The Ontario Nonprofit Network (ONN)’s new report reveals that Ontario’s 58,000 nonprofits and charities across the province are facing a triple threat as a result of COVID-19. Organizations are abruptly losing revenue from the cancellation of fundraising events and a steep drop-off of donations, while they grapple with the closure of offices and cancellation of programs and services due to pandemic restrictions, and face unprecedented human resource challenges with paid staff and volunteers. ONN is calling on governments to provide emergency stabilization funding to the nonprofit sector. 

However, even in the face of challenging times nonprofits remain resilient and innovative, working on the frontlines to support their communities. Almost 50 per cent of nonprofits are open and operating, but with modified regular operations, and in some cases moving to online operations. Key findings include:

Operations

  • Over three-quarters of respondents have experienced disruption of services to clients and communities
  • Almost one in five nonprofits have closed their doors – at least for now – because of the pandemic or are making plans to do so

Revenue

  • Close to 75 per cent of respondents have seen reduced revenue from fundraising, with the hard-hit arts sector reporting an 81 per cent reduction in ticket and event sales
  • The impact of the COVID-19 pandemic will cost a large minority (43 per cent) of organizations between $50,000 and $249,999 each. Another 10 per cent estimate the financial impact to be $1 million or more. Seventeen per cent estimate the impact on their organization at less than $50,000
  • Of those that are continuing operation during Ontario’s state of emergency, one in four (27 per cent) indicated that they would need less than $50,000 of emergency funding to remain operational. A small minority (7 percent) indicated they would need over $1 million to continue to meet (often increasing) demand

Human resources

  • Nonprofits are experiencing staff and volunteer absences of 35 per cent (45 per cent in the social services sector) due to concerns about contagion in doing their work. Many respondents from nonprofits performing essential services, including community health organizations and long-term care homes, commented on a lack of personal protective equipment (PPE)
  • One third (36 per cent) of respondents indicated that their organization has either reduced hours for workers or have had to lay off staff. The pandemic and state of emergency have been particularly devastating for workers in arts and culture, sports and recreation, child care, and nonprofit social enterprises