Canada’s charitable sector is facing a defining moment.

Turning Challenge into Opportunity

Two major reports released in 2025 — one from the Charity Insights Canada Project (CICP) and an open letter from the BC Society for Policy Solutions — reveal a clear and urgent picture. Both reports emphasize the growing demand for nonprofit services amidst shrinking funding and rising costs. Nonprofits are struggling to meet community needs while grappling with systemic issues such as: 

• Financial Instability: Many organizations operate on short-term, project-specific funding that fails to cover core operating costs like salaries, rent, and administration.

• Workforce Challenges: High staff turnover, burnout, and low wages are pervasive.

• Administrative Burdens: Complex application and reporting requirements consume valuable time and resources.

Practical Steps to Strengthen Resilience

For small charities, this is a moment to adapt, advocate, and innovate. Consider:

• Strengthen Donor Stewardship: Take a closer look at your donor data to identify trends and personalize engagement. Tailored communication, transparent impact reporting, and genuine gratitude go a long way in deepening donor relationships and improving retention. 

• Prioritize Staff and Volunteer Retention:  A healthy, motivated team is one of your organization’s greatest assets.  Address burnout through flexible work arrangements, transparent communication, and recognition of contributions.

• Collaborate and Advocate: Collaborate with other nonprofits to share resources, reduce duplication, and strengthen collective advocacy. 

At Purposefully, we specialize in helping small charities tell their story, strengthen their fundraising, and build strategies for long-term impact. If your organization is feeling the pressure, you don’t have to face it alone.