CanadaHelps rockets past $3 billion raised: What’s driven its success?
Why It Matters
A growing number of donors are choosing to give online, driving the growth of organizations that facilitate these donations.
Canada’s largest online giving platform has surpassed $3 billion in donations raised since its launch nearly 25 years ago.
“As a fully self-funded charity, CanadaHelps has pulled off what many for-profit start-ups could only dream of — a sustainable business with broad reach and incredible impact,” said Duke Chang, the charity’s CEO.
Significant growth in online giving over the last two decades, and by the COVID-19 pandemic, has propelled the organization’s success.
In 2004, Canadians donated $60 million online across all platforms, according to Statistics Canada data analyzed by sector consultant Steven Ayer.
Last year, CanadaHelps alone netted more than six times that amount, raising over $400 million.
“When COVID happened, the physical world had to lock itself down and every single charity in Canada had to figure out how to fundraise online,” Chang said.
Between 2010 and 2019, the charity averaged an annual donation growth rate of 17 per cent, according to Canada Revenue Agency data.
In 2020, that nearly tripled — rocketing to 57 per cent; and growing an additional 35 per cent in 2021.
In 2021, CanadaHelps received the most donations of any charity nationwide, according to CRA data, blowing by fast-growing donor advised fund foundations and large brand-name charities.
Fuelled by COVID-related lockdowns, donations to CanadaHelps increased considerably in 2020 and 2021. (Graphic: Gabe Oatley)
Investments in technology have paid off
However, technology trends and public health conditions alone do not account for CanadaHelps’ growth.
Donations have grown because CanadaHelps has provided charities with the technology they need to fundraise more efficiently, said Charles Buchanan, CEO of Technology Helps, an Alberta-based social sector consulting firm.
“With almost seamless integration, the ‘donate’ button on a charity’s website gets donations into their bank account, allowing them to put their energy into their mission,” he said.
More than 30,000 charities use the organization’s donation processing tools, said Chang.
This includes customizable donation forms, ticketed events, and peer-to-peer fundraising tools.
CanadaHelps takes a percentage of each donation transaction to fund its operations, ranging from two to 5.5 per cent, depending on the service.
This has been key to the charity’s long-term success, said Katie Gibson, senior fellow for digital innovation at The Dais, a public policy institute at Toronto Metropolitan University.
While many charities adopt revenue generation strategies under financial duress, CanadaHelps was proactive, she said.
Monthly donations, gifts of securities grow
Over the years, CanadaHelps has added several new tools to help charities spend more time on their core work and less on fundraising technology, Chang said.
In 2007, the organization began accepting gifts of securities, such as donations of stocks and mutual funds.
Donors like giving gifts of registered securities because they are tax-efficient.
But before CanadaHelps’ tool, they were cumbersome to process for small and medium-sized charities, Chang said.
Fifteen years later, gifts of securities represented seven per cent of the total value of donations processed on the CanadaHelps platform ($32 million of $439 million in 2022).
The organization has also focused on helping charity partners boost monthly giving, seeking to piggyback on the growth in subscription services.
“Monthly donations are essentially subscriptions to the causes and charities you care about. [And it gives] charities dependable revenue they can count on month after month,” Chang said.
These efforts may be paying off.
In 2023, the charity processed about $80 million in monthly donations, according to Nicole Danesi, senior manager.
Yet, despite the successes, it hasn’t been entirely smooth sailing.
Decline in donors in 2023
Amidst cost-of-living increases, about 75,000 fewer donors made a gift through the platform in 2023.
“We’re seeing people who are giving to charities in the past tightening their belts,” said Chang in a December interview.
“Some…people who might have given to charities in the past are now turning to them [for services].”
This was particularly bad news for the many Canadian charities seeing increased demand for their services.
CanadaHelps’ also recently paused accepting cryptocurrency donations, a new addition to the charity’s platform in 2022.
“The halt was caused by the closure of the company we relied on to process the crypto donations, said Chang. “We are looking at alternatives to bring back that service to charities in the near future.”
$3 billion milestone powered by people
Yet despite the challenges, passing the $3 billion tally is cause for celebration, Chang said.
“This didn’t just magically happen one day,” he said. “I celebrate everybody who has been a part of it.”
Moreover, he said it’s a moment to reflect on what $3 billion has enabled — food on the table for families in need, help for women escaping domestic violence, and more.
“That’s what’s really important about this is — what this $3 billion has done to really create good in our society.”
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