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Key Takeaways
- In British Columbia, the largest proportion of nonprofits are dedicated to sports and recreation (38.7%), followed by religion (18.4%) (Statistics Canada, 2024c). Registered charities and other nonprofit organizations are about equally represented in BC (50.5% and 49.5%, respectively).
- The largest source of funding for registered charities are individual donations (42.2%), whereas the largest source of funding for other non-profit organizations are membership fees or dues (40.2%) (Statistics Canada, 2024d).
- Over four-fifths of nonprofits use volunteers, and 26% of employees within community nonprofits work on a part-time basis as opposed to full-time (Canadian Knowledge Hub, n.d.-a; Statistics Canada, 2024a)
Nonprofit Performance Snapshot
Nominal gross domestic product, non-profit institutions, by activity
- In the fourth quarter of 2023, real GDP of nonprofits serving households grew 1.1% while real GDP of nonprofit institutions serving businesses rose 0.9% (Statistics Canada, 2024b). Household-serving institutions are likely experiencing increased reliance because of “a faster rise in cost-of-living compared with income gains of the lowest-income households” (Statistics Canada, 2024b, para. 2).
- GDP of non-profit institutions serving governments slightly decreased in the last quarter of 2023, but the GDP rose by 3% throughout the entire year (Statistics Canada, 2024b). This is the largest increase in 2023, with nonprofits serving households rising by 1.6% and nonprofits serving businesses rising 2.0%.
Nonprofit Outlook
- Investments have grown in prominence as a funding source for business nonprofits, whereas their contribution has dipped in recent years for community and government nonprofits (Canadian Knowledge Hub for Giving and Volunteering, n.d.-a). Investments remain the largest source of funding for community nonprofits, however, while government funding is the “largest driver in growth for government nonprofits” (Canadian Knowledge Hub for Giving and Volunteering, n.d.-b, “Revenue Trends” section).
Nonprofit Trends and Challenges
- “In 2023, close to half (46.1%) of non-profit organizations reported increased demand for services or products,” but capacity to meet this demand has increased at a slower rate (Statistics Canada, 2024a, “Overall demand” section).
- In the last quarter of 2023, close to 70% of polled non-profits reported that they anticipate cost-related obstacles in the next four months (Statistics Canada, 2023). Donors are giving less money, and nonprofits are struggling to find new donors (Barr & Jensen, 2024a). Proposed changes to the Alternative Minimum Tax would likely exacerbate this issue, as high-income individuals would have less financial incentive to donate.
- In terms of opportunities, nonprofits are adopting artificial intelligence (AI) at a similar rate to profit-driven businesses, with “7% of nonprofits say they’re already using AI, and 4% say they’re planning to use it” (Barr & Jensen, 2024b, para. 2). AI will likely be used for content creation, data-driven decision-making, and customer experience improvement.
Sources
Barr, C., & Jensen, E. (2024a, January 30). What trends will impact charities and nonprofits in the first quarter of 2024? Imagine Canada. https://www.imaginecanada.ca/en/360/what-trends-will-impact-charities-and-nonprofits-in-the-first-quarter-of-2024
Barr, C., & Jensen, E. (2024b, May 9). What trends will impact charities and nonprofits in the second quarter of 2024? Imagine Canada. https://www.imaginecanada.ca/en/360/what-trends-will-impact-charities-and-nonprofits-in-the-second-quarter-of-2024
Canadian Knowledge Hub for Giving and Volunteering (n.d.-a). Nonprofit labour force composition. https://app.givingandvolunteering.ca/nonprofit_labour_force_composition_2021
Canadian Knowledge Hub for Giving and Volunteering (n.d.-b). Nonprofit sector revenue. https://app.givingandvolunteering.ca/nonprofit_sector_revenue_2021
Statistics Canada (2023, November 27). Table 33-10-0726-01 Business or organization obstacles over the next three months, fourth quarter of 2023 [Data table]. https://doi.org/10.25318/3310072601-eng
Statistics Canada (2024a, March 20). National Insights into Non-profit Organizations, Canadian Survey on Business Conditions, 2023.
Statistics Canada (2024b, March 28). Non-profit institutions and volunteering: Economic contribution, first quarter to fourth quarter 2023. https://www150.statcan.gc.ca/n1/daily-quotidien/240328/dq240328c-eng.htm
Statistics Canada (2024c, March 20). Table 33-10-0753-01 Percentage of total non-profit organizations, 2023 [Data table]. https://doi.org/10.25318/3310075301-eng
Statistics Canada (2024d, March 20). Table 33-10-0798-01 Sources of funding received by non-profit organizations, 2023 [Data table]. https://doi.org/10.25318/3310079801-eng