Charities and non-profits may find long-term sustainability challenging, given high delivery costs, fluctuating donation patterns, changing community needs, and shifting priorities for funders. One under-explored exit strategy is to merge operations with other organizations. Charities and non-profits, however, need to be aware of their obligations with the Canada Revenue Agency should they choose to go down this route.
According to research by the Canadian Federation of Independent Business, 76 per cent of Canada’s business owners plan to exit their businesses in the next decade. The EOT legislation has been designed to ease those businesses' succession planning and spread the benefits of wealth. However, advocates warn that there might be a gaping hole in the legislation that the Carney government must urgently address in the Fall Budget.
According to Charitable Impact, donors often seek to give to maximize their impact, but the charity-centred approach can make that challenging. Instead, their needs are centred by allowing patients and people with lived experience to decide where those funds go.
Amid Prime Minister Mark Carney’s promised reduction in the public service, non-profits and social purpose groups will likely have a tough time advocating for increased funding. However, many also recommend that the government review some of its social policy commitments and update them with the present economic situation in mind.
