(https://www.imaginecanada.ca/sites/default/files/An-Agenda-for-Equitable-Recovery.pdf)
Nonprofits are the heart of every single Canadian community. They play a significant part in the economy, accounting for at least 8.5% of the country’s GDP and employing over 2.4 million people. Nonprofits are community-based organizations that provide critical services in different areas of community development, making it safer, stronger and healthier.
Community organizations are essential to the pandemic recovery to the impact of major issues such as poverty, homelessness, job losses and old-age care. A 2020 survey conducted by Imagine Canada showed the issues where the nonprofits sector is struggling.
- Community need is outstripping capacity. There is an increase in demand for programs and services, but there is also a major decline in donations by 68%. This loss directly impacts communities in terms of critical programs and services provided by nonprofits and charities for Canadians.
- The diversity of the sector is under threat. Larger organizations must modify to meet demands while smaller organizations are forced to temporarily cease operations to adapt to the challenges of revenue losses and changing environment.
- Long-term organizational sustainability is at risk. Strong immediate challenges like technology innovations are making charities less focused on revenue generation and fundraising, which directly impacts long-term organizational sustainability.
- Workers are being pulled in multiple directions. Also, workers are expanding their area of focus to meet immediate demands in areas of IT, communications and program development.
Communities across Canada rely on community-driven programs and services that drive resources, innovation and contribute to our collective wellbeing. While incredibly able to withstand the difficult circumstances, the sector needs a strategic and stronger relationship with the government to steward the country through an equitable recovery.
Efficient and more accessible funding is needed for the sustainability of organizations. Hence, the following report makes the following recommendations.
- The federal government establish a grant program to help sector organizations make investments in infrastructure to meet increased demand and facilitate new ways of delivering services;
- Current emergency relief measures be improved so that more of the sector can benefit;
- A modernized funding regime – including improvements to grants & contributions and access to federal loan programs – be explored to make efficient use of both public and organizational resources.
Being natural partners in governance, a stronger relationship with the government will help in the effectiveness of Canada’s charitable organizations. A place in the federal government can significantly help coordinate sector-related policies.
It was noted in the 2019 Senate report that the sector’s potential is being limited by outdated rules and lack of coordinated support within the federal government. Recommendation:
- The federal government work with the sector to reform the existing rules on qualified donees and direction and control so that public and charitable funds continue to be protected, but in a way that allows organizations to respond more effectively to future crises.
The sector needs better data to make better decisions, especially in delivering and showing measurable results in the communities it serves. To know what works best and allocate resources more efficiently,
- Statistics Canada be mandated to collect ongoing disaggregated data on the nonprofit sector, the work it does, and the populations it works with, to be able to monitor sector and community health coming out of the recovery;
- Government work with the sector to improve data capacity in the areas of technical infrastructure, skills development, governance and process, similar to investments that are made into areas of the private sector