In uncertain economic times, nonprofits are feeling the strain of rising costs and increasing demands on resources. Being aware of how donor decisions may change in this economic climate will help organizations find new ways to adapt to today’s realities.
In partnership with Leger, in the annual Grow Together 2023 Report, Sage Canada provides valuable insights on how donor behaviours are changing and what effect this may have on Canadian nonprofits. The report offers strategic guidance on how supporters may interact differently with nonprofits in times of financial uncertainty and what measures will encourage deeper and more generous engagement.
The report surveyed over 1,000 donors and volunteers to understand their re-evaluation of commitments due to the uncertain financial outlook, finding that Canadians remain enthusiastic about charitable causes but are becoming more selective with their support.
This research offers strategic guidance to help nonprofit communities make informed decisions that will secure their success in the new era of giving.
Key findings
Canadian donors and volunteers are reassessing how they support charities considering personal and familial financial concerns. 63% of Canadian donors and volunteers are concerned about theirs or their family’s financial health. Due to the economic uncertainty, and 39% of Canadians will stop or decrease contributions to charitable causes.
Despite economic worries, Canadians are still dedicated to charitable giving, but with an alternate strategy. Consequently, 69% plan to support causes by buying from brands that donate portions of their sales, while 60% will advocate through petition-signing.
Technology and efficiency influences donor decisions. The majority, 86%, are more likely to donate if they know the charity operates efficiently. Additionally, 72% of supporters believe that charities utilizing available technologies are more efficient.
Canadians are more likely to support a cause that has an impact on their community. 50% of respondents say they donate or volunteer because the cause is important to their city and/or community.
Nonprofits and charities should consider revising engagement strategies with individuals and brands. 78% of respondents state they are more likely to donate if they witness or experience the impact of their donations.
Canadians expect more from corporate industries and governments, with 63% believing businesses should do more, and 57% expecting the same of the government.
“Canadians are expecting businesses to step up,” says Mark Hickman, Managing Director of Sage Canada. “Demands on food, shelter, and healthcare are only the tip of the iceberg of the burgeoning needs that many communities face. Nonprofits and charities are working hard to meet increased demands. We, as corporate leaders, have a responsibility to support them, not only financially, but in innovative ways as strategic partners.”
In Canada, the value of supporting nonprofits has never been more important. To achieve this vision, the report says Canadians expect businesses and brands to collaborate and create fresh and innovative methods of support. Additionally, there is a growing demand for technology to be used efficiently to enhance the effectiveness of nonprofit efforts. As a result, it is crucial that businesses and organizations adapt and seek ways to support the causes that matter most to their following.
Download the full Grow Together Research Report.
