Disappearing donors
Small grassroots charities exist for betterment of local communities and there are many on P.E.I.
December is soon to be upon us and tis the season for giving to your favourite charities.
End of the year donations are critical to all non-profit organization’s bottom line. Some 30 per cent of all donated dollars are raised by non-profit groups in December alone and much of that in the last three days of the month.
But according to a recent report by Canada Helps, an alarming trend is putting our non-profits at risk and this year local P.E.I. based charities need your help more than ever.
The fact is, Canadian donations to the non-profit sector on P.E.I. and elsewhere throughout the nation are declining across all age groups and income brackets.
In 2006 nearly a quarter of all Canadian tax filers donated to the charity of their choice, today it’s less than 20 per cent that do. On P.E.I. in 2010, 41 per cent of islanders made donations, but in 2016 that number had dropped to 35 per cent. The average donation has also dropped nationally, and the largest decreases are from donors aged 55 or older, yet on a percentage basis, those aged 55+ are still giving more than younger people.
It’s not hard to figure out why there is a decline in all age groups. Younger people generally fill lower paying jobs and have student debts to pay off while older folks are struggling to make ends meet on fixed incomes.
Those who are able to donate certainly are supporting a wide variety of causes. Most donations go to health-related, religious and education organizations while causes promoting arts and culture and those protecting the environment, receive a mere 6 per cent; organizations serving indigenous peoples receive even less — less than 1 per cent.
Studies indicate that 66 per cent of all donations made in Canada go to just 1 per cent of the registered charities.
As a result, the largest charities pull in some 79 per cent of all receipted gifts. The largest 1 per cent also get the most government grants as about 85 per cent of all government funding support goes to the largest charities.
Charitable giving in Canada is not what it used to be and we all should be concerned. If the trend continues, we can expect a 30 per cent drop in donated revenues by the end of the next decade.
So, what needs to be done? think three things.
First, enhanced government support. Non-profits are the nation’s largest employer yet there is no government ministry currently assigned to protecting and growing the sector — there should be. Additionally, changes in tax laws relating to capital gains are needed so as to make it easier and financially more attractive for individuals and businesses to support charities.
Second, I’m sorry to say but those who are most able to donate are not doing their part; they need to step up to the plate. Donations from those whose annual income is between $100,000 to $200,000 has dropped by 17 percent in recent years. It may come as a surprise but the fact is lower income families give a higher percentage of their total income than do the wealthier people in society. Those who can best afford to should strive to donate between 3-5 per cent of their income to the causes they believe in.
Third, small grassroots charities need your special support. The Canada Helps report states, “small charities depend significantly and disproportionately on donations from individuals and corporations.”
They sure do. Small grassroots charities exist for the betterment of our local communities and there are many here on P.E.I. — some exist to serve the most vulnerable while others provide programs and services that enhance the quality of our lives and collectively, they support an incredible diversity of issues and causes. This year, think about putting your donation dollars to work in local community-based, smaller, non-profit groups that provide the programs and services that are close to your heart.