Canadians are cutting back on expenses because of the cost of living crisis, and one area they might be looking to reduce spending on is charitable donations. Canada has experienced significant declines in the number of people donating to charities and thousands of them are struggling to meet heightened demands for their services, according to a poll conducted by Leger on behalf of online donation platform CanadaHelps. “One of the most significant findings from this year's report is the continued declining donation rate, due in part to shrinking social networks and a sense of disconnection and isolation among Canadians, which has caused Canadians to have a difficult time seeing how they can effect change,” said CanadaHelps President and CEO Duke Chang in a Wednesday press release.“At the same time, donation amounts are rising, which means those who do make charitable contributions are giving more.” Chang said this trend “highlights the charitable sector’s vulnerability.” By relying on a shrinking group of donors with the ability and willingness to give, he acknowledged it creates a significant risk to the sustainability of charities in times of economic uncertainty. For the eleventh consecutive year, CanadaHelps said the number of Canadians making charitable donations has decreased. Over that time, Canada Revenue Agency tax filer data shows donation rates declined from 23.4% in 2010 to 17.7% in 2021. It said Canadians are disconnected and their social networks have shrunk, correlating with lower rates of giving. More than four-fifths of those with many close friends donate and 53% of those with few of them do so. With the donations made through it, CanadaHelps said 1.5% are directed to environmental charities. This is despite 32% of Canadians saying climate or protecting the environment is a top cause for them and 48% expressing eco-anxiety on at least a somewhat regular basis. Since charities are facing a growing number of challenges, 57% of them are unable to meet the current levels of demand. A poll conducted by Ipsos on behalf of CanadaHelps in the fall found one-fifth of Canadians were using charitable services to meet essential needs in 2023. It revealed several major factors are contributing to the decline in the number of charitable donations or giving participation. These factors include financial strain exacerbated by inflation and economic uncertainty, lack of clarity around the impact of financial donations, diminishing engagement of young people in charitable giving versus previous generations, and declining religiosity among Canadians. From 2019 to 2023, online donations through CanadaHelps almost doubled. Monthly giving grew by 11%, which was likely from affordability issues persisting and Canadians budgetting for planned giving. Donations of securities continued to increase, rising by 32% in 2023. Suburban and rural families were the only demographic showing growth in donations.While there are many concerning trends that put charities at risk, Chang said there “are also bright spots, including the rise in monthly donations and securities.”“While affordability challenges have not levelled off, it is critical that Canadians who are in the position to give do so to help Canadians in need by donating, volunteering or taking action in another way,” he said. One-fifth of Canadians could need financial help from charities because of inflation and the COVID-19 pandemic, according to a 2022 poll conducted by Ipsos on behalf of CanadaHelps. READ MORE: New study predicts 1 in 4 Canadians in need of charitable helpCanadaHelps found the demand from Canadians relying on financial services could inflate more. It said 74% of Canadians say they are concerned about inflation and 25% think they will give less to charities in 2022 due to financial struggles.The most recent poll was conducted online with 1,230 Canadian adults from November 24 to December 5. No margin of error was assigned to it.
