There is so much going on in our sector that is unpredictable. Politics at home are shifting, with a federal election bringing new priorities while leaving some longstanding funding arrangements behind. Meanwhile, U.S. policies are straining cross-border relations that go beyond tariffs, to the point where many are fearful of traveling across the longest undefended border in the world. With the possibility of deeper cuts in U.S. funding and a growing cultural rift, Canadian organizations are re-evaluating their partnerships and priorities.
From “Buy Canadian” campaigns to discussions about reducing reliance on U.S.-based funding and suppliers, the sector is starting to take a stand. Some Canadian charities are calling for a redirection of donor dollars towards homegrown initiatives, and a handful are even reconsidering their long-standing partnerships with U.S.-affiliated foundations.
This shift is about finding stability. If Canada’s economy continues to absorb shocks from trade disruptions and American market decisions, charities may feel it quickly: donations could shrink, grant-making might slow, and community needs may surge all at once. The sector’s balancing act has become more delicate, but clarity and foresight will help organizations prepare.
What can one charity or one employee in a charity do? Quite a lot, actually, if you remember that charity begins at home.
Fundraising: Holding on means everything
Donors are still giving—but not as much. The average gift in 2024 was down compared to the previous year. While most Canadians want to maintain their giving, fewer expect to give more, and some will inevitably step back if the economy worsens. A squeeze on personal finances, coupled with rising prices, is making every decision count—for individuals and organizations alike.
Acquiring new donors is expensive. Retaining current supporters, on the other hand, is not only more affordable—it builds a stronger base over time. That's why donor stewardship is quickly becoming a top priority for fundraisers. When done well, it keeps supporters engaged, reassures them their contributions are making a difference, and builds the kind of trust that sustains giving during tougher years. Longtime donors are also the most likely to make larger gifts or leave a bequest.
Effective stewardship doesn't require fancy tech or a huge team. It comes down to treating people like partners, not paycheques. Thanking them promptly, showing them what their money achieved, and keeping in touch throughout the year makes a difference. These actions don’t need to be flashy; they just need to feel personal and sincere. Adding thoughtful updates—without always asking for more—goes a long way. With donor expectations shifting toward more impact-driven, transparent relationships, charities that build strong stewardship habits will be in a much better position to stay funded.
Experiment with new tools to personalise outreach. Segmented emails, custom thank-you videos, or donor-specific updates based on past gifts are making their way into more campaigns. But tech is just the tool. The real work is listening, following up, and making each donor feel their support matters.
People problems and leadership gaps
Across the sector, there’s a steady rhythm of staff fatigue and leadership turnover. A large percentage of executive directors and board leaders plan to leave their roles within the next few years. It’s not a theoretical risk. Without plans in place, these departures could stall operations, confuse funders, and leave key relationships in limbo.
Succession planning often gets pushed aside. It feels like a tomorrow problem—until someone resigns. But the cost of not preparing is high. Fundraising may stall, staff morale might drop, and board members may scramble. Organizations that take the time to identify potential leaders, offering them development opportunities are far better equipped to handle transitions.
It’s not just top leaders who are burning out or leaving. Frontline workers are stretched thin. Salaries aren’t keeping up with inflation, and in some cases, people are doing the work of two or three roles. Nonprofits can’t match government or corporate salaries, but they can offer flexibility, growth opportunities, and a culture that respects time and boundaries. Some are trying four-day workweeks. Others are investing in internal training to help staff move up the ladder when external hiring stalls. These steps might not solve every staffing issue, but they show commitment to the team.
Volunteers aren’t just nice to have
Volunteering in Canada took a hard hit during the pandemic, and things haven’t bounced back. Older folks who stepped back for health reasons haven’t always returned. Younger people are juggling jobs, side hustles, and family commitments. Everyone seems busier—or more cautious.
The shortage is affecting more than just programming. Some organizations rely on volunteers as their primary workforce. When that disappears, services shrink—or stop. The good news: people still want to help. But they need options that fit their schedules and lifestyles.
Flexible opportunities help. So do remote roles. Micro-volunteering—quick, task-based projects that can be done in an hour or two—are gaining interest. Not everyone can commit weekly, but many can pitch in occasionally. Organizations that adapt their roles and expectations will have more luck bringing new people in.
Recognition matters too. People want to know their time counts. Sharing stories of impact, sending thank-you messages, and spotlighting volunteers in newsletters all help people feel appreciated. And don’t underestimate the power of community. When volunteers feel like they’re part of something, they’re more likely to stick around.
On the policy front, there's growing interest in a national volunteer strategy. Whether that leads to direct investment or simply more coordination and promotion remains to be seen—but any movement on this front is worth watching.
Looking ahead without guessing too much
These next few years won’t be easy but charities in Canada have always found ways to keep going—by being resourceful, collaborative, and close to the communities they serve. The environment may be shifting, but the fundamentals hold: clear communication, good planning, strong relationships, and smart decisions.
Let’s be blunt: we don’t know what policies will be in place by this time next year or even this fall. But we do know what works when things get rough: Steward donors, support staff, make volunteers feel needed, get your board ready for change and talk to your funders before things hit a wall. Charities that focus on what they can control, plan for different outcomes, and stay connected to their supporters will have an easier time getting through the storm.
Lee Pigeau brings over 30 years of leadership experience in Canada’s not-for-profit sector, with a strong track record in fundraising, governance, and strategic growth. As an adjunct instructor at the college level, he authored Ontario’s college-level e-learning fundraising curriculum and he has consulted for both grassroots and global charities on governance, donor stewardship, capital campaigns, and more. He is active in his community as a mentor, volunteer and competitive martial artist.
