Presbyterian Church Did Not Seek Refund Under Terms of Settlement Agreement

The Presbyterian Church in Canada contributed $1.3 million, its maximum commitment under the Indian Residential Schools Settlement Agreement, with the understanding that even if other church bodies did not meet their fundraising targets the PCC “would not receive any refund,” the church said in a statement.

Under the terms of the landmark 2006 agreement, the four main church groups that operated residential schools agreed to provide funding for healing programs among aboriginal people. Fifty Catholic groups, which together operated the largest number of schools, were expected to make the largest contributions totaling $79 million. This included using their “best efforts” to raise $25 million for healing and reconciliation programs.

The levels of funding expected of the other church parties—the Anglican, United and Presbyterian denominations—were linked to the level of funds raised by the Catholic groups. This is a standard clause which is meant to ensure that all the church parties are treated the same way under the terms of the agreement, explained Rev. Stephen Kendall, the General Assembly’s principal clerk.

However, the Catholic fundraising program brought in only $3.7 million of its $25 million goal, and a miscommunication between a federal and church lawyer resulted in the Catholic groups being released from their remaining fundraising responsibilities.

This made the other churches eligible to keep a portion of the funds they had gathered to meet their own obligations under the agreement.

The Presbyterian Church had already contributed $1.3 million to its Settlement Fund—the amount expected from the denomination if the Catholic groups met their fundraising goals.

“Yes, we could have been in a position to claim a refund,” said Kendall, “but right at the beginning we said this was a firm amount we were contributing.”

The Anglican and United churches reduced their financial contributions by $2.7 million and $450,000 respectively, as permitted by the terms of the agreement.


Image: From the Truth and Reconciliation Commission of Canada’s closing events in Ottawa, May 31-June 3, 2015. Photo by Ted Simard.