Canadians may soon be far more reliant on charities for basic needs thanks to the hardships of the COVID-19 pandemic and inflation, according to a new survey – and they may be less inclined to give, too.

According to an Ipsos survey released by CanadaHelps, a major online donation and fundraising platform, 17 percent of Canadians plan on giving less to charities specifically because of inflation. The survey also suggests, without providing supporting details, that the number of Canadians who rely on charitable services in 2022 to meet basic needs could more than double, from one in 10 to one in four.

“The charitable sector is at a critical inflection point as rising inflation rates and pandemic challenges collide,” said Marina Glogovac, president and CEO of CanadaHelps, in a statement. “Inflation is straining the most vulnerable communities in Canada, which also drives further demand for charitable services. These findings reveal inflation concerns will likely impact charitable giving when it is needed most.”

CanadaHelps said the vast majority of Ipsos survey respondents – around 82 percent – expect their financial situation to be negatively impacted in some way, with 15 percent saying they won’t be able to afford necessities like food or gasoline. Another 29 percent said they’d need to cut back on essentials if inflation rates continue to rise, while 33 percent would need to cut back on savings.

The Ipsos survey by CanadaHelps comes as Canada’s inflation rate – 5.1 percent – breaks a 30-year record. In March, the Bank of Canada is expected to raise interest rates to slow its pace, a move that could have devastating effects on the national economy. However, for many Canadian non-profits and charities, the inflation doom-and-gloom is just the latest of their financial hardships.

According to Imagine Canada’s latest Sector Monitor report from last summer – before the Omicron wave – more than 40 percent of charities were facing revenue declines. The average decline was nearly half of a charity’s expected revenue. While 30 percent of charities told Imagine Canada their revenues were about the same as before the COVID-19 pandemic began, the charitable sector’s overall outlook remains grim.

In the early days of the pandemic, Food Banks Canada launched its Stronger Together concert to quickly raise around $8 million for food security organizations – and it was far from the only major charitable organization to launch successful emergency fundraising appeals. However, overall giving in Canada dropped around 10 percent in 2020 alone, according to CanadaHelps’ 2021 giving report.

The platform recorded a 2 percent decline in 2021 from CanadaHelps’ previous year of online fundraising “which indicates a softening of online growth”. However, CanadaHelps did note a rise in monthly donations, as well as stocks and mutual funds donations.  

“The growth in monthly donations and securities seen in 2021 indicates that those who are in the position to give are turning to more strategic ways to donate,” Glogovac’s statement said. “Times of crisis often drive the greatest change, so we are hopeful that Canadian donors who are in a position to help fill gaps in lost funding will continue supporting communities in need.”

The Ipsos survey interviewed 1,001 Canadians between Jan. 28 and Jan 31, 2022. It is accurate to within 3.5 percentage points.

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