The leaders of 140 Canadian charities have written a letter to the Government of Canada asking for urgent financial support to prevent the irreparable collapse of the sector, and their vital programs, due to the COVID-19 crisis. Canada’s charities are a critical  part of the Canadian economy, contributing more than eight percent to Canada’s GDP ($162 billion in 2017) and employing more than ten percent (1.4 million) of working Canadians.

Without immediate support from the federal government, most Canadian charities will have to lay off massive numbers of employees, greatly impeding their ability to support vulnerable people and communities. Many are facing a very real threat of permanent closure.

The Emergency Coalition of Canadian Charities, which includes War Child, United Way, the Canadian Cancer Society, YMCA, Indspire, Kids Help Phone, Daily Bread Foodbank, Women’s Shelters Canada, Covenant House, UJA Federation of Greater Toronto, and Heart and Stroke Foundation, among many others, is recommending the following:

  1. The immediate establishment of an emergency $10 billion stabilization fund that will allow charities to survive, retain staff, cover critical expenses, and continue essential, frontline operations during the pandemic; 
  2. Loan guarantees to Canada’s banks to ensure that charitable organizations have easy access to urgent, substantial short term low- or no-interest loans to support their operations; 
  3. Increase the Charitable Donation Tax Credit through to the end of 2021 from 50% to 75% (in line with the rate that is provided for political donations) to encourage Canadians to donate;
  4. Continue to flow already-contracted funds to charities and allow for maximum flexibility and re-budgeting as charities struggle to deliver and/or redesign their programs in the wake of COVID-19; and
  5. Ensure that charities have access to the same recovery programs that businesses do at every step.

These measures will help ensure Canada’s charitable sector survives and can continue providing vital support to vulnerable Canadians and families hit hard by COVID-19. These recommendations are also in line with those being advocated by Imagine Canada.