Remember the days when there used to be seasonality to our work?  Now we’re busy all the time. Not-for-profits never stop – email, social, websites, direct mail, events, donor reports, recruitment, crisis management, board meetings and grant writing, the list goes on.  Everyone is exhausted while the demand for services is on the rise far beyond our capacity to respond.

In Canada, the demand for not-for-profit services has increased significantly over the past two and a half decades, with one in five Canadians now relying on charitable services to meet essential needs. However, while the demand has soared, the number of donors has declined year after year. This has placed an incredible strain on not-for-profits, with more than half reporting that they are unable to keep up with current demands, leading to a challenge of doing much more with much less.

As an incurable optimist working in the sector since 1999, I was secretly dreading writing this article (at a time when the sector is facing so many challenges) and reflecting on what I’ve learned over the years in regards to giving, volunteerism, technology, and professionalism of the sector, but it’s an opportunity to look back and see what has worked and what still has a long way to go.

The rise of professionalism in the not-for-profit workforce

Over the past 25 years, the not-for-profit sector in Canada has undergone significant professionalization, driven by different factors including increased demand for accountability, the need for sustainable funding, and a greater emphasis on organizational effectiveness.

We’ve seen regulatory changes such as the Canada Not-for-profit Corporations Act in 2011 and we have clearer guidelines for governance and financial reporting. Other new regulations and reporting requirements have emerged, which have enhanced transparency and accountability.

Capacity building has become increasingly important over recent years. Associations and programs offering training, resources, and networking opportunities have helped organizations develop essential skills in management, fundraising, and strategic planning. However, we’re still not seeing the government and other funders supporting the sector enough in this area. No amount of program and service funding will be good enough in the long term if the organizations are not able to invest in their people, their infrastructures and their marketing.

Luckily, the rise of social enterprise and diversified funding streams, including corporate partnerships and impact investing, has offered new ways of working and prompted not-for-profits to adopt more business-like practices, improving their financial sustainability. I think of our clients who run shelters who are now operating thrift stores, coffee shops, and community gardens as a way to support themselves financially, but also create stronger ties to the community.

Need for peer support

More than 70% of executive directors who responded to our survey indicated that a peer support group would be helpful or very helpful, with 26% finding it “very helpful.”

Another big change I’ve witnessed since the early 2000s, is that more and more donors and funders want to see more proof that their money is being well invested and it’s forcing organizations to define and measure their outcomes and demonstrate their impact. Not-for-profits are gradually using more data analytics and performance metrics to showcase their effectiveness, which is crucial for attracting and sustaining funding.

Phil has always encouraged collaborations and partnerships, recognizing that collective efforts can lead to greater impact. Over the last two and a half decades we’ve seen the sector share more resources and knowledge, as well as the merging of organizations and charities coming together to work on complex social issues.

Slowly but surely (and not nearly enough in my opinion), the sector has become more vocal in advocating for policy changes and raising public awareness of key social issues. This has enhanced the visibility and credibility of not-for-profits in Canadian society.

As more people from the corporate world seek meaning in their careers and more not-for-profit workers seek more equity in pay and working conditions, I’ve seen a shift towards professionalizing the workforce, with more emphasis on hiring qualified personnel and providing ongoing professional development opportunities.

Overall, the professionalization of the not-for-profit sector in Canada has led to improved governance, greater accountability, and enhanced capacity to address societal challenges. As the sector continues to evolve, it faces ongoing challenges, including adapting to technological advancements and meeting the needs of a diverse population. We still need funders to recognize that shoestring budgets for overhead are placing organizations at a disadvantage, and individual donors need to be educated as well on the importance of funding overhead. Paying our people well and keeping the lights on is not a nice to have, it’s the critical, bare minimum for an organization to operate effectively.

Volunteering 2.0 – New norms in service

Volunteerism has always been front and centre throughout my career. It’s what brought me to the sector in the first place and keeps me connected beyond my 9 to 5 (which is far from 9 to 5!)

I never would have thought at the age of 16 when selling pink pins at the Quebec Breast Cancer Foundation’s Dans Le Jardin event that they would one day end up being my client for twelve years, let alone that I would become a recipient of the Governor General of Canada’s Sovereign’s Medal for Volunteers and have the Minister of Families, Children and Social Development grant Phil the award for Business Leader in the 2021 Canada’s Volunteer Awards.

My involvement in the Giving Tuesday movement in Canada for over a decade, as well as my team’s contributions to the movement in Quebec, has shown us how much has changed in the volunteer landscape across the country. 

Shifts in work-life balance, increased use of technology, and changing demographics have influenced how Canadians volunteer. While the number of volunteers has grown, the average time spent volunteering has decreased, with more people opting for flexible, short-term opportunities instead of long-term commitments. Moreover, the rise of digital platforms has made it easier for volunteers to connect with causes, although it has also led to more episodic and project-based volunteering. The rise of digital tools has also made some volunteer tasks obsolete and organizations struggle to find new ways to leverage volunteers’ time and maintain their interest. 

The overall approach to volunteerism has become more skills-focused and diverse, but not all organizations have adapted well to this shift, some are still trying to fit a square peg into a round hole instead of taking the time to reevaluate their way of working. In the same way that donors and funders are looking for organizations to demonstrate their impact better, volunteers want to know that the time they offer will also have an impact.

Charities need to dedicate time and resources to building out proper volunteer programs, to not only attract and retain volunteers, but also for their own sanity. A strong volunteer program means less last-minute panic and fewer headaches when it comes to resource management.

Donor dynamics in flux & what to do about it

If you’ve read this far into this article, you likely work in the sector and I don’t need to tell you that over the past 25 years, philanthropy and individual donations have evolved significantly. But it’s important to highlight what has changed and why so that we can strengthen our sector and continue to meet the rising demand for services. 

While total charitable giving has generally increased, the number of individual donors has been on a steady decline for twenty years. It ties into the topics I’ve written about above: we’ve seen a shift toward more strategic and impact-focused philanthropy, with donors seeking measurable outcomes for their contributions. Additionally, digital technology has transformed the way donations are made, facilitating online giving and crowdfunding. More recently, donor-advised funds have been on the rise, enabling more personalized and strategic donations. However, the number of individual donors has declined, indicating that fewer people are contributing more significant amounts. 

One reason for this decrease is that younger generations tend to donate less frequently and in smaller amounts compared to older generations. Economic factors, such as rising costs of living and stagnant wages, also play a role in reducing disposable income for charitable giving. There’s also increased competition from a growing number of not-for-profits and other funding mechanisms, like crowdfunding that have diluted traditional giving channels. One thing that is entirely within the power of an organization to change is how well-known and trusted they are by their careholders. Trust issues with charities are somewhat of a grey area and changing priorities in philanthropy have contributed to the decline in giving.

“Insanity is doing the same thing over and over again and expecting different results.”

– Albert Einstein

Small and medium-sized enterprises (SMEs) are increasingly supporting charities through donations and volunteerism for various reasons. Engaging in charitable activities enhances their corporate social responsibility (CSR) profile, improving their brand reputation and fostering customer loyalty. It also boosts employee morale and attracts talent, as staff often value working for companies that contribute positively to their communities. Furthermore, SMEs see community support as an opportunity to build local relationships and networks, which can be mutually beneficial. We had the honour of helping The Unscented Company with their volunteer program that has been hugely rewarding for both their employees and Share the Warmth, one of our past clients and the lucky recipient of their generosity.

The social sector’s impact: A cause for celebration

So what do I appreciate about the sector after 25 years? I’m proud to be in a sector that plays a crucial role in Canada’s economy, addressing service gaps by providing access to essential services like housing, healthcare, education and so much more. 

13 milion volunteers

Not enough people know these statistics. Not even the people who work in the sector. 

We need to celebrate the significant impact not-for-profits have on Canadians’ lives and highlight their ongoing role in supporting a diverse and dynamic economy. We need to hold our heads up high and be proud of our achievements. We need to advocate for better working conditions, more support, and more respect. 

But respect is earned. Not-for-profits need consistent actions that demonstrate their integrity and trustworthiness. They have to treat their workers with kindness, listen attentively to what careholders need, keep their commitments, and show competence in their skills and responsibilities. 

I come to work every day to help organizations do just that and plan to keep doing it as long as I can.