Urgent Need for Decisive Action to Mitigate the Negative Impact of Tariffs on the Canadian Charitable Sector

FRANÇAIS

AFP Canada sent the letter below urging the federal government to create a secretariat for the charitable sector in Canada and to include this vital sector in tailored government assistance programs in response to the U.S. tariffs. AFP Canada is a leading national voice for fundraising professionals who are vital in advancing charitable work. Formed in 2017, AFP Canada was created to complement AFP Global’s work. 

February 12, 2025

Subject: Urgent Need for Decisive Action to Mitigate the Negative Impact of Tariffs on the Canadian Charitable Sector

Dear Ministers:

Amid the recently announced U.S. tariffs, the Association of Fundraising Professionals Canada urges the federal government to take decisive action to bolster Canada’s economic resilience. We call for the creation of a secretariat for the charitable sector in Canada and the inclusion of this vital sector in tailored government assistance programs in response to the U.S. tariffs.

Canadian charities play a vital role in addressing pressing issues, from supporting vulnerable populations to advancing public health, environmental sustainability, and education. However, the increasing uncertainty and the burden of the U.S. tariffs on the economy will make it more difficult for many to continue donating to charities across the country, directly impacting essential services that are critical for Canadians and their families.

The new tariffs will have a ripple effect on charities’ fundraising and operations. Feeling the economic impact of the tariffs, not only will Canadians reduce their donations, but they will increasingly turn to our sector for additional support and critical services. Facing increased demand for basic services and fewer resources, charities will struggle to raise funds, making immediate federal relief measures essential. Without government support charities will be forced to close or reduce services with devastating consequences for Canadians and their families.

With the increasing complexity of trade relations with the U.S., a permanent charitable sector secretariat would serve as a crucial advocate and bridge between charities and the federal government. This initiative would empower charities to continue their vital work while also addressing the broader economic and social challenges and ripple effects posed by these new tariffs.

A secretariat would be mandated to ensure that government policies strengthen the nonprofit and charitable sector so it can continue to thrive and play its vital role at the heart of Canadian communities. It would ensure that the charitable sector is considered when new programs are launched, such as targeted relief in response to the tariffs. Learning from the challenges of the pandemic, a secretariat will reduce delays resulting from working through intermediaries (such as the Community Services Recovery Fund announced in Budget 2021, but opened for applications in January 2023) or omissions from critical programs (such as the Canada Emergency Wage Subsidy when initially launched). Status quo is not sufficient to serve Canadians.

Charities and nonprofits supplement government by focusing on some of the biggest problems our country faces today (e.g., poverty, hunger, healthcare, disasters, inequalities). 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 and tailored assistance programs to strengthen the sector’s ability to be there for the people it serves.

While Canada must mitigate trade tensions, it is equally critical to advance policies that address the sector’s needs, foster its vibrancy, its growth, and its ability to deliver critical services in communities across the country. On behalf of AFP, our over 3,000 members in Canada, and the millions of Canadians who depend on services provided by the charitable sector, we urge you to consider the creation of a dedicated body as a strategic step towards ensuring the long-term sustainability and effectiveness of the Canadian charitable sector in addition to tailored assistance programs for charities to maintain the vital economic social infrastructure created by our sector across the country.

We would be happy to provide any further information or discuss this in greater detail. Thank you for your time and attention to this important matter.

Sincerely,  

Rea Ganesh                        
Chair                               
AFP Canada      

Lisa Davey
Vice President
AFP Canada