When Canadians struggle with the uneven impact of economic and social disruption, they turn to the community services sector for support. From child care, mental health, housing, and youth programs, to employment and training, culturally relevant support, and newcomer settlement services, the organizations that we collectively represent across Canada respond to urgent community needs every day.

Today, as Canadians face rising inflation, impacts from an escalating US-Canada trade war, and growing economic uncertainty, our sector is prepared to mobilize once again. We are looking to the newly appointed federal government to partner with us — to recognize the critical role of Canada’s community services sector and invest in its stability and growth.

As the volunteer Board Chairs of federated non-profits, we see first-hand the foundational and impactful work of the community services sector. We are the Board Chairs of some of the largest service delivery organizations in Canada – BGC Canada, Big Brothers Big Sisters of Canada, Canadian Mental Health Association, National Association of Friendship Centres, United Way Centraide-Canada, YMCA Canada and YWCA Canada. We are all grass-roots organizations, embedded in rural, remote, urban, northern and Indigenous communities, providing services collectively through 315 member organizations that serve 8 million people annually — the equivalent of 1 in 5 people in Canada.

The charitable and non-profit sector is one of Canada’s unsung economic engines. The sector employs 2.4 million people and contributes 8.9% ($192 billion) to Canada’s GDP. The community services subsector employs over 600,000 people, 80% of whom are women. In addition, 47% of staff are newcomers, and 35% are Indigenous or racialized individuals.

Our organizations are driven by impact, guided by strong accountability mechanisms, and equipped with decades of experience assessing and responding to community needs.

Nothing highlighted the critical role of the community services sector more clearly than the significant, abrupt disruption to our social and economic systems caused by the COVID-19 pandemic. Our sector pivoted quickly to deliver housing services, food programs, emergency child care, employment programs, and more in response to community needs. Government also quickly realized the capacity and capability within the sector to inform policy and mobilize resources.

Importantly, the need for services has not dropped, and now the pressure is rising again as demand for services across the sector continues to surpass pre-pandemic levels. Recent data shows that 19% of families with children at home and 11% of households without children expect to need charitable services in the next six months. It is anticipated that this figure will only increase considering the US-Canada trade war.

Good governance is a critical success factor. Community service sector organizations are guided by volunteer Boards of Directors – community members who live and work in the places we serve. These volunteers provide strategic expertise, professional experience, and a deep commitment to accountability, transparency, and impact. Across Canada governance boards, mission driven teams, and community partners come together to build trusting partnerships and collaborate with the private sector and all levels of government. We have proven that, with the right partnerships and investments we can move quickly, scale impact, and help communities recover and thrive.

To continue this good work, and be ready for the next crisis, we are calling on the Government of Canada to invest in the community services sector. This is not just the right thing to do — it’s a strategic investment in Canada’s economic and social infrastructure. It can stimulate the economy and ensure vital support is available to those hardest hit. This hand up helps them unlock brighter futures.

A government response that is solely event-driven introduces uncertainty in the operations of community service organizations, often requiring them to prioritize and sunset impactful programs — creating a gap in community response. Short-term unreliable funding dilutes the impact of our organizations and makes it challenging for them to innovate, respond, and build long-term resiliency to ensure everyone realizes their potential. Inflation, trade wars, climate disasters, and other emerging crises will continue to test Canada’s social safety net. Community services are not “nice to haves” – they are vital infrastructure embedded in the fabric of our communities. What we need is a thriving sector that is stable and ready to respond to the next challenge.

As Board leaders in Canada, we see this need first-hand in the charities we support. While community members donating their time or money can make a difference, these are systemic challenges that require policy-level solutions. To address these challenges, we encourage the federal government to remember what is possible when you partner meaningfully with the community service sector. By committing to sustainable, predictable levels of funding, the government can solidify the ability of our organizations to continue to meet rising needs and build a stronger, more resilient Canada for everyone.

• Michelle Banik, National Board Chair, BGC Canada
• Breanne Oliver, National Board Chair, Big Brothers Big Sisters of Canada
• Ross Manning, National Board Chair, Canadian Mental Health Association
• Kelly Benning, President, National Association of Friendship Centres
• Jason Hatcher, National Board Chair, United Way Centraide Canada
• Laurie Skinner, National Board Chair, YMCA Canada
• Denise Christopherson, National Board Chair, YWCA Canada

By Owen Charters (CEO, BGC Canada) and Peter Dinsdale (CEO, YMCA Canada).

*originally published in The Hill Times

Charitable organizations in Canada have always been front-line workers, helping the country’s most vulnerable populations. Our role in the COVID-19 pandemic hasn’t changed—except that those vulnerable populations have grown exponentially.

The federal government is helping. Wage subsidies and a recently announced $350-million emergency fund are helping nonprofits meet increased demands today. But the economic downturn we are experiencing requires a long-term solution.

A stabilization fund for the non-profit sector is the answer.

Imagine Canada projects the pandemic will reduce charity and non-profit revenues by as much as $15-billion, with more than 100,000 layoffs. The statistics are grim. Approximately 70 per cent of charitable organizations are reporting a decline in revenues. Two-fifths have already laid off paid staff or reduced working hours. And Statistics Canada reported that job losses related to the non-profit sector are approximately 1.4 times higher than other sectors.

Emergency funding is helping non-profits function at limited capacity, but we are looking to the future. Our revenue is not dependent on the demands of clients—in fact, the more Canadians that show up at our doors, the more expenses we incur. Meanwhile, our revenue streams—individual donors, major gifts, fee-for-service programs, corporate partners—have turned to a trickle in reaction to plummeting profits.

As physical distancing measures relax, the demands will be greater—more people will be out of work and more will be looking for the programs and services offered by organizations like YMCAs and Boys and Girls Clubs. And when that happens, we will need support.

YMCAs deliver services and programs to more than two million Canadians. This support will play a crucial role in the country’s economic and social recovery, including employment and training, immigration and settlement services, youth programs, housing, programs for healthy living and well-being, and early learning and childcare. The organization is projecting a loss of more than $42-million over the next three months.

In 700 communities across Canada, Boys and Girls Clubs serve 200,000 young people and their families with a range of community-based services, accessible and affordable childcare, and out-of-school programs for kids and teens that promote positive outcomes in education, healthy living, physical activity, mental health, leadership, self-expression, and more. Over the next three months, the predicted shortfall will be over $6-million.

Despite this financial forecast, despite layoffs and limited resources, these two organizations are still on the front lines helping Canadians.

Boys and Girls Clubs from coast to coast are tackling food insecurity by delivering food and critical care packages to families, providing childcare for essential workers, running virtual activities for kids and teens, and operating crisis hotlines.

YMCAs, meanwhile, are also opening their facilities to protect the homeless, providing childcare for essential workers, connecting with seniors and other isolated populations, delivering employment and immigration and settlement programs by phone and online, and running virtual workshops to promote physical and mental health and wellness.

Emergency funding from the government, corporate partners, and major donors is helping these two organizations and other non-profits adapt their services to meet the rise in demand. But the sector needs more support to ensure we can be there for vulnerable populations—today and tomorrow.

Along with Imagine Canada, we continue to advocate for a Sector Resilience Grant Program—a stabilization fund of $7-billion dollars to buttress the $2.8-billion already provided by the federal government.

This stabilization fund is the only way charities across Canada will be able to keep their doors open and provide the critical services and support that help our most vulnerable—and our nation as a whole.

Charities are vital to the well-being of millions of Canadians. We are vital to the economy, accounting for 8.5 per cent of GDP and employing 2.4 million Canadians.

We are too vital to fail.

If you’d like to help, please add your voice to our advocacy efforts.