Amidst increases in the cost of living, about 75,000 fewer donors have made a gift on Canada’s largest online giving platform compared to last year.

By Dec. 3 last year, about 825,000 donors had contributed to a charity through CanadaHelps. This year, that tally has fallen to about 750,000 donors — a nine per cent decline.  

“We’re seeing people who are giving to charities in the past tightening their belts,” said Duke Chang, CanadaHelps’ CEO.  

“Some…people who might have given to charities in the past are now turning to them [for services].” 

Alongside the drop in donors, the total amount raised has also declined. 

As of Dec. 10, the total value of donations processed by the giving platform is down $5 million compared to last year — from $342 million in 2022 to $337 million in 2023. 

The drop in donations and donors is particularly worrisome when many charities are seeing higher-than-normal demand for their services, Chang added.  

Twenty per cent of respondents to an Ipsos poll commissioned by CanadaHelps in October said they are using charitable services to meet essential needs. Of those, seven in ten said it’s the first time they’ve needed to rely on charities for necessities like shelter, food and clothing. 

Inflation is the key culprit, according to the poll. 

In interviews with more than 1,000 Canadians, 54 per cent cited the rising cost of living as a driver for their use of charitable services, followed by mental and physical health (23 per cent).

Donations are down on CanadaHelps’ online platform in 2023 amidst a rising cost of living. (Graphic: Gabe Oatley)

Spurred by proposed tax changes, gifts of securities up 25 per cent

The year-over-year analysis didn’t yield all bad news. 

Compared to the same period in 2022, revenue from the donation of registered securities, such as stocks, bonds or mutual funds, increased on the CanadaHelps platform by 25 per cent in 2023. 

As of Dec. 10, donors have given about $29 million in donations of registered securities in 2023, compared to about $24 million by the same time last year. 

The growth was spurred by financial markets, which performed better than last year, Chang said. 

Under the current tax legislation, donors avoid capital gains tax when they make securities gifts. This makes such donations more attractive when markets perform well and the value of securities increases, Chang said. 

Yet, the growth in donations of registered securities may not be sustainable. 

Part of the increase in donations of securities this year can be attributed to concern the government may soon take away this preferential incentive, he added. 

In the spring Federal budget, the government proposed several changes to the Alternative Minimum Tax (AMT) calculation — a second way of determining taxes owed — to bring more fairness to Canada’s tax regime.  

The changes will mean 30 per cent of the capital gains owing on the donation of a registered security will be included in the adjusted taxable income calculation for high-income Canadians. 

Aware of the forthcoming change, some are making additional donations of securities in 2023 to benefit from the existing law, he said. 

Embed code:

Between January 1 and December 10, 2023, Canadians have donated nearly $30 million in registered securities through CanadaHelps’ online platform. (Graphic: Gabe Oatley)

Monthly giving up 11 per cent

The value of donations given monthly through the CanadaHelps platform has also increased in 2023, growing by 11 per cent compared to this time in 2022. 

In 2023, donors gave nearly $40 million monthly as of Dec. 3. 

“The rise of monthly donations is an encouraging sign that Canadians are giving strategically,” said Pattie Lovett-Reid, CanadaHelps brand ambassador, in an organizational press release.

“Not only does a monthly donation allow Canadians to budget their charitable donations year-round, [but] a monthly gift also allows Canadian charities to properly plan for their programs and services year-round when they can rely on sustainable funding month after month.”

Part of that success can be attributed to CanadaHelps’ “make it monthly” marketing campaign, which, through a March blitz, supports charities that use the platform to drive monthly giving with their donors, Chang said.

Compared to last year’s drive, the campaign spurred a six per cent increase in new monthly donations established in March 2023.  

Centre Wellington, Ont. crowned most generous city

Nationwide, donors opened up their pockets for their favourite charities in 2023. Still, Centre Wellington, Ont. residents have so far made the most donations on the CanadaHelps platform per capita. 

About six per cent of residents in Centre Wellington — a township located about a 25-minute drive north-east of Guelph, Ont. — have given to charities via CanadaHelps, as of Dec. 3, totalling about $775,000 in donations through 6,541 gifts. 

The following most generous residents, per capita, are community members in Collingwood, Ont. About six per cent of the community’s 25,000 residents have donated through the platform in 2023, totalling about $737,000. 

Third are community members of St. John’s, Nfld, where five per cent of the city’s 111,000 residents donated about $1,137,000 so far in 2023.  

By national comparison, residents of Canada’s largest cities were also philanthropic this year on the charity’s giving platform. 

About four per cent of Halifax residents have donated through the platform (12th position), alongside 3.5 per cent of Ottawa residents (26th position), and about three per cent of Toronto residents (37th position). 

As for why Centre Wellington stands out, Chang is mystified. 

“Maybe it’s worth a road trip.” 

Tell us this made you smarter | Contact us | Report error