Canadians recognize COVID-19 has sharply increased demand for charitable services yet donations are falling, according to two new studies from Imagine Canada, which represents charities. The first study – Imagine Canada’s Sector Monitor Survey – was conducted in November and December to examine the impact of COVID-19 on charities nine months after the onset of the pandemic.
A second survey conducted in conjunction with CanadaHelps and designed to explore the pandemic’s influence on the giving intentions of Canadians this holiday season was also fielded in early December. Findings from these studies paint a stark picture of declining revenues and rising demand for charitable services due to the health crisis.
Imagine Canada’s Sector Monitor Study shows that 68 per cent of charities have seen a decline in donations since the onset of the pandemic. With demand for services trending upward – 46 per cent of charities are reporting an increase in demand versus a 35 per cent surge early in the pandemic. As a result, Charities are being stretched to do more even though their service capacities have either declined or remained about the same.
Seventy percent of charities also report a decline in the number of volunteers since the onset of the pandemic, and 74% have seen a decline in the number of volunteer hours they receive.
More than eight-in-ten Canadians (81 per cent) believe the need for charitable services has risen during the pandemic. Yet only 51 per cent of Canadians say they plan to donate to charities this holiday season. A 2014 Imagine Canada holiday giving survey found that, at that time, 62 per cent of Canadians said they planned to donate to charities over the holidays.
Among Canadians surveyed in 2020 who are planning to give a holiday gift to charities, 36 per cent say they plan to give less. Seventy-one per cent of those planning to donate a smaller amount say financial difficulties related to COVID is the reason.
All of this is grim news for the social good sector. Many charities typically receive about 40 per cent of their donations in the last six-to-eight weeks of the year.
Key Findings
- 36 per cent say COVID-19 will cause them to give less in 2020
- On average, respondents say they will give approximately $317 in 2020, including their planned holiday giving. If this holds true, it would be roughly 40% less than previous giving levels, as indicated by Statistics Canada surveys.
- 62 per cent of Canadians believe charitable giving is down because of COVID-19
Increased demand is adding pressure on the social good sector, which is showing signs of fatigue. Fifty-one per cent of charities report their ability to maintain an appropriate work/life balance for staff and avoid burnout is decreasing.
The holiday giving intention survey also reveals the pandemic has caused a fundamental shift in how Canadians donate to charities. Half of those surveyed (49 per cent) showed a strong preference for charities that accept online donations.
