Recently there have been reports in the media relating to TLC’s financial situation. We would like to reassure our members, donors, volunteers, partners and supporters that TLC is working through these challenges.
Currently, our Board of Directors and staff are working on a Sustainability Plan for the organization to enable it to continue the legacy of protecting B.C.’s special places. For a brief outline of our plan, please visit our message to TLC Members and Donors. A more detailed version will be presented at our Annual General Meeting on November 3, 2012.
The Board and staff of TLC are committed to building a sustainable future for TLC that combines best practices for our properties with strong financial and operational management.
Every day at TLC we are inspired by the phone calls, emails like the one from Miranda Chapman and visits from concerned citizens asking how they can help during this transition. If you too would like to support TLC’s work, visit our Ways to Help page.
Here are some FAQs to answer any questions you may have.
Q. Is TLC selling properties to pay off its debt?
A. Legally, TLC cannot sell its conservation properties. TLC, like all charities, must comply with legislation such as the Charitable Purposes Preservation Act which limits how properties acquired as or with charitable donations must be used. Also, TLC must comply with its own bylaws and with the Standards and Practices for Land Trusts in Canada, both of which set stringent criteria for the protection of properties in our care. These requirements do not allow us to sell off properties that we have acquired and protected for conservation purposes. We’ve had a couple of properties that are not conservation properties – one was sold last year (a house adjacent to our Ayum Creek property) and one is currently up for sale (a development property in Sechelt).
Q. What happens if TLC cannot resolve this situation?
A. In a worst case scenario, TLC would transfer its conservation properties to other charitable organizations who have a similar mandate.
Q. In light of the current difficulties and publicity, how are TLC’s revenues holding up?
A. The foundation of our Sustainability Plan was to reduce our operating costs to levels that were consistent with a very conservative estimate of revenues. Revenues in the past few months, from members, donors, grants and income from enterprises such as cabin rentals, have exceeded our conservative revenue projections.
Q. Are there other assets that TLC is expecting that will help improve their finances?
A. We are expecting a couple of significant government grants before the end of the calendar year. We also have a significant estate bequest that has been committed to TLC, although the timing of this is less certain.
Q. What are the facts on TLC mortgages?
A. TLC has mortgages on 13 properties. These mortgages were taken out at the time the properties were purchased when donations fell short of the purchase price. TLC has not and cannot mortgage properties to cover operating costs or to purchase new properties.
Q. Why did CRA put a hold on TLC’s accounts?
A. There have been some arrears owing however we do feel we have a solution in sight. CRA had already lifted the freeze somewhat so we were able to pay staff and as of Friday afternoon, the hold on the accounts was lifted. A $23,000 cheque to CRA was also caught in the freeze. The money owed is from Goods and Services Tax from a property transaction and the remainder is employee tax arrears.
Q. What is being done about the situation?
A. As of Friday afternoon, CRA has agreed to lift the hold on the accounts. We are working to find a solution that will allow us to pay off CRA as quickly as possible. We believe that this is achievable by the end of September at the latest. With the help of our creditors, lenders, staff and members we are restructuring so that we will be on a more sustainable footing in the future.
Thank you for the update. This must be a very challenging time for staff and Board members., but TLC is a cause worth fighting for!