Charities and nonprofits change lives
Charities and nonprofits change lives
Creating a secretariat would enable the sector to be stronger and more effective
An Ipsos poll conducted for CanadaHelps last fall showed that nearly a quarter of Canadians – 9.6 million people – expected to call on charities to support their basic needs within the following six months, but even that high number may have under-estimated the actual demand on the charitable sector.
The National Insights into Non-profit Organizations, Canadian Survey on Business Conditions, 2023 poll by Statistics Canada, showed that nearly half – 46.1 per cent – of nonprofits reported an increase in demand in 2023.
The increase was hardly surprising considering the many complex challenges Canadian charities and nonprofits are trying to address in some of the country’s most vulnerable communities – poverty, hunger, shelter, health care, climate change, inequalities.
It’s a long list, and there’s no doubt that charities change lives through the extraordinary work they do whether in remote communities helping individuals in need or at big city hospitals raising funds for groundbreaking research or life-saving equipment.
It’s a tough ask for Canada’s charities according to the Association of Fundraising Professionals Canada (AFP), and it’s only through the generosity of donors that charities are able to provide their services to Canadians in need and to fund crucial research.
But the task is getting harder. In a written pre-budget submission earlier this year, AFP noted that, according to CanadaHelps’ The Giving Report 2024, over 57 per cent of charities were reporting that they cannot meet the current level of demand and warned that proposed changes to how donations are treated under the Alternative Minimum Tax (AMT) would result in less funding for charities, which would force them to reduce or eliminate programs that support those they serve. The changes were confirmed in the 2024 federal budget in April.
Despite slight concessions made to one of the revisions to the AMT in response to advocacy, the fact that changes that make it less attractive to donate to charities were made is yet another example of why the sector has been engaging in a years-long campaign for the establishment of a secretariat within government to serve the interests of the nonprofit and charitable sector.
AFP contends that the sector is significant enough to justify better government representation. Canada’s 170,000 charities and nonprofits contribute approximately $216-billion – eight per cent – of Canada’s GDP and employ over two million people who provide services that often complement and bolster government programs that might otherwise be inadequate to meet people’s needs.
AFP points out that sectors like oil and gas, construction and finance, that are of similar size and importance to Canada’s economy, have direct input into government decision-making through secretariats or ministries, but charities and nonprofits are left out.
It says a secretariat within government would provide the opportunity for the sector’s interests to be considered during policy discussions and before legislation and regulations are decided on.
Cindy Ball, a member of AFP’s government relations committee and director of philanthropy at Waypoint Centre for Mental Health Care, says the sector currently has no clear path to advocate for itself on policy and legislation.
“Not having this clear path should matter to Canadians because it results in less funding for services for our sector. The AMT example illustrates this clearly,” she says. “It’s not just about AFP, it’s about Canadians who rely on our sector.”
Nevertheless, Ms. Ball believes government is receptive to the idea.
“There have been some great conversations that have happened, and there are leaders within government who are listening,” she says. “We just need to keep the messaging clear and emphasize the positive impact this will have on the people we support.”
Aaron Sanderson, board member and chair of AFP’s government relations committee, and SVP of advancement and chief development officer at Kids Help Phone, agrees.
“The charitable sector plays a critical role in the lives of millions of Canadians every day. When you think about that, there’s a lot more the government could be doing to support the success of the sector,” he says. “Having a secretariat is one of the ways we can continue to build the sector, maximize the partnership with government and tackle some of the biggest issues of our time.”
A secretariat would result in a better, more coherent and more cohesive relationship with government and provide the opportunity for the sector to be more effective in communicating changes that might be needed to the way charities operate in Canada and having input on legislation before it is rolled out, adds Mr. Sanderson.
“The charitable sector plays a critical role in the lives of millions of Canadians every day. When you think about that, there’s a lot more the government could be doing to support the success of the sector. ”
“There are several examples over the last three years alone where we have had to ask government to revise new policies and regulations, which could have been avoided had we been in the initial discussions. So I think there’s a good opportunity for us to have a more fruitful relationship and help government make better informed decisions,” he says.
A permanent home in government could also enhance the sector’s standing within the broader Canadian community, says Ms. Ball.
“People deeply appreciate the charities they’re engaged with, and there’s a keen awareness of the difference that they make. But overall, the sector may not be that well understood by the average Canadian, and that’s where a home in government might help reinforce the importance of the sector,” she says.
Mr. Sanderson agrees that, on an individual level, Canadians probably have a good understanding of how their communities or their lives might be impacted by some of the charities that may be local to them. However, he doubts that many are aware of just how much impact the sector has on the lives of so many people and the contribution it makes to the national economy.
“We tend to talk about charities and nonprofits in very specific sectors or sub-sectors like health and education. But when we look at it more broadly, I think it would be really quite impressive for Canadians to recognize the total support that our sector provides,” he says.
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