Policy, Politics, and Charities: Ensuring Our Voices Are Heard

FRANÇAIS

Every election brings uncertainty. With shifting Canada-U.S. relations and ongoing economic challenges, the charitable sector feels these effects even more acutely. In response to financial uncertainty or downturns, organizations often scale back fundraising and cause marketing, resulting in funding cuts to the crucial programs Canadians rely on, even more so during challenging times. This is happening at a time when donor support is already in a multi-year decline, yet demand for charitable services continues to steadily rise. 

While the charitable sector is undeniably affected by these challenges, past experience shows that our sector is not immediately considered by government, often with serious consequences for those we serve. 

A clear example of this was the delay in rolling out the much-needed pandemic recovery funding for the charitable sector from the Community Services Recovery Fund. It took two years from announcement to implementation. This delay had significant financial and socio-economic consequences for a sector that employs over 2 million people and serves an estimated 24% of Canadians who rely on charities for basic needs (a figure that likely underestimates the true demand on the sector).

Electoral or critical government events can stall or disrupt policy initiatives critical to nonprofit funding and operations. A recent example is AFP Canada’s successful advocacy for extending the donation receipt deadline from December 2024 to the end of February 2025. When the prorogation of Parliament was announced, it created uncertainty for professionals and donors about whether this extension would proceed as planned. Once again, our sector had to step in to advocate with government and provide much-needed clarity.

A pressing concern for our country and our sector is the impact of tariffs, which directly affect the job market and affordability, increasing demand for essential services such as food banks and housing. The urgent need for decisive action to mitigate these effects underscores how economic policies such as tariffs and inflation drive up costs, and the overall demand for charitable services.

Rising costs can also force organizations to cut services, reduce staff, and rely more heavily on donor funding. They also impact donors and sponsors, who may reduce their charitable contributions to protect themselves from potential deficits caused by economic shifts. This increases competition for charitable and sponsorship dollars, making it even harder for nonprofits to secure funding. This challenge is especially significant as the majority of Canadian charities have less than 20 employees and may have limited staff and capacity, if any, to pursue additional funding.

Despite contributing $216.5 billion to the Canadian economy, the nonprofit sector lacks a dedicated body to advocate on its behalf and serve as a bridge between charities and the government. With the concerning decline in participation in charitable giving, and the rising demand for services, the sector faces challenges that require urgent attention.

As fundraisers, we often stress the importance of being "in the room" and "at the table" with funding decision-makers. The same principle applies here. We must use our advocacy expertise to ensure our sector’s voice is heard when policies that affect our organizations and the communities we serve are being shaped.

A fragmented nonprofit sector weakens our ability to influence decision-makers. A unified advocacy strategy is essential, and we can achieve that by using the resources available to ensure that we bring a unified message when we engage with local Members of Parliament, politicians and candidates in this election, regardless of their party. AFP Canada has resources to support our efforts. 

The creation of a dedicated secretariat is the top priority for AFP Canada because it will help to strengthen the sector ensuring services remain available for Canadians and their families. A single window into government was initially recommended by the Special Senate Committee on the Charitable Sector in 2019 and supported by the government in its response to the Senate Committee’s report in 2021. This timeline not only reflects the lengthy process of engagement around this priority, but it also underscores the critical role of sustained advocacy and maintaining momentum. While this request is not new, it remains one of the most effective actions the government can take to ensure that essential services remain available to Canadians when they need them.

Charities must continue advocating for government policies that not only protect the sector from economic downturns and financial instability but also help to maintain its long-term health and sustainability. The urgency to act has never been greater.

The 2025 federal election is a great opportunity to raise awareness about how our sector changes lives. Join us in advocating for the sector. Visit our election webpage to find out how you can get involved.