Boss Proposes Mastercard to Oversee Charitable Operations
The Mastercard Foundation, renowned for its mission to eliminate poverty, doles out colossal sums through influential private companies and even lobby groups, a revelation made by La Presse. Here's a rundown on some of their biggest spendings:
- Private Sector Foundation Uganda (PSFU): Over the past five years, the foundation gifted CAD 48.4 million to this organization, which represents the interests of the private sector.
- Sterling Bank, Nigeria: CAD 28.8 million has been donated to this private bank.
- KPMG East Africa: The foundation has handed out CAD 29.6 million to this accounting firm.
- First Consult, Ethiopia: A staggering CAD 80.5 million went to this economic development agency.
Critics question the legitimacy of these donations, granting them tax exemption in Canada. The foundation clarified that they execute charitable missions in Africa, particularly education and entrepreneurship, through partnerships with these private intermediaries. For instance, the funding to PSFU was intended to provide training to empower disadvantaged youth, primarily women, to strengthen their livelihoods and establish micro-enterprises. Similar explanations were given for the donations to Sterling Bank, KPMG, and First Consult.
The foundation insists it follows Canadian Revenue Agency (CRA) rules. They assert that these organizations are engaged as service providers to implement their programs under their control and direction. Strict internal processes and financial controls have been established to ensure responsible and purposeful use of funds.
Concerning transparency, the foundation has withheld the names of beneficiaries for 405 of its foreign donations, totaling CAD 208 million over the past five years, according to CRA data. This is in contrast to CRA requirements, as the foundation's spokesperson, Eleni Constantine, did not comment on this matter.
Questionable Partnerships and Influence
In 2021, eyebrows were raised regarding the involvement of Michael Sabia, a member of Mastercard Foundation's board, who later became CEO of Hydro-Québec, in shaping Canadian charity regulations. At that time, Sabia was both a volunteer on the foundation's board and a federal finance minister's right-hand man, Chrystia Freeland. Furthermore, Hilary Pearson, Sabia's spouse, served as co-chair of the Advisory Committee on the Charity Sector, offering recommendations to the Trudeau government.
Freeland eventually announced more flexible rules for charities, with fewer stringent control requirements for funds donated to non-recognized donees, including those overseas. Notably, the relaxation of CRA rules was among the lobbying priorities of Mastercard Foundation lobbyist Terrance Carter, who was registered with the federal lobbyist registry in 2019. Between 2019 and 2021, Carter concurrently served as a member of the Advisory Committee on Philanthropy with Hilary Pearson.
In 2022, these rules were indeed amended, with charities seeing their minimum annual donation requirements rise from 3.5% to 5% of their assets, in exchange for loosened regulations. With contributions from Jean-Hugues Roy, it was reported by our site.
The Mastercard Foundation's donations to various private companies and lobby groups, amounting to significant sums as seen in their partnerships with the Private Sector Foundation Uganda (PSFU), Sterling Bank, KPMG East Africa, and First Consult, have sparked debates about their legitimacy and impact on the environment of general-news, politics, finance, and business. The Foundation's clarification of executing charitable missions through partnerships, such as the empowerment of disadvantaged youth in Uganda, doesn't completely alleviate concerns given the foundation's reluctance to disclose beneficiaries of 405 foreign donations, totaling CAD 208 million, as highlighted by Canada Revenue Agency data. Furthermore, questions have arisen regarding the foundation's influence on Canadian charity regulations, as seen in the case of Michael Sabia, a board member of Mastercard Foundation, and his involvement in shaping regulations while serving as a federal finance minister's right-hand man.
