Sponsors, WE Charity ‘mutually’ agree to part ways, WE says amid controversy

Sponsors, WE Charity ‘mutually’ agree to part ways, WE says amid controversy

Sponsors, WE Charity ‘mutually’ agree to part ways, WE says amid controversy

TORONTO — WE Charity says it has “mutually agreed” to suspend its partnerships after a flood of companies announced they were dropping their support for the embattled organization whose founders faced parliamentary hearings on Tuesday.

“We regret that the disruptive political conversations and inquiry have impacted our stakeholders,” WE Charity said in a statement Tuesday that did not specify which partnerships were being suspended.

“We do not want any of the individuals or organizations who participate in or support our programs to be adversely impacted by the challenges our organization is dealing with.”

WE’s remarks came after several companies, including Royal Bank of Canada, Loblaw Companies Ltd., GoodLife Fitness and KPMG said Tuesday they are ending their partnerships with the charity. WestJet and DHL said they are still deciding what to do about WE.

Companies are backing away from WE amid an ongoing controversy over a federal government deal to run a $900-million student volunteer program meant to help youths during the COVID-19 pandemic.

WE — a Toronto-based charity formed by brothers Craig and Marc Kielburger in 1995 —was awarded the contract, before stepping away from administering the program.

Prime Minister Justin Trudeau, whose mother and brother received money for speaking at WE events, and Finance Minister Bill Morneau, who has travelled on WE’s dime and has a daughter who works for the organization, face ethics probes after failing to recuse themselves from discussions about the contract.

Morneau has since paid back the more than $41,000 his WE travels cost, while Trudeau has apologized.

Meanwhile, WE has laid off 450 contract workers and said it is eyeing a restructuring. The Kielburger brothers are testifying Tuesday at a House of Commons committee looking into the student volunteer program’s agreement with the government.

WE’s statement Tuesday also noted that the organization had also ”provided notice to all our school board partners that we are suspending formal agreements at this time.”

The charity previously worked with schools to bring students to We Days, a series of star-studded, stadium events held across Canada to drum up awareness around the charity.

RBC chief executive Dave McKay served as co-chairman of last year’s We Day, but his company has since decided to end its ties to WE.

“After reviewing our partnership, RBC and WE Charity have reached a mutual agreement to end all sponsorship and donation programming,” said spokeswoman Gillian McArdle in an email to The Canadian Press, days after WE sponsor Virgin Atlantic Airways dropped the organization.

WE’s Global Learning Centre was brought to life with fundraising from a group of well-known philanthropists, including RBC executive Jennifer Tory, who mentions the charity in her online bank bio.

Loblaw also decided to end its relationship with WE after previously involvement with WE Day and school activities focused on the subject of childhood nutrition.

“We have no plans for future activities at this time,” spokesperson Catherine Thomas said in an email.

GoodLife Fitness, a chain of exercise facilities, also edged away from WE, whose staff it had given free gym memberships and Ford Canada said it was “pausing’ all sponsored activations with WE Charity.

KPMG, which provided the charity with pro bono business advisory and financial strategy services, also confirmed on Tuesday that it decided to suspend its relationship with WE.

WestJet, which has provided free flights for kids in remote areas and staff to get to WE Day events since 2014, was taking a different approach.

“With WE Days suspended for 2020, we will work towards understanding the situation in greater detail before making any determinations,” WestJet spokeswoman Morgan Bell said in an email to The Canadian Press.

Delivery company DHL’s involvement with WE is also still up in the air.

“In Canada, our contract with WE ended in March and we did not immediately renew due to COVID19-related impacts on the partnership. We have not yet made a decision on any future partnerships,” a company spokesperson said in an email.

This report by The Canadian Press was first published July 28, 2020.

Companies in this story: (TSX:RY, TSX:WJA, TSX:L)

Tara Deschamps, The Canadian Press

charity

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta reported an additional 1,980 cases of COVID-19 Friday. (NIAID-RML via AP)
Red Deer adds 37th death from COVID-19, active cases drop

Alberta Health identified an additional 1,980 cases of the virus province-wide

Manluk Centre: Wetaskiwin Regional Aquatics and Fitness will be closed to the public until further notice beginning May 10, 2021. Image/ City of Wetaskiwin.
Manluk Centre to close following new provincial restrictions

The Manluk Centre will be closed to the public until further notice beginning May 10, 2021.

Alberta Premier Jason Kenney (File photo by THE CANADIAN PRESS)
Kenney to announce plan for truckers to get COVID-19 vaccinations in nearby states

Alberta is approaching 25,000 active cases of COVID-19, and there are more than 600 people in hospital with the illness

Alberta’s chief medical officer of health Dr. Deena Hinshaw asked Albertans to limit travel throughout the province as COVID-19 cases continue to rise. (Photo by Chris Schwarz/Government of Alberta)
Red Deer nears 900 active COVID-19 cases

Province reports additional 2,211 COVID-19 cases

Photo (STAR Catholic Logo)
STAR Catholic School Division declines running pilot on K-6 draft curriculum

The Catholic school board conducted an in-depth analysis of the Education Alberta’s draft curriculum

Red dresses hang from trees in a Wetaskiwin park for MMIW awareness. Shaela Dansereau/ Pipestone Flyer.
Red dresses hang in Wetaskiwin for MMIW awareness

Red dresses hang in various locations across Wetaskiwin for National Red Dress… Continue reading

A rodeo south of Bowden drew a huge crowd on May 1 and 2, 2021. (Photo courtesy Mom’s Diner’s Facebook page)
Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The postponement of the event was put in place to protect the health and safety of employees and customers, the company says

Big truck semi trailer moves on the highway towards sunset
Alberta’s cross-border truckers to be vaccinated at Montana rest stop

2,000 Alberta truck drivers who transport goods across the border will be able to receive the Johnson & Johnson vaccine in Montana

Road sign on Highway 1 west of Hope warns drivers of COVID-19 essential travel road checks on the highways into the B.C. Interior. (Jessica Peters/Chilliwack Progress)
B.C. residents want travel checks at Alberta border, MLA says

Police road checks in place at highways out of Vancouver area

People line up outside an immunization clinic to get their Oxford-AstraZeneca COVID-19 vaccine in Edmonton, Tuesday, April 20, 2021. THE CANADIAN PRESS/Jason Franson
Hospital investigating whether Alberta woman who died after AstraZeneca shot was turned away

Woman was taken off life support 12 days after getting vaccine

Two passengers were recently fined thousands of dollars after they faked their pre-flight COVID-19 test results. (Paul Clarke/Black Press)
2 passengers in Canada fined thousands for faking pre-flight COVID-19 tests

The government issued a warning Thursday to others thinking of doing the same – do it and you’ll be ordered to pay

A wild rabbit grazes in Nanaimo, B.C. in this Feb.2, 2018 photo. Rabbit owners in Alberta are being warned about a deadly virus that was identified in a southern Alberta household last month. THE CANADIAN PRESS/Dirk Meissner
‘Like a flash fire:’ Rabbit owners warned about outbreak of deadly disease in Alberta

The disease is confined to rabbits and cannot spread to humans

Most Read