Stable on Paper, Strained in Practice: The Workforce Crisis in Canadian Charities

December 1, 2025

Time to read: 5 minutes

The Charity Insights Canada Project has been conducting weekly surveys of Canadian charities to gain insight into the operational realities they face. One of the clearest patterns to emerge from our 2024 data is: financially stable charities tend to offer better workforce conditions and higher salaries. But that’s only part of the story. Even in the best-case scenarios, many charities with a firm financial footing and no concerns about long-term sustainability still rely on unpaid overtime and face increasing mental health challenges for personnel.

In this analysis, we cross-compare data related to financial stability, long-term sustainability, salaries, unpaid overtime, and mental health challenges of staff and volunteers gathered across 2024.

Comparison of Very Stable and Unstable Charities

Among charities that describe themselves as “very financially stable,” nearly half (47%) rely on unpaid overtime. Executive-level staff in these organizations average almost 24 unpaid overtime hours per month, while entry-level staff contribute over nine unpaid hours monthly. Not surprisingly, more than 60% report increasing mental health challenges among staff and volunteers.

The reliance on unpaid labour is even more severe in less stable organizations. Among charities that describe themselves as “very financially unstable,” 72% rely on unpaid overtime. Specifically, executive-level staff provide, on average, 63 hours of unpaid overtime per month, while entry-level staff provide 20 hours of unpaid overtime per month. Not surprisingly, nearly 89% of personnel report rising mental health concerns.

Although salaries are somewhat higher among very financially stable organizations, entry-level positions still only average $46,697, and executive-level average $79,724. Imagine Canada reports that average salaries across the nonprofit sector are 13% lower than the average salaries in the economy. When the number of unpaid overtime hours are taken into account, many of these salaries are based on more than full-time hours as stipulated in provincial labour codes.

Average Full-time Salaries:

Financial Stability	Entry-level positions ($)	Mid-level positions ($)	Executive-level positions ($)
Very stable	46697	56566	79724
Stable, but with some concerns	42153	53152	73593
Neutral	41574	52610	68422
Somewhat unstable	42175	53612	69392
Very unstable	42209	47459	63413

(Responses less than $20,000 removed from analysis, as these likely reflected seasonal full-time positions)

The contrast in these salaries underscores a troubling reality: financial instability exacerbates workforce strain, but financial stability at an organization doesn’t guarantee fair working conditions.

Sustainability Must Include People

In the nonprofit sector, sustainability encompasses achieving both financial stability and a charity’s ability to fulfill its mission. But healthy sustainability also includes equitable and safe working conditions for staff and volunteers. A charity that achieves financial stability by relying on underpaid and overworked staff and unpaid overtime is not truly sustainable. These charities are surviving at the expense of their workforce.

As with the financial stability data, our data on long-term sustainability concerns shows that the charities that rate themselves as “not concerned” tend to provide higher salaries than those who are “highly concerned” about their stability – but workforce challenges persist, nonetheless.

Average Full-time Salaries

Sustainability Concerns	Entry-level positions ($)	Mid-level positions ($)	Executive-level positions ($)
Yes, highly concerned	39844	50539	65768
Yes, moderately concerned	42070	52223	69944
Yes, minimally concerned	43482	54415	75164
No, not concerned	44710	54263	77570

(Responses less than $20,000 removed from analysis, as these likely reflected seasonal full-time positions)

Among charities that are not concerned about stability, more than half still report unpaid overtime of staff. Entry-level positions provide 12 hours of overtime work on average per month, and executive-level positions provide 32 hours. Nearly 73% of these charities have seen increased mental health challenges among staff and volunteers.

Our findings raise a critical question: If financial stability and confidence in long-term sustainability don’t guarantee fair compensation and healthy working conditions, what else is at play?

Work Culture and Cost-Cutting Myths

The answer may lie in the culture of the charitable sector itself. There is a long-standing belief, often unspoken but deeply ingrained, that work in this sector is a calling rather than a career. That it is a ‘labour of love’ and should be driven by passion, not pay. This dated and gendered mindset can have harmful consequences.

The keep “overhead” costs low narrative has led to a reluctance to offer competitive wages. Donors want to see their money go directly to “the cause,” not to the people doing the work. But this is a false dichotomy – there is no delivery of charitable programs and services without the highly-skilled workers in the sector.

It’s Time to Shift the Narrative to Decent Work

Financial stability and sustainability should be a platform for improving, not just maintaining, working conditions. Charities can use this data to advocate for funding that supports decent wages and benefits and to reform how they build their budgets. Funders and donors must recognize that investing in people is investing in impact. And as a sector, we must challenge the workplace cultural norms that devalue labour and normalize burnout.

For more information on decent work policies in the nonprofit sector, check out The Ontario Nonprofit Network’s Decent Work Movement.

Note: In all cross-comparison analysis above, ‘N/A’ and ‘Not Sure’ responses are excluded

Author

McWhinney, Tara

Postdoctoral Fellow
Email Tara

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