Dilemma for donors

Donors to the Zoroastrian Society of Ontario’s (ZSO) Building Project holding a charitable tax receipt have been given the option of seeking a refund or consenting to their monies being used to renovate the existing Darbe Mehr. Having raised $ 2,426,610 as of March 2012 for the construction of a larger Darbe Mehr, an amount exceeding the original projected cost of $ 2.2 million but way below the escalated estimate of $ 7,000,000, the general body ultimately decided to continue with their present premises. The ZSO executive has given donors an opportunity to exercise their choice by February 28, 2013.
As mentioned in the ZSO newsletter of January 2013, "The Society intends to bring an application for the opinion, advice or direction of the Court as to whether the donations raised for the Building Project, or such of the donations as remain following any return of donations, can be applied to renovate the existing Darbe Mehr to be better and more functional. If the Court determines that such donations can be so applied, it is hoped that this will enable the charitable donation status of the original donation(s) to continue unaffected and without adverse tax consequences.”
Those seeking a refund have been advised to obtain individual tax advice to ensure that there are no adverse tax consequences when a prior year’s donation is returned at this time.
The executive also realizes that a significant portion of donation monies were raised through fundraising events like dinners for which no tax receipts were issued as it is not possible "to connect the monies raised by such means to specific donors.” Since these monies cannot be returned to donors, the Society will also seek the Court’s sanction to use the funds to renovate the existing structure.