Demand for services and a decrease in donations put pressure the social sector

National Philanthropy Day (NPD), which takes place on November 15 each year, celebrates giving of all kinds – donations, volunteering and charitable engagement. NPD is a day to highlight the accomplishments, large and small, that philanthropy makes to our society and our world. It celebrates charitable accomplishments and encourages all of us to strengthen and support our communities – around the corner or across the globe.

In 2012, Canada became the first country to officially recognize NPD. Almost every social cause over the past century has been driven by the charitable sector and the support generated by fundraisers who inspire donors around the world to give of their money and time.

The increasing demand for services from charities – combined with a decrease in donations, fewer volunteers and inflation – is putting pressure on the sector’s resources and staff at a time when fundraisers and the funds they generate are needed more than ever.

According to The Giving Report 2023 released by CanadaHelps, a charity advancing philanthropy through technology, 22 per cent of Canadians expect to rely on charities this year to meet their basic needs, while more than 57 per cent of charities report they are having difficulties meeting the demand for their services.

“Recent research has shown us that a majority of Canadian charities are seeing decreases in giving from all levels – individuals, corporations, government and foundations,” says Kyle Tiney, senior director, Annual and Legacy Giving with the Vancouver Symphony, and secretary of the AFP Foundation for Philanthropy – Canada board.

Rea Ganesh, vice president of philanthropy at Scarborough Health Network Foundation and chair-elect of AFP Canada, says inflation and an increasing need for social services are intensifying pressure on the sector. **supplied**

“Smaller charities are seeing even greater challenges where they do not have the resourcing to have comprehensive fundraising programs in place,” he adds.

Mr. Tiney says The Giving Report shows that the demand for charitable services has not decreased since the peak of the COVID-19 pandemic, and staff and volunteers in many charities are struggling to cope.

“For example, within the arts sector, we are seeing a continued struggle to make up the differential in slowed ticket sales following the pandemic,” he says. “With the increase in demand on social service charities and constraints to philanthropic giving, arts organizations are commonly seen as a ‘nice to have’ and are the first to be removed from one’s giving priorities despite the drastic impact the arts can have on improving mental health.”

Rea Ganesh, vice president of philanthropy at Scarborough Health Network Foundation and chair-elect of AFP Canada, says there is demand for charities to do more to offset the impact of rising inflation and the increasing need for social services.

“The charitable sector is being stretched. We are doing as much as we can to fundraise in a time of growing need, and that’s putting a big strain on us as we search for different opportunities and new ways to tell our stories,” she says.

A big part of the story the sector needs to tell is the role it plays in Canadian society, adds Ms. Ganesh.

“Although the charitable and nonprofit sector contributes over 8 per cent to Canada’s gross domestic product each year, people often don’t realize the value we bring to society,” she says. “Our sector plays a significant role economically, but also in terms of the support and services that we provide in communities across the country.”

However, National Philanthropy Day is an opportunity for the charitable sector to tell its story and highlight its value to not only individuals but also to the economy as a whole, says Mr. Tiney.

“As Canadians, we need to personally renew our commitment to supporting charities in Canada – small local charities, large national charities and everything in between,” he says. “With the charitable sector making up approximately 10 per cent of the full-time Canadian workforce and 22 per cent of Canadians relying on charities to meet their basic needs, fundraising continues to be the impact profession.”

AFP Canada is striving to amplify that impact by focusing on ensuring inclusion, diversity, equity and access within the sector, says Ms. Ganesh.

“We are making progress, but there’s still a long way to go,” she says. “Twenty years ago, when I started working in the charitable sector, I would walk into an AFP congress and there would be perhaps five people of colour in the room. That’s changed and the figure is now up to around 20 per cent, but we need more fundraisers that are people of colour coming into the industry, being interested in coming into the fundraising profession and getting involved.”

Ms. Ganesh says AFP has identified the need for more diversity in fundraising and is now spending more time and effort on how to integrate diverse fundraising across the profession.

Mr. Tiney says fundraisers continue to reconfirm their commitment to ensuring strong inclusion, diversity, equity and access policies and priorities within their respective charities.

“We make a commitment to continue to learn and unlearn, and we make a commitment to create inclusive, accountable spaces within the places we work,” he says.

AFP offers its members a range of courses and resources from diversity and inclusion to fundraising in challenging times, plus access to a library of webinars at afpglobal.org.

Canadians can support charities by going back to volunteering, recognizing the need for donations to fund capacity building, and being part of the change by advocating for their favourite causes to their elected representatives, says Duke Chang, president and CEO of CanadaHelps.

To view this report on The Globe's website, visit globeandmail.com

To view the full report as it appeared in The Globe's print edition National Philanthropy Day

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