The changing landscape of Canadian giving
What is driving the shift?
January and February are known as the winter famine for charities. As the spirit of Christmas generosity slips into hibernation under the mounting bills from Christmas spending, most Christian charities tighten their belts and pray God helps them stretch what they have.
A recent article in The Globe and Mail reports that Canadians are increasingly skeptical of how charities fundraise and use donations. The landscape of giving in Canada is changing and while the recession carries some responsibility, other factors also weigh in.
“There is an increased level of scrutiny across the board for a clear understanding of what you’re trying to accomplish and how you measure it,” says Jeff Groenewald, president of Opportunity International Canada. “Measurable outcomes are more important than ever in the past.”
Groenewald says a desire to give “wisely” to organizations that will make every dollar count is replacing old mindsets that focus more on the responsibility to give, rather than being concerned with the result. He believes organizations that clearly communicate to their potential donors what they want to accomplish, how they will do it and why the money is needed will connect with sustainable donor bases.
“The biggest factor affecting giving in the Christian community is competition,” he explains. “There are an incredible number of important, pressing needs in the Church. As time goes by the limited donor funds will flow more to organizations who can clearly spell-out outcomes and results.”
Jonathan Harris agrees. After launching the 9th Hour Theatre Company in 2010, he found that many donors were hesitant to support the organization because it was new, but also because its approach was unique.
“What we are doing is different, so people don’t know if we will be around in a year,” he says. “We are doing theater that isn’t ‘Christian’ and isn’t always done in churches. The challenge is that people sometimes don’t know what we are about. A lot of the donations received in the past were from people who know me personally.”
As 9th Hour grew, Harris says it began building a reputation in the Christian community and their donor base has expanded.
“I think reputation means a lot with regards to charitable giving in our society. You want to put your money towards something that is stable, known and has a reputation. In a world where there are so many big problems, we want to know that [our donations] are doing something.”
Harris believes this perception is especially true among younger generations. In his experience, people in their 30s and younger are concerned about their debt, purchasing property and having financial security—once those issues are dealt with they will think about giving.
Statistics Canada data supports that notion. The average age of Canadian charitable donors has been 53 during the past five years. In 2011, the average annual donation made by Canadian seniors was $2,000, more than four times the average for Canadian donors 24 years old and younger.
The recession compounded the gap dramatically. Although donations from seniors decreased in 2008, by 2010 they were already above pre-recession levels. By 2011, no other demographic had matched their 2007 giving rate. Younger donors actually decreased their giving every year, dropping almost 16 per cent over five years.
Urban Christian Outreach saw these changes first-hand. They work with homeless and marginalized groups in downtown Ottawa and much of their support comes from churches and older donors.
“Our total donations from churches have decreased,” says executive director Jill Wilson. “However, while we at first experienced a decline in individual giving [during the recession], donations from individuals have increased again this year and are now at their highest ever.”
Wilson says many churches are experiencing decreased giving and budget shortfalls. To offset this, she says many are contributing less to outreach and operating at a deficit while struggling to maintain staff salaries.
“I believe it boils down to our hearts. Do we have enough faith to tithe? We are often quick to make decisions based upon our own understanding, rather than waiting on God, listening and obeying.”
Wilson also believes lavish or expensive fundraisers are another issue that impacts giving rates. She feels such events erode donor’s confidence that donations are going towards the cause. Wilson says Urban Christian Outreach felt led not to spend money on fundraising and instead reduced her salary in order to end the year with a balanced budget.
Groenewald says Opportunity International also avoids mass-market fundraising and, like the 9th Hour Theatre Company, receives most of their funding through relationships they’ve developed.
“Almost all of our funds come from people we have gotten to know who share the priority of the work. I think Christians generally have the opinion that it costs too much to fund raise.”
But despite the bleak outlook many charities are facing, Groenewald is not discouraged.
“This is not a day to lose hope. This is a day where creative, entrepreneurial minded people are finding incredible new ways to give and be involved in charitable ventures.”
What's your reason for giving/not giving to Christian charities? Leave us a comment!
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