Churches, non-profits seeking help as they prepare for shutdown

Pandemic’s impact expected to curtail donations

Churches and charities are preparing for a cash crunch as donations dry up during the COVID-19 shutdown.

The widespread closures in almost every city in Canada mean that people wont be in their places of worship to put money in the collection plate and, as the economy contracts, people will likely have less money to give through other means too.

As the government prepares to announce financial aid for families and businesses on Wednesday, some are urging policy-makers to include measures that will ease the crisis for places of worship and non-profit organizations.

“The longer churches have to remain closed, then there are certainly financial implications, especially for smaller parishes that don’t have the same sort of financial support as some of our larger ones,” said Neil Maccarthy, the director of public relations and communications at the Catholic Archdiocese of Toronto.

“We’re also trying to maintain as many ministries as we can with outreach to the vulnerable.”

Imam Sikander Hashmi of the Kanata Muslim Association said one perk of raising money near the tech hub in Ottawa’s west end is that people are savvy about online donations and automatic bank transfers. But he’s expecting to feel the pinch and knows that other mosques will be feeling it lot worse.

Mosques don’t use a collection plate the way many churches do but Hashmi said many people choose to donate when they attend Friday prayers and that the shutdown will have a major effect on that.

“People are going to be coming to us for support as well,” said Hashmi. “Just in terms of counselling or spiritual support and spiritual care, all the types of things that require resources.”

Churches, mosques and temples will also need to keep their buildings maintained throughout the shutdown.

Non-profit organizations like food banks will also likely begin to see donations drop off while demand increases sharply, said Jennifer Robson, an associate professor of political management at Carleton University.

Robson is lobbying for low-interest lending to non-profit organizations through the Business Development Bank of Canada and through the Social Innovation Social Finance sector.

The government has announced similar lending capacity for businesses.

And as Prime Minister Justin Trudeau’s government prepares a financial aid package for Canadians and families hit hardest by the COVID-19 induced downturn, some are advocating for measures to help places of worship.

“This is not a part of society that is flush with large endowments and, by and large, they’re typically running something like week to week or month to month,” said Sean Speer, an economic adviser to Stephen Harper’s government during the 2008 financial crisis.

Speer’s recommended doubling the tax credit for charitable donations or a pledge from the government to match any donations made to places of worship or non-profits during the crisis.

“These are these are spiritual hubs. They’re community hubs. They’re outreach hubs. And so those kinds of solutions and creative solutions would be good points of discussion for government and faith communities,” said Maccarthy.