Non-profits are indispensable, now more than ever. They act as a social safety net, addressing critical gaps in services for Canadians, and are driven by people passionate to ensure no one is left behind.
But as the costs of living climb, non-profits are struggling to navigate rising operational costs, a drop in donations and volunteers and an increase in demand for their services.
This is what the 2024 State of BC’s Non-Profit Sector report, titled ‘Under Pressure’, discovered after an annual survey was widely circulated throughout the province early this year.
The report follows three others, released in 2020, 2021, and 2023, all capturing snapshots of B.C.’s resilient non-profit sector during the COVID-19 era. It also follows a 2018 report on the significant impacts and contributions of B.C.’s Civil Society sector.
This report series has been used to advocate for core support and to educate supporters to better understand the sector’s realities.
This year’s report, like the reports prior, is a collaboration between Vantage Point, Vancouver Foundation, the City of Vancouver, Vancity Community Foundation, United Way BC and the Victoria Foundation.
Here are six important findings from this year’s Non-Profit Sector report.
1. Non-profits are facing less resilient times
Organizations continue to combat soaring expenses as costs rise and revenue streams remain fixed. Over the last year, the sector reported revenue sources to be decreasing except for revenue from government sources, which has remained fixed.
Salaries and benefits, programs, services and administration have all increased, compared to 2023, due to rising inflation and climate change. Meanwhile, charitable donations are in decline across Canada, and there is great pressure particularly on rural B.C. non-profits to reduce programming or close their doors.
2. Non-profits are overburdened
The sector is grappling with a skyrocketing demand for services from clients and communities, while the organization’s capacity to deliver these services has largely stayed the same.
Volunteerism, which is crucial to non-profit stability, has not recovered from pre-COVID-19 levels, due to concerns about mental health, food security, housing, healthcare and more. The sector says it’s experiencing staff burnout, high turnover and is stretching available funding to retain staff.
3. The sector could benefit from a non-profit labour force strategy
Non-profits and charities are the lifeblood of a community’s well-being. In 2022, over 33-thousand B.C. non-profits collectively employed 92,000 workers, and contributed around $30 billion to B.C.’s economy.
The sustainability of the sector’s workforce needs to be addressed by establishing a collaborative working group that includes sector representatives, government agencies, funders and other stakeholders, to create a labour force strategy.
4. Funding for non-profits could be reformed
The report recommends that funders offer multi-year funding agreements tied to inflationary increases. Funders could also create a formal funders collaborative to implement and advocate for funding reforms, share trust-based philanthropy practices, and collectively address funding challenges.
5. Stakeholders must nurture a collaborative ecosystem for non-profits
This means non-profits must have more opportunities to work in partnership with government and private businesses, develop information-sharing platforms, training and development, and data collection. Local community resources and governments at all levels can help make this happen.
6. Community support for the non-profit sector is vital
Despite the pressure, non-profit sector workers remain hopeful. Feelings of optimism and a mission-oriented sense of being are needed to promote equitable and thriving communities, and to ensure no one is left behind.
With your help, the sector can continue to deliver the services Canadians need. Delve into the rest of the State of BC’s Non-Profit Sector report and check out this helpful infographic to learn more about this crucial sector, how it's helping all British Columbians and how you can get involved in supporting your local community.
