International Cash Conduits and Real Estate Empires: A Case Study in Canadian Philanthropic Crime

Abstract

We analyze an instance of philanthropic law-breaking by a group of Canadian charities, who funnelled millions in tax-exempt funds to foreign recipients. Analyzing 20 years of tax data, we identify a pattern of regulatory violation we are calling the burner charity phenomenon. We track a chronological sequence of organizational behaviour characterized by hibernation, growth, and abandonment, across three linked burner charities. Backstopping burner charities, we show, is a network of public and private foundations. We argue that the purpose of burner charities is to enable foundations to transfer funds to foreign agents while remaining shielded from Canadian law. Combining insights from white collar crime and a Zemiology, we conclude by considering the multi-faceted dimensions of harm associated with burner charities.