OPINION: Canadians are becoming less generous, and we can do something about it

The following is a guest op-ed from John Hallward, a Canadian entrepreneur, professional market researcher, and President of Sector3Insights.com. 

Canada is facing a growing charity gap. There is a shortfall between the amount of money charities are receiving versus the ability of charities to meet the increased demand for their services. This widening gap will threaten those who need a helping hand and hurt the quality of life in our communities.

As we approach the height of the giving season, a newly released survey report explores why Canadian generosity is declining (for both giving money and volunteering). 

One may wonder if these well-measured declines are genuinely reflective of a problem, or instead, people are simply shifting their generosity to other less well-measured forms of pro-social generosity, such as direct funding to individuals (i.e. GoFundMe campaigns), giving items directly to people in need, caregiving, and so on.

In the new study delivered by Sector3Insights, the data shows that the incidence and volume of generosity, when measured in a much more inclusive manner, is indeed declining.

Many intertwined motivations and barriers exist for giving money, volunteering time, gifting items, and advocating for others. However, a few main characteristics explain the declines over time: greater economic pressures are squeezing the ability to afford generosity; as religiosity continues to decline, so does generosity due to the higher giving and volunteering of religious Canadians; and an ongoing shift in social values and principles.

The insights show a particular concern among younger Canadian adults. This provides a real worry for the future of the charitable sector as generous Baby Boomers pass and are replaced by less-generous Gen Xs, Ys, and Zs. The study shows younger adults have a lower appreciation of social giving norms, have a lower recognition that charities need their help, and are less likely to feel a responsibility to help. They are more likely to feel the government is responsible (not them).

The research is also helpful in showing that this is mostly not a fault of the more than 75,000 charities in Canada. Canadians are strongly supportive, have trust in, and appreciate the importance of the charity sector.

They recognize the need for charitable services in their communities. Although trust can always be stronger, there is no crisis in trust. Canadians strongly agree that the mechanisms to be generous are plentiful and simple. Canadians agree there are many triggers and reminders to be generous.

Solicitations are prevalent.

Increasing the value of charity tax credits is not likely a good option because it would be expensive to the public purse, and this mechanism has a limited effect on giving. Quebec has the highest charity tax credits but the lowest levels of giving. Generosity is about culture and values, not tax incentives. We need to encourage Canadians to want to give more.

So, what immediate remedial solutions can be considered?

• Our federal government should be considering new policies to incentivize better the broader set of all desirable prosocial acts of kindness that help our communities (i.e., volunteering and giving items).
• Create an ongoing public campaign (akin to “ParticipACTION”) to promote greater generosity by setting higher social giving norms, creating communities of generous behaviours, and encouraging the mentoring of younger adults.
• It is important that the main media channels do not allow the negative coverage of a few bad-acting charities to overshadow all the good from Canada’s more than 75,000 charities.
• Develop programs to help charities leverage best practices for higher-quality solicitations. This could include promoting awareness of the charity tax credit (which is low), including charities in one’s last will (currently low), and developing online volunteerism (also low).

As we look forward to the new year, it is an ideal time to consider our generosity levels and offer a few per cent of our income to help those in need and strengthen our communities. 

We should mainly involve (adult) children and grandchildren in showing leadership and defining a stronger social norm to help others. Sector leadership organizations also need to explore new innovative solutions to remediate the decline in generosity. 

The status quo and current approaches are expanding the charity gap and letting down the millions of Canadians dependent on charitable services.

Tell us this made you smarter | Contact us | Report error