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Charities struggling to overcome pandemic effect, report shows

The percentage of Canadians donating to charities has been steadily declining

CAMILLA CORNELL SPECIAL TO THE STAR

The pandemic has been tough on those who rely on the support of Canada’s charities. And it has been tough on the charities themselves. That’s the news from “The Giving Report 2022,” produced by CanadaHelps, a public foundation that aims to advance philanthropy through technology.

The Alzheimer Society of Canada is a case in point. “The COVID-19 pandemic had a devastating effect on people living with dementia,” said Dr. Saskia Sivananthan, chief research officer for the charity. They are at higher risk of developing COVID, she said mainly because “they may have difficulty understanding or following the guidance to keep them safe.”

Being isolated from family, health care and community support didn’t help matters, contributing to worsening dementia and other health conditions, and leaving people with dementia more vulnerable to disease and death. And though the effects of the COVID-19 pandemic on Canada’s elderly have been profound, the Alzheimer Society is not alone in experiencing pandemic-associated challenges.

Here’s what The Giving Report discovered when it looked at the state of Canada’s charities:

Donations are flattening.

While Canadians bumped up their charitable giving during the early days of the pandemic, that trend has fallen off in recent months. “Since July, we’ve seen donations through CanadaHelps flatline at about two per cent year-over-year,” said Jane Ricciardelli, chief operating officer and acting CEO of CanadaHelps.

Even worse, an Ipsos poll showed 20 per cent

of Canadians plan to reduce their giving this year, including 18 per cent of households with an income over $100,000 annually.

Small charities are particularly vulnerable.

An August 2022 study by CanadaHelps found 41 per cent of small charities (those with annual revenues of less than $500,000) had experienced increasing demand for their services at the beginning of the pandemic. Since then, only five per cent have seen demand return to normal.

At the same time, more than half of those small, local charities had to cope with a drop in donations of about 25 per cent, according to Ricciardelli. Given that 90 per cent of small charities have 10 or fewer staff members, and 58 per cent are entirely volunteer run, that drop can be particularly challenging.

Mike Morency can vouch for that. He’s the executive director at Matthew House Windsor, which accommodates up to 85 refugee claimants and precarious migrants at any one time in a rented facility. “We are 100 per cent donor-funded,” said Morency, “so when donations are down 30 or 40 per cent, we have to start thinking about what changes we can make to our core services.”

To make matters worse, with a shoestring budget of just $460,000 per year ($184,000 goes to rent and the rest to operations, including paying four full-time and two part-time staff members), Morency has almost nothing left over to spend on fund-raising. “I should be working on my Christmas appeal letter right now,” he said. “But I was just in one of our rooms cleaning because it needed to be done.”

Like many small charities, Matthew House Windsor is doing vital work in the community, “but it’s really hard for us to compete with the big charities for charitable dollars,” Morency said.

The giving gap between older and younger Canadians is widening.

For several years, The Giving Report has highlighted a concerning trend. The percentage of Canadians donating to charities has been steadily declining, and the charitable sector increasingly relies on a smaller group of aging donors.

For example, from 2006 to 2019, donations from Canadians aged 18 to 54 decreased. Gen Xers (those between the ages of 40 to 54) decreased their donations the most, by just over three per cent annually. In fact, the only group that increased charitable donations over those years were the 55-plus Boomers (at an average of four per cent per year).

Younger Canadians want to give.

On the plus side, there’s no shortage of goodwill from younger Canadians. Many volunteer, fundraise, protest or simply spread the word about a favourite charity.

Reassuringly, “four out of five Gen Z and Millennials claimed they give when they have the financial means to do so,” said Ricciardelli. “Of those who did not give to charity, 45 per cent of Gen Z and 33 per cent of Millennials said they currently can’t afford to give.”

The need is great.

“Our research shows that four out of five Canadians expect inflation and the prolonged impacts of the pandemic to negatively impact their financial situation,” said Ricciardelli. As a result, one in four expect to use or are already using charitable services in 2022.

Meanwhile, those in better financial shape expect to give less in 2022 than they did in 2021. Ultimately, then, “while we see hope that younger Canadians are engaged and will in time give, the need is urgent and all Canadians must step up,” Ricciardelli said.

Canada’s charitable sector does vital work for all of us, said Orsolya Soos, marketing manager at Baycrest Foundation. “At Baycrest, we have a singular focus on finding solutions to the urgent problem of dementia,” she said. “We believe 50 per cent of dementia cases can be prevented. And we are trying to bridge the gap [in giving] by increasing awareness of what we do and the importance of donor support to help us achieve our mission.”

GIVING TUESDAY

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2022-11-29T08:00:00.0000000Z

2022-11-29T08:00:00.0000000Z

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