Has COVID affected Canadians’ ability to donate to charities?
July 15, 2021
A few years ago – before the pandemic – Global News reported that Canadians were cutting back on charitable giving.
Citing research from the Fraser Institute, Global reported that in 2017 Canadians donated just 0.54 per cent of their income to charity – less than half of what Americans donated (1.25 per cent) in the same timeframe.
Given the severe economic mayhem the pandemic has wrought upon us, Save with SPP wondered if charitable giving has taken an even further plunge.
It sounds like a recovery in charitable giving is underway, states an article posted in the Globe and Mail.
According to the article, authored by the Association of Fundraising Professionals (AFP), “in the 12 months since March 2020 when the pandemic was declared, more than three-quarters of Canadians who had given previously to charity continued their philanthropy and gave larger gifts than in past years.”
And while only 70 per cent of Canadians made charitable donations in 2017, 76 per cent did in 2020, and “the average size of the gifts was much higher – up from $772 in 2017 to $965 in 2020,” the article adds.
The AFP’s chair Susan Storey is quoted as saying “Canada is a phenomenally, uniquely generous nation, and philanthropy, at its core, is about helping others and strengthening communities,” she says. “So, it’s not surprising that for those that could give, they did – and generously.”
The Canada Helps website says that while “year over year” giving grew, the overall rate of giving is expected to decline about 10 per cent due to COVID-19.
This site suggests that our charitable giving is more targeted during tough economic times.
Canada Helps reports that Canadians gave 1.6 per cent of their income to charity; however, the percentage of Canadians who make donations is down from the level of 24 per cent it reached in 2007.
Charities have had to be resourceful during the COVID-19 pandemic, when traditional avenues, such as displays in malls or street corners, weren’t available. Online donations are one solution, and in Ottawa, local branches of the Royal Canadian Legion used a drive-thru approach for last fall’s poppy campaign, reports CTV News.
“I think it’s a great idea. First off you don’t have the older veterans out in the cold and wet, obviously it’s keeping them safe from the people in the stores and malls,” Richard Coney tells CTV, praising the idea of a drive-thru poppy campaign.
Donations to Indigenous Peoples’ Charities – for example are up 2.25 per cent, as are donations to social services charities (up 2.2 per cent) and health charities (1.8 per cent).
If you’re able to help out the charity of your choice – and maybe have had to cut back due to the pandemic’s impact on your finances – consider resuming your contributions now that we are emerging from the darkness of the pandemic. There’s a lot riding on it for a lot of people.
Similarly, if you’d had to cut back on retirement savings during COVID-19, gear back into it as soon as you can. A nice feature of the Saskatchewan Pension Plan for its individual members is that you can gear up your contributions when times are good, and gear down when they aren’t. The flexible SPP – celebrating its 35th year of operations — is open to accepting monthly pre-authorized contributions, or a little bit at a time through the “online bill payment” section of most banks. It takes many small steps to complete a journey, after all!
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.