According to a recent global survey, (with data from 87 countries) Canada was ranked the second best country in the world. Quality of life was one of the factors considered in the ranking. While most Canadians enjoy a relatively high quality of life compared to other peer countries, the increasing impact of inflation, the rise in cost of living, and economic stagnation has pushed more Canadians to depend on charity services to meet their basic needs.

An Ipsos Reid poll found that over the next 12 months, 22% of Canadians will rely on charities for life necessities such food, clothing and shelter—an increase of about 8% from the prior year. The charitable sector is playing an ever-increasing role in sustaining the high quality of life for Canadians, while also staving off the true impact of current economic challenges faced by our country. But the question remains: for how long?

As the charitable sector continues to insulate Canadians from declines to quality of life, it is simultaneously facing volatile headwinds, with no signs of relief. The sector is becoming increasingly vulnerable to these forces, and without immediate attention and collective intervention from industry leaders, policy-makers and para-sector organizations, Canadians may see their quality of life diminish precipitously over the coming decade.

This three-part series takes a look at the challenges decelerating the sector’s contribution to Canadian society and explores possible interventions to ensure Canada can maintain its standing as one of the best countries in world.

Talent

As the adage goes, a company is only as extraordinary as its people. If the nonprofit sector was a company, it would be an extraordinary one. For decades, millions of talented people have dedicated their lives to advancing the mission and vision of Canada’s 86,000 charities, helping to expand access to education, create world-class healthcare, reduce poverty, fight for social justice, protect the environment, promote the arts and stop the spread of disease. Their efforts have made the sector robust, with 2.2 million people working at nonprofits and charities. Their years of contribution and meaningful work helped create the high quality of life that all Canadians enjoy.

Unfortunately, the talent pool in the charitable sector has been steadily shrinking, with no end in sight. Steadfast fundraising programs that produce future talent have struggled with attracting prospective students, to the point where they have had to cancel programs due to low enrolment. With economic pressures increasing, young people are opting for careers in the public or private sector where they can be guaranteed higher wages, less volatile work and pensions and benefits to secure their futures.

At the same time, Boomers are preparing to retire and Gen Xers and Millennials are leaving the sector for greener pastures. Even middle management roles are increasingly hard to fill. Recruiters are turning down mid-level searches because they already know they will not be able to find the talent needed to successfully accomplish the assignment. Anecdotally, past graduates of fundraising programs have shared that only 3 in 10 members of their class continue to work in the charitable sector, with the majority opting for jobs in the corporate world where opportunities for growth are plentiful. There is a perfect storm of older generations exiting the sector, and younger generations opting out from the start.

Also important to note, is that the sector workforce is primarily female, representing 80% of workers according to the Ontario Nonprofit Network. While the nonprofit sector was once unique in offering female worker opportunity for leadership roles, with corporations increasingly adhering to practices of pay equity, women are finding opportunities in the commercial sector commensurate if not superior to those they have historically only been found in the nonprofit sector. This is just one more factor contributing to the shortage of talent in the sector.

A labour strategy is urgently needed

The reality is that the charitable sector will not be able to sustain its impact and contribution to Canadians, let alone meet the growing demands from the public for its services, without heeding a clarion call to action to address the talent shortage. A sector-wide, coordinated labour strategy is urgently required.

There are lessons to be learned and roadmaps to follow from other sectors who have faced the same shortages and effectively dealt with them. A good example is the skilled trades. Their professional organizations partnered with educational institutions to encourage and expand enrollment to create a healthy pipeline of new workers. They also advocated policymakers and mobilized government support, effectively retaining people already in the profession through government-funded upskilling programs. They have attracted new talent through awareness campaigns aimed at students and young people. The charitable sector would benefit from a similar, strategically coordinated approach, and urgently.

If trends continue, Canadians will increasingly depend upon charities for their quality of life with demands for service only growing. While the talent shortage may appear to be an overwhelming challenge, there is a window of opportunity to rethink how the sector attracts, manages and retains talent. If done well and done quickly, replicating and mirroring the practices from other industries that have faced similar talent shortages, the charitable sector will no doubt attract the talent needed for the future.

The need for a labour force strategy must not fall on the shoulders of staff alone, but be fully supported by leadership, including Boards of Directors and those in sector governance. With a cross-sector, coordinated effort, the goal would be to attract extraordinary people ready to accomplish extraordinary things for all Canadians.

Caroline Riseboro has raised over $3 billion in her 25-year career. She currently serves as President & CEO of TrilliumHealth Partners Foundation, where she is leading a ground-breaking fundraising campaign to build the largest hospital in Canada.