As the trade war with the United States rages on, it’s not just businesses being impacted.
Non-profits and charities say it could mean a hit to donations while increasing demand for services at the same time.
When Micheline Lepage’s son passed away from cancer nearly ten years ago, she turned to Bereaved Families of Ontario, a charity in Ottawa that she now helps run.
The organization provided vital support during her grief journey, something she credits for helping her through the toughest times.
“I’ve lived it. I’ve been through those programs, so I know how key they are. I would not be where I am today in my grief journey without this organization,” said Lepage.
But as demand for services soars, Lepage worries about the impact of the ongoing U.S. trade war on the charity’s bottom line.
“Be it the small individuals that donate $10 every session they attend or the bigger donors, they’re going to start rethinking where they can save money because the tariffs are impacting them,” Lepage said.
Like many other charities and non-profits, Lepage’s organization depends heavily on donations and government grants, but with fears of a recession growing, funding has become increasingly uncertain — a concern shared by others in the sector.
“People don’t often realize that over 50 per cent of our funding comes from donors, not any level of government, so it could have an impact on us if it’s going to have an impact on the people who are going to make donations,” said Peter Tilley, CEO of the Ottawa Mission.
According to Canada Helps’ latest giving report, 57 per cent of charities are already struggling to meet the growing need, especially as the country faces an affordability crisis.
“This has been a reality since the pandemic for non-profits and charities. If tariffs lead to a significant economic downturn or recession, or if there are widespread job losses, there will be even greater demand for social services,” said Dave Baran, CEO of Charity Village.
The combination of economic uncertainty, rising costs and shrinking donations is creating what experts are calling a “perfect storm” for these organizations.
“We’re hopeful that we’ll see some funding from all levels of government and likely it’s going to happen on the provincial, maybe even on the municipal level,” Baran said.
