MADD Canada

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MADD Canada is the Canadian arm of Mothers Against Drunk Driving, which has chapters across the country. Most press releases, advertisements and policies of MADD Canada focus on stopping drunk driving. The group supports a zero blood alcohol content limit for drivers under 21.^[1]

They have successfully persuaded the federal government to pass Criminal Code provisions against drunk driving. Supporters credit MADD Canada for helping to ensure that drunk driving rates (in all age groups) are lower in Canada than they are in the U.S.

In December 2006 in Canada, the Toronto Star alleged that "Mothers Against Drunk Driving Canada has such high costs that only about 19 cents of every dollar goes to victim services and the fight against drunk driving", with the organization claiming their fundraising calls were also educating the public about drunk driving.^[2] As of December 13 2006, MADD Canada has suspended fundraising efforts pending an internal financial investigation^[3]

These “exorbitant costs” anger charity's volunteers. Toronto-Star, December 9, 2006. </ref> MADD had long claimed that about 84 cents of every dollar raised went to support its programs instead of 19 cents. The difference is because the organization was claiming its fundraising activities were also educating the public about drunk driving and, therefore, were not fundraising costs.^[4]

The American Institute of Philanthropy (AIP) and similar groups have long insisted that such a practice is deceptive and unacceptable. An official of the Canada Revenue Agency's Charities Directorate, which regulates charities, says the practice is prohibited.^[5] A letter from the Canada Revenue Agency dated March 3, 2003, stated that MADD made "incorrect allocations of expenditures" and confused fundraising with charity. The letter warned MADD that to retain its charitable status it must not count as charity "amounts paid for purely fund-raising expenses such as door-to-door, direct mail, and telemarketing fees.".^[6]

However, MADD Canada’s head, Andrew Murie, insisted that its practice of counting payments to professional fundraisers as charitable work is one of “the acceptable principles of allocation of expenses" and that the regulator gave him permission to do so. The Charities Directorate specifically disputes his contention and says the practice is definitely not allowed.^[7]

Under intense pressure from its membership, MADD management agreed to conduct internal financial investigation but not to permit an outside audit.^[8] About a year later the corporation’s self-perpetuating board of directors admitted that MADD was wrong to have been counting tens of millions of dollars in fundraising expenses as charity and says it has now stopped the practice.^[9]

[edit] References

^ Youth and Impaired Driving in Canada: Opportunities for Progress
^ "MADD rejects 'disgruntled' critics," Toronto Star No longer there
^ "MADD suspends fundraising," Toronto Star No longer there
^ Donovan, Kevin. MADD's “exorbitant costs” anger charity's volunteers. Toronto-Star, December 9, 2006; Donovan, Kevin. MADD rejects 'disgruntled' critics: Charity's CEO dismisses volunteers' complaints that so little of donations go to programs. Toronto-Star, December 10, 2006; MADD fundraising under fire. Hamilton Spectator, December 13, 2006.
^ Donovan, Kevin. MADD's “exorbitant costs” anger charity's volunteers. Toronto-Star, December 9, 2006.
^ Donovan, Kevin. MADD's “exorbitant costs” anger charity's volunteers. Toronto-Star, December 9, 2006; Donovan, Kevin. MADD rejects 'disgruntled' critics: Charity's CEO dismisses volunteers' complaints that so little of donations go to programs. Toronto-Star, December 10, 2006; MADD fundraising under fire. Hamilton Spectator, December 13, 2006.
^ Donovan, Kevin. MADD's “exorbitant costs” anger charity's volunteers. Toronto-Star, December 9, 2006; Donovan, Kevin. MADD rejects 'disgruntled' critics: Charity's CEO dismisses volunteers' complaints that so little of donations go to programs. Toronto-Star, December 10, 2006; MADD fundraising under fire. Hamilton Spectator, December 13, 2006.
^ Donovan, Kevin. MADD suspends fundraising: Charity in turmoil as chapters demand outside auditor examine books. Toronto-Star, December 13, 2006; Donovan, Kevin. MADD rejects 'disgruntled' critics: Charity's CEO dismisses volunteers' complaints that so little of donations go to programs. Toronto-Star, December 10, 2006
^ Donovan, Kevin. MADD charity mends its ways. Toronto Star, October 3, 2007.Available at [1]