It’s the holiday season, and that means many Canadians are upping their spending—whether that be extra food for gatherings, or gifts for friends and family.
And while increased inflationary pressures experienced by households have moderated somewhat since the nearly 40-year high observed in June 2022, many households may continue to feel the pinch when it comes to any additional spending. In addition to buying less or getting less for their money over the holidays, Canadians might also have less money to give to charitable causes.
As we all know, every dollar matters, especially for non-profit organizations (serving either households or businesses) that depend on donations. According to the latest data from the Canadian Survey on Business Conditions, there are several challenges and obstacles related to how many donations come in.
Three in five non-profits receiving less from the public
In the fourth quarter of 2023, almost three in five (58.8%) non-profit organizations said that they typically receive revenue in the form of donations from the public.
Among non-profits that receive revenue from donations from the public, three in five (60.0%) said that donors were not giving as much as they used to.
Nearly 7 in 10 (68.9%) non-profits faced challenges in finding new donors, and nearly half (48.8%) faced challenges in retaining new donors.
One in 10 organizations facing donation-related challenges could cancel programs and services, not accept new participants
Among the impacts or expected impacts of challenges related to donations in the fourth quarter of 2023, over 1 in 10 non-profit organizations that faced challenges in seeking donations said that these challenges could result in the cancellation of programs and services offered (11.9%), or an inability to accept new participants (10.3%).
In addition, 3 in 10 (30.8%) said that these impacts would result in a reduction of programs and services, while roughly one-third would have to reduce spending on things other than staff (33.3%) or explore alternative revenue sources (34.1%).
Over one-third of non-profits (37.7%) expected to have increased reliance on volunteers, while about 1 in 20 (5.5%) were at risk of closing.
More costly business environment
Similar to businesses and organizations across all industries in the fourth quarter of 2023, rising inflation was the top obstacle expected by non-profit organizations over the next three months (17.7%). Over 1 in 10 (12.0%) non-profit organizations said their largest obstacle was recruiting skilled employees, followed by a shortage of labour force (9.4%).
About two in five non-profits (40.9%) expected an increase in operating expenses over the next three months, roughly in line with overall businesses.
Increase in demand
In what is perhaps a true sign of need among the population, about one in three (32.8%) non-profit organizations expected an increase in demand for their goods and services in the fourth quarter of 2023. This proportion was nearly double that of private sector businesses (16.7%).
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For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).