Charitable donation rates drop for 11th consecutive year: Report

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Canadians are not in a giving mood.

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According to a report by CanadaHelps, a Toronto-based platform for donating and fundraising online, fewer than one in five give to charitable causes.

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The annual report, which highlights significant declines in the number of people contributing to charities, said only 17.7% of Canadians donated in 2021, down from nearly 22% in 2013.

The report, using data provided by Environics Analytics and support from Toronto-based non-profit Imagine Canada which helps the charitable and nonprofit sector, found the rate of giving has declined for the 11th consecutive year.

Citing Canada Revenue Agency tax filer data, the report says donation rates have declined since 2010, when 23.4% of Canadians gave to charities.

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“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,” Duke Chang, President and CEO of CanadaHelps, said in a news release.

However, Chang points out that donation amounts are rising among those who still give, but this trend is not ideal.

“This worrisome trend highlights the charitable sector’s vulnerability,” Chang said. “Relying on a shrinking group of donors with the ability and willingness to continue to give more is creating a significant risk to the sustainability of charities in times of economic uncertainty.”

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The report also notes demand for charitable services is high, with more than half (57%) of charities saying they are unable to meet current levels of demand.

Other major contributing factors to the charitable decline include financial strain exacerbated by inflation and economic uncertainty, a lack of clarity around the impact of donations, younger Canadians less engaged in charitable giving compared to older generations, and declining religiosity.

However, contributions through CanadaHelps’ online platform almost doubled from 2019 to 2023, the report said.

“While there are many concerning giving trends that put charities at risk, there are also bright spots, including the rise in monthly donations and securities,” Chang said. “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.”

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