Mental Health in the Charitable Sector: A Growing Concern
Charitable organizations drive meaningful change in their communities, but behind the scenes, the people powering these vital efforts are facing an alarming mental health crisis.
The State of Mental Health in the Charitable Sector
A 2024 YMCA Workwell report found that 58% of nonprofit employees and 71% of nonprofit leaders are experiencing burnout. One in five nonprofit employees is considering leaving their position, with 41% citing burnout as the primary reason. These findings are echoed in a February 2024 Charity Insights Canada Project (CICP) survey, which revealed that 76% of charities have seen a rise in mental health challenges among their staff and volunteers.
In response, many charities are taking action – 57% have increased investments in mental health initiatives over the past year, a number that climbs to 66% among organizations reporting worsening mental health trends (CICP survey no. 2.02.03). However, mental health initiatives alone aren’t enough. Worker mental health is shaped by a complex mix of factors inside and outside the workplace. To create lasting change, charities must also address working conditions, workload levels and financial stability – critical factors in preventing staff burnout before it begins.
Workplace Conditions, Pay, and Caregiving: Key Factors Affecting Mental Health
Research from Telus Health highlights that employees fare better when they have comprehensive employee benefits, equitable pay, professional growth opportunities, and a supportive work environment. Yet, more than half of employer-funded benefits in Canada fail to meet employees’ needs. Gender equity also plays a major role. The Telus report found that when women feel they are paid equitably compared to men, their mental health scores are four points higher than the national average. Caregiving responsibilities further intensify mental health challenges. Women are 70% more likely to be primary caregivers, and employees who are primary caregivers report mental health scores seven points lower than those without. This is particularly relevant to the charitable sector, where women represent most of the workforce.
Charities Facing Staffing, Service, and Funding Struggles Report Worse Mental Health Outcomes
Findings from the CICP research also demonstrate the need for a systemic, multifaceted approach to addressing the mental health challenges of charitable sector workers. A cross comparison of data on mental health challenges with other survey data shows that organizations facing high employee turnover, excessive service demand, or financial instability are more likely to experience increased mental health challenges among staff and volunteers.
The Link Between Staff Turnover and Mental Health
In July 2024, the CICP asked charities to estimate their employee turnover for the previous year:
- 84% of charities with high turnover (more than 20%) reported increased mental health challenges.
- 83% of charities with low turnover also reported an increase.
- 63% of charities with no turnover still experienced an increase.
While mental health challenges are widespread across the sector, organizations with less stable staffing situations are particularly vulnerable.
Balancing Demand and Capacity: Workload Matters for Well-Being
In May 2024, the CICP asked charities how their capacity to provide programs and services compared to demand:
- When demand for services is lower than capacity, 53% of charities reported increased mental health challenges.
- When demand matches capacity, 69% reported an increase.
- When demand exceeds capacity, 79% reported an increase.
Although most charities are struggling to meet the growing demand for services, these findings underscore the importance of balancing service capacity with demand to prevent excessive workloads and improve the well-being of staff and volunteers.
Financial Stability Affects Employee Well-Being
In August 2024, the CICP asked charities to rate their financial stability:
- 60% of very financially stable charities reported increased mental health challenges.
- 89% of very financially unstable charities reported increased challenges.
These findings highlight the need for sustainable funding to ensure that charities can promote healthier work environments and provide greater support for their employees.
The Majority of Charities Offer Mental Health Supports
Despite the challenges charities face, many are taking steps to support the mental health of their staff and volunteers. The CICP’s mental health survey found that most organizations offer some form of mental health support. Encouragingly, only 4% of organizations reported not offering any mental health supports. However, the findings also reveal that lower-cost interventions, such as flexible work arrangements (72%) and harassment policies (57%), are significantly more common than higher-cost supports like therapy services (21%) or specialized training programs (23%). This suggests that financial constraints may play a role in a charity’s ability to provide more comprehensive mental health resources.
Addressing Mental Health in the Charitable Sector Requires Broad Investment and Collaboration
Solving the mental health crisis in the charitable sector requires a multi-faceted approach that addresses both immediate needs and systemic challenges. The mental health crisis in the charitable sector not only poses a serious risk to the well-being of its workers but also to the sustainability of the sector itself. Investing in workers also means investing in the quality of programs and services delivered across the charitable sector. Now is the time to take action.
Author
Note: Analysis of CICP survey data for this blog excludes ‘N/A’ and ‘Not sure’ responses
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