CanadaHelps unveils new data spotlighting the challenges facing small charities

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15

September 2022

To better understand the challenges faced by Canadian small charities, CanadaHelps surveyed more than 600 small charities across the country in August. Among those surveyed, most fall into the following categories: 28% provide social or community-based services, 17% are focused on arts and culture, 16% are aligned with religion, 12% provide educational services, 10% are immersed in health, and 7% direct their efforts to animals. 

Survey Results Highlight the Significant Challenges That Small Charities Face:

  • 41% of charities saw an increase in demand at the start of the pandemic but demand has returned to pre-pandemic levels for only 5% of charities. Charities that saw a high demand at the onset of the pandemic has now become the new normal for 14% of respondents, while 23% of charities continue to face rising demand. 32% of charities saw a decrease in demand at the start of the pandemic; while half of these charities have returned to pre-pandemic demand levels, 11% of respondents — many of which offer vital community building services — have not seen demand rebound, and 5% of respondents see demand continue to decline. 
  • 29% of charities saw an increase in donations at the start of the pandemic but two thirds (20% of total respondents) have returned to pre-pandemic levels. 51% of charities saw a decrease in donations at the start of the pandemic. This drop in donations became the new normal for half of these charities (25% of total respondents) while for one in five of these charities (10% of total respondents) donation dollars continue to decrease. 
  • 59% of charities note that demand exceeds their capacity, while only 27% have the capacity to meet the demand. 
  • 83% agree that inflation has increased the costs incurred for service delivery and 65% agree that inflation has decreased the donations received from individual Canadians. 
  • Just over half (51%) agree that increased demand for services and/or reduced funding is resulting in higher levels of staff burn out; while 55% have seen a decline in volunteers, with the number of volunteers continuing to remain below pre-pandemic levels.
  • With reduced funding from donations, 39% of small charities believe the quality of their programs will suffer, 38% will need to make cuts to their programs, 32% will not be able to meet demand, and 17% will need to reduce staffing.

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