Canadians are known worldwide for their kindness and generosity. New studies show a trend that could harm this reputation. The Fraser Institute’s 2024 Generosity Index shows a big drop in Canadian charitable donations in the last ten years, and is now at a 20-year low.
Dwindling generosity is more than a statistic it has an impact. This drop impacts foundations and non-profits that rely on them. These groups offer services such as clean water, mental health help, emergency aid, and child care. Less donations mean less support to offer these services. Some of which literally help people survive.
Economic instability has hit the nation hard. With less to go around, Canadians are focusing more on their personal finances. We’re exploring what that means for the future of generosity.
Current state of charitable giving in Canada
Recent reports show that charitable donations are at their lowest in years. Statistics Canada shows that from 2012 to 2022, the percentage of Canadians donating to charity fell from 22% to 17%. Furthermore, those who are giving are giving less. The percentage of an individual’s income donated in Canada declinef from 0.55% to 0.50%.
Canadians have always been known for their generosity. They rank as one of the most charitable groups globally. Ten years ago, people measured generosity by money. Economic pressures have since caused Canadians to shift their views on charitable giving. We still want to give. Being generous is a part of our innate nature. We’re just choosing new ways to give so we can stay financially healthy while being generous.
Why are people giving less?
Inflation has made it harder for Canadians to cover basic needs. Prices have jumped for essentials. Housing, food, gas, and childcare have all been harmed. This forces people to rethink how they spend their money, making donating to charity even more complicated.
Wages haven’t grown as fast as rising costs, making dealing with already higher prices even more difficult. Add to that student loans, credit card debt, and mortgages it’s no surprise charitable donations have needed to take a back seat. The Globe and Mail reports that half of Canadians are just $200 away from insolvency. At a time when are even cutting back on essentials to get by, giving feels like a luxury, not a necessity.
Many aren’t necessarily aware of how widespread financial hardship is at the moment. This leaves them thinking they’re in an isolated situation and that others will fill in the gap. This “Invisible Hand” effect offers another reason for the drop in charitable giving.
Increased strain on Canadian Charities
Though costs continue to increase, wages remain stagnant. More and more Canadians are forced to turn to food banks, shelters, and public social services to help take care of themselves and their families. The financial landscape in Canada has devolved to negatively impact many Canadian citizens, and the services that are dedicated to helping them.
In 2024, Statistics Canada released a report detailing the increased strain that has been placed on Canadian Charitable organizations. It revealed that while 46.1% of non-profit organizations indicated that demand has increased at least modestly, yet 62.4% say capacity has remained the same. This demonstrates that the dramatic decrease in generosity isn’t the result of greed or neglect. Instead, its a reflection of broad and complex financial struggles that riddle the Canadian economy.
How to give when money is tight
Generosity can show up in many ways, even if money is tight. The important thing, especially during these times, is to give what you can. It’s good for the recipient, communities, and even yourself. Studies show that being generous can help lower blood pressure. It boosts mental health, lifts self-esteem., and helps you feel fulfilled. Here are a few ways to give when short on cash.
Donate your time: Charities need more than cash. Consider donating by providing hands-on helpVolunteers are a necessity to make their organizations operate.
Give directly: If possible, Think about donating through mutual aid networks or platforms like GoFundMe allow you to contribute small amounts directly to those in need..
Donate goods: Clothes, books, food, toys, and household items are often overlooked. Yet, for those in need, they greatly improve their quality of life.
Micro-donations: Small donations add up over time. Think about donating each month, even if it’s just a few dollars.
Wrap up
The reduction in charitable giving isn’t due to a reduction in Canadians caring less. In short, we’re doing what we can. The economic times mean what we can do has changed. Money is in short supply so our generosity has shifted to donating time and goods. This dedication to giving what we can during times of economic uncertainty demonstrates our clear understanding that giving to those in need creates a better environment for everyone.
Consolidated Credit Canada is a proud not-for-profit dedicated to helping Canadians navigate through tough financial situations. If that’s you, please reach out for a free consulation. We’d love to help!
