To: John B romley · o ! 2018; CHIMP sold 15 properties c lassified as land to a third party for total proceeds of $2,071,848 and realized a gain of $1,202,596. RCHIMP also entered

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September 19, 2020

To: John Bromley

c.c. Blake Bromley

Neil Bunker, PricewaterhouseCoopers LLP

Dr. George Iwama, President, Quest University

Ms. Flora Ferrara, VP Finance, Quest University

Ms. Mary-Jo Larson, Chair of the Board of Governors of Quest University

Mr. Jordan Sturdy, MLA, West Vancouver-Sea to Sky

Mr. Ralph Sultan, MLA, West Vancouver

RE: Quest University

Further to my previous letters, I am writing to inquire about the involvement of

Charitable Impact Foundation (“CHIMP”) in the financial history of Quest University.

1. Donated Land

o 2016: CHIMP report a donation of land for $31,975,000 and a disbursement of land for

$30,472,987.

o 2017: CHIMP sold donated land for $814,900 earning an aggregate gain on disposal of

$27,900. As of 2018 (the most recent year for which financial statements are available),

Chimp Foundation reports $743,251 in assets of donated land.

o 2018; CHIMP sold 15 properties classified as land to a third party for total proceeds of

$2,071,848 and realized a gain of $1,202,596.CHIMP also entered into unconditional

contracts for sale of land for proceeds of $1,997,786 and expected to realize an

aggregate gain on disposal of $1,667,885.

2. Quest University Mortgage

In financial statements, CHIMP reports a mortgage receivable. CHIMP’s financial statements

don’t say so, however from other documents (attached), it is clear that this mortgage is for

Quest University. The amounts of this mortgage are reported as follows:

o 2016: $18,754,487

o 2017: $20,065,241

Quest’s mortgage was at 7% compounded annually, according to CHIMP’s financial

statements.

CHIMP’s tax returns (attached) shows that in 2018 Quest’s mortgage was transferred from

CHIMP to Vanchorverve Foundation as a “gift” in the amount of $20,791,405.

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In light of the above, my questions are:

1. Donated Land

o Of the donated land that CHIMP has received and sold, how much, if any, is part of the

240 acres that was originally purchased for Quest University?

o How will Quest benefit, if at all, from the proceeds of the disbursement of this land?

2. Quest’s Mortgage

o What is the total that CHIMP has charged Quest in relation to its mortgage:

o Accrued Interest

o Professional & consulting fees and other expenses

As always, if I have presented anything here that is factually incorrect of if I have missed any

important points, please let me know.

Sincerely,

Vivian

Vivian Krause

@FairQuestions

Attachments:

1. Excerpts from the 2018 tax return of Charitable Impact Foundation

2. Excerpts from the financial statements for Charitable Impact Foundation.

3. Mortgage documents between Charitable Impact Foundation and Quest University.

2019-05-21, 10)44 AMT3010 Registered Charity Information Return : Form T1236 - Qualified donees worksheet / Amounts provided to other organizations

Page 5 of 6https://apps.cra-arc.gc.ca/ebci/hacc/srch/pub/t3010/v23/t3010QlfdDns_dsplyovrvw?dsrdPg=71

Business number/?Registration number: 832038228RR0001

City: Ville St-Laurent

Province/Territory: QC

Amounts of non-cash gifts:

Total amount of gifts: CAN$ 50.00

Was any part of the gift intended for political activities?

Qualified donee # 1770

Name of organization: Pain Bc Society

Associated charity: No


City: Vancouver

Province/Territory: BC


Total amount of gifts: CAN$ 3,283.00



Name of organization: Silver Dollar Foundation/Fondation Dollar



City: Montreal

Province/Territory: QC


Total amount of gifts: CAN$ 97.00



Name of organization: Vanchorverve Foundation



City: Vancouver

Province/Territory: BC


Total amount of gifts: CAN$ 20,791,405.00



Name of organization: Canadian Roots Exchange



City: Toronto

Province/Territory: ON


Total amount of gifts: CAN$ 6,388.00



Name of organization: The Michael J. Fox Fdtn For Parkinson's R



VIVIAN KRAUSE

VIVIAN KRAUSE

VIVIAN KRAUSE

2018 Tax Return for Charitable Impact Foundation (“Chimp”)

CHIMP: Charitable Impact Foundation (Canada)Statement of cash flowsyear ended July 31, 2015

2015 2014

$ $

27,077,735 12,449,788

Operating activitiesExcess of revenue over expensesItems not involving cash

Amortization

Donation of securities

Donation of land

Decrease in cash surrender value of life insurance policies

Donation of life insurance policies

Unrealized (gain) loss on revaluation of donated securitiesRealized loss on sale of donated securitiesRealized loss on sale of donated land

2,332(21,691,261)

(t,788,875)

12,439

(2,894,000)

149,7824,100

3,171

(12,47s,136)

(24,000)

312,000

4,965

Changes in non-cash working capital balances

Amounts recoverable from government authorities

Prepaid expenses

Accrued liabilities

872,252

(49,358)

1,550

376,010

272,788

(17,5e6)

(1,550)

31,508

1,200,454 285,150

Investing activitiesPurchase of equipmentPurchase of securitiesProceeds on disposition of donated securitiesProceeds on sale of donated land

8,162,909

fi9,000

(4,180)

(1,673)

243,573

8,281,909 237,720

lncrease in cash

Cash, beginning of year9,482,363

2,850,701

522,8702,327,831

Cash, end ofvear 12,333,064 2,850,701

The accompanying notes to the financial statements are an integral part of this financial statement.

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VIVIAN KRAUSE

VIVIAN KRAUSE

VIVIAN KRAUSE

VIVIAN KRAUSE

VIVIAN KRAUSE

CHIMP: Charitable Impact Foundation (Canada)Notes to the financial statements

July 31,2015

1 Nature of organization

The CHIMP: Charitable lmpact Foundation (Canada) was incorporated under the Canada CorporationsAct on August 6, 2008, continued under the Canada Not-for-profit Corporations Act on November 9,

2012 and commenced operations on August 1,2010. The Foundation is an independent, not-for-profit

charitable corporation registered as a public foundation with the Canada Revenue Agency and is aregistered charity under the Canadian lncome Tax Act. The Foundation is a web-based donor advisedfund through which an individual, company or group can set up their own online charitable giving

account. At any time, account holders can request the money in their accounts be allocated to anyqualified donee (including all registered charities, registered Canadian amateur athletic associations,

municipalities, etc.).

Significant accounting policies

These financial statements have been prepared in accordance with Canadian accounting standards fornot-for-profit organizations and reflect the following significant accounting policies:

(a) Donated land

Donated land is valued at the lower of cost and current replacement cost. Cost is determined based

on fair value at time of contribution.

(b) Equipment

Equipment is recorded at cost less accumulated amortization. Amortizalion is provided on adeclining balance basis at the following annual rate:

Computer hardware 55o/o

ln the year of acquisition, amortization is provided for half the year.

The Foundation reviews equipment for impairment whenever changes in circumstances indicate

that the carrying amount of an asset may not be recoverable from expected undiscounted future

cash flows and eventual disposition. No impairment losses were identified by the Foundation for theyearended July 31 ,2015.

(c) Revenue recognition

The Foundation follows the deferral method of accounting for contributions, which primarily includes

donations, which are recognized upon receipt of funds from donors. Disbursements to qualified

donees (including all registered charities, registered Canadian athletic associations, municipalities,

etc.), as requested by CHIMP account holders at the time of donation, are ultimately at the

discretion of the Foundation.

(d) Donated securifies

Donated securities are comprised of unlisted shares and publicly traded securities.

(i) lnvestments in unlisted shares, are measured at fair value on the date of donation, and are

thereafter carried at this amount until such time as they are sold or become impaired

(ii) lnvestments in publicly traded securities are measured at fair value initially and thereafter at

the statement of financial position date. The fair value of publicly traded securities is based on

the latest closing price.

The Foundation is subject to equity price risk pending the sale of donated securities. As donated

securities are received, they will either be liquidated immediately, or held under the Foundation's

management with the written consent of the donor. Upon disposition, the donor may request

disbursement to respective qualified donees based on the net proceeds. Please see Note 6(c)forfurther information.

2.

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VIVIAN KRAUSE

CHIMP: Charitable Impact Foundation (Canada)

Notes to the financial statements

July 31, 2018

Page 9

6. Securities

nvest ent polic

In accordance with the Foundation’s mission to support and increase charitable giving in Canada, the Board of Directors has an investment policy in place to protect the cash in the funds entrusted to the Foundation. Some funds hold securities with the purpose of achieving optimal returns for their fund consistent with prudent investment management.

The Foundation is subject to equity price risk (see Note 11 (c) for further information) pending the sale of securities, but this risk is contained in the individual fund. Funds are not permitted to trade on margin, or engage in any other trading activities which may impact the value of

another fund or any other assets of the Foundation.

Upon disposition, the donor may request disbursement to respective qualified donees based on the net proceeds.

7. Land

In fiscal 2018, the Foundation sold 15 properties classified as land to a third party for total proceeds of $2,071,848 and realized a gain of $1,202,596.

Subsequent to July 31, 2018, the Foundation entered into unconditional contracts for sale of land for proceeds of $1,997,786 and expects to realize an aggregate gain on disposal of $1,667,885.

8. Equipment

2018 2017

Accumulated Net book Net book

Cost amortization value value

$ $ $ $

Computer hardware 9,275 (9,275) — 387

9. Mortgages receivable

2018 2017

$ $

6,165,176 6,473,626

— 20,065,241

6,165,176 26,538,867 Less current portion 337,958 323,909

5,827,218 26,214,958

Mortgage receivable bearing interest at 4% compounded annually,

payable in monthly instalments of $48,079.72. Final payment is

due on June 1, 2032.

Mortgage receivable with a fixed maturity date of November 1,

2019 in the amount of $19,066,968. The rate of interest is 7%

compounded annually with payment due upon maturity

On January 22, 2018, the Foundation transferred a mortgage receivable with outstanding principal and accrued interest of $20,726,405 at the date of transfer, to a qualified donee.

27chimp.net

Status: Registered Doc #: CA5615367 RCVD: RQST: 2020-06-17 13.06.48

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Status: Registered Doc #: CA6591916 RCVD: 2018-01-26 RQST: 2020-06-17 10.20.03

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To: John B romley · o ! 2018; CHIMP sold 15 properties c lassified as land to a third party for total proceeds of $2,071,848 and realized a gain of $1,202,596. RCHIMP also entered

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