The Minister refused to register Earth Fund as a charitable foundation. Earth Fund proposed to carry on lottery operations in conjunction with certain business corporations and to disburse its share of the profits from such operations to entities that would be "qualified donees." Earth Fund would not carry on any charitable activities itself. Before dismissing Earth Fund's appeal, Sharlow JA stated (paras. 30-31):
I do not accept the argument of counsel for the appellant that the Alberta Institute case is authority for the proposition that any business is a "related business" of a charitable foundation if all of the profits of the business are dedicated to the foundation's charitable object. The Minister in that case was arguing that Alberta Institute was a "wholesaler of goods", but in fact, Alberta Institute was simply soliciting donations of goods which it converted to money. This is somewhat different from the traditional fund raising activities of a foundation, but the difference is only a matter of degree.
By contrast, the appellant proposes to do nothing except market and sell lottery tickets in a manifestly commercial arrangement that will, if all goes as planned, result in a profit that will be donated, I assume, to qualified donees. The appellant is in exactly the same position as any commercial enterprise that commits itself to apply its profits to charitable causes.
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