Social Sector Fund

Evidence & research for a Canadian Social Sector Fund

Charity capacity pressure

Independent research shows demand on charities is outpacing their capacity, affecting millions of Canadians.

46.1%
of non-profits and charities reported higher demand; only 24.3% reported higher capacity
74%
of charities say demand for their services exceeds their capacity
1 in 5
Canadians were accessing charitable services in 2023
−8%
decline in the volunteering rate, 2023 versus 2018
−900M hours
of volunteering a year, 2023 versus 2018
+29%
growth in Canada’s population over the past 20 years
  • “Overall demand for non-profit organizations’ services or products outpaces capacity to meet demand” – A StatCan analysis of over 8,200 non-profits and charities found that 46.1% of charities reported increased demand for services, while only 24.3% reported an increase in overall capacity to meet it. Source: Statistics Canada, The Daily, March 20, 2024
  • The overall volunteer rate and the number of hours dedicated to volunteering decreased from 2018 (79%) to 2023 (73%). This represented a loss of 900 million hours of volunteering in 2023, an 18% decline in volume. Source: Statistics Canada, The Daily, June 23, 2025
  • “From 2018 to 2023, the total amount of donations remained virtually unchanged, while the number of donors fell” Source: Statistics Canada, The Daily, June 23, 2025
  • Demand Exceeds Capacity for Most Charities: “Despite many charities having improved their capacity, 74% of CICP survey panellists indicated that their charities are still facing higher demands for services than they can meet.” Source: Charity Insights Canada Project (CICP), Carleton University, 2025
  • In 2023, Ipsos reported that 1 in 5 Canadians were accessing charitable services, with 7 in 10 of these individuals doing so for the first time. This surge in demand puts charities under pressure to scale their services to address the needs of their communities despite facing limited resources. Source: Ipsos, 2023
  • We also recognize that Canada’s population has increased by almost 10 million people (+29%) over the past 20 years. Source: Statistics Canada, Table 17-10-0005-01
  • And inflation has increased 50+% over the past 20 years, diminishing the value of donation dollars on a constant-dollar basis. Source: Statistics Canada, Consumer Price Indexes

Economic impact

GIV3 estimates the Fund’s benefits would far exceed its cost by strengthening giving, volunteering, workforce capacity, technology adoption and sector efficiency. The figures below show what is at stake.

$27B a year
more for charities if Canadians still gave at 1956 levels (GIV3 estimate)
$27B
of labour value lost to the decline in volunteering (GIV3 estimate)
~$10B a year
of value from a modest 2.5% gain in sector efficiency and efficacy (GIV3 estimate)
~8% of GDP
and over 2.8 million workers: about 1 in 10 Canadian jobs
  • Giving. Our current rate of charitable giving has fallen to 0.52% of income (as reported by the Fraser Institute), representing about $13 billion (as claimed on T1 tax returns in 2023). Had we stayed close to our grandparents’ generation of giving (1.6% of income in 1956), GIV3 estimates Canadian charities would receive $27 billion more today, and each year. Sources: Fraser Institute, Generosity in Canada: The 2025 Generosity Index · Statistics Canada, The Daily, April 1, 2025 · The Philanthropist
  • Volunteering. Statistics Canada reports that the total number of volunteered hours in Canada fell 18% (900 million hours) between 2018 and 2023, the latest measured period. This equates to over 400,000 full-time jobs. At an average salary of $60,000, GIV3 estimates this represents $27 billion of labour value lost to the decline in volunteering. Source: Statistics Canada, The Daily, June 23, 2025
  • Efficiency. The total revenue of Canada’s roughly 75,000 operating charities in 2024 was about $390 billion. GIV3 estimates that a modest 2.5% improvement in efficacy and efficiency would represent about $10 billion of value, annually. Source: Blumberg’s Snapshot of Charitable Organizations in the Canadian Charity Sector, 2024
  • Scale. Charities and non-profits account for about 8% of Canada’s GDP and employ over 2.8 million people, about 1 in 10 Canadian workers: more than mining, oil and gas, agriculture, transportation or retail. Source: Imagine Canada, About the sector

Sector & public support

There is broad support among key stakeholders for the development of an infrastructure fund.

  • 80% of Canadians surveyed support a new Social Sector Fund. An Ipsos survey of Canadians, conducted with GIV3 in July 2024, found that 80% support creating a new fund to strengthen the charitable sector. Source: Sector3Insights: Canadians’ support for a new Social Sector Fund
  • Thought leaders share their views on sector challenges. A June 2024 qualitative study of 26 sector and thought leaders across Canada’s charity sector explored the sector’s strategic challenges and the appetite for a national strategic plan. Source: Sector3Insights: Exploring strategic sector challenges and solutions
  • Charities share their views on strategic issues facing the sector. An August 2024 survey of Canadian charities gathered their views on key strategic issues and on new approaches, including a Social Sector Fund. Source: Sector3Insights: Charities share their views on strategic issues facing the sector
  • Sector convening, September 15, 2026. GIV3 hosted 16 thought leaders and representatives of national sector organizations. Participants strongly supported sustained investment in sector capacity and expressed interest in an independent fund. Their clearest point of agreement: the federal government should formally consult the sector on funding, governance and implementation options.

Disclaimer: Sector3Insights and GIV3 collaborate on many shared research studies. GIV3 receives funding from Sector3Insights, which acts as a social enterprise research firm in support of the charity sector. John Hallward is President of both organizations.