Unpaid Labor in Canada’s Charitable Sector: Shedding Light on Hidden Realities

For two years, a small team from Carleton University’s Charity Insights Canada Project (CICP) has been reaching out to a randomly selected group of registered charities from across Canada to invite them to become panel members for our survey research on the sector. One of the unique aspects of this outreach work is that it provides us with an opportunity to learn more about who makes up the charitable sector in this country, and, at times, it also offers a glimpse into the day-to-day working realities within these organizations. Often, when charities decline our invitation, they cite being short-staffed or short on time, expressing concerns about overburdening their already busy employees. Our survey results shed further light on this issue.

For example, in July 2023, the CICP’s survey on service demand and delivery indicated that a majority of responding charities were dealing with an increased demand for their services. This trend has continued into 2024. In January, we asked charities about the impacts of inflation on their organizations, and our survey found that 50% of responding charities have experienced either an “increase” or “major increase” in the demand for their services while 63% of these same charities are dealing with either an “increase” or “major increase” in the costs associated with providing their services/activities. When charities were asked which areas of their organization have been affected by inflation rates, “salaries” was the most frequently selected option.

In the midst of these persisting pressures to do more with less, we asked charities in March 2024 if any of their paid staff provide uncompensated, over-time labour (work without payment or time-in-lieu). 53% of responding charities said yes. Among those who said ‘yes’, these charities, on average, estimate that entry-level staff provide 7 hours per month of uncompensated labour, mid-level staff provide 15 hours per month of uncompensated labour and executive/senior level staff provide, on average, 35 hours per month of uncompensated labour.

Let’s take a quick look at one of these cases. An executive full-time position in a charity, on average, pays $69,918 a year according to our survey in March 2024. By the numbers reported above, some executive level staff are working around 60 extra days per year…60 extra days that are largely invisible to the general public when we read data about salaries and benefits in the charitable sector. These 60 additional days mean that a salary of $69,918 is effectively compensating 14 months’ worth of work, not 12, putting corrected monthly wages at $4,994 rather than $5,826. When asked about steps taken to address uncompensated labor, many charities mentioned initiatives such as promoting work-life balance and exploring ways to increase compensation. However, some cited financial constraints and the expectation of unpaid work at certain levels.

“We have created “rest weeks” and staff initiatives to promote slowing down and not creating the pressure to get work done. Stronger enforcement of practice of everyone leaving at 5pm, no evening or weekend emails. Biggest piece is realistic goals and action plans.”
“Yes. We are looking at ways to increase compensation to cover the extra work our paid staff do.”
“yes for the entry and mid – not for the executive level – it is expected”.

Other charities highlighted the challenges they face in making changes to this reality:

“Yes, but we cannot afford true, fair compensation for hours worked”.
“Unfortunately, we cannot, the job is big, the funds are not”.
“No one else to do the work”.

These findings are part of a larger conversation about decent work in the sector and beg the question: how sustainable is this way of working for charities? The Ontario Nonprofit Network (ONN) and Imagine Canada have previously conducted research on working conditions and recommended actions for improvement. In 2024, issues such as staff burnout, wellness, recruitment, retention, and affordability challenges remain top concerns for sector leaders, as highlighted by The Philanthropist Journal. The persistent issue of unpaid labor in the sector also reflects broader gendered narratives and stereotypes about charitable work.

While the prevalence of uncompensated labor may not come as a surprise given these challenges, acknowledging, and addressing it are vital steps in ensuring fair and sustainable working conditions in Canada’s charitable sector.