Charitable giving continues to decline in Canada: a worrying reality

Charities play a crucial role in Canada's social fabric. They provide essential services, support vulnerable populations, and act as pillars of solidarity in communities. Yet, in recent years, a worrying trend has emerged: charitable giving continues to decline. Between the pandemic, global conflicts, and the rising cost of living, Canadians are giving less and less. This article explores the reasons for this decline, its impact on nonprofit organizations (NPOs), and recent statistics that illustrate this crisis.

Why are Canadians giving less and less?

1. The Rising Cost of Living In recent years, Canadians have been facing a significant increase in the cost of living. The prices of consumer goods, housing, and essential services are increasing at an alarming rate. This reality leaves less room for discretionary spending such as charitable donations. According to Statistics Canada, more than 40% of households report that they are struggling to make ends meet, reducing their ability to contribute financially to social causes. 2. The Prolonged Effects of the Pandemic The COVID-19 health crisis has led to massive job losses, financial instability, and increased anxiety about the future. Although the economy has begun to recover, many Canadians remain cautious about their spending. Charitable donations, often considered a secondary priority, have been largely affected. 3. The Impact of International Crises Global conflicts, such as the war in Ukraine, have focused Canadians' attention on international causes, thus redirecting donations globally. Furthermore, these geopolitical crises have contributed to rising energy and food prices, further reducing the income available for domestic donations. 4. Declining trust in non-profit organizations. Controversies related to the internal management and transparency of non-profit organizations have undermined public trust. Canadians have become more vigilant and demanding about how their donations are used. This distrust has led some to suspend their contributions.

Impacts on NPOs

The decline in donations has serious consequences for charities, which rely heavily on these funds to operate. Here are some concrete examples: 1. Reduced services With shrinking budgets, many nonprofits are forced to reduce their services. For example, food banks have reported increased demand but limited capacity to meet needs. 2. Job losses Organizations often have to reduce their staff, thus affecting the quality and reach of their programs. 3. Difficulties maintaining programs in the long term Many social, educational, and health programs require ongoing funding. The decline in donations compromises their sustainability. 4. Closure of certain organizations Smaller organizations, which have fewer financial reserves, are particularly vulnerable. Many of them have had to close their doors.

Statistics on donations in Canada

Here are some figures that illustrate the current situation of charitable giving in Canada:

• Decline in donations : Between 2019 and 2023, donations decreased by 15%, according to a report by the Canadian Association of Fundraising Professionals.
• Donor Profile : Older adults remain the largest contributors, accounting for nearly 60% of donations, while younger adults are giving less and less.
• Most affected causes : The culture, arts and community sports sectors have been the most affected, while health and education causes still receive some support.
• Decline in individual donations : In 2022, only 19% of Canadians made regular donations, compared to 24% in 2018.

What solutions are there to reverse the trend?

To address this crisis, nonprofits and governments must collaborate and innovate. Here are some possible solutions: 1. Improve transparency Nonprofits must build donor trust by publishing detailed financial reports and communicating the direct impact of donations. 2. Diversify funding sources Organizations can explore alternative models, such as partnerships with businesses or crowdfunding campaigns. 3. Raise awareness and educate Awareness campaigns can remind Canadians of the importance of donations to the well-being of their communities. 4. Offer tax incentives Governments can revise tax policies to encourage donations, for example, by increasing tax credits for contributions.

Conclusion

The decline in charitable giving in Canada is an alarming trend that jeopardizes the operations of nonprofits and the services they provide. Faced with this reality, it is essential that Canadians, governments, and organizations themselves respond to preserve the social fabric and support populations in need. Giving, even a small amount, remains a powerful act of solidarity.