Funding For NFPs Given To International Corporations
The Canadian Agricultural Strategic Priorities Program (CASPP) “supports the Canadian agricultural sector’s participation in the Government of Canada’s growth and policy objectives, by investing in the sector’s design, development and implementation.”
The objective of the CASPP is to provide funds for projects that address national or sector-wide priorities with respect to agriculture in Canada.
The current cost of the program is $10 million per year of non-repayable contribution funding.
Who Is Eligible?
Not-for-profit organizations, cooperatives and marketing boards that are incorporated in Canada, along with Indigenous groups are eligible for funding.
Within the Transfer Payments in the Public Accounts of Canada for 2020-2021, you will find $49,857,714 of contributions to support the CASPP.
Most notably, large international corporations that are publicly traded can be found on the receiving end of these contributions.
International Corporations Receiving Funding?
In 2020 and 2021, Nestle Canada Inc., received over $250,000 and Bunge Canada received over $110,000.
Neither of these companies are not-for-profit organizations. In fact, Nestle is the world’s largest food and beverage company while Bunge provides ingredients and know-how to some of the world’s biggest brands.
Nestle is headquartered in Switzerland, while Bunge is headquartered in Missouri. In 2021, Nestle Canada Inc. donated more than $3.6 million in product and monetary donations to communities across Canada, including over $920,000 to local community groups and shelters.
To add, these corporations are not running low on cash, or have a struggling EBIT (Earnings Before Interest and Taxes).
Do These Companies Need Funding?
In terms of EBIT in the last 12 months, Nestle is boasting roughly $15.75 billion while Bunge is generating $3.3 billion. Regarding cash and cash equivalents, Nestle is sitting on $9.5 billion and Bunge holds $1.2 billion.
In short, both of these corporations have a lot of cash on hand and are making a fair amount of money.
Why Are Nestle and Bunge Collecting Payments?
Neither Nestle nor Bunge falls under the eligibility requirements for the CASPP as they are for-profit corporations.
Some questions need to be asked of the federal government:
Do companies undergo an audit to determine if they require excess funding from the federal government?
Can the $360,000 given to Nestle and Bunge be better spent elsewhere? Such as eligible not-for-profit organizations or Indigenous groups that qualify for the CASPP.
*Photo via Stefan Wermuth/Bloomberg.
*All numbers posted in this article are in Canadian dollars.
