OPINION: This is a crucial concern because the nonprofit sector’s capacity to serve is in serious jeopardy as the cost\u002Dof\u002Dliving crisis drives demand for services through the roof amid declines in donations and increasing costs.
A survey commissioned by CanadaHelps finds 22 per cent of Canadians plan to access non-profit services to meet basic needs in the next six months, up from 14 per cent at the beginning of 2022.
Non-profits, like businesses and government, have basic core operating costs. But, when the government funds a charitable project, it often fails to cover the full cost of service delivery and does not pay for essential operating expenses such as computers, rent or insurance. Organizations are too often left scrambling to cover these mission critical overheads.
Often, we must rely heavily on volunteer contributions, which leads to volunteer burnout and means our capacity to serve our community is limited. Given that our organization is working on crucial issues such as access to housing, education, healthcare and food security, the impact on our community is clear.
Our sector is calling on the federal government to use Budget 2023 to begin to fund non-profits and charities in a way that reflects our role as a trusted partner in delivering crucial programs and services to communities. This means providing funding in less-restrictive ways, allowing organizations to use the funding to cover essential core operating costs so they can more effectively deliver their programs and services.
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