Charities and Nonprofits Struggling to Stay Afloat During Pandemic, Says Imagine Canada

In fact, said Imagine Canada president Bruce MacDonald, the sector needs a total of $10 billion in support from government to survive the pandemic.

Charities are facing a cash crunch; many are being hit with increased demand while their revenue sources are drying up. Imagine Canada’s initial projections indicate the COVID-19 pandemic will reduce charities’ revenues by between $9 billion and $15 billion, and lead to more than 100,000 layoffs.

“It’s pretty dramatic,” MacDonald told Power & Politics host Vassy Kapelos. “Most charities in this country are being profoundly affected by drops in revenues, by a need to change and adapt their services, by not having access to volunteers, many of whom delivered those services.”

Overall, the sector contributes 8.5 per cent of Canada’s GDP and employs 2.4 million people, he added.

“Most charities don’t have reserves, or if they do, they’re very small and they don’t usually have access to bank loans because most don’t own buildings. They don’t have collateral that they can use,” said MacDonald.

Last week, Prime Minister Justin Trudeau unveiled the Emergency Community Support Fund, which gives $350 million in emergency grants to groups and national charities that help seniors, the homeless and others made more vulnerable by the pandemic.

The money will support services such as volunteer-based home delivery of groceries and medications, transportation and aid to vulnerable Canadians in accessing government benefits.

The funds will support community groups through national organizations such as United Way Canada, the Canadian Red Cross and the Community Foundations of Canada.