WE Charity Closing - the details

WE Charity Closing - the details

In September 2020 Craig and Marc Kielburger announced WE Charity was closing in Canada. Its real estate would be sold, its bank debt paid and what was left over would go to an endowment fund for its international and Canadian operations.

WE Charity’s 2021 audited financial statements provide details on this:

  • WE Charity's Toronto real estate sold
    • proceeds from the sale were $29.2 million
    • transferred one building to WEllbeing Foundation valued at $4.9 million
    • $5.3 million write-down
  • Repaid $14.0 million in bank debt
  • $10 million transferred to WE Charity Foundation for WE Villages and international projects

 

 

Two relatively new Canadian charities will continue WE Charity’s programs: WE Charity Foundation for international programs and WEllbeing Foundation for on-line mental health resources in Canada.

 

WE Charity Foundation

WE Charity Foundation received $10 million for an endowment. This is less than management’s earlier estimate of $20 - $25 million.[1] The plan is that WE Charity Foundation will invest this money with professional managers to produce annual income. This investment income will support international programs in Kenya, Ecuador and in other countries. These international programs need an estimated $1-$1.5 million in annual funds.[2]

WE Charity reports that most of its international projects are complete. Other incomplete international programs have been transferred to WE Charity Foundation and WE Charity US.

Learn more about WE Charity Foundation’s NEW directors and senior management

 

WEllbeing Foundation

WE Charity’s domestic programs have been transferred to WEllbeing Foundation. WEllbeing Foundation became a Canadian registered charity in 2018. Leysa Creswell Kielburger, WE Charity's co-founder Craig Kielburger's wife, is WEllbeing Foundation's co-founder. It has two full-time and nine part-time staff. Its purpose is to provide teachers with classroom tools to promote mental health awareness. The WEll-being Playbook is co-authored Leysa Cerswell Kielburger, and Susan Allen.

WEllbeing Foundation previously owned one Toronto property.  With the transfer of another building, it now owns $8.0 million in Toronto real estate. WEllbeing Foundation has a December year end. We will learn more about this new Canadian charity shortly when its 2021 filing is posted.

 

For more information on WE Charity read Charity Intelligence’s charity profile updated June 2022

 

Our analysis uses only public records.

Sources:

WE Charity Canada’s 2021 audited financial statements

Rosen Report, October 27, 2020

CTV News WE Winding Down Canadian Operations, Lisa LaFlamme interview with Evan Solomon, September 9, 2020

CTV News Lisa LaFlamme’s full interview with the Kielburger brothers, September 9, 2020

WE Charity Foundation’s annual filings with CRA Charities Directorate

WEllbeing Foundation’s annual filings with CRA Charities Directorate

 

Further explanation of the $5.3 million real estate write-down: WE Charity’s real estate was reported in its financial statements with a carrying value (book value) of $40.9 million. It gave one property worth $4.9 million to WEllbeing Foundation. The other Toronto properties sold in August 2021 for $29.2 million. As this actual sale price is less than the carrying value, there is a write-down of $5.3 million. WE Charity explains that this write-down is due to the highly customized, donated audio/video equipment in these buildings which reduced its resale value.

[1] Rosen Report, October 2020 p. 10

[2] Rosen Report, October 2020 p. 9

 

Charity Intelligence's report on the Rosen Report, March 1, 2021

 

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