Particularly this time of year, the spirit of giving is a warm’n’fuzzy good feeling. Unfortunately, for the rest of the year in Edmonton and throughout the country, philanthropy trends and numbers tell a different story; not altogether gloom and doom, but a cautionary tale.
According to the recent report from CanadaHelps – the trusted and respected Canadian fundraising technology organization which informs, inspires, connects donors and charities and democratizes access to effective technology for the charitable sector – for 11 in a row, the number of Canadians making charitable donations has declined.
The flip-side caution is that the number of people seeking help from charities has soared. The detailed stats show that one in five Canadians were using charitable services to meet essential and basic needs.
A myriad of issues, including the economy, financial strain and the growing generational divide, are putting a squeeze on Canadians’ generosity and creating “a giving gap.”
Particularly for Edmonton-based charities, there is also a new regional whammy of competition for charity funding. In October, Alberta’s gaming, liquor and cannabis regulator allowed the Camrose Casino to move from Camrose, 70 kilometres southeast of Edmonton, to a site at 420 Parsons Road S.W. Many Edmonton-based not-for-profit groups still share concerns that moving the casino will affect the pooling system for charitable gaming, which is a significant source of funds for local organizations.
In Edmonton, for solid and respected charities and non-profits like Edmonton’s Food Bank and STARS (Shock Trauma Air Rescue Service), the trend is very real and a challenge.
Food banks are a commonly cited example of feeling the philanthropy pinch. The recent Food Banks Canada Report tracked that poverty rates in Canada have increased by 55 per cent, with nearly 10 per cent of people living below the poverty line.
Almost a quarter of all Canadians experience some degree of food insecurity. This year, Canada’s overall food insecurity rate was 22.9 per cent, and the report says more than 4 per cent of Canadians felt worse off in 2024 than they did last year.
Food Banks Canada stats cite reasons like rapid population growth without the necessary social infrastructure, high interest rates to combat inflation, a lack of affordable housing, the end of CERB and a rise in unemployment. These are all reasons why, nationally, food banks saw a 30 per cent increase in demand last year.
In Edmonton, corporate and private donor food bank support is critical.
“Edmonton’s Food Bank is serving, on average each month, 40,685 people with hampers,” explains Marjorie Bencz, executive director. “In 2019, this number was 21,386, and hamper programs are only one of the services that we provide.”
She points out that, contrary to some assumptions, the Food Bank does not get funding from any level of government.
“We rely on donations of time from our volunteers and food and funds from Edmonton individuals, groups, businesses and the community to do our work.”
Inflation and the overall cost of living continue to squeeze the most philanthropic of Edmontonians. Yet, Bencz is positive and upbeat about Edmonton giving.
“Our donors are telling us that funds are tighter. Food prices. Housing. But we are grateful,” she says. “Donors are also seeing their cost of living going up, but they realize the need and they are helping as best they can. Many people are donating more hours in volunteering with us. Donors want to make a direct impact in their community.”
Bencz is candid about the need and the trends of giving, “We are worried about not getting the donations in to allow us to do what we need to do. The bottom line truth of the situation is that we would like to see fewer Edmontonians needing our food services.”
STARS is another high profile and unique not-for-profit charity. The Canadian helicopter air ambulance organization is funded by individual donors, service groups, corporate donors and government contributions.
While the need for the group’s services continues in the Edmonton region and the central and northern Alberta areas, the STARS approach and strategy about fundraising and support is changing.
“Our fiscal year 2023/24 was a busy one,” explains Jeri-Lynn Johnston, vice president of STARS. “We flew nearly 4,000 missions, including 1,720 from our bases in Alberta, while our STARS Emergency Link Centre handled over 37,000 emergency requests.”
She points out that Edmonton and the Capital Region have always been very important to STARS. The Edmonton base first opened in 1991 and since then, STARS has flown thousands of lifesaving missions in Central and Northern Alberta.
“We are fortunate. Individual and corporate donors understand the importance to their communities and are steadfast in their support. The need for our services continues to grow and we needed to adjust our funding approach. We operate on a blended funding model that includes support from government as well as our generous corporate and individual donors. Their support is essential and makes us possible.”
Philanthropy and donors are critically important for the organization. Johnston notes that each STARS base costs approximately $11.4 million per year to operate, about half of which is covered through corporate and community fundraising efforts, including the iconic STARS Lottery.
Public and corporate attitudes about philanthropy may be getting redefined, but she notes that, “One of the most notable shifts over the last five years was the effect of COVID-19 and how it required us to adapt our fundraising model to include more online and peer-to-peer fundraising in the early days of the pandemic.”
She continues, “Because STARS also saw an increased demand, particularly during COVID, we were able to maintain and grow our donor support during that challenging time. While we have returned to in-person fundraising activities and events, some of the adaptations from the pandemic have remained as we monitor emerging trends and position ourselves in the ever-changing landscape of fundraising.”
While many charities and not-for-profits share concerns about attitudes to philanthropy and the alleged “giving gap,” seasoned fundraising professionals and organizations urge considering a generational shift in philanthropy and fundraising.
Younger generations are entering a world of profound crises—from climate change, economic instability, inflation, a housing crunch and maneuvering the high cost of living. A 2023 Gallup poll cited Gen-Z’s general distrust of institutions and the need for the philanthropic sector to prove to younger generations why giving matters, especially at the local, community level. It’s why many charities now embrace technology as a key factor for fundraising.
New trending also shows that the next generation of charitable giving prioritizes a desire to be more involved in social and environmental causes and by a focus on effectiveness and impact, like volunteering. Younger donors are more likely to volunteer, fundraise and mentor than just donate money.
Online engagement matters. Millennials are highly engaged online and use social media to discuss non-profits and volunteer opportunities.
Not that relying on traditional fundraising like food drives, clothing and toy drives, raffles, fun walks and car washes are not potent and community-special ways to raise funds, but technology is now a warp-speed booster for a charity’s outreach and fundraising.
