How non-profits and donors can prepare for the coming tariff turbulence

Author Abigail Turner
Non-profits often rely on consistent funding to serve vulnerable communities. When tariffs drive up prices, it can lead to higher demand for services just as resources become more limited.

Why It Matters

Understanding the coming ripple effects of tariffs can help non-profits and donors make smarter, more resilient funding and planning decisions.

Non-profits need to brace for impact as the U.S. wrangles with tariffs, which has consequences for the Canadian economy. (Canva/Supplied)

Canadian non-profits need to prepare for a drastic drop in donations next year amid U.S. tariffs, according to Canada’s largest charitable association.

A loss of up to $100 million in donations is possible in 2026, according to a new study done for PWC (formerly PricewaterhouseCoopers).

Its prediction is based on the economic firm’s anticipated decline in Canada’s GDP, which is closely tied to giving, they said

Canada’s GDP growth is expected to decline from 1.7 per cent to 1 per cent next year due to the new tariffs, which could lead to a $22 billion drop in GDP, ultimately impacting how much non-profits could see in donations. 

The study said organizations should prepare to operate with fewer resources but also with more demands, noting that non-profits will be a vital component in addressing the increased uptake in services resulting from the tariffs.

PWC isn’t the only group warning of potential rough waters ahead due to tariffs. 

RBC’s chief economist, Frances Donald, warned that Canada’s non-profits need to brace, and quickly.

“The economy is going to weaken, and the unemployment rate is going to rise. This is not something that I want to say,” said Donald to a group of non-profit leaders earlier this month.

This means non-profits operating on the front lines need to understand the dynamics at play so they know what supports will be needed, and to be part of the solution, she added.

“There will be more urgent needs for large segments of this population,” said Donald. 

“The governments are going to need critical partners to support them in both recognizing where those challenges are, but also attempting to remedy them.”

Sector Impacts 

According to the study, the effects of tariffs will have a widespread impact on Canadian communities. 

It said a sharp increase in healthcare-related support should be anticipated, and demand for mental health services will likely rise. 

It noted that organizations that focus on community safety will also face increased pressure, as periods of high unemployment are often linked to an increase in crime. 

For non-profits that focus on employment and education, ensuring access to training opportunities for laid-off workers will be important to supporting recovery from growing job losses. 

Demand for food, housing, and basic needs will increase sharply, but the study suggests the uptick will vary across the country.

How non-profit leaders can prepare

According to the study, there are several things leaders can do to prepare over the next year.

Organizations should work to diversify their income streams, as generating new revenue will reduce financial dependency and create more resilient financial models for growth. 

Leaders should invest in areas that are small upgrades but drive scalable impacts, like technology or programs.

Job losses are also predicted due to the heightened tariffs, but non-profits can benefit from recognizing and recruiting talent from those who’ve been affected. 

How donors can help

Donors are in a unique position to boost their impact during this time of economic uncertainty, the study’s authors added. 

According to the report, there has never been a better time to invest in high-need areas such as healthcare, mental health, and food security services. 

It also suggests using strategic contributions and funder collaborations to de-risk projects, noting that donors should try partnerships across multiple sectors for a greater impact and look for projects that address both large-scale and local community-level needs. 

Lastly, the report suggests donors turn to non-profits to better understand where resources are needed and to direct unrestricted contributions to support non-profit operations.

The study shows that investing in social programs pays off, with every dollar spent generating four to seven times the value in affordable housing, nine times for food banks, and 18 times for mentorship programs.

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  • Abigail Turner is an award-nominated journalist who began her career in broadcast journalism. She worked primarily as a video journalist in Winnipeg before moving to Vancouver. Turner has taken on various roles in her career, including anchor and producer, while working in major outlets, including Global News and CTV News. She recently became the Special Projects Reporter at Future of Good.

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