AFP Testifies Before Canada Senate Committee on the Charitable Sector
September 19, 2018
Scott Decksheimer, CFRE, chair of the AFP Canada Board, and Andrea McManus, CFRE, past chair of AFP International, appeared before the Senate Special Committee on the Charitable Sector on Monday, Sept. 17, to discuss ways to increase giving and public awareness about philanthropy.
The Special Senate Committee on the Charitable Sector was established in January 2018 to examine the impact of federal, provincial, and territorial laws and policies governing charities and their effect on the charitable sector in Canada.
Committee members, led by Senator Terry Mercer (Lib., Nova Scotia – Northend Halifax), will study how Canada can improve the regulation of charities and nonprofit organizations, and help them overcome challenges that include, among others, funding gaps, staff and volunteer retention challenges and changing demographics and technologies, through innovation and other best practices, among other important themes.
In their comments, Decksheimer and McManus called on government to work together with the sector to “encourage more people to engage and give, and that means providing additional options to give, and to educate them about the importance of giving.”
Noting that Imagine Canada was forecasting a deficit in charitable sector funding of $25 billion by 2026, AFP urged committee members to look at fundraising in helping to fill that gap. Several proposals and ideas were proposed, including:
- an exemption of the capital gains tax on gifts of real estate and private company shares;
- ensuring the federal charitable donation tax credit rate remains stable and in place, allowing Canadians to plan their giving and estates; and
- reviewing the rules on allowing charities to increase financing through expanded business activities or other new mechanisms to raise capital.
Equally important is the government’s approach, tone and visible and audible support of fundraising and the charitable sector. “When that support is lacking,” said Decksheimer, “donors withdraw, or change giving habits, which destabilizes care and support for issues important to Canadians.”
McManus pointed out the Canada is the only country in the world that officially recognizes National Philanthropy Day, which sends a strong message to charities and the public. She suggested the government send an even stronger message to the sector by designation a federal department—the Ministry of Innovation, Science and Economic Development—to have economic policy responsibility for charities and nonprofits to recognize the value of this sector beyond the tax regulation of Canada Revenue Agency.
In response to questions from the Committee, Decksheimer and McManus also addressed the regulatory scheme under the Canada Revenue Agency, different types of giving incentives, building public trust in the sector and learning from diverse philanthropic cultures and bringing in new ideas into the Canadian philanthropic landscape.
Also appearing before the Committee was Krishan Mehta, Ph.D., CFRE, president of the Greater Toronto Chapter, who was representing himself and discussed the importance of immigrants to Canadian philanthropy. “Successive waves of mass migration over the last 170 years have made Canada one of the most diverse countries in the world, as we all know,” said Mehta. “For immigrant philanthropists, this provides new opportunities to sit at the head table of various institutions — tables where they may have been excluded or that were reserved for majority populations. In essence, diaspora philanthropy — immigrant philanthropy — supports the reframing of the immigrant from beneficiary to benefactor, and supports a broader narrative about Canada as a land of great, incredible opportunity.”
What Canadian Donors Want 2018: More Canadians Giving, And in Different Ways, to Charity
Contact: Michael Nilsen, Vice President, Communications and Public Policy | (425) 241-4675 | firstname.lastname@example.org
Presentation, Fact Sheets & Webinar Recording – What Canadian Donors Want 2018:
- Presentation: What Canadian Donors Want (March 1)
- What Canadian Donors Want Fact Sheet: Changing Giving Habits
- What Canadian Donors Want Fact Sheet: Donor Confidence and Charity Management
- What Canadian Donors Want Fact Sheet: General Social Media Use
- What Canadian Donors Want Fact Sheet: Giving and Volunteer Levels and Behavior
- What Canadian Donors Want Fact Sheet: How and Why Canadians Give
- What Canadian Donors Want Fact Sheet: How the Sector Should Be Funded
- What Canadian Donors Want Fact Sheet: Segmentation
- What Canadian Donors Want: Webinar Recording
Seven in ten Canadians have given to charity over the past year, and almost half of donors are open to different sorts of giving approaches than just the traditional solicitation letter, according to the 2018 What Canadian Donors Want Survey, conducted by the Association of Fundraising Professionals (AFP) Foundation for Philanthropy – Canada in partnership with Ipsos.
The survey, which featured 1,500 Canadians age 18 or older, found that the percentage of people giving to charity in 2017 jumped by four points from the 2015 survey, returning to previous giving levels. Even as more Canadians are giving, they are giving less—an average of $772 in 2017 compared to average giving levels of $924 in 2015 and $726 in 2013.
Eighty percent of donors give to more than one cause, with 23 percent giving to 4-5 charities and 13 percent supporting 6 or more causes. The top recipients of donations are social services and health charities—more Canadians (59% and 57%) gave to those causes than any other.
Overall, Canadians are more confident in the charitable sector than ever before, with nearly eight in ten respondents (78%) saying they’re confident in the organizations that comprise the charitable sector. That figure represents a five-point increase from 2015 and is significantly higher than confidence in the private sector (67%) or the public sector (60%).
“Overall, the survey shows a Canadian population that is very supportive of the work of the country’s charities and a good understanding of how charities work to support communities,” said Roger Ali, CFRE, chair of the AFP Foundation for Philanthropy – Canada. “However, there are signs that donors are changing how they want to give and interact with charities, and the sector needs to understand and adapt to these changes so that we remain relevant to the people who support us and the people we serve.”
Changes in Volunteering, Giving Behavior
One troubling sign is a drop in volunteerism rates. According to the survey, one-third of Canadians volunteered their time to a charity or non-profit in the past 12 months and spent an average of 88 hours—down precipitously from 110 hours in 2015. “We’ll be watching this closely in our next survey to see if this is a one-time drop or a trend,” Ali added.
Canadians continue to change in how they want to be approached for donations. While 44% express a preference for traditional requests, such as mail, one quarter prefer a more personal approach like peer-to-peer contact or crowdfunding. Three in ten (31%) say they’re open to anything, having no specific preference.
Fundraising preferences vary significantly by age. Baby Boomers (54%) are the most likely to prefer being solicited through traditional requests, compared to Gen X’ers (43%) or Millennials (33%). By contrast, Millennials (17%) lead the way on crowdfunding, preferring this option to a greater extent than their Gen X (11%) or Boomer (5%) counterparts.
Perceptions of Charity Roles, Performance
Many underlying views on charities have remained relatively stable over time. Three-quarters of Canadians continue to agree that charities play an important role in society to address the needs not being met by the government, the public sector or the private sector. Majorities also believe that charities are trustworthy (61%) and act responsibly with the donations they receive (63%).
Canadians are more divided on how much charities spend on their programs and services vs. how much they spend on supplies, administration, salaries and fundraising. A growing majority (58%, up six percentage points from 2015) trust charities on how much they say they spend money on programs and overhead.
However, about a third of Canadians (34%, down 4 points) are less trusting, indicating that charities overstate how much they spend on the cause or programs (24%), or that charities are being intentionally misleading (10%). Yet, when presented with factors and asked how important each one is in evaluating a charity’s effectiveness, Canadians placed more emphasis on a charity’s ability to achieve its mission and create impact than managing its operation or its fundraising.
“Donors are looking for charities that create impact to change the world for the better,” said Lorelei Wilkinson, CFRE, chair of the AFP Foundation for Philanthropy – Canada Research Committee. “But it’s always clear that they keep a careful eye on administrative costs and a charity’s operations. The charitable sector needs to do a better job of explaining that overhead costs are essential for growth and sustainability —for things like equitable salaries, updated computer equipment, etc.— as part of being efficient with their use of donor dollars.”
Almost half of Canadians (46%) indicate that they are very likely to give in the next 12 months, while another one-third (34%) are somewhat likely to donate. However, 59% say they are also concerned about the economy, which may force them to reassess their giving plans.
A considerable number of Canadians (42%) proactively seek out information on the cause/charity and contact them to donate, while six in ten (58%) say the charity approaches them and they donate based on the information they receive. When looking for information on charities they support, Canadians continue to rely on online information (75%) as opposed to family, friends or colleagues (39%).
The 2018 What Canadian Donors Want Survey also asked general questions about Canadians’ use of social media.
Similar to 2015, eight in 10 Canadians (81%) have a social media account. This applies across every age group, from 91% of Millennials through to 85% of Gen X’ers and 70% of Baby Boomers. Women (84%) are more likely than men (78%) to maintain at least one social media account.
Facebook dominates the Canadian social media landscape: three in four Canadians (75%) say they have a Facebook account, placing it well ahead of Twitter (29%), Instagram (28%), Reddit (5%) or other social media (13%).
Nearly two in ten Canadians on social media (18%) have donated to a charity in response to a request that came through their social media account. Millennials (23%) and Gen X Canadians (19%) are more likely than Baby Boomers (13%) to have made a charitable donation in response to a social media invitation or post.
“As generations age, we expect that email and social media will continue to become more prevalent in fundraising,” said Mary Bowyer, CFRE, member of the AFP Foundation for Philanthropy – Canada Research Committee. “For now, we’re seeing a blend of different approaches, and the most successful charities will be those who personalize their appeals based on what individual donors want, meaning a mix of mail, email, videos, Tweets and other communications.”
About the Survey
The 2018 What Canadian Donors Want Survey was based on a poll conducted between October 10 and October 17, 2017, on behalf of the AFP Foundation for Philanthropy – Canada. For this survey, a sample of 1,500 Canadians aged 18+ was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe.
The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.