June 26, 2020

Filing Type:

Company Counsel: Goodmans

Trustee: PwC



GFA World, a Hamilton, Ontario-based Christian non-profit organization that is focused on raising donations in Canada which can be used to fund charitable works in South Asia, obtained protection under the CCAA on June 26. The decline in donations, which comprises the organization's primary source of revenue, has been caused by the COVID-19 crisis as well as the negative publicity caused by various class action proceedings commenced against Gospel for Asia, another Christian charity related to GFA World. In 2017, a class action was commenced against Gospel for Asia alleging financial impropriety. Subsequently, donations to the organization declined by approximately 18%. In 2019, a settlement of the class action was approved, in which Gospel for Asia agreed to pay $37.0 million (USD) without any admission of wrongdoing. In February 2020, a new class action claiming $170.0 million was commenced in Nova Scotia against the organization and Gospel for Asia alleging fraudulent misrepresentation and improper use of donated funds. Without the protection of a CCAA proceeding, the organization's ability to attract donations and conduct its charitable works will be greatly diminished. PwC was appointed monitor. Goodmans is counsel to the company.