Feb. 6: Facing a tough economy, are Canadians getting less generous?

February 6, 2025

Let’s face it – it’s not easy to go through the checkout line at the grocery store these days without having a sharp intake of breath when it’s time to pay. There seems to be less and less money left over after the bills are paid.

Is this impacting Canadians’ ability/desire to support charities? Save with SPP decided to do a little digging.

According to The Financial Post, citing research from the Fraser Institute, Canadians are “turning more stingy” when it comes to charity.

“The number of taxpayers who gave to charitable causes dropped to 17.7 per cent in 2021 — a 20-year low, according to the Fraser Institute’s annual report measuring generosity in Canada,” the newspaper reports. “Charitable giving hit a high in 2004, with 25.4 per cent of tax filers making donations, but gifts to charity have dropped each year since. Twenty-three per cent of taxpayers gave to charity in 2011.”

Not only are fewer people making donations, but those who do are giving less, the article adds.

“People are also donating less money, the study said, with the total amount given dropping to 0.55 per cent of income in 2021 from 0.58 per cent in 2001,” the article continues. Jake Fuss of the Fraser Institute, a co-author of the report, tells the newspaper “the data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need.”

CanadaHelps, an organization that assists charities in gathering charitable donations, also sees a downward trend in charitable giving.

The organization’s Giving Report provides a couple of reasons why people are donating less these days. First, the group says, Canadians aren’t joining as many groups as they once did and are volunteering less.

“Canadians are increasingly disconnected, and their social networks have shrunk; this correlates with lower rates of giving. From 2013 to 2022, the number of Canadians with six or more close friends has declined by 40 per cent (from 37 per cent to 22 per cent), and those who feel a very strong sense of belonging to their community have dropped by 12 percentage points. More than 80 per cent (84 per cent) of those with many close friends donate, while just over half (53 per cent) of those with very few close friends donate,” an article on the CanadaHelps website explains.

Similarly, CanadaHelps sees a disconnect between causes we all say we value, and the actual cha-ching coming out of our pockets in the form of donations. An example is the environment, the group says.

“Only 1.5 per cent of donations made through CanadaHelps are directed to environmental charities, despite 32 per cent of Canadians saying climate change or protecting the environment is a top cause for them, and almost half (48 per cent) of Canadians expressing anxiety about climate change on at least somewhat of a regular basis,” the group charges.

So, at a time when “more than half of charities are unable to meet current levels of demand,” fewer of us are donating. The CanadaHelps article concludes by noting that “one in five Canadians was using charitable services to meet essential needs in 2023.”

As an example, reports the CBC, Toronto’s Daily Bread Food Bank saw about 55,000 client visits each month before the pandemic. Since then, the monthly client visits have nearly tripled to 130,000 visits per month. Donations, on the other hand, have not tripled, the article says.

If there’s a takeaway here, it is that times are tough for everyone but are even worse for those of us just scraping by. Consider making more charitable donations – bump up any you might be making, or start doing some, perhaps via automatic withdrawals from your bank account. Alternatively, volunteer some of your time. Every dollar and hour of donated time will help.

Have you got a retirement savings plan in place? If not, take a look at the Saskatchewan Pension Plan, a voluntary defined contribution pension plan open to any Canadian with registered retirement savings plan room. With SPP, you decide how much money to contribute, and we do the rest. Your precious retirement savings dollars are investing in a professionally managed, pooled, low-cost fund. They’ll grow while you work, and when work is done, your retirement income options include getting lifetime monthly annuity payments, or the flexibility of our Variable Benefit option.

Check out SPP today!

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CanadaHelps, CBC, The Financial Post

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