Charities call for urgent $10B lifeline from Ottawa

Canadian charities from the United Way to the Daily Bread Food Bank are urging Ottawa to set up a $10-billion emergency fund as a lifeline for the sector to help the most vulnerable to survive the COVID-19 pandemic.

The Emergency Coalition of Canadian Charities, made up of 140 organizations, wrote to Prime Minister Justin Trudeau on Wednesday warning about the impacts of the “irreparable collapse” of the sector.

“The very nature of this pandemic is striking at the heart of (our) service capacity, drastically reducing the availability of volunteers due to social isolation, spiking demand for basic needs, putting front-line community service staff at risk and threatening the very existence of this critical service capacity as revenues dry up,” said Dan Clement, president & CEO, United Way Centraide Canada.

According to the coalition, Canadian charities contribute more than 8 per cent or $162 billion to the country’s GDP and employ more than 10 per cent or 1.4 million of working Canadians.

“Flexible community funding to support our most vulnerable and delivered in local communities is what we need immediately. Equally, a broader charitable sector stabilization program to backstop our essential community service infrastructure is critical to ensuring it will be there to serve Canadians today, in six months and in the years to come.”

Without immediate support the coalition warns, most Canadian charities will have to lay off massive numbers of employees, greatly impeding their ability to support vulnerable people.

The coalition said the emergency fund would help charities survive, retain staff and cover critical expenses while continuing essential, front line operations during the pandemic.

They are also seeking loan guarantees from Ottawa to Canada’s banks to grant them access to urgent short-term loans at low or no interest, as well as an increase to the Charitable Donation Tax Credit through to the end of 2021, to 75 per cent from 50 per cent.