Ripple Effects: Canadian Charities Brace for Political and Economic Shockwaves
When we asked over 1,000 Canadian charities in March 2025 how the U.S. political landscape, following Donald Trump’s return to the presidency, was affecting their work, the responses reflected early concern and baited breathe waiting for an economic downturn (CICP 3.03.06). Within the span of months, Canada has already faced a wave of U.S. tariffs and issued retaliatory measures in response. For many charities, what once felt approaching is now at their doorstep.
This blog revisits those March survey responses in light of today’s escalating tensions. It’s not just a retrospective, but rather a reminder of how geopolitical shifts ripple through the charitable sector.
Top Concerns: Funding Pressures, Programming Challenges, and Cross-Border Disruptions
A striking three-quarters of Canadian charities said the political climate is impacting their work, somewhat (52%) or significantly (22%). The top concerns include financial strain, challenges to service delivery and clients, and cross-border disruptions in supply chains and collaboration.
Among all the responses, financial strain stands out most sharply, with hundreds of charities anticipating significant ripple effects from U.S. tariffs and economic volatility. Many expect fewer donations and reduced corporate giving as inflation, job losses, and donor anxiety take hold. Rising costs of food and materials, supplies for daily operations, and capital projects are forcing charities to rethink budgets. Some noted that “people are holding on to their money,” while others fear funding cuts as governments shift priorities away from the arts or social services. The unpredictability of markets is also affecting major gifts, with nervous investors and fewer dollars to contribute.
Heightened Sense of Anxiety, Polarization, and Isolation
What stood out most was the emotional tone: a pervasive sense of anxiety, polarization, and growing retreat taking hold in the Canadian charitable sector.
Many respondents spoke of “increased anxiety,” “a general sense of insecurity,” and a “rise in distress” that is affecting both clients and team members. Several referenced fears of recession, layoffs, and inflation, warning of economic turmoil and fear-based public responses that could lead to less funding and fewer resources for the sector. Others noted that division and polarization are not only affecting public trust and mental health, but also driving more conservative viewpoints into Canadian politics, threatening inclusion efforts and shifting philanthropic priorities.
- “Everyone is frightened—they just disguise it as worry or disbelief.”
- “Les gens vivent beaucoup plus d’insécurité. Ils sont anxieux et le moral n’est pas là”
Many noted that with the cross-border disruptions in supply chains, they are being forced to find alternative sources for goods that are imported from the US and consider “using only Canadian or non-US services/products”. Others are pausing partnerships, have cancelled tours or decided to no longer travel to conferences in the U.S., while some warned that polarized politics are breaking down trust and community between Canadian and American affiliates.
Charities Thrive Through Solidarity, Not Isolation
In moments of uncertainty, it’s tempting to turn inward. But as Tasha Van Vlack – a Canadian charity strategist – notes, isolation isn’t the answer. Her suggestion to “build strength and solidarity without losing our footing” with thoughtful points offers a meaningful path forward. Canadian charities can invest in local leadership and resilience while remaining open to cross-border dialogue. This is because challenges like polarization, economic strain, and the erosion of democratic values aren’t confined by geography, and neither are the solutions. Amid rising tensions, our sector’s strength will lie not in retreat, but in connection.
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