Can We Continue to Operate? Exploring Long-term Sustainability of the Charitable Sector
As charities strive to navigate uncertain financial landscapes and adapt to changing societal needs, many face challenges such as securing consistent funding, managing an aging donor base, recruiting and retaining staff, and dealing with volunteer fatigue. The fluctuating economic environment and shifting government priorities add to the pressure on these organizations to diversify revenue streams and find innovative ways to maintain their operations. Amidst these obstacles, there are some charities that have found stability and resilience. Here I will delve into the findings of the CICP survey on Long-Term Sustainability from September 2023 to understand the key factors driving concerns about sustainability in the charitable sector and why some organizations remain hopeful about their future.
Survey Insights: What’s Fueling Concerns About Sustainability?
Among the 362 survey participants who responded when we asked if they were concerned about the sustainability of their charity, 252 expressed concerns about immediate or future sustainability, while 110 stated they were not worried. The primary issues driving concerns centered around funding and financial sustainability (112 responses), staff retention and recruitment (42 responses), volunteer and board member retention and recruitment (39 responses), rising inflation and high prices (33 responses), and a dwindling donor bases or donations (27 responses).
Many charitable organizations shared how they are grappling with financial uncertainty and their quest for stable funding. Some participants noted that shifts in government priorities and policies could impact funding availability and focus on certain sectors. For instance, one participant mentioned : “We are 90% dependent on government funding, we have little control over our operating budget from year to year especially when government priorities/party control change.” An aging donor base also raises concerns for some charities, who worry about the volatility of funding sources and the need to diversify their revenue streams.
Volunteer fatigue is another concern raised by survey participants, particularly as organizations struggle to recruit and retain volunteers. One participant stated : “we are a volunteer driven organization and with a rapid decline in volunteers and inability to recruit new volunteers, it threatens the viability of the organization.” Some shared how an aging population further complicates volunteer availability, posing challenges for charities that rely on this support.
Staff retention is also a critical issue, as charities expressed how they struggle to offer competitive salaries and benefits that keep up with rising costs of living: “Costs are increasing, and staff can’t afford to live on the salaries we provide. We currently have trouble finding staff to work at the wages we offer. Staffing will become a serious issue in the next few years.” Leadership transitions and succession planning are particularly concerning for organizations with long-standing staff members or founders nearing retirement.
Inflation and rising operational costs, such as wages, utilities, and materials, also add to the strain on organizations. Increasing cost of living were mentioned by some charities as contributing to an increased demand for their services. As one participant states, “we have more and more requests for help, and we risk running out of financial and food resources.” Some survey participants also discussed burnout among staff and volunteers due to high workloads and limited resources.
How does Concern over sustainability Differ by Location, Size or Age of Organization?
Concerns over sustainability were common among charities of varying ages, sizes, and locations. However, the data we have collected here can only demonstrate the widespread extent of this issue, more information is needed to understand the varied needs of charities to respond to threats to long-term sustainability.
| Location | Large Location Pop Center | Medium Pop Center | Small Pop Center | Rural Area |
|---|---|---|---|---|
| Yes, or somewhat concerned | 153 | 23 | 31 | 42 |
| Not concerned | 66 | 12 | 16 | 16 |
| Years of Operation | 1-15 years | 16-24 years | 25-32 years | 33-41 years | 42+ years |
| Yes, or somewhat concerned | 35 | 26 | 28 | 69 | 91 |
| Not concerned | 9 | 12 | 23 | 26 | 40 |
| Annual Expenditures | $1-$11661 | $11662-$61529 | $61530-$229133 | $229134-$791421 | $791422-$4690000000 |
| Yes, or somewhat concerned | 9 | 18 | 53 | 73 | 96 |
| Not concerned | 4 | 4 | 28 | 29 | 45 |
Why Are Some Charities Not Concerned About Sustainability?
Despite the challenges raised by many participants, approximately one third of those who provided comments in our survey expressed confidence in their organizations’ long-term sustainability. These organizations cited strong financial health, diversified funding sources, and solid community support as reasons for their optimism.
Many of these organizations have been in operation for decades, with some even surpassing a century of service. This longevity provides a sense of stability and resilience in the face of changing circumstances. For example, one organization noted: “We have served our community for 150 years… we are here for the long haul.”
Some charities also serve specific or unique needs within their communities, ensuring consistent demand for their services. As one organization mentioned: “We are the only one of our kind in our immediate area and specialize in specifically that area. At this point I’m not concerned with the long-term sustainability.” Another stated: “Our hospital provides services that are not duplicated at another facility in our community, and there is a great need for us to continue to care for these patients/clients.”
Others are actively planning for the future, diversifying revenue streams, and strengthening relationships with donors and funding sources. One charity highlighted this approach by stating: “We are proactively addressing issues that impact our long-term sustainability. We are working hard to diversify our revenue sources. Our community support remains strong and healthy as we continue to build new partnerships and acknowledge existing ones.”
Overall, while some organizations are confident about their sustainability, many others express concerns about financial challenges, the availability of volunteers and staff, and the broader societal and demographic changes impacting their work. Organizations are aware of the need to adapt and strategize to maintain sustainability in an evolving landscape. This year we continue to survey charities and are delving into many of the issues raised here in regard to long-term sustainability. Make sure to check out our weekly survey reports as more information becomes available!
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Note: Some participant responses have been translated from French to English
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