45. Five interesting findings about the Canadian non-profit sector
This 2024, Statistics Canada published the non-profit portion of the Canadian Survey on Business Conditions.
This is the first time Statistics Canada has collected information specifically on non-profit organizations in Canada since 2003.
Around 8,000 non-profit organizations were surveyed, covering:
community non-profits (e.g. charities, foundations);
business non-profits (e.g. associations, chambers of commerce);
government non-profits (e.g. colleges, hospitals).
Below is a summary of key insights gleaned from the reports and data tables.
Half of Canadian non-profits have n0 employees, and 75% have fewer than 5 employees.
It is not surprising to find that most non-profits have no or very small teams of paid staff, given that a significant proportion (53%) focus on sports, recreation, and religion.
2. There is a significant reliance on volunteers.
With most Canadian non-profits having no or very small teams of paid staff, it is also no surprise that over 80% leverage volunteers in their operations.
Arts and culture, religion, and law, advocacy, and politics non-profits were most likely to have volunteers.
3. They rely on a variety of funding sources, with individual donations ranking #1 overall.
Overall, 58% of Canadian non-profit funding comes from individual donations, membership dues, and government funding (across all levels).
An additional 10% comes from corporates, endowments, and grants from foundations and fundraising organizations.
Individual donations are a significant source of funding for registered charities (~42% of funding), membership dues for associations (~50% of funding), and provincial and territorial funding for health organizations (~44% of funding).
Source: “What can we learn from the largest Statistics Canada survey of the sector in 20 years?” presentation on 29 May 2024. Organized by Imagine Canada, Statistics Canada, and the Federal Nonprofit Data Coalition.
Note: image does not include other types of government funding (e.g. federal and municipal) and other general types of funding (e.g. corporates, foundation grants).
4. Many Canadian non-profits face higher demand for their services or products.
In 2023, close to half (46%) reported a demand increase, with 21% reporting a significant demand increase. 44% reported unchanged demand, and roughly 10% reported a demand decrease.
Demand increase was highest among non-profits in social services, health, environment, and law, advocacy, and politics, where roughly two-thirds reported increased demand from their community.
Demand decrease was highest among religion, arts and culture, and environment non-profits, with roughly 15% reporting lower demand in 2023.
Source: “What can we learn from the largest Statistics Canada survey of the sector in 20 years?” presentation on 29 May 2024. Organized by Imagine Canada, Statistics Canada, and the Federal Nonprofit Data Coalition.
5. The capacity to meet higher demand is not growing as quickly.
In 2023, only 24% reported an increase in capacity to meet the higher demand for their services and products, with only 6% reporting a significant capacity increase. 62% reported unchanged capacity, and 13% reported lower capacity.
Capacity increase was highest among non-profits in social services, health, environment, law, advocacy, and politics, and education and research, where 35-40% reported higher capacity. However, this still lags behind the increased demand they experience.
Capacity decrease was lowest among religion, arts and culture, and environment non-profits, where roughly 20% reported lower capacity in 2023.
It is evident that there is a significant divergence between changes in demand and capacity in the Canadian non-profit sector, increasing the strain on leaders and their ability to fulfill their missions.
In wrapping up, it is important to recognize the significance of the Canadian non-profit sector. It is vital not only because of the number of lives it impacts but also because it contributes 8.2% of the GDP, amounting to $216.5 billion in economic activity in 2022.
The sector faces unique challenges, being under-resourced while addressing increasing community needs. There are no easy solutions, especially given the macro-economic challenges affecting the broader community, funders, and non-profit operations.
However, our DIY Strategic Plan program is well-placed to cater to the non-profit sector amidst resource constraints. We help non-profits develop strategic plans that enable them to prioritize their activities and maximize their scarce resources, while upskilling their small teams and saving tens of thousands of dollars.
Could your non-profit benefit from support in navigating the changing environment? Consider applying to our DIY Strategic Plan program. Benefit from 12 months of support as you develop your nonprofit’s strategic plan and prepare for implementation.
