The Land Conservancy offered hope and optimism but no guarantees about paying lenders or protecting properties should the organization collapse at its annual meeting Saturday.
The financially troubled group will pay all creditors and continue to protect its properties, provided it can find enough funds to keep going, members were told.
We acknowledge that public trust in this organization regarding its financial obligations has been severely shaken, said chairman Alastair Craighead.
We do believe its in everyones interest to do what they can to make sure TLC continues. If TLC does not survive, there is little that we can do to ensure that the commitments to all that have been affected by these financial difficulties are honoured.
The risk to properties is unclear because legal advice has been unable to determine whether the provincial Charitable Purposes Preservation Act which protects donations given for a specific purpose or the federal Bankruptcy and Insolvency Act would prevail if the organization ran out of money, said TLC board member Briony Penn.
Treasurer Gary Holman confirmed the future of properties could be in question if TLC fails.
That is precisely why this board is hanging in, he said. That is why we need to deal with the short-term debt. There is a way through this if we all stick together on this and co-operate, but there are absolute risks if we go through some kind of formal bankruptcy process.
The audience, which numbered more than 250, reacted enthusiastically, donating $12,000 during the meeting. However, concerns lingered for some members, who were assured there were no plans to acquire more properties with mortgages.
You can be damn sure that the board does not want to make the situation worse, Craighead said.
Mortgages, which are not used by most land conservancies, and the cost of staff were among the reasons cited for TLCs fall into acute financial difficulties when donations slowed.
Donations will now go exactly where they are supposed to, Craighead said in answer to a question from member Peta Alexander, who noted: That is something that has not happened in the past.
Members were also assured that no conservation properties, even those not protected by a covenant, would be sold to raise money. In some cases, TLC is looking for local groups or like-minded organizations to take over management of properties or the properties themselves.
TLC holdings include Abkhazi Garden, Madrona Farm and Sooke Potholes.
Holman said obligations to lenders, suppliers and employees are taken seriously. We have not been able to fulfil those obligations, and we are determined to do so, he said.
TLC needs $1.2 million to pay off short-term debt. Together with long-term debt, including mortgages of $3.6 million, the organization owes $8.3Â million.
Lenders and private mortgage holders have already offered to forgive $200,000.
