Taking pulse of charitable giving in 2023: How do Canadians rank?
Giving has been declining for many years, but not all of the news is bad
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Charitable giving, it seems, is a seasonal activity. In the United States, 30 per cent of annual giving occurs in December, with 10 per cent alone in the last three days of the year, according to marketing agency Nonprofits Source.
So, as we begin 2023, let’s take a look at the state of charitable giving in Canada. How do Canadians stack up against the rest of the world? And each other?
Are we growing more or less generous?
Individual Canadians have been giving less and less to charity for many years, although there’s some evidence of a post-COVID uptick. The 2021 Generosity Index from public-policy think tank the Fraser Institute shows a steady decline in the proportion of Canadians reporting charitable donations on their tax returns, from 25.5 per cent in 2000 to 19 per cent in 2019.
A Statistics Canada report from April 2022 shows that the total number of donors fell once again in 2020; however, “the median donation amount was $340, which represents a 9.7-per-cent increase from 2019.”
How does Canada compare to the rest of the world?
Pretty well. The Charities Aid Foundation’s World Giving Index 2022 ranks Indonesia, Kenya and the United States as the world’s most generous countries but noted that “Canada has returned to the top 10, recording a very large jump, from rank #35 in 2020 to #8.”
In February 2022, philanthropy research organization the Blackbaud Institute reported that charitable giving in the U.S. increased by 9 per cent in 2021, but “overall charitable giving in Canada [only] increased 0.6%” from September 2021 to September 2022.
In Britain, meanwhile, the chair of England’s Charity Commission expressed dismay recently that donations from the top 1 per cent of U.K. earners have dropped by 20 per cent over the past decade while their revenues have grown by 10 per cent.
Do richer or poorer people give more?
According to Statistics Canada, “charitable donations in Canada are heavily concentrated among donors with higher incomes.” In 2020, the 10 per cent of donors earning at least $150,000 annually represented 40.5 per cent of the total donation amount. But the gap is shrinking: The Giving Report 2022 from registered charity and social enterprise Canada Helps points out that annual declines in donations from this higher-income group are “more than double the rate for families in all income bands.”
“Giving is strongly correlated to disposable income,” says Kate Bahen, managing director of Charity Intelligence Canada, which provides detailed reports on Canadian charities. “From our perch, we see donations to large charities are up an estimated 10 per cent, whereas donations to smaller charities (less than $1 million in annual
revenue) look like they’re down 1 per cent to 2 per cent.”
What age group gives the most?
Older people give more, according to Statistics Canada. In 2020, “about $9 out of every $20 came from donors aged 65 and older.” This age group represented 32.2 per cent of donors and had the highest median donation, at $550.
People older than 55 increased their giving by an average of 3.9 per cent annually from 2006 to 2019 as younger Canadians gave less, according to The Giving Report 2022. Including all types of charity (cash, food and other items), “79% of Baby Boomers [but only 73% of Gen-X, 66% of Millennials and 57% of Gen-Z] reported some act of giving in the previous 12 months.”
Who are the top givers?
Among individuals, Canada’s largest philanthropist is likely dot-com pioneer Jeffrey Skoll, whose Skoll Foundation supports social entrepreneurship. In 2020 alone, Skoll donated more than $120 million to fight COVID-19.
Other notables include Stewart Blusson, a geologist who struck it rich by discovering diamonds in Canada’s North. His many large donations to educational institutions include $50 million to the University of British Columbia. Another is Marcel Desautels, a retired executive from the credit reference industry, who has given more than $40 million to the Rotman School of Management at the University of Toronto.
Among foundations, the giant is the Mastercard Foundation. Snapshot of Giving for 2021 states that it holds $23.7 billion in assets and gave out more than $70 million in 2019.
How do the provinces stack up against one another?
Charitable Impact, a public foundation, used CRA tax information to identify the most generous locales in Canada. Although the wealthy and populous Ontario, Alberta and British Columbia give the most in absolute dollars, the top provinces by percentage of tax filers who are donors are Manitoba, Saskatchewan and Ontario.
Steinbach, Man., a city of about 17,000 residents with a large Mennonite community, consistently ranks as the most generous Canadian municipality by percentage of annual income donated. It is the hometown of author Miriam Toews; the setting of her award-winning novel A Complicated Kindness is loosely based on Steinbach.
What are Canadians’ top giving priorities?
The Giving Report 2022 found that medical causes were the top priority for charitable giving across all age groups. Given the general awareness of the social and psychological repercussions of COVID lockdowns, it is little surprise that mental health support and research were the second-most-named causes, with climate change and environmental protection in third place overall (higher for Gen-Z and millennials.) Senior support was fourth over all, but higher for Gen-X and baby boomers.
How do younger generations’ charitable interests compare to that of older generations?
“When younger Canadians have the means, they donate,” according to the Giving Report 2022, and they are likely to do so online or through social media. Younger donors favour causes working against racial inequality and supporting other marginalized groups more than older Canadians.
Despite current declines in giving, there is hope for the future. Nearly 81 per cent of Gen Z (18- to 24-year-olds) agree with the statement: “I give when I have the financial means to,” while 82.1 per cent agree that “I have a role to play in making change in the world.”
Where do philanthropic foundations fit into this picture?
According to Philanthropic Foundations Canada, there are 5,997 private foundations in Canada, 4,866 public foundations and 73,320 other charitable organizations. The number of private foundations is growing, while public foundations are decreasing both in number and in granting amounts.
The group’s Snapshot of Giving for 2021 shows that in 2020, public and private foundations’ assets totaled $123 billion, and they granted more than $8 billion. Their top priorities were education and research, health and social services.
How has the pandemic affected the charitable sector?
Lockdowns were unquestionably hard on charities, which saw increased demand for services but were unable to hold in-person fundraising events. Imagine Canada is a charitable organization that supports charities and non-profits; its Sector Monitor of 2021 indicates that the effects of the pandemic are being felt unevenly: “56 per cent of charities are experiencing demand challenges while 44 per cent are meeting demand.”
As for giving, Revenue Canada reports that “the COVID-19 pandemic does not appear to have had a significant impact on donations reported by tax filers.” In 2021, the numbers of people declaring donations under $100 decreased, and so did those giving $500,000 or more, but there was an offsetting increase in those who donated between $1,000 and $499,999.
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