New data released on December 5 from Angus Reid Institute finds that 56% of Canadians plan on spending less this Christmas, including cutting back on decorations, entertainment and presents. When it comes to charitable giving, many people plan to cut back on that too:
- 37% of people surveyed report they’ve scaled back charitable giving in recent months
- 50% of survey respondents say they’re financially worse off now than they were this time last year
- 87% are cutting back in spending in some way, despite inflation lessening somewhat
This year, older Canadians (two in five) are more likely to say they’re donating less and cutting back on spending, which is notable since this age group is traditionally more likely to give—and give more—to charities than younger people.
Why This Matters
This inflationary environment is causing a drop in financial optimism and non-profits across the country are experiencing both rising costs and declining donations. In August, CanadaHelps reported that charities with annual revenues of less than $500,000 were experiencing a 41% increase in demand for their services and a 25% decrease in donations.
With one in four Canadians using charitable services in 2022, the need to support non-profit organizations is more important than ever. Charitable organizations must find ways to adapt to these shifting and uncertain economic conditions while still supplying their services.
Educational campaigns targeting donors will be an important aspect of fundraising moving forward, strengthening conversations around the value of donations and why supporting an organization’s work is vital.
Consider how you’re educating your donors about the value of your organization’s work, and if you need to refresh any of your messaging. Read more key findings from the Angus Reid Institute’s report.
Photo from Canva.com