The Critical Importance of a Secretariat for the Charitable Sector in Canada

FRANÇAIS

The Association of Fundraising Professionals (AFP) Canada is calling on the federal government to create a permanent, adequately funded, dedicated secretariat for the charitable sector in Canada.

The time to act is now. Canadians need the government to create a secretariat.

• There is no single place in government tasked with increasing the sector’s vibrancy, its growth and its ability to deliver critical services in communities across the country.
• A secretariat would work with public servants in different departments and agencies to help them consider the potential impacts of policies, programs and laws on the sector. 
• It would result in greater collaborative policy development and an understanding of the importance of the sector.
• It would improve the use of government and charitable sector resources enabling both to better meet the wide-ranging needs of Canadians now and in the future.  
• Charities and nonprofits supplement government by focusing on some of the biggest problems our country faces today (e.g., poverty, hunger, healthcare, disasters, inequalities).
• Charities and nonprofits provide support to those affected by important challenges that the government aims to tackle such as climate change, cost of living, affordability and jobs.
• With more than 9.6 million Canadians relying on the sector to help meet their basic needs, the demand for services is growing. The sector must have government policies that strengthen their ability to be there for the people it serves.
• In its written response to the special senate committee report on the sector in 2021, the government expressed support for the creation of a single window into government. This would be accomplished through a secretariat.
   

Background

Despite the fact that the charitable sector contributes more than 8% to Canada’s GDP, our sector does not have a dedicated secretariat in government, tasked with ensuring the well-being and viability of the more than 170,000 charities and nonprofits in the country.

After holding more than 25 meetings with organizations and officials in 2018 and 2019, the Special Senate Committee on the Charitable Sector issued its report on the sector, which included a Recommendation (Recommendation 22) for the Government to create one.

In its official response to this report, the government indicated it is supportive of the creation of a window into government for the charitable sector. Despite this, no progress has been made, and the sector continues to find itself left out of regulatory and policy decisions at the federal level. 

AFP Canada continues to advocate for the need for a designated federal entity for the charitable sector for a number of years. 

Why Now?  

The need for a secretariat was never clearer than during the COVID-19 pandemic, which put Canada’s charitable sector in a difficult position—with many organizations being faced with an increased demand for services, many also experienced a dramatic drop in fundraising. At the same time, the sector had to quickly respond to changing government restrictions while trying to support its workforce. 

A lack of a dedicated secretariat for the sector during the pandemic meant that the government was slow in identifying major gaps in the capacity of the sector to respond to community needs, and in developing targeted supports for organizations as they sought to adjust. For example, the sector was initially excluded from the Canada Emergency Wage Subsidy (CEWS) and had to advocate for inclusion after the program was announced.

As we look towards recovery, other sectors have been fortunate enough to receive dedicated support—such as the tourism industry, with $500 million through the Tourism Relief Fund, the aerospace industry, with $250 million through the Aerospace Regional Recovery Initiative, and the festival and events sector, with $200 million through the Major Festivals and Events Support Initiative—all of which have their funds open for some time now. 

Although the charitable sector has been fortunate enough to see the announcement of $400 million through the Community Services Recovery Fund in Budget 2021, the national funders were only announced on November 22, 2022 and the application portal opened last week with an application deadline of February 21. This is a full two years after this much-need support was announced. Given the number of organizations in need that will be seeking to apply and the broad eligibility criteria, we are concerned that the $400 million will not go far enough to address the strain on the sector coming out of the pandemic. If the sector had a dedicated secretariat, it would have had more of an opportunity to contribute to the government's recovery agenda, and would have had a dedicated advocate within government who could have sought to expedite the rollout of the important CSRF program.

The nonprofit sector provides countless services and supports making a huge difference in the lives of Canadians, from coast to coast to coast. In fact, according to a November 2022 Ipsos poll, 22% of Canadians plan to access charitable services in the next six month. The sector often addresses needs that cannot be met by government or by the market. We are also an important partner to government in the delivery of key services, including health care, education and social services. 

A dedicated secretariat would not only ensure a greater understanding of how government programs and regulations can increase effectiveness and innovation in the sector but would ensure that the sector has the support it needs to continue to provide valuable services to Canadians. 

Why a Secretariat?

A secretariat for the nonprofit sector could be similar to other federal secretariats such as the Federal Anti-Racism or the 2SLGBTQI secretariats but focused on championing the nonprofits sector. While the government in consultation with the charitable sector as a whole is best suited to determine where it could be housed, it likely could be in one of the existing departments thus not requiring a new department to be created.

Numerous benefits would flow from being housed in one agency that has the mandate to promote the sector. Issues such as modernization and data collection, which have hampered the sector’s progress in the past, would occur in a collaborative environment with consistency in actors and process. Additionally, it would ensure that government programs consider the charitable sector, which amplifies their benefit to Canadians—enabling and supporting organizations in their important work at the community level. 

Designating a secretariat in government for the sector would be the most significant way for government to ensure the ability of charities to meet the wide-ranging needs of Canadians now and in the future. 

About AFP Canada

AFP Canada is a leading national voice for fundraising professionals who are vital in advancing charitable work. The 3,000 AFP members in Canada play a critical role in helping to shape Canadian policy and by raising funds that change lives. They fundraise for organizations large and small, in rural and remote communities as well as towns and major cities across the country. Fundraisers support the arts, culture, shelters, emergency services, healthcare, education, reconciliation with Indigenous Peoples, and social justice, all while contributing over 8% to GDP annually.

AFP members in Canada are part of the larger AFP Global network—the largest community of professional fundraisers in the world. The approximately 26,000 members worldwide raise over $100 billion annually to support thousands of philanthropic causes and organizations across the globe in accordance with AFP’s Code of Ethical Standards.