WE Charity Moved Millions To Private Kielburger Company - 2020-07-18
Some people live a certain lifestyle and you only ever see one side of the balance sheet. You don't see how much debt that person has. WE Charity had the big offices, had the Global Learning Center, had all the assets, properties on Queen Street, but these were all backed — its lending practices were getting close to the max. Kind of like your credit card. You know, if you've got a credit card limit of ten thousand dollars, these guys were always at nine thousand five hundred. It was always pushing, pushing the limits.
So it was you know, [they] have to go to the bank every year and renegotiate this loan. God forbid the bank says 'no' this year. It's kind of like a high wire act. It just isn't seen in charities. So WE is different on so many fronts.
J: Your analogy to a soup kitchen or a hospice — those are facilities that directly do charitable work. The Toronto SUN's Brian Lilley reported that WE quickly acquired $38.7m in Toronto real estate. How much money were they spending each year on their actual charitable works instead of on their headquarters and things like that?