Modernization could mean a more digitally-savvy, better-funded, and more equitable non-profit and charitable sector capable of taking on the biggest challenges of the post-COVID era.
The social sector is trying to tread water and build a lifeboat at the same time. As charities struggle with a drop in revenue from the COVID-19 pandemic, they are also trying to upgrade their digital processes, funding models, and HR practices.
Canada’s social impact sector needs more autonomy, control, and funding if it hopes to address major challenges coming out of COVID — from climate change to childcare.
A majority of Canada’s charities don’t have the digital skills and tools they need to adapt to an increasingly online world. And they don’t have the funding to get up to speed, either. The $400 million Community Services Recovery Fund could be an answer — if it’s deployed strategically.
Since COVID-19 first hit Canada in March 2020, the gap between the rich and poor has grown wider in communities, with nearly 40 percent of Canadians reporting deteriorating finances over the last year. The organizations that typically help them, however, are also suffering, with more than two-thirds of Canadian charities reporting an average 30 percent revenue drop, over the last year. To rebuild after the pandemic, organizations will need to experiment with innovative new ways to mobilize social finance and build community wealth.