“Virtually no part” of non-profit funding is indexed to inflation — what does that mean for non-profits and their communities?

Some foundations are providing donees with funding top-ups to offset inflationary costs

Why It Matters

Higher costs means funding promised to social purpose organizations doesn’t go as far as it once did. Indexing grants to inflation is one way of helping charities and other non-profits protect programming, retain staff and continue to serve the community.

Canadian currency. Photo: Shannon VanRaes

Rising costs have charities and other service providers asking an important question: Could indexing grants to inflation ensure non-profits have the resources they need to keep serving the community?

There is virtually no part of non-profit funding that is indexed to inflation … even on a national level,” says Andrea Hesse, executive director of the Alberta Council on Disability Services. “And we’re not businesses, we can’t pass costs onto the consumer.”

Without significant change to funding models, core services provided by non-profits could be at risk, she says.

Some philanthropic organizations are taking note, providing additional funding for existing projects in response to inflationary pressures. The McConnell Foundation recently announced it will provide current partn

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