic were taken to preach the gospel to the poor.
Jenkins said, “I trust Harold and I feel that he’s been judged wrongly. To my knowledge, the money that was given went to people in need. Alternatively, it was used to further the gospel.”
Gospel Outreach claims to send children to Bible camps. It also helps people in need. It can still operate as a charity. However, it can no longer issue tax receipts for those wishing to claim them as deductions. This is because it has lost its charitable status.